Marketing Mix PDF

The Marketing Mix Product Refers to the type of product or service being sold. There are 4 types, based on price, time, and quality: 1. Convenience Goods ▪ Items are widely available. ▪ Ca...

The Marketing Mix Product Refers to the type of product or service being sold. There are 4 types, based on price, time, and quality: 1. Convenience Goods ▪ Items are widely available. ▪ Can be purchased frequently with minimal effort. 2. Select Goods ▪ Selection is more selective. ▪ Price, quality, and brand name are considered before purchase. 3. Speciality Goods ▪ Emphasis on brand value. ▪ Decisions are more timely, and consumers are brand-conscious. ▪ High nancial and quality value. 4. Services ▪ Intangible products. ▪ Can be individual services or part of a larger product. Product Lifecycle Has an impact on how the product is marketed. Refers to the length of time from introduction to removal from shelves. Stages: ◦ Development ◦ Introduction ◦ Growth ◦ Maturity ◦ Decline Product Packaging Responsible for: ◦ Protecting the product. ◦ Promotion (appeal). ◦ Branding (identi cation). ◦ Targeting different market segments. Price The monetary value of a product or service that the consumer is prepared to pay. Retailers set prices at a level that remains competitive in the market. Factors Retailers Consider When Deciding on a Price: Snob-attitude: Consumer perception that low price = low quality and high price = high quality. fi fi  Competitors: Price of similar products sold by competitors (competitive pricing). Price Sensitivity: Consumer sensitivity to price changes (necessities have low sensitivity; luxuries have high sensitivity). Availability of Substitute Goods: Other products ful lling the same need. Pricing Strategies: 1. Market Penetration: Selling at a lower price to attract customers, then increasing once established. 2. Leader Pricing: Reducing the price of certain products to attract customers to other offerings. 3. Promotional Pricing: Discounts for special events. 4. Bulk Discount: Lower cost per unit for bulk purchases. 5. Prestige Pricing: Setting high prices to imply exclusivity (snob-value). Place OR Distribution Distribution should be convenient for the consumer in terms of product placement and physical location. Distribution Methods 1. Intensive Distribution ◦ The product is made available at as many retailers as possible. 2. Selective Distribution ◦ The product is available only at a select number of retailers. 3. Exclusive Distribution ◦ The product is sold only at specialized retailers (e.g., designer clothing stores). 4. Franchising ◦ Details on franchising will be discussed later. Promotion Promotion involves communication with consumers, forming part of the communication mix. Quality and Design Products must: ◦ Meet a set standard for quality. ◦ Be unique to stand out. ◦ Be memorable to attract attention. ◦ Be functional and serve the intended purpose. Advertising Branding and slogans should be: ◦ Credible. ◦ Focused on building product identity without mentioning competitors' names (illegal in South Africa). ◦ Budget-conscious to control expenses. fi  ◦ Aligned with the correct advertising medium suited to the target market. Marketing Communication Mix Social Media ◦ Includes advertising, personal sales, publicity, and sales promotion. ◦ Empowers customers and builds a strong customer presence. ◦ Tools include: ▪ Online Sales: Using algorithms for targeted marketing. ▪ Competitions and Giveaways: Enhances engagement. ▪ Content Management: Developing strategies for consistent messaging. Marketing Communication Mix (APPS) This consisted of advertising, personal selling, sales promotion and publicity. 1. Advertising An impersonal message aimed at a large audience. Requirements: Engaging: Captures interest. Credible: Believable and factual. Lasting Impression: Memorable. Action-Oriented: Persuades consumer to act. Relevant: Important to the consumer. Integrated: Linked with other promotions. Branding: Promotes the business’s image. 2. Personal Selling Interaction between the consumer and sales staff. ◦ One-on-One: Direct engagement to respond to consumer needs. 3. Sales Promotion Includes sampling, discounts, and special offers. ◦ Instant appeal can drive impulsive purchases. 4. Publicity Uncontrolled media coverage by the business. ◦ Positive or negative impression based on presentation and staff presence. People Customer Service quality in uences brand perception. ◦ Good customer service is rewarded (e.g., employee of the month). ◦ After-sales service enhances brand loyalty and image. fl  Physical Evidence this is associated with service includes the store's presentation the appearance of the staff (professional?) Physical evidence markets the business by relaying the message to the consumer. Process → the process, is the opperating systems and procedures that must be designed and managed to make the service experience as pleasant as possible fur the customer THIS MAY INCLUDE: (but is not limited to) helpfulness ques (time) assistence customer satisfaction. employees should know WHAT to do, WHEN to do it, and HOW to do it.