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What is marketing and the marketing mix


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What is marketing and the marketing mix

  1. 1. BBI2O - Marketing Unit: Part I1. What is Marketing?Marketing can be defined as “the sum of all the activities involved in the planning, pricing, promoting,distributing and selling of goods and services to satisfy consumers’ needs and wants.” (The World ofMarketing: A Canadian Perspective, 2003; p. 3)2. What is the Purpose of Marketing?For any business or event, the purpose of marketing is to:i) generate brand-awarenessii) increase sales and profitsFor a non-profit organization (i.e. charities), the purpose would be to:i) generate greater awareness of its cause (e.g. Canadian Red Cross and blood donations)ii) increase donations3. The Marketing MixThink of the last time you made a recipe. Did you follow the recipe line by line? Did you add all of thelisted ingredients and in their indicated quantities? Perhaps you forgot an ingredient or two! How didthe dish taste? A missed ingredient here or there might lead to a final dish that still tastes good, butcould have tasted better. Or, the dish may be a huge disappointment.In business, marketers need to know the best recipe of marketing elements to differentiate theirproduct/service from their competitors.“The success of any marketing strategy depends on whether or not the entrepreneur has planned theright combination of marketing elements. These elements are referred to as the Marketing Mix, oroften the Four Ps of Marketing. The elements are: Product (or Service), Place, Price and Promotion.To establish a successful marketing mix, an entrepreneur has to ask the right questions.”(Entrepreneurship, Creating a Venture, p 181)
  2. 2. 4. The Four Ps - Questions to ask Element of Marketing Mix Questions that are asked Product (or service)  Is the product or service something customers will want to buy?  Will it be of benefit to them?  Will it meet their needs? Place  How will the product or service get to the customer?  What channels of distribution are needed?  When should the product or service be in stock or ready?  Where will the product or service be made available? Price  How much are customers willing and able to pay?  What is the best price to charge to earn a maximum profit?  What pricing strategy will be used (i.e. skimming, penetration, competitive)? Promotion  How will customers be made aware that the product or service is available?  Which of the following promotional activities will be best for this venture: advertising, personal selling, publicity, sales promotion or e- marketing?5. A Marketing Mix Activity1. a. Complete a marketing mix for both the Apple iPhone and the Blackberry (use the most recently released versions). b. For each “P”, which product is superior? Explain.2. Complete a marketing mix for any two other competing products of your choice. Then, for each “P”, which product is superior? Explain.6. Which of the 4Ps is Most Important?In general, no one P is most important. As stated earlier, the successful marketing of a product relieson “the right combination of marketing elements”. For example, Michelle has a revolutionary product butnot enough money for proper promotion. Hence, consumers won’t know about it. Ahmed’s product isso amazing but he overpriced it, leading to very poor sales. Tameka’s cool product is priced andpromoted effectively, but she just can’t find distributors to carry her product to market (thus, consumerscan’t buy it).(As an aside: Think about why entrepreneurs go on the CBC show Dragons’ Den. Most need money inorder to better promote their product or get access to improve production and distribution sources.)
  3. 3. Here are various examples of products that have failed outright or haven’t met corporate expectations. Company / Product The 4P that failed Reason Research in Motion – Product and Price  delay in releasing tablet due Blackberry Playbook to software issues; business users lacked certain important functions (e.g. problems retrieving emails)  poor reviews and delayed release led to poor comparisons to its most direct competitor, Apple’s iPad eventually, RIM reduced the price of its tablets by $300, with its 16GB version available for only $200 McDonald’s pizza (mid-1990s) Product and Place  customers believed they could get better pizza elsewhere (i.e. at their local pizza joint)  required franchise owners to make expensive upgrades to their locations (i.e. overs, larger drive-thru windows)  took longer to cook and didn’t fit into the idea of “fast- food”Finally, ever heard of “New Coke”? What about “Coca-Cola Classic”? Here’s the background story ofthese two drinks.1. Animated History of Coca-Cola The 1985 Launch of New Coke did Coke’s 4Ps evolve over time? product: contoured bottle to provide unique look (to differentiate from competition) promotion: expanded market places outside of North America place: bottled in various countries to sell to local7. The Two Cs: Consumer and CompetitionIn addition to the Four Ps, there are two other elements to consider: The Two Cs: Competition andConsumer.In developing a marketing mix, an entrepreneur is able to identify its Consumer (i.e. what they wantin their product/service) and who their Competition is (i.e. how they are differentiated; what theirstrengths and weaknesses are).