Apply and Adapt the Marketing Mix to Satisfy Customer Needs
6.1 Recommend a marketing mix for products and services.
Describe potential differences between marketing mix design for a product and marketing mix design for a service
For service, we need to use the extended 3 Ps – people, process and physical evidence. These are hard to standardise and intangible. Supply and demand for services are harder – items are not perishable and cannot be sold at a discount like food. Eg hotel rooms, football tickets.
- intangible: can’t be touched or seen
- inseparability: needs producer and consumer
- heterogeneity: standardisation is difficult as it’s dependant on people and their perceptions
- perishability: cannot be stored
- ownership: cannot be owned but can be accessed
Total service concept – core > extended > augmented.
6.2 Recommend a marketing mix in a different concept.
Recommend a marketing mix for:
- B2B market – usually smaller markets, focus on functional benefits
- B2C market – focus on larger markets and focus on functional benefits with some emotional value
- NFP market – mix is designed to support who they serve, market to attract funding and raise awareness
- small and medium businesses – small scale products or services, focus on personal relationships
- international markets – standardisation vs adaptation, focus on adapting to the international markets
- builds and maintains relationships – relationship marketing
6.3. Explain how to adapt the marketing mix changing environmental conditions ensuring and continuing satisfaction of customer needs
Explain adaptations in the marketing mix in response to changes to macro factors
eg legislation, policy, economic, social, technological.
- Product – product may need to adapt to new health and safety laws
- Price – taxation may mean price may need to be reviewed
- Place – technological advances might mean adaptations to place need to happen
- Promotions – need to adapt to social trends
- People – demographics may increase or decrease employable people
- Processes – need to be in line with new laws
- Physical evidence – technology changing could replace some things eg money on phone
Explain adaptations in the marketing mix in response to changes to micro factors
Eg suppliers, competitors, new entrants, barriers to entry, distributors. Customer, other stakeholders
- Product – adaptations needed to beat competitors
- Price – may need to adapt if the price of materials change
- Place – customer demands for convenience may mean place needs to change
- Promotion – changes in product, price or place may mean customers need to be informed
- People – more staff, better-trained staff or relocated staff to differentiate against competition
- Physical evidence – could be adapted to be more appealing in face of competitors
6.4 Recommend how the effectiveness of the marketing mix can be measured, controlled and the introduction of marketing metrics
Propose appropriate marketing metrics for each element of the marketing mix and identify methods for measuring performance.
- Product – sales figures
- Price – perception of value for money
- Promotion – social media engagement
- Place – sales volume per distribution channel
- People – productivity
- Process – speed
- Physical evidence – impact on awareness
Propose mechanisms to monitor and measure achievement of objectives
Profit, customer satisfaction, return on marketing investment, customer lifetime value, net promotor score.