What is a Marketing Mix?...
A Marketing Mix is a combination of factors which help a business to take into account customer needs when selling a product. It is often crucial when determining the product or the brand's offer...
The main pricing strategies are:
Competitive Pricing - Competition with other prices of products Cost-plus Pricing - (most common) Cost of buying + profit Penetration Pricing - Attracting/absorbing Customers eg. lowering the price of a product. Price Skimming - Charge high price in initials then cutting price down after a certain period of time. Destroyer Pricing - Involves setting a price so low that competitors cannot match it for the same product perhaps based on usage or quality. eg. Tesco, Asda, etc. Price Discrimination - Discriminating between types of customers eg. Gender, Ages, etc.
The Marketing Mix is often referred to the '4 Ps'.
The 4 P's include:
1/ The PRODUCT must meet the needs of the customer, and a business must consider the following when DIFFERENTIATING their product from others: -Who is our product targeted at? -What will be our product range? -What does it look like? -Does it appeal to customers? -How and where will the customer use it? etc.
2/ The PRICE includes the pricing-strategy of the company for its products. -How much a customer should pay for the product? Pricing strategy not only related to the profit margins but also helps in finding target customers. Pricing decision also influences the choice of marketing channels. Pricing Decisions : -Pricing Strategy (Penetration, Skim, Destroyer, etc.) -Financing -Payment Period -etc.
3/ The PLACE is where the Businesses location is, not only does it include where the product is placed, but also those activities performed by the company to ensure the availability of the products targeted customers. Availability of the product at the right place, at the right time and in the right quantity is crucial in placement decisions. Place Decisions include : -Logistics -Placement -Inventory -etc.
4/ The PROMOTION include all communication and selling activities to persuade future customers and prospects to buy the product. The Product Decisions include : -Advertising -Sales Promotion -Public Relations -Direct Marketing -Media Types