Marketing mix

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When marketing their products firms need to create a successful mix of:
the right product
sold at the right price
in the right place
using the most suitable promotion.
To create the right marketing mix, businesses have to meet the following conditions:
The product has to have the right features - for example, it must look good and work
well.
The price must be right. Consumer will need to buy in large numbers to produce a
healthy profit.
The goods must be in the right place at the right time. Making sure that the goods
arrive when and where they are wanted is an important operation.
The target group needs to be made aware of the existence and availability of the
product through promotion. Successful promotion helps a firm to spread costs over a
larger output.
For example, a company like Kellogg's is constantly developing new breakfast cereals -
the product element is the new product itself, getting the price right involves examining
customer perceptions and rival products as well as costs of manufacture, promotion
involves engaging in a range of promotional activities e.g. competitions, product tasting
etc, and place involves using the best possible channels of distribution such as leading
supermarket chains.The product is the central point on which marketing energy must
focus. Finding out how to make the product, setting up the production line, providing the
finance and manufacturing the product are not the responsibility of the marketing
function. However, it is concerned with what the product means to the customer.
Marketing therefore plays a key role in determining such aspects as:
the appearance of the product - in line with the requirements of the market
the function of the product - products must address the needs of customers as
identified through market research.
The product range and how it is used is a function of the marketing mix. The range may
be broadened or a brand may be extended for tactical reasons, such as matching
competition or catering for seasonal fluctuations. Alternatively, a product may be
repositioned to make it more acceptable for a new group of consumers as part of a
long-term plan.
The price
Of all the aspects of the marketing mix, price is the one, which creates sales revenue -
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all the others are costs. The price of an item is clearly an important determinant of the
value of sales made. In theory, price is really determined by the discovery of what
customers perceive is the value of the item on sale. Researching consumers' opinions
about pricing is important as it indicates how they value what they are looking for as
well as what they want to pay. An organisation's pricing policy will vary according to
time and circumstances. Crudely speaking, the value of water in the Lake District will
be considerably different from the value of water in the desert.
The place
Although figures vary widely from product to product, roughly a fifth of the cost of a
product goes on getting it to the customer. 'Place' is concerned with various methods
of transporting and storing goods, and then making them available for the customer.
Getting the right product to the right place at the right time involves the distribution
system. The choice of distribution method will depend on a variety of circumstances. It
will be more convenient for some manufacturers to sell to wholesalers who then sell to
retailers, while others will prefer to sell directly to retailers or customers.
The promotion
Promotion is the business of communicating with customers. It will provide information
that will assist them in making a decision to purchase a product or service. The
razzmatazz, pace and creativity of some promotional activities are almost alien to
normal business activities.
The cost associated with promotion or advertising goods and services often represents
a sizeable proportion of the overall cost of producing an item. However, successful
promotion increases sales so that advertising and other costs are spread over a larger
output. Though increased promotional activity is often a sign of a response to a
problem such as competitive activity, it enables an organisation to develop and build
up a succession of messages and can be extremely cost-effective.
The marketing mix of Manchester United
What are the main elements of the marketing mix of Manchester United? First of all the
product includes providing an excellent football team that plays and wins in an exciting
way. However, there are other ingredients of the product including merchandising such
as the sale of shirts, and a range of memorabilia. The product also relates to television
rights, and Manchester United's own television channel. In one respect the place is
Old Trafford where home games are played, but Manchester United also plays at a
range of other venues. And, of course its products are sold across the globe, through
the club's website and a range of other sales media.
Manchester United markets itself as a global brand. The club also engages in a range
of joint promotional activities, for example with the mobile phone company Vodafone.
Manchester United books, shirts, programmes, keyrings and many other items are
sold and promoted through its website. The club has positioned itself at the upmarket
premier end of the market and, as a result, it tends to charge premium prices as
evidenced by the high cost of a season ticket to watch home league games.
Positioning or repositioning a product - refers to locating that product within a market
for example presenting it is an upmarket or downmarket product. Positioning it as a
product for younger consumers or older consumers etc.
FFiinndd mmaarrkkeettiinngg ccaassee ssttuuddiieess
Creating a winning marketing mix
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3. Edition 16
Edition 16
Edition 16
Edition 15
Edition 15
Edition 14
This case study describes how JD (part of the JD Sports
Fashion PLC Group of companies), a large and
well-known retailer, manages the balance of its
marketing mix around its consumers' needs in order to
achieve business growth.
Using sports marketing to engage with
consumers
This case study illustrates how Kia, a South Korean
motor company, has used sports marketing to develop
its brand identity in the European motor market.
Using the marketing mix to drive change
This case study explores how Parcelforce Worldwide
responded to increased competition by using the
marketing mix or 4Ps.
The marketing mix in the food industry
This case study shows how McCain combines all four
parts of the marketing mix to develop its marketing
strategy.
Live, breathe and wear passion
This case study looks at how Diesel promotes its
products and the brand.
Protecting the marketing mix through
intellectual property rights
This case study looks at how one technology company,
Forensic Pathways, has used these legal safeguards for
a new development.
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4. Edition 13
Edition 13
Edition 12
Edition 11
Edition 11
Edition 9
The use of the marketing mix in product
launch
This case study shows how a carefully balanced
marketing mix provides the platform for launching and
re-launching a brand onto the market.
Using the marketing mix in the fashion
industry
This case study examines how Ben Sherman uses the
marketing mix to help the business remain competitive
and extend its market share and influence.
Entering a new market with a new product
This case study helps students understand the range of
choices available to companies for market and product
development.
Sponsorship and the marketing mix
This case study helps students understand how effective
sponsorship involves all 4Ps of the marketing mix.
Creating the right marketing mix
This case study helps students understand the
marketing mix including product, price, place and
promotion.
Re-focussing a company's culture and
marketing mix
As a result of carefully reading the Case Study, students
should be able to: understand the cultural change
brought about at Argos to boost sales, be able to identify
the 7 Ps of the extended marketing mix, understand the
changes made to the marketing mix at Argos,
Meeting customers' needs in growth markets
- online gaming
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5. Edition 9
Edition 9
Edition 9
As a result of carefully reading the Case Study, students
should be able to: explain how broadband meets
customers’ need for speed, identify key segments in the
gaming market, explain how BT has developed a
marketing mix for broadband gaming.
Using new product development to grow a
brand
As a result of carefully reading the Case Study, students
should be able to: appreciate the need to make
decisions that help to manage, maintain and develop the
value of brands, appreciate the importance of market
research processes and the questions that market
researchers seek to answer, link processes of market
research with a range of products that closely meet
consumers’ needs.
Meeting customers' needs
As a result of carefully reading the Case Study, students
should be able to: identify how the business maintains
sustained financial growth through acquisition and
development of the existing business, understand how a
customer service programme can help to improve
performance and ensure long term financial stability,
explain the key components of the marketing mix and
how implementation of the mix will enhance customer
satisfaction.
The marketing mix
The extended marketing mix
(7Ps)
Creating strategies that meet
customer needs (the
marketing mix)
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