Introduction to the Marketing Mix LEARNING OBJECTIVES What

Introduction to the Marketing Mix

LEARNING OBJECTIVES • What is the most fundamental thing that a business needs? • Why might knowing who and how many customers are interested in your product or service be important? • What can a business do to remain or be successful?

Introduction The marketing mix covers the way a business uses price, product, promotion and distribution (place) to market and sell its product

The Four P’s The marketing mix is often referred to as the Four P’s Product The product or service that the customer buys Place How the product is distributed to the customer Price How much the customer pays for the product Promotion How the customer is found & persuaded to buy

Why is it called a marketing MIX? Because each element of the marketing mix is related to the others. Elements of the mix should work together to achieve the desired effect

Blending the Mix • The marketing mix blends together the elements of a marketing strategy • There must be internal consistency within the mix • Mix must be consistent with the product and its target market

Example – launch of i. Phone Product Three products in one – phone, i. Pod & web browser 3 G broadband connection Innovative design Place O 2 exclusive distribution (locked) Unlocked phones from online retailers Price Depends on phone tariff & model £ 350 -£ 750 range Price falling Promotion Web & TV advertising Retail distribution Widespread PR coverage Product placement

What is an Effective Mix? • • • Achieves marketing objectives Meets customer needs Is balanced and consistent Creates a competitive advantage Matches corporate resources

Example of the blend Product and price Cost must be taken into account when setting price Promotion and price Cost of promotion is taken into account when setting price Product life cycle and price Price set in relation to stage in the product life cycle Product and promotion Promotional mix should be varied in relation to product Product and place Nature of the product is a major factor in distribution strategy

Businesses emphasis different parts of the marketing mix Emphasis on Examples Price Discount supermarkets Low-cost airline Promotion Soap powders Furniture retailers Product Luxury motor vehicles Tailor-made holidays Place Convenience stores Coffee shops

Introduction to the Marketing Mix