BTEC Business Level 3 Unit 3 Assignment 4

BTEC Business Level 3 Unit 3 - Assignment 4 P 6, M 3

Marketing Mix • The marketing mix provides a frame work for developing a marketing plan. This includes; ▫ ▫ Product Price Promotion Place

Product • A product can be tangible and can be viewed in three different levels; ▫ Level 1 -the core product- the benefit of the product, e. g. To fill hunger, facilitate a journey ▫ Level 2 – the actual product- the physical item, branding often supports the sale of this ▫ Level 3 – the augmented product – after sales service, warranties, deliveries Core product Actual product Augmented product

Product Range • The business will change and update the product mix that it offers. • If the range of products is too small a business could go out of business. • The range is limited by the experience of the business and its resources

Product Life Cycle S a l e s i n tr o d u c ti o n g r o w t h m a t u r i t y D e c l i n e Time

Price • To set the price of a product a business must determine the following factors; �Select the price objective- to survive, maximise profit, increase market share �Determine demand- the higher the price the lower the demand �Estimate costs- the prices should at least cover the costs �Analyse the competitor costs, prices and offers �Select a pricing strategy �Select the final price.

Pricing Strategies • Premium Pricing - the price is kept high to encourage customers to associate it with high quality. • Penetration Pricing - the price is initially low to attract customers before the price rises. • Economy Pricing - the price is low to encourage sales. • Skim Pricing - when there is little competition the price is set high to raise profits, price is lowered as other competitors enter the market. • Psychological Pricing- this is setting prices that rely on consumers emotive responses. E. g. designer product = designer prices. £ 9. 99 is less than £ 10. • Captive Product Pricing-this is pricing strategies for products that are needed e. g. Tyres for a new car, blades for a new razor. • Product Line Pricing – different pricing for the same products at different price points- e. g. Technological products with different benefits.

Place • This is about where the product is sold and how it is distributed. This can be indirect distribution or direct distribution. Direct Distribution Indirect Distribution • Manufacturer • Wholesaler • Retailer • Consumer

Promotion • Promotion consists of the various methods of communicating with a business’s target audience. • Promotion should inform, persuade and influence a consumer to purchase a product. �Capture Attention �Create Interest �Generate Desire �Call to Action.

Promotional Mix • Advertising • Sales promotion • Personal selling • Public relations

P 6 –M 3: • P 6 - You will need to write an article about your a new product and the strategy that will be used for your new product. Make sure you have followed the correct layout for an article. • Choose a new product and create a coherent strategy for the product- you must include a detailed plan and explain your choices. • Product- Explain a detailed explanation of your product including the target audience, the USP and why your product will be a success. • Promotion- explain the methods of advertising and promotion that you will use and explain your choices • Pricing – explain the pricing strategy that you will apply to your product and explain the reasons behind your choices • Place- explain the types of distribution for your product- online, in store and which types of retailers will sell you product, explain the reasons behind your choices. • Conclusion- Explain who your target audience is and justify the decisions you have made- why are your pricing and promotional mix suitable for your target audience.