The Marketing Mix

The Four Ps Product Price Place Promotion

Choice of marketing mix Each business must decide upon its own marketing mix. It is important that the right balance between price, product, promotion and place is achieved if this is to be as affective as possible.

Factors influencing choice of marketing mix Finance available Technological developments Findings from market research Type of product selling Market it is selling to Degree of competition Marketing mix of competitors Position of a business within an industry Finance: financial backing offers the business a choice of marketing mix components to support the product Technology: has enabled businesses to adapt and develop their marketing mixes i.e. promotion through text messages, internet websites place – internet (figures show that on line sales for M&S were greater this Xmas) Market research – informing consumers of the nature of the product it also allows the business to discover how consumers will respond to different prices and where the product should be made available Type of product sold – businesses marketing highly technical products will focus on its qualities rather than giving a free good as a promotion, however a business marketing a product similar to its competitor may use a lower price or include some form of promotion Market sold to – businesses aiming at the mass market will focus on the promotional and pricing aspects. Firms selling machinery or industrial goods will focus on the product itself Competition – businesses operating in a competitive market will focus on the price where less competitive markets may not see price as important Marketing mix of competitors – businesses cannot afford to ignore the marketing mix used by their competitors as this will have a great impact on their sales - place is a n important component. Position of business within the industry – market leaders have greater freedom over the marketing mix they choose, businesses in weaker positions tend to mimic the mix of the dominant business.

Marketing mix and the scope of business activity A wide range of organisations are engaged in marketing activities, marketing is not only for larger organisations, smaller firms operate in local markets. However the size can impact the marketing mix. Small businesses Non-profit making organisations Business to business markets Consumer markets International marketing For small businesses such as sole traders sophisticated marketing strategies are beyond their means, ensuring that the business survives is the main focus. Therefore they need to think strategically about their marketing. i.e, type of product consumers would buy in the local area, the price that would encourage a local business to buy from local business instead of national distributor, Promotion that is effective, place Non profit making organisations – there has been a huge increase in the marketing of non-profit making organisations such as schools, colleges, charities and hospitals. The need to compete for customers as funding is linked to their ability to attract. Pricing is the least important strategy. Business to business – supply capital goods, the marketing mix vary greatly, mass market consumer goods rely heavily on advertising campaigns in the media whereas business to business relies on personal contact, international shows or fairs. Consumer markets – businesses pay a great deal of attention to the marketing mix as they explain the behaviour of consumer markets. International markets – businesses who engage in international marketing will often vary. Product, price, promotion and distribution will be different i.e. car prices are lower in Europe than UK.