Marketing Mix - IGCSE Business - Home · Learning objectives •State the 4 elements of the...

Marketing Mix

Product

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Learning objectives

• State the 4 elements of the marketing mix

• Discuss the role of product decisions in the marketing mix

• Describe the costs and benefits of developing new products



What makes someone want

to buy a product??



The importance of marketing new products…..things to consider at planning stage!

What the PRODUCT is going

to be like e.g shape/ size/ colour

What price are you going to sell it; have you thought about how much it will

cost to make?

Where are you going to sell it?

E.g.shop/ internet/ mail order/ school

How will customers find out about the

product? Promotion? Advertising?

Marketing is all of these things…………………..



The Marketing Mix

• The Marketing Mix is a combination of factors that help businesses sell its products

• The marketing mix is made up of the 4 P’s

• Product

• Price

• Place

• Promotion



Activity

Importance of defining products.

• How will defining the type of product help a business market its products?



Invention & innovation

• Invention is the discovery of a totally new and original product or new ways of doing or making something.

• Innovation is the process of transforming an invention into a product that customers will buy. It may be a different application of something that already exists, something that adds value or differentiates a product.



Product Development • When participating in INVENTION or INNOVATION, it

is important to ask these questions: - What do customers want? - How long will they want it for? - Are the materials available? - How much will it cost to produce? - What are our competitors doing? - Which method of production should be used? • Having collected and collated the results, do they

show?

Positive response Negative response

Launch the product Re-think Re-develop or Shelve the idea



Generate ideas

Select best and conduct further

research

Look at level of

potential sales and success

Develop a prototype

Test market

Full launch

Product development process



Case study activity

• Dyson video

• What method did James use to generate his idea?

• What research did he carry out?

• How did he ensure that his invention would sell?

• Why did he develop a prototype?

• Where did he launch the product first?

• Where does he sell the product now?

• Was that the end of his product development?

• Why not?



http://www.youtube.com/watch?v=i_Gy_J1qIts

Paired activity

You work for a company which manufactures ice cream. You have been given the task of designing a new ice cream on a stick (a lolly) suitable for small children.

Using the product development process, describe in detail how you would do this.



Product development analysis

Benefits

• USP

• Diversification

• Expand into new markets

• Expand into existing markets

• Sell to a new market segment

Issues

• Market research

• Product trial

• Wrong target market

• Loss of company image

Outcome? Outcome?



BRANDING



http://images.google.co.uk/imgres?imgurl=http://www.ukgoods.com/images/nestle-kitkat.jpg&imgrefurl=http://www.ukgoods.com/nestle-kitkat-fingers-p-398.html&h=200&w=200&sz=12&hl=en&start=1&tbnid=6Ooqs57tals17M:&tbnh=104&tbnw=104&prev=/images?q=Nestle+kit+kat&gbv=2&svnum=10&hl=en&sa=X

Learning objectives

• Understand brand image and how it can influence sales

• Understand the role of packaging



What do you think of when you see…



What do you think of when I say TRAINERS?



What do you think of when I say… TAKEAWAY



Branding

By Branding its products, a business guarantees the consumer that the next product brought will be virtually the same as the last one:-

• This encourages repeat purchases through brand loyalty.

• Branding also helps the business differentiate-makes different- its products from

those of its competitors.



• The business can use the brand’s Unique selling point (USP) to increase sales.

• Mass advertising becomes possible with branding.

• Why is this a good thing?





http://images.google.co.uk/imgres?imgurl=http://bp0.blogger.com/_6I9qX8U4bwI/R9kK9Ypwg4I/AAAAAAAADmc/ghvRCjtDFSo/s400/funlok_com_001.jpg&imgrefurl=http://funny-forwards-jokes.blogspot.com/feeds/posts/default?start-index=49&max-results=24&usg=__Xk3_2Rpg71MXjK6f2pR-yhMGbp8=&h=400&w=312&sz=42&hl=en&start=8&tbnid=AdWNC2VPWUyx3M:&tbnh=124&tbnw=97&prev=/images?q=coca+cola+adverts&gbv=2&hl=en&sa=G

http://images.google.co.uk/imgres?imgurl=http://www.petrichor.co.uk/coca-cola/images/coca-cola2.jpg&imgrefurl=http://www.petrichor.co.uk/coca-cola/index.html&usg=__8NFFaSyUr0n91920VfRyLt6OBNY=&h=421&w=595&sz=71&hl=en&start=15&tbnid=5AhVn8P4xHe3GM:&tbnh=96&tbnw=135&prev=/images?q=coca+cola+adverts&gbv=2&hl=en&sa=G

