Marketing mix How important is it for a business to have an effective marketing mix? – The mix is the four key decisions that must be taken in the effective marketing of a product. – If any one of these key decisions is inadequate the profitability of the business can be impacted

Product – Consumers require the right product to meet their needs Price – If the price is not set accurately consumers may lose confidence Promotion – Effective promotion will convince the customer to purchase your product Place – The product must be available in the right place at the right time

The 4 Cs See Enterprise Energy CIE Key aspects – Content, what are they. Define. – Evaluation, what is their purpose The traditional marketing mix may be a little rigid and does not focus enough on the customers. After all – customer satisfaction will ultimately impact profitability in the long term

4Cs consistent with market orientation and customer relationship marketing Define CRM CRM – not to win new customers but to retain existing ones

Product A product can be sold to anyone. But will they customer buy a second time? A good product will meet expectations and establish consumer loyalty.

Product versus Service productservice Physical existenceNo physical existence Tangible – such as a phone, carIntangible – such as a haircut, banking BOTH MUST SATISFY NEEDS AS ESTABLISHED BY RESEARCH

Discuss how an understanding of product positioning could benefit a business. (6) Include as part of your answer a positioning map for cars.

Product positioning A strategy that can be initiated before deciding on which product to develop and launch Positioning takes into account how the product will relate to other brands already in the market, in the minds of consumers. Often a positioning map can be made in an attempt to find market gaps.

Note how a gap exists for a drink with a healthy image in figure 16.1 Note the two axis, price and image Adveritsing can help to better position a brand in the minds of the consumer.

Product Life Cycle Draw it Describe the features of each stage – What are sales doing – Consumer awareness of product, attitudes – What is cash flow doing? – Any profits?

