2 the Marketing Mix

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    nqbm marketing 1

     THE MARKETING MIX

    PRODUCT

    PRICE

    PROMOTION

    PLACE

    When marketing their pro!"t# an#er$i"e#% &rm# nee to "reate a#!""e##'!( mi) o'*

        P  P    

       P  P

     The + P,# o' marketing

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    PRODUCT The Product is the actual item that aconsumer purchases, including thepackaging, image, guarantee and

    aftersales ser!ice"earn this definition#

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    S

    ales

    Time

    THE PRODUCT LIFE CYCLE

    INTRO

    DUCTION

    GROWT

    H

    MATURIT

     Y 

    DECLIN

    E

    INJECTING NEW LIFE

    Newpro!"#

    Sales low

    Sales$row

    rapil% aspro!"#

    &e"omeswell'(ow(

    Pro!"# )!ll%es#a&lis*e

    Sales e+e( o!#

    Compe#i#ors e(#ermar'e#

    Pop!lari#%e"li(esa( sales

    )all

    New mar'e#i($s#ra#e$ies are

    i(#ro!"e #o re+ersee"li(e

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    nqbm marketing %

    E,#e(sio(S#ra#e$ies A &!si(ess wis*i($ #o e,#e( #*eli)e o) a pro!"# w*i"* *asrea"*e ma#!ri#% or is i( e"li(e

    "a( al#er o(e or more o) #*emar'e#i($ mi, &% "*a($i($ PRODUCT e$ al#er #*e pa"'a$i($-

    i(#ro!"e a (ew +ersio(

    PRICE e$ re!"i($ #*e pri"e #oi(#eres# "!s#omers

    PROMOTION e$ i(#ro!"e a (ewa+er#isi($ "ampai$(

    PLACE e$ "*a($e w*ere i# "a( &e

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    Mal#eesers I(#ro!"#io( o) (ew +arie#%- e$ w*i#e "*o"ola#e

    New a+er#isi($ "ampai$( )or (ew +arie#%

    G!ia("e C*a($e (ame #o Pas#oral S!ppor#

    PS #ea"*ers spe( more #ime o( $!ia("e a( less

    o( #ea"*i($ Mara#*o(

    C*a($e (ame #o s(i"'ers

    Spo(sors o) spor#i($ e+e(#

    /a('s Ser+i"es (ow a+aila&le +ia i(#er(e# or #elep*o(e

    E0TENSIONSTRATEGIES

    O(e "ompa(% la!("*e a (ew

    ri(' 1 #imes &e)ore i# wass!""ess)!l2 Ca( %o! $!ess w*a##*e% "alle i#3

    -A(swer41 UP

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    Cadburys Flake

    Extention Strategies

    (The Cadbury Flake bar )as originall* launched in 1920 

    (+n 1930 the Flake 99 ice cream accompaniment )asintroduced

    (2001 the Snowflake -a crumbl* )hite chocolate .lake centreco!ered in milk chocolate/ )as launched0

    (+n 2003 the Cadbur* Flake Dipped )as introduced )hereconsumers can eno* all the benefits of the .lake )ithouththe mess ideal for on the go0

    (+n eptember 2004 Cadbur* Flake !o"ents )ere launched,a selection of miniature milk chocolate and )hite chocolate.lake pieces, )hich e3tended the .lake brand into the gi!ingmarket creating the ideal gift0

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    5U6T+O710 Compare the product life c*cles of -a/ a ne) ipod shuffle and

    -b/ 8ellogg9s cornflakes0 :ou ma* use diagrams to illustrate *our comparison0

    20 Chanel 7o& is an e3pensi!e perfume )hich has been around forman* *ears0 +t9s sold e3clusi!el* in onl* certain stores and its

    target market is )omen o!er $&0 The compan* feels it is losingground to ne)er perfumes and )ants to e3tend the life of theproduct0 uggest as to ho) the* might achie!e this0

    $0 7ame $ other products or ser!ices )hich ha!e altered some

    element of their marketing mi3 recentl* and describe ho) the*ha!e done this0

    .OR :OUR ;OTT6R

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    =R>7D+7? > product )ith a @personalit*9 +nstantl* recognisable b* logo,

    packaging, taste, ad!ertising and other

    features =elie!ed to be a guarantee of qualit* ome brands ha!e @snob !alue9 Usuall* cost more

