Know the elements of the marketing mix.
Identify and describe attributes to each of the 4 Ps:
Factors that influence product:
- quality policy
- product category (search product, experience product, credence product – eg intangible service products)
- product life cycle
- total service concept
Product range or mix
- product width – eg confectionary
- product lines – eg chocolates
- product depth – variation such as size, high spec
- product length – the number of product brands within a product line
There are a number of things that influence price, such as:
- company image and market positioning
- the cost of making the product or service and profit required per unit
- place in its life cycle
- overall profit required
- market demand
- competitor prices
- what customers are prepared to pay
- price sensitivity or insensitivity (when in demand when price differs)
Pricing tactics (or strategies)
- value-based pricing – value for customers
- marketing orientated pricing – reflects a competitive situation and market conditions
- market skimming – high prices for high-profit
- market penetration – using a low price to penetrate the market – for new products
- time-based pricing – mostly used by online companies to change depending on marketing conditions
- psychological pricing – appears thrifty – eg BOGOF or 9.99
Factors influencing place decisions:
- channel length (separate entities or managed as one business/organisation)
- channel breath (mass or niche)
- physical distribution (procurement, materials handling, warehousing, transportation, control, level of service vs cost)
- level of service (speed and response, reliability consistency and accuracy, flexibility, information exchange)
Key factors affecting promotional mix selection:
- B2B or B2C market
- mass or segmented/niche
- product or service
Promotional activities are described as:
- above the line – paid for space
- below the line – other promotional tools
- through the line – direct marketing
Promotional technique choices:
- social media
- public relations
- sales promotion
- direct marketing
- personal selling
The extended marketing mix
Customers quality criteria:
- communications and access
- integrity and courtesy
- competency and credibility
- responsiveness and understanding
- reliability and security
Often confused with internal processes – making them simpler but this has no effect on the customer. Processes should take into account customer effort and making things easier for them.
Physical evident refers to things such as atmosphere and helps customers form impressions and perceptions of an organisation.
- peripheral evidence: eg a ticket or membership card that holds no value but is proof of service to a customer
- essential evidence: cannot be possessed – eg the feel of a restaurant
Online physical evidence is things like a good website, reviews, awards, refund policies etc.
Explain the importance of developing a co-ordinated approach to the marketing mix in different contexts
Explain how the marketing mix is developed to be consistent and compatible across the mix and identify factors that impact consistency.
Factors such as trying to lower price, quality, customer service training or to save costs will impact consistency.
Justify why coordination of the marketing mix is essential.
For consistency. Marketers cannot be only responsible for customer value and must work with others to reach their goals.
Explain how the above contributes to value to customers and competitiveness
It keeps the product in life with the brand’s mission statement.