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Am 6 the marketing mix


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Am 6 the marketing mix

  1. 1. The Marketing Mix
  2. 2. Marketing Mix <ul><li>The blend of the four marketing elements of product, place (distribution), price and promotion </li></ul>
  3. 3. Product <ul><li>Product Mix: The different products and services a business offers </li></ul><ul><li>Two Aspects to Consider: </li></ul><ul><ul><li>Selecting Product Features </li></ul></ul><ul><ul><ul><li>Color, size, quality, hours of operation, warranties, delivery, and installation </li></ul></ul></ul><ul><ul><li>Branding, Packaging, and Labeling </li></ul></ul><ul><ul><ul><li>Branding: the name, symbol, or design used to identify the product </li></ul></ul></ul><ul><ul><ul><li>Package: the box, container, or wrapper in which the product is placed </li></ul></ul></ul><ul><ul><ul><li>Label: information about the product on the package </li></ul></ul></ul>
  4. 4. Positioning <ul><li>Placing a product in a certain market to get a desired customer response </li></ul><ul><li>What are the differences between a Hyundai and a Jaguar? </li></ul>
  5. 5. Place (Distribution) <ul><li>Channels of Distribution: the routes that products and services take from the time they are produced to the time they are consumed </li></ul><ul><li>Aspects to consider: </li></ul><ul><ul><li>Getting the product in a timely manner </li></ul></ul><ul><ul><li>Channels of distribution usually result in lower costs than trying to do everything yourself </li></ul></ul><ul><ul><li>Channels save time for buyers and sellers </li></ul></ul>
  6. 6. Channel of Distribution for Retail Goods <ul><li>Cotton fields/farmers (Raw Materials) </li></ul><ul><li>Textile Mills </li></ul><ul><li>Manufacturer </li></ul><ul><li>Wholesalers </li></ul><ul><li>Retailer </li></ul><ul><li>Consumers </li></ul>
  7. 7. Channel of Distribution for Retail Goods <ul><li>Stay open in evening hours and on weekends </li></ul><ul><li>Use catalogs, fliers, other advertisements to reach customers outside living area </li></ul><ul><li>Take orders by phone, fax, or ship directly </li></ul>
  8. 8. Distribution through Internet <ul><li>Websites </li></ul><ul><li>On-line Catalogs </li></ul><ul><li>ebay </li></ul><ul><li>On-line Auctions </li></ul>
  9. 9. Channels for Service Businesses <ul><li>Single direct channel from entrepreneur to customer </li></ul><ul><li>Product and consumption happens at the same time </li></ul><ul><li>Some services utilize retailers to distribute their product (film developers) </li></ul>
  10. 10. Channels for Manufacturing <ul><li>End customers are generally NOT the customer for manufacturing </li></ul><ul><li>Broad distribution or narrow distribution </li></ul>
  11. 11. Physical Distribution <ul><li>How is the product transported? </li></ul><ul><li>How is product stored? </li></ul><ul><li>Transportation: </li></ul><ul><ul><li>Air </li></ul></ul><ul><ul><li>Train </li></ul></ul><ul><ul><li>Transfer truck </li></ul></ul><ul><ul><li>Pipeline </li></ul></ul><ul><ul><li>Ship </li></ul></ul><ul><ul><li>Combination of methods </li></ul></ul>
  12. 12. Physical Distribution <ul><li>How is the product transported? </li></ul><ul><li>How is product stored? </li></ul><ul><li>Storage and Handling Options: </li></ul><ul><ul><li>Warehouses </li></ul></ul><ul><ul><li>Packages must protect the product from production to sale </li></ul></ul>
  13. 13. Price <ul><li>Set Your Price Objectives: </li></ul><ul><ul><li>Maximize sales? </li></ul></ul><ul><ul><li>Increase profits? </li></ul></ul><ul><ul><li>Discourage competition? </li></ul></ul><ul><ul><li>Attract customers? </li></ul></ul><ul><ul><li>Maintain an image? </li></ul></ul>
  14. 14. Return on Investment <ul><li>One pricing strategy is to determine cost involved and then decide how much you desire to gain as a return on your investment </li></ul>
  15. 15. Obtaining Market Share <ul><li>Market share: percentage of total sales by all companies in the market that a business captures </li></ul><ul><li>Pricing strategy that gains market share will either be a lower price than competition or a comparable price for a higher quality product </li></ul>
  16. 16. Determining Price <ul><li>Demand-Based Pricing: price set by how much the customer will pay </li></ul><ul><li>Cost-Based Pricing: determining wholesale cost and placing a markup amount on the price </li></ul><ul><ul><li>Markup: amount added to the wholesale price </li></ul></ul><ul><ul><li>Markdown: amount subtracted from the retail price </li></ul></ul>
  17. 17. Determining Price <ul><li>Competition-Based Pricing: price determined by what the competition is charging for the same good or service </li></ul>
  18. 18. Service Pricing <ul><li>Time-Based Pricing: hourly rate for a service performed </li></ul><ul><li>Bundling: services are bundled together and sold at a discounted price </li></ul><ul><li>Breakeven Point: all costs for a service are added to determine the lowest price a service may be sold at in order to cover costs (the point where sales revenues equal production cost) </li></ul>