1.4.3 The marketing mix - Amazon S3
Transcript of 1.4.3 The marketing mix - Amazon S3
PowerPointGuide
Thenewsiconishyperlinkedtoarelatedarticleorwebsite
Simplyclicktoaccess
ThefilmiconishyperlinkedtoarelatedclipSimplyclickto
access
Thediscussicon indicatessuggestedpointstodiscuss
Thewritingicon indicateswrittenactivityorquestion
time.
Makingthebusinesseffective
Theme1:Section1.4.3Themarketingmix
Keyelementstothistopic
Workingwiththemarketingmix
Theelementsofthemarketingmix
Whatisthemarketingmix?
Howabusinesscombinesitsproductanditsprice,
andusespromotionandtheplaceofsaleinordertobe
successful
Differentaspectsofusingthemarketingmix
ElementsofthemarketingMix
Balancingthemarketingmix
Impactsofchangingcustomerneeds
Impactsoftechnologyonthemarketingmix
MarketingMix– theelements
InorderInordertosuccessfullyselltheproducttothecustomerabusinesswillneedtousemarketing.Theelementsthatmakeupthismarketingmixareoftenknownasthe4Psandaresummarisedinthetablebelow:
Marketingelement DescriptionProduct ThegoodorservicethatthecustomerobtainsPrice Howmuchthecustomerispayingforthe
productPromotion Howthecustomerisfoundandpersuadedto
buytheproductPlace Howtheproductisdistributedtothecustomer
LinkingtheElements
Eachoftheelements(4Ps)ofthemarketingmixwillaffecttheotherelementssotheyneedtobecombinedliketheingredientsinacake.Someexamplesaregivenbelow:
Inmostcasesthefailuretoaddressanyoneoftheelementswillleadtothefailureoftheproduct.
• Highqualitymaterialsusedinaproduct canmeanthatahigherprice isobtainable
• Aneworimprovedproductneedspromotionifpotentialcustomersaretobeawareofit
Marketingemphasis
Whichofthe4Psisthemostimportantwillvarydependingwhatproductorserviceisbeingprovided.
Discusswhichoneoftheelementsofthemarketingmixisthemost importantforeachoftheboxesinthetable
Marketingemphasis(continued)
Youmayhavecomeupwithanswerssimilartothefollowing:
Youmayhoweverhavedifferentanswersdependingonwhetheryouweretakingalongtermorshorttermview.Themarketsituationforeachindustrywillalsoaffecttheirmarketingpriorities.
Justaminute
Youhave60secondstonotedownhowyourmarketingwouldbeaffectedifyouwererunninga
businesswherethereisnocomptition
Nocompetition
Anybusinesswillbetryingtoreachasituationwhereithasnocompetition.Thiscanbeachievedindifferentways.Theymaybetheonlybusinessinasmallareaortheymaybetheonlybusinessthatisallowedtoproduceaproductorservicebecausetheyhaveapatentorcopyright.Therearebenefitsanddrawbacksofthissituationandaffectsontheirmarketingpolicy:
Marketing Element Effectofnocompetition
Product
PricePromotion
Place
AssaleswillbegoodthereislittleincentivetodevelopneworimprovedproductsandqualitymayalsosufferThis canbequitehighandprofitsshouldbegoodOncecustomersareawareofthebusinessthentheremaybelittleneedtospendonpromotionThismightbefixedthroughthelocation ofthebusinessbutaccesstotheproductorservicemaybemoretosuittheconvenienceoftheproducerthanthecustomer
Competition
Ifabusinessissuccessfulitwillmakeaprofit.Ifitmakesalotofprofitthenotherbusinesswillwantashareandwilllooktoenterthemarket,evenifitisquitelocal.Insomecasesthesemaybeothersmallbusinessesbutoftentheymaybelargenationalandmulti-nationalfirmswithconsiderableresources.
Marketing Element EffectofcompetitionProduct
Price
Promotion
Place
TherewillneedtobeconstantdevelopmentoftheexistingproductsanddevelopmentofnewQualityandconsumerservicewillbeveryimportantandbeingdifferentisessential.Reductionofpricetoremaincompetitiveagainstrivalbusinesses.Mayresultinpricewar.Profitsmaydecrease.Increaseinpromotionandadvertisingtokeepexistingcustomersandattractnewones.Greaterfocusonthecustomer’srequirementswhichmightincreasedistribution oropeningcosts.
GrowthoftheCaféCulture
TheinteractivemapintheTelegrapharticleshowsthegrowthofthecoffeeshopmarketfrom2010to2015.