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    =R>7D "O:>"T:

    ome customers are lo*al to a particularbrand0 The* )ill bu* the brand againand again and also other associatedproducts .air* )ashingup liquid .air* )ashing po)der .air* dish)asher po)der

    The product is often sold in places thatreinforce the brand image, eg sportsdrinks in leisure centres

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    O7 ">=6"

    Retailer9s o)n brands eg ainsbur*9sa!ers, ?eorge at >D>

    7ot manufactured b* retailer old onl* in retailer9s stores "ess e3pensi!e than branded goods 

    7eed little ad!ertising 2een as inferior qualit* 

    What about

     premium own

     brands? em

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    hich brands do *ou associate )ith thefollo)ing products

    Toilet paper .ish fingers Chocolate oft drink ?ra!*

    Toothpaste ashing up liquid =ro)n sauce Crisps Cat food Disposable nappies Digesti!e biscuits +ce cream oap po)der Teabags Coffee

    >ndre3 =irds 6*e Cadbur*s Cocacola =isto

    Colgate .air* liquid EP alkers hiskas Pampers FcGities alls Persil P? Tips 7escafe

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    5U6T+O7

    10 .rom a marketing point of !ie), describe thedifferences bet)een EeinH baked beans andafe)a* o)n label baked beans under thefollo)ing headings Product Price Place Promotion

    20 EeinH produce man* products other than bakedbeans0 Describe the ad!antages of producingse!eral products under the same brand name

    .OR :OUR ;OTT6R

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    PR+C6The amount consumers are prepared

    to pa* for a product or ser!ice"earn this definition#

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    hat is the best price for aproduct

    Charging the right price is a !er*important part of the marketing mi30

    Eo) much *ou charge )ill depend on Eo) much it cost *ou to make *our product Eo) much *our competitors are charging hether *ou are tr*ing to introduce a ne)

    product The image *ou )ant for *our product

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    TE6 PR+C+7? D6C++O7 > lo) price )ill attract sales0 This

    makes it possible to sell largequantities at a lo) a!erage cost

    >n a!erage price )ill mean *ou need

    to compete )ith *our ri!als b* ameans other than price, eg b* ha!inga better qualit* product or betterpromotion or ad!ertising

    > high price can be charge if *ourproduct is seen a being better than *our ri!als

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    C#anel $o %!organ Sweet

    &o'eC( )ne

    For ea*# of t#e following produ*ts+ try to explain w#et#er t#e"anufa*turer,retailer is going for a low pri*e+ an a'erage pri*e or a#ig# pri*e

    -ors*#e .oxster$issan !i*ra

    Ford !ondeo

    Super"arket own brand/ein beansSafeway sa'ers beans

    eans fro" "arket stall&e'i %01eanster eans

    /5/ 6 prestige produ*t+ expensi'e pa*kaging7&)8 6 lower uality+ *#eaper pa*kaging7:;E

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    Describe a suitable pricing technique for each of thefollo)ing situations ;ustif* *our ans)ers0

    > ne) stateoftheart !ideo mobile phone uston the market

    > selfemplo*ed gardener )anting to quotecustomers for general gardening obs

    > ne)spaper in fierce competition )ith a ri!alpaper

    Cadbur*9s introducing a ne) chocolate bar > business makes and sells fresh sand)iches to

    office )orkers

    5U6T+O7 .OR :OUR ;OTT6R

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    -&:CE

    This is the route that productstake to reach the consumerfrom the manufacturer

    "earn this definition#

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    The Farket Place$o "atter #ow good t#e produ*t is 6 it

    #as to be in t#e rig#t pla*e at t#e rig#t ti"e0 

    bu*ers and sellers come together in the follo)ing )a*s

    hop

    Cash and Carr*

    Farket stall

    TG I shopping channel +nternet

    7e)spaper and FagaHines  Fail order 

    Direct mail 

    .actor* shop 

    These arereferred to as

    Direct

    Marketing

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    CE>776" O. D+TR+=UT+O7

    F>7U.>CTUR6R F>7U.>CTUR6R F>7U.>CTUR6R

    CO7UF6R CO7UF6R

    R6T>+"6R

    CO7UF6R

    R6T>+"6R

    EO"6>"6R

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    The channel of distribution chosen)ill depend onJ

