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R. KRISHNAKUMAR, 10A221 R. NIRMAL, 10A228 N. RAJI, 10A235 V. SAI PRASANTH. 10A242 L. SATHIYAMURTHY MANIGANDAN, 10A244 C. SIDDHARTH NARAYANAN, 10A249
Marketing mix
The marketing mix is the combination of variables that a business uses to carry out its marketing strategy and meet customer needs. The marketing mix is often called the 4Ps: Product Price Place Promotion
Product
Product refers to the functions and features of a
good or service Should satisfy the needs of the customer May have a Unique Selling Proposition (USP) Product also includes a range of factors such as packaging, quality, warranties, after-sales service and branding
Product lifecycle
The product lifecycle looks at the sales of a product over time
Extension strategies
Extension strategies should maintain or increase sales. They include: Modifying the product Reducing the price Adding a feature Promoting to a different market sector
Price
The price of a product will depend on: The cost to make it The amount of profit desired Other objectives of the business The price competitors charge The price customers are willing to pay
Is there a high demand? Is demand sensitive to changes in price?
Price taker businesses have to charge the market price. This is often the case where there are many small firms competing against each other.
Penetration
Low price charged initially to penetrate the market and build brand loyalty; price is then increased e.g. introductory offers on magazines.
A similar price is charged to that of competitors products. Products may be sold at a price lower than the cost to produce it. Often used by supermarkets to encourage people into the store where it is hoped they will buy other products. A price is set which customers perceive as lower than it is e.g. Rs. 39.99 instead of Rs. 40.
Psychological
Place
Products should be conveniently available for customers to buy Places include:
Stores Mail order Telesales Internet
The use of e-commerce (promoting and selling on the internet) has grown massively over the last few years
Channels of distribution
Manufacturers Wholesaler Retailer Consumer
Promotion
The aims of promotion are to: Raise awareness Encourage sales Create or change a brand image Maintain market share
Promotion
Above-the-line promotion This uses advertising media over which a firm has no direct control e.g. television, radio and newspapers
Below-the-line promotion This uses promotional media which the firm can control e.g. direct mail, sales promotions and sponsorship
Promotional activities
Advertising e.g. TV, billboards and internet. Sales promotions e.g. Loyalty cards, BOGOF, discounts & free gifts Sponsorship a business pays to be associated with another firm, event or cause Direct mailing promotional material is sent to potential customers by post/email Public relations building the relationship between the firm and the public by enhancing its reputation
Promotional mix
Most businesses use a combination of different promotional activities. The chosen promotional mix will depend on: Cost Target market Product Competitors