Introduction to Marketing (MC4050) Tutorial/workshop week 3 Marketing mix.

Introduction to Marketing (MC4050)

Tutorial/workshop week 3Marketing mix

Agenda

• Revision and discussion• Group work on ‘Analysis of marketing mix of Holi event that was

organised at college’• Case study analysis of ‘TESCO’

Revision

levels of Product

Durable vs Non Durable products

Industrial vs Consumer products

Types of consumer productMarketing consideration

Convenience Shopping Speciality Unsought

Customer buying behaviour

Frequent purchase, little planning, little comparison or shopping effort, low customer involvement

Less frequent purchase, much planning and shopping effort, comparison of brands on price, quality, style

Strong brand preference and loyalty, special purchase effort, little comparison of brands, low price sensitivity

Little product awareness, knowledge( or if aware, little or even negative interest)

Price Low Higher High Varies

Distribution Widespread distribution, convenient locations

Selective distribution in fewer outlets

Exclusive distribution in only one or few outlets per market area

Varies

Promotion Mass promotion by producers

Advertising and personal selling by both producer and retailers

More carefully targeted promotion by both producer and resellers

Aggressive advertising and personal selling by producers and resellers

Examples Toothpaste, magazines, detergent

Major appliances, TV, clothing

Luxury goods such as Rolex

Life insurance, blood donation

Price

8

Place Decisions

• Channel selection• Market coverage• Locations• Transportation• Logistics

10-10

Consumer and Business Marketing Channels

10-11

Public Policy and Distribution Decisions

• Exclusive distribution (only certain outlets to carry its products)• Exclusive dealing (dealers not handle competitor’s products)• Exclusive territorial agreements (producer agree not to sell

to other dealers in a given area or buyer agree to sell in its own territory)• Tying agreements (sell to dealers only if they will take some

or all of the rest of the line)

10-12

Transportation• Trucks• Railroads• Water carriers• Pipelines• Air• Internet• Intermodal transportation

Intermodal transportation:• Fishyback: water and trucks• Piggyback: trucks and rail• Trainship: water and rail• Airship: air and water

People, process and physical environment

The Marketing Mix

• Blend of the mix depends upon:• Marketing objectives• Type of product• Target market• Market structure• Rivals’ behaviour• Global issues – culture/religion, etc.• Product portfolio

• Product lifecycle• Boston Matrix

14

Workshop week 3

• Group work on ‘Analysis of marketing mix of Holi event that was organised at college’• Case study analysis of ‘TESCO’

Class work: group activity

• Work in group to analyse the ‘marketing mix’ of the Holi event that was held on college.• Recommend on how the event could have been even better.

Case study analysis of TESCO

Case study analysis of ‘TESCO’

1. Cohen saw that he had a clear competitive advantage, because his supermarkets had a lower cost base than traditional corner shops and therefore he could undercut other shops.

Removing price controls would therefore benefit him in the long run- as indeed has proved to be the case. Providing customers with better value for money (which doesn’t necessarily mean lowest possible prices, of course) is always advantageous


2. Price is not the only way to compete. Most people do not buy the cheapest- they buy products that represent best value for money.Providing extras such as the ‘one in front’ creates a better value proposition, at relatively low cost to the firm- the value to the customer is vastly greater than would be the tiny reduction in prices the company could make if it did away with policy


3. The separate own-brand labels exist to provide for the needs for different segments of the marketPrice sensitive customer use value brands, people seeking value for money look for ordinary tesco brand, and people seeking something luxurious might buy the Tesco’s finest


4. Advantage of loyalty cards:enable tesco to record individual customer purchasing patternallows Tesco to plan better for meeting customer needs and also

to target special offers and promotions accuratelyfrom the customers view point, the cards are much more

convenient, and having special offers that are accurately targeted reduces the amount of junk mail the customer receives


5. Stocking organic products enables Tesco to meet the needs of a health conscious group of people.At the same time organic product tend to be more expensive, so the majority of Tescos customers currently prefer the cheaper factory-farmed products

Introduction to Marketing (MC4050) Tutorial/workshop week 3 Marketing mix.

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