    The product being sold The finance a!ailable The reliabilit* of companies in the chain The desired image of the product "egal restrictions The products life c*cle The manufacturer9s distribution capabilit*

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    10 heels "td manufacture bic*cles0 The* sell to customers !ia)holesalers and retailers0 The* are considering opening afactor* shop to sell directl* to customers0 Outline thead!antages of this plan to heels "td and to theircustomers -%/

    20 >d!ances in technolog* ha!e opened up ne) channels ofdistribution0 Describe one of these ne) channels andillustrate *our ans)er )ith an appropriate e3ample0

    10 There are legal restrictions on the )a* in )hich someproducts are distributed to consumers0 ?i!e e3amples of suchproducts and describe )h* these restrictions are enforced0

    .OR :OUR ;OTT6R5U6T+O7

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    nqbm marketing 2%

    63tension

    "og on tohttpJKKpuHHlemaker0disco!er*educati

    on0comK Create a )ord search on marketing

    using terms )e ha!e co!ered so far0

    +nclude at least 12 terms )ap )ith someone and complete

    their )ord search0

    http://puzzlemaker.discoveryeducation.com/http://puzzlemaker.discoveryeducation.com/http://puzzlemaker.discoveryeducation.com/http://puzzlemaker.discoveryeducation.com/

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    -

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    PROFOT+O7 The aims of promotion are to

    P6RU>D6 consumer to bu* the product +7.ORF consumers about the product R6F+7D consumer that the product still

    e3ists

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    >DG6RT++7? F6D+>

    Tele!ision 7e)spapers I 7ational, unda*, local FagaHines

    Radio Cinema Outdoor media I billboards, sports

    hoardings, bus shelters +nternet Direct mail

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    >bo!e the "ine Promotion

    This targets e!er*one I e!en those notinterested in the product0

    TG Radio

    7e)spapers magaHines

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    5uick TaskLL0

    tate )hether each of the media belo) is >bo!eor =elo) the "ine0

     uggest ad!antages and disad!antages for eachof the follo)ing >d!ertising Fedia0J Tele!ision Dail* 7e)spapers Radio

    Cinema =illboards +nternet pop ups Direct Fail

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    5uick Task 2LLL

    uggest a suitable ad!ertising mediafor 7ike9s ne) trainers0

    ;ustif* *our ans)er0

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    PRODUCT 67DOR6F67T 

    .amous sport or sho)biHpersonalities are paid to )ear anduse a particular product, eg>didas, ?illette and Da!id=eckham 

    (  PRODUCT P">C6F67T IPa*ing for product to be usedin films and TG programmes, eg

    ;ames =ond dri!ing a =F in?oldene*e

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    5uick Task $LLLL0

    63plain possible ad!antages anddisad!antaged of celebrit*

    endorsement for an organisation0

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    The choice of ad!ertising media dependsonJ

    The product The audience to be targeted The t*pe of co!erage, eg national or

    local The amount *ou )ant to spend The ad!ertising used b* competitors

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    >"6 PROFOT+O7

    hort term inducements used toencourage sales

    There are 2 groups of salespromotionJ +nto the pipeline

    Out of the pipeline

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    +7TO TE6 P+P6"+76 These are offered b* manufacturer to

    retailers -dealers/ to encourage them tostock their productsJ

    Point of sale displa*s ale or return

    Dealer competitions

    taff training

    Credit facilities

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    These are offered b* the retailer to theconsumer to encourage purchases to be madeJ .ree samples Credit facilities Demonstrations Competitions =O?O.s Promotional prices .ree offers CouponsK!ouchers

    OUT O. TE6 P+P6"+76

    =u* One ?etOne .ree

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    5U6T+O7

    10 Describe the difference bet)een productendorsement and product placement0 ?i!ee3amples to illustrate *our ans)er0

    20Compare the follo)ing ad!ertising media Itele!ision, ne)spapers and direct mail0 :ourans)er should refer to cost, co!erage, marketsegment, legal restrictions, and competition0

    $0Describe 2 forms of each of the follo)ingt*pes of sales promotion +nto the pipeline Out of the pipeline

    .OR :OUR ;OTT6R

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    >cti!it*LL0

    Design a poster e3plaining all *oukno) about the Farketing including

    the Farketing Fi3 -The %p9s/