Post on 30-Dec-2015
3.4.1 MAKING MARKETING DECISIONS:
USING THE MARKETING MIXAQA Business
3 DECISION MAKING TO IMPROVE MARKETING PERFORMANCE
There are 7 elements of the marketing mix known as the 7Ps of marketing.
Can you work out what they are?
P _ _ _ _ _ _P _ _ _ _P _ _ _ _P _ _ _ _ _ _ _ _P _ _ _ _ _ P _ _ _ _ _ _ P _ _ _ _ _ _ _ / E _ _ _ _ _ _ _ _ _ _
3.4.1 MAKING MARKETING DECISIONS: USING THE MARKETING MIX
In this topic you will learn about
The elements of the marketing mix (7Ps)
The influences on and effects of changes in the elements of the marketing mix
THE MARKETING MIX
The marketing mix is the combination of elements through which a firm achieves its marketing objectives
Marketing Mix – the
7Ps
Product
Promotion
Place
PeopleProcess
Physical evidence
Price
THE MARKETING MIX - PRODUCT
Product is the goods and services that the firm provides
Product will be made up of core features and functions as well as additional aspects that can sway consumer behaviour e.g. brand or guarantees
Goods are physical or tangible products e.g. a car or a television
Services are non physical or intangible e.g. financial consultancy or teaching
Businesses will normally have a range of products in their portfolio
THE MARKETING MIX - PROMOTION
Promotion is the activities designed to communicate with the market thereby increasing visibility and sales of a product
Firms use different promotional strategies to make their products more widely known to other businesses and the general public e.g. branding, advertising, sponsorship
Why will businesses use a range of promotional techniques?
THE MARKETING MIX - PRICE
Price is the amount of money that the customer has to pay to receive the good or service
Firms use different pricing strategies to price their products, taking into account a number of factors such as market research, competitors’ prices and the state of the economy
Prices can also be changed as part of a promotional campaign.
THE MARKETING MIX - PLACE
Place defines both the physical location where a product is available as well as the distribution channel it has travelled through to get from the manufacturer to the customer
Place can be a physical market where buyers and sellers meet face to face or a virtual location i.e. over the internet
Increasingly firms are adopting a multi-channel approach to place
THE MARKETING MIX – PEOPLE, PROCESS AND PHYSICAL ENVIRONMENT
People are the employees involved in dealing with customers before, during and after a sale
Process is the steps a customer goes through to actually complete a transaction
Physical environment is the design and features of the actual place where a transaction takes place
INFLUENCES ON THE MARKETING MIX
The following are companies from 6 different industries:
• Arsenal (or sport club of your choice)• Johnson’s Dry Cleaners• Innocent Smoothies• Harrods• Gregg's• ASOS
For 3 of the companies make a list of the 7Ps prioritising which is the most importantall the way down to which is the least important. Justify your decisions.
Produce an A4 poster for one of the companies to show this information.
INFLUENCES ON THE MARKETING MIX
There a number of factors that might influence the marketing mix for a firm:
The market Industrial markets are where businesses are selling to other
businesses (B2B) The technical specification of the product and service
provided by as sales person or account manager is likely to be more important that the physical environment
Consumer markets are where businesses are selling to the public (B2C) The product and the price may be seen as of equal
importance to the physical environment but more important than place e.g. does it matter what channels the product went through to reach the consumer
INFLUENCES ON THE MARKETING MIX
The nature of the consumer market Convenience products are ones where the ease with which a consumer can get the
product is a key priority Likely to be everyday items such as bread and potatoes Customers may pay a higher price as a result of the convenience e.g. if buying from a
corner shop to save travelling time
Shopping products are ones where the consumer does not rush into the purchase but compares different options weighing up the strengths and weaknesses of each option before reaching a decision Often items that have an element of emotional attachment when buying and
sometimes irrational behaviour e.g. gifts or fashion Customers may be influenced more by the product and the physical environment
than the price
Speciality products are ones that a customer will spend time thinking about and often researching before buying These are likely to be infrequent purchases where the product is viewed as a luxury or
a treat e.g. an expensive item of jewellery or a designer label
INFLUENCES ON THE MARKETING MIX
Market research findings will inform elements of the marketing mix
Target market that the product is aimed at Positioning relative to competitors Internal constraints e.g. budgets, expertise and capacity External influences including the actions of competitors and
the state of the economy
The marketing mix of a business is dynamic i.e. it changes over time. As the influences change the business will have to respond by changing elements of the mix.
What elements of Cadbury’s crème egg marketing mix were changed?What were the factors influencing these changes?Were these changes effective?
3.4.1 MAKING MARKETING DECISIONS: USING THE MARKETING MIX
In this topic you have learnt about
The elements of the marketing mix (7Ps)
The influences on and effects of changes in the elements of the marketing mix