http://images.google.co.uk/imgres?imgurl=http://www.cocacollection.com/collectables_news/images/20051105082313.jpg&imgrefurl=http://www.ilovedietsoda.com/2005/11/coca-cola-gets-creative-with-new.html&usg=__YYqdX8Pkmoxm43My9M72QGGT0iQ=&h=282&w=300&sz=39&hl=en&start=4&tbnid=0OukkIBxg1J2WM:&tbnh=109&tbnw=116&prev=/images?q=coca+cola+FLAVOURS&gbv=2&hl=en

http://images.google.co.uk/imgres?imgurl=http://static.flickr.com/2097/1770880974_ae04a85ae7.jpg&imgrefurl=http://elsbro.com/blog/tag/coca-cola-with-orange/&usg=__9o2CcBb-9DacfBs_iderZjpeqjk=&h=500&w=375&sz=116&hl=en&start=5&tbnid=j1cQUGm6pbpSBM:&tbnh=130&tbnw=98&prev=/images?q=coca+cola+FLAVOURS&gbv=2&hl=en

http://images.google.co.uk/imgres?imgurl=http://www2.coca-cola.com/presscenter/img/imagebrands/downloads/lg_coca-cola_lime_20oz.jpg&imgrefurl=http://snackspot.org.uk/thread.php?story=0501312110daa&usg=__jKonIT3EAF2GqnX-DV-5W3UwERU=&h=665&w=249&sz=139&hl=en&start=25&tbnid=geYlTrLu0FrHHM:&tbnh=138&tbnw=52&prev=/images?q=coca+cola+FLAVOURS&start=20&gbv=2&ndsp=20&hl=en&sa=N

http://images.google.co.uk/imgres?imgurl=http://upload.wikimedia.org/wikipedia/commons/9/93/Coke_zero.jpg&imgrefurl=http://mcmaenza.blogspot.com/2007/11/zero-my-hero.html&usg=__JUZ2tVH5p1njlykqUgtpVzABTn0=&h=484&w=331&sz=107&hl=en&start=54&tbnid=1w-dBfH907FpRM:&tbnh=129&tbnw=88&prev=/images?q=coca+cola+FLAVOURS&start=40&gbv=2&ndsp=20&hl=en&sa=N

http://images.google.co.uk/imgres?imgurl=http://z.about.com/d/inventors/1/0/M/W/lg_hutchinson_bottle.jpg&imgrefurl=http://inventors.about.com/od/cstartinventions/ss/coke_ads.htm&usg=__TNimlCkPKOimuQ2LBnMkWhnz7WI=&h=1039&w=800&sz=41&hl=en&start=26&tbnid=IUsvHv2yxDM21M:&tbnh=150&tbnw=115&prev=/images?q=coca+cola+OLD+BOTTLE&start=20&gbv=2&ndsp=20&hl=en&sa=N

http://www.aiesec.be/organisations/images/logocrp/coca_cola_logo.gif

http://images.google.co.uk/imgres?imgurl=http://www.antiquebottles.com/rl/coke/Coke451R.jpg&imgrefurl=http://www.antiquebottles.com/rl/coke/&usg=__Q7cMm4XYhUiAcFAieAF9dt0TCP4=&h=905&w=309&sz=58&hl=en&start=144&tbnid=AZbThQ2UzyARpM:&tbnh=147&tbnw=50&prev=/images?q=COCA+COLA+BOTTLE&start=140&gbv=2&ndsp=20&hl=en&sa=N

http://images.google.co.uk/imgres?imgurl=http://www.plan59.com/images/JPGs/cc_1949_bottles.jpg&imgrefurl=http://www.plan59.com/av/av343.htm&usg=__tOBX9Q8-ZH1XMkU-fmo9mVuR8gY=&h=540&w=441&sz=114&hl=en&start=60&tbnid=SAjnb8ICFPR4kM:&tbnh=132&tbnw=108&prev=/images?q=coca+cola+adverts&start=40&gbv=2&ndsp=20&hl=en&sa=N

Branding & Purchases

Strong branding = increased opportunities for customers to trial products and make repeat purchases.

Q: How does JVC or Sony uses its brand image to promote its

product mix?



Activity

In pairs, identify two advantages of Branding. I shall be asking for your opinions.



