Marketing Mix Unit 2

Marketing objectives - the purpose of marketing Market segmentation – who is the target market? Market share – what is the market size and what share is your firm aiming for? Marketing mix: Product – what type and range of products will you sell? Pricing strategy – what price will you set for your products? Place – where will you sell and how will you distribute your product? Promotion – how will you effectively target your market?

The Marketing Mix What is this?

The Marketing Mix The tools available to a business to gain the reaction it is seeking from its target market in relation to its marketing objectives 7Ps – Price, Product, Promotion, Place, People, Process, Physical Environment Traditional 4Ps extended to encompass growth of service industry

The Marketing Mix This has 4 key areas: Product Price Place Promotion….

People Process Physical evidence Influences on the marketing mix However, the extended marketing mix takes into account other important variables that particularly affect services to make the 7Ps: People Process Physical evidence

The 4 Ps & 4Cs Convenience Customer Solution Customer Cost Marketing Mix Product Place Promotion Price Convenience Customer Solution Customer Cost Communication

Physical evidence or environment The marketing mix – the 7Ps Marketing Mix – the 7Ps Product Promotion Place Price Process Physical evidence or environment people For services

Product

Product Methods used to improve/differentiate the product and increase sales or target sales more effectively to gain a competitive advantage e.g. Extension strategies Specialised versions New editions Improvements – real or otherwise! Changed packaging Technology, etc.

What is a Product? There are 4 general categories of ‘products’: Good Service Place Person Can you think of an example for each category? Refer to their handout – add some of their own examples

Goods

Services

Place

Person

What is the difference between TANGIBLE & INTANGIBLE?

Tangible & Intangible Products Is more quantitative… Can be measured specifically & see the actual results E.g. Car speed, safety standards, efficiency (mpg) Products Intangible Is more qualitative… Cannot be scientifically measured. Focuses on how people feel or the image or pleasure gained… Services

Price

Price Pricing Strategy Importance of: knowing the market elasticity keeping an eye on rivals Elasticity:ratio of % change in 1 variable to % change in another variable

Promotion

Promotion Strategies to make the consumer aware of the existence of a product or service NOT just advertising

Place

Place The means by which products and services get from producer to consumer and where they can be accessed by the consumer The more places to buy the product and the easier it is made to buy it, the better for the business (and the consumer?)

People

People People represent the business The image they present can be important First contact often human – what is the lasting image they provide to the customer? Extent of training and knowledge of the product/service concerned Mission statement – how relevant? Do staff represent the desired culture of the business?

Process

Process How do people consume services? What processes do they have to go through to acquire the services? Where do they find the availability of the service? Contact Reminders Registration Subscription Form filling Degree of technology

Physical Environment

Physical Environment/ physical evidence The ambience, mood or physical presentation of the environment Smart/shabby? Trendy/retro/modern/old fashioned? Light/dark/bright/subdued? Romantic/chic/loud? Clean/dirty/unkempt/neat? Music? Smell? Physical evidence – for pharma products the clinical data becomes a source of evidence

THANK YOU -PHARMA STREET