2. Objectives
Define the marketing mix.
Explain pricing strategies in a given business.
Apply different pricing strategies to a range of
products.
Analyse the appropriateness of different
pricing strategies in a given business.
4. Components of the Marketing
Mix
Product
Place
Marketing Mix
Price
Promotion
5. How is the Marketing Mix
Used?
Understand the needs and wants of
customers (Kolter 2002).
Used by businesses to decide how and
where to market a product.
A small business may just hand out leaflets.
A large business will look at each of the 8Ps
in detail.
6. The 4ps must be balanced
Marketing
Strategy
Integrated
Marketing Mix
Product
Place
Price
Promotion
7. Different Marketing Mix for
Different Situations
Type of Purchasing
Are goods:
Most Important element
of mix
regular purchases
Impulse purchases
Regular Purchases
Product, promotion and
Emergency purchases
price
chocolate brands focus on place and
Impulse Purchases
Place, and promotion
promotion.
(including packaging)
Emergency Purchases
Place and product
8. Influences on the Marketing
Mix
Finance
Technology
Research
Consumer
9. Where does the Marketing Mix
fit into Planning?
Analyse the market
Develop Strategies
Develop Marketing Mix
11. Quiz
The biggest influence on the marketing mix is?
A.
B.
C.
Finance
Consumers
Technology
Which is a member of the 4 Ps ?
A.
B.
C.
People
Place
Public Relations
The marketing mix is the fundamental aspect of
marketing?
True
False
12. Quiz
If I was a small business, which promotion method would I
be likely to use?
A.
B.
C.
National advertising between mainstream TV programs
Online through Facebook
National newspaper
Marketing excites me.
True
False
13. Objectives
Define the marketing mix.
Explain pricing strategies in a given business.
Apply different pricing strategies to a range of
products.
Analyse the appropriateness of different
pricing strategies in a given business.
14. Importance of Price –
Business Revenue
Revenue = price x units sold
If the price isn't right businesses could:
Lose customers
Lose revenue
15. Reason for pricing strategies
To break into a new market.
To try and increase market share.
Increase profit.
To make sure all costs are covered.
16. Pricing Strategies
Types of Pricing Strategy:
Cost plus Pricing.
Penetration Pricing.
Price Skimming.
Competitive Pricing.
Promotional Pricing.
Loss Leader.
17. Cost Plus Pricing
A company will look at how much a product
will cost to produce.
Then add a percentage mark-up profit
(money added on top to make a profit).
Easy to apply.
Always covers costs.
If competitor is selling at a cheaper price
could lose sales.
18. Penetration Pricing
This would possibly be used when trying to
enter a new market.
Price is set lower than your competitors.
Customers will try your product and become
regular customers.
19. Price Skimming
Product is usually a new one and therefore
can be sold on the market at a higher price.
Establish the product being of high quality.
May put off some customers who can’t afford
it.
20. Competitive Pricing
Pricing in line with your competitor’s price or
just below.
Sales are likely to be high because your price
is not over or under priced.
Requires research which costs money.
Can end in a pricing war with competitors.
21. Promotional Pricing
Promotional pricing is pricing the product
low for a set amount of time.
Useful for getting rid of unwanted stock.
Renew interest in the business if sales are
falling.
However, can affect business revenues.
22. Loss Leader
Aim to capture a large share of the market by
charging a low price (below cost).
Short-term the firm will make a loss.
However, it will capture a large market share.
Longer term will raise the selling price of the
product and make profits.
23. Missing line task
Market Penetration - Charging a low price to
gain market share.
Price skimming - Pricing high to maximise profit
margins.
Cost plus - Adding a % of profit onto direct costs.
Loss Leader - Selling a product at below its cost.
Competitive - Charge above or below
competitors
Promotional - Low price for a small period of
time.
24. The price is right
Eight scenarios, which pricing strategy would
you use and why?
25. Objectives
Define the marketing mix.
Explain pricing strategies in a given business.
Apply different pricing strategies to a range of
products.
Analyse the appropriateness of different
pricing strategies in a given business.
26. Case study - Homework
Read case on ASDA and £3 jeans.
Answer questions, 1-3.
This is due in for Thurday
27. Objectives
Define the marketing mix.
Explain pricing strategies in a given business.
Apply different pricing strategies to a range of
products.
Analyse the appropriateness of different
pricing strategies in a given business.