AsanationBritonsspent£7.9bn incoffeeshopsthisyear.
BrandssuchasCosta,StarbucksandCaféNerodominatethemarket.
Withincreaseincompetitionfromestablishedlargechains,independentshopsarehavingtobemorecreativewiththeirmarketingtopenetratethemarket
BetheBusinessAdvisor
Youareapproachedbyasmall,independentcoffeeshopwhoarekeentosetupinyourlocalarea.TheywouldlikeyouradviceonhowtheycouldsuccessfullycompeteagainstthelikesofCostaandStarbuck.
Usethe4’psofthemarketingmixtostructureaplan,giveexamplesofwhat
theyshoulddoandoutlinewhichelementofthemarketingmixyouconsiderwillbe
themostimportanttothem
ConsumerTrends
Recentconsumertrendsinclude:• Increaseinonlineshopping• Useofsmartphonesandapps• Morehealthconsciousconsumers• Increaseduseofpricecomparisonsites
andproductreviews• Wideninguseofsocialmedia• Creditspendingincreasing• Brexitinfluencingpurchasingdecisions
Thesetrendswillaffectallelementsofthemarketingmix,whatproductsareproduced(moretechnology),price(morecompetitive),promotion(socialmedia)andplace(e-commerce)
Marketingwillchangeastheneedsoftheconsumerchange.Notonlywilltheproductsandservicesthattheydemandchangebutsowillthewaytheyfindoutaboutandmaketheirpurchases
DigitalTechnologyande-commerce
• Digitaltechnology iswherebusinessesusecomputerbasedtools,systems,devicesandresourcestogenerate,storeorprocessdata. Ithasmanyaspectsincludingsocialmedia,onlinemultimedia,productivityapplications, cloudcomputing,e-commerceandcommunication.
• E-commerce isthebuyingandsellingofgoodsandservicesusingtheinternet.Themorerecentdevelopmentism-commerce, whichisusingwirelesshandheld(mobile)devices,suchassmartphones.
Justaminute
Youhave60secondstonotedowndifferentusesofdigitaltechnology
foreachoneofthe“4Ps”
Digitalmarketing
• Product– digitaltechnologyhasledtoawholerangeofproductssuchassmartphones,tablets,andsmartTVs.Ithasincreasedproductqualityandallowednewcustomerexperiencese.g.3Dfilmsandvirtualreality
• Price– technologyhasdecreasedpricesthroughreducedcostsofproduction.Ithasalsoincreasedcompetitionthroughe-commerceandinternationalcompetition.Thiscompetitionhasbeenincreasedthroughpricecomparisonsites.
Allelementsofthemarketingmixhavebeenaffectedbydigitaltechnology.Someexamplesaregivenbelow:
Takingadvantageofthebenefitsofdigitaltechnologybasedpromotionsareallpossibleforasmallbusinessesbutallhavecosts,initialandongoingintermsofkeepingthetechnologyrequirementsuptodate.
• Promotion– advertisingnowmakesmuchuseofwebsites,socialmediaandincreasinglyispersonalisedattheindividualuser.Customerdatabasesallowtargetedpromotionsandcanbelinkedtopurchasesmade.
• Place– e-commerceallowscustomerstoaccessmanyproductsfromanywhereintheworld.Shoppingonlineisa24/7experience.Thishasledtodeclinesinphysicalretailoutletsformanyproductsandservices.
Digitalmarketing
Contextcorner
Explainthemarketingbenefitsofdigitaltechnologytoeachoneofthebusinessespicturedabove
Hiut Denim posted a limited run of fashion jeans on Instagram and sold out within 24 hours
ShadowRobotisanartificialhandthatthinksforitselfwithover20
movements
K N WO L E D G E
C H E C K
Questions
1. Listthe4Psofthemarketingmix2. Stateoneeffectonpriceifthereisno
competitionforabusiness3. Stateonewayabusinesscouldusedigital
technologytopromotesitsbusiness4. Stateonebenefittoabusinessofusinge-
commerce
Suggestedanswers
1.Listthe4PsofthemarketingmixProduct,price,place,promotion2.StateoneeffectonpriceifthereisnocompetitionforabusinessPriceislikelytobehigher3.Stateonewayabusinesscouldusedigitaltechnologytopromotesitsbusinesse.g.Useofwebsite,socialmedia,customerdatabases4.Stateonebenefittoabusinessofusinge-commercee.g.Customersfromanywhereinworld,accessible24/7,noneedforretailoutletssocostsdecrease