FAMILY

FORTUNES



FAMILY FORTUNES We asked 100 people to state an advantage of branding

Encourages brand loyalty 1 38

Competitive advantage 2 20

Greater consumer awareness 3 16

Charge a higher price 4 13

Easy to add new products to range 5 10

Brand equity – company more valuable 6 3

X

X

X

X

X

X



Advantages of branding A strong brand offers many advantages for marketers. Branding… 1.Encourages Brand Loyalty

2.The “benefit = brand” association can provide significant competitive advantage .

3. Makes product positioning more effective. 4. Results in greater consumer awareness



Advantages of branding 5. Businesses are more likely to be able to charge a premium price for branded items. 6. Can extend the brand by adding new products under the same “family” brand. 7. Brand Equity in which the brand itself becomes valuable.



Product Differentiation What is product differentiation and why is

it important?

Differentiation is about making a product or service stand out from another.

Harrods Teddy Bear V Toys R Us bear.

How can products be differentiated?



Products and services can be differentiated by:

1. Design, formulation & function

2. Name

3. Packaging



1. Differentiation by design, formulation & function

£24.99 IKEA £49.99 ARGOS



1. Differentiation by function

£49.99 ARGOS £11.49 ARGOS



Nike Differentiation by design & function



2. Differentiation by NAME



2. Differentiation by name



3. Differentiation by packaging



Packaging • Packaging has several functions:

– Protection of contents – Distribution – getting product from manufacturer to customer – Selling – design and labelling provides information and also

conveys a certain image – Customer convenience – e.g. multi-pack

• Important to understand the role that packaging plays in “selling” – If a product cannot be differentiated by its features or designs,

then packaging becomes really important – Help to advertise and promote brand image – Help maintain quality standards (important) – Designed to encourage impulse buying (e.g. crisps, snacks) – Packaging also needs to appeal to distributors (e.g. shops)



3. Differentiation by packaging



Heinz Beans example

List everything you know about Heinz Baked Beans.

•Product: High quality Haricot Beans

•Formula: Unique tomato sauce formula (updated to meet changing consumer needs) – reduced sugar & salt, micropots, meatballs, organic beanz.

•Name: 2004 Heinz Baked Beanz then 2008 changed to Heinz Beanz.

•Label: Changed to highlight nutritional benefits.

•Varieties: Adapted for different countries



Heinz through the years



Heinz Packaging Innovation

• North America: The Heinz Dip & Squeeze™ for the foodservice industry makes eating on-the-go more fun and convenient.

• In the U.K., Australia, Indonesia & New Zealand, Heinz are converting to lighter-weight cans for products such as beans and soups.

• In China, infant food jars are wrapped in paper sleeves, a more environmentally friendly alternative to plastic shrink-wrap.

http://www.heinz.com/our-food/innovation/packaging-innovation.aspx








Task 5: Differentiation In your groups,

differentiate a bag of sweets so that it is different from your competitors.

Use lateral thinking and come up with a brand name.



Plenary: Keywords

• _ _ _ _ e _ e _ t _ t _ _ _ • _ r _ n _ _ _ _ • P _ _ _ a _ _ n _ • P _ e _ i _ m P _ i _ i _ g • _ e r _ e p _ _ o _ • B _ a _ _ L _ _ a _ t _



PRODUCT LIFE CYCLE



Learning objectives

• Describe the stages of the product life cycle.

• Explain the strategies of extending the life of a product.



The product life cycle



Product life cycle of the mini

Draw the product life cycle for the mini using the information given.

Annotate it to say what happens in terms of sales and cash flow at each stage



Task: Extending the PLC

How could we extend the PLC of the mini?



Expanding the product life cycle



The Product Mix/portfolio



Task: Product Mix/portfolio

• Working in pairs, create a product mix for two of the following companies:

• Virgin

• Amazon

• Sony

• Tesco



Why have a product mix/portfolio?



Product Life Cycle analysis

Positive

Negative

Slide 54 www.igcsebusiness.co.uk


Market Share

35%

30%

35%

Predicted Sales in the

Games Console Market

2014

PS3

X Box

Wii

The percentage of the market held by a company or product.



Market Growth 35%

30%

35% PS3

X Box

Wii

2012 = £6.9 billion

35%

30%

35%

PS3

X Box

Wii

2014 = £41.4 billion

The increase in value of the whole market.



Plenary

1. What is a product portfolio or mix?

2. Why do we use the PLC?

3. What use is the Boston Matrix?

Product Life Cycle Activity



http://www.businessstudiesonline.co.uk/GcseBusiness/Activities/Module3/Product/ProductLifeCycleProfitvSales/frame.htm











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