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