What is the Marketing Mix?
The marketing mix is used to structure a product in the business for its targeted customers a business must..
- Sell customers a PRODUCT they want or need
- Place the product at a reasonable PRICE the customer will pay
- Sell the product at the right time and PLACE
- To make customers aware of the product by using PROMOTION
These are known as the 4P's of business.
One of the most important P's is the PLACE.This must be a convenient locations of your targeted customers. These places can include. The suitability of the location will depend on the product or service you are selling. Places may include...
- Industrial Estate
- Shopping centre
- High street
The place is how a business gets its product to their customer, to distribute their product to at the right place and time in the right quantities. The PLACE is crucial as...
- Customers don't have a near retailer for this product.
- A competitor has a wider range of distributing the same product
- A competitor may have trained sales agents meeting customers and closing sales as they are at the right place.
A consumer has many choices of the same or similar product therefore the business must make their product the first in the consumers mind. A business can do this by:
Specialised product - making the same product adapted for a different audience e.g. diet coke for women, coke zero for men.
Improvments - Advertising the improvement of a product to get more customers e.g. Herbal Essence advertised new formula for shampoo.
Changed Packaging - changing the way the product looks making it seem more current e.g. smarties went from circular to hexagonal tube.
New technology - advertising how you have added to a product making it better e.g. new retina display, mainly used in electronics.
Widen the product range - branch to other markets, e.g. chocolate bars changed to milkshakes and drinks.
Promotion is when a business tells the consumer about their product or service, this can be done in 5 different ways:
- Advertising this is done through
2. Sales Promotion
- special offers i.e. Buy One Get One Free
- Price discounts i.e. 1/2 off
- Free gifts
- Prize competition
3. Direct Mail also known as junk mail This is when a business sends mail to a targeted consumer such as sending mail to a previous customer.
4. Public Relations (PR) This is when the business shows their relationship with their community this is done by:
- Press release
- Organising sponsorships
- Damage limitation
5. Packaging this is to not only to protect the product but also needed for consumers this is by
- Having a package with the consumers appeal
- Having seasonal packages
The price is one of the most important factors in any business. The perfect price for a product or service has to be something the consumer is willing to pay. There are 5 ways a business can price a product or service these are...
- Cost-plus - this is adding a % of the product to the actual price for a profit. PRO - Ensures a secure profit CON - The product may not sell
- Competition - changing the price of a product similar to the competitors. PRO - A competitive price CON - There may not be a profit
- Penetration - Start with a low price to attract customers and then increasing the price for the next product. PRO - Encourages people to try the product CON - It will not last long
- Skimming - Start with a high price for a unique product decreasing at different stages of the products life cycle. PRO - Allows extra profits to be made CON - Only works while there is no competition
- Promotional - Special price for a limited time. PRO - Can get rid of all stock CON - Only useful for a limited time
These are the 4P's of the Market Mix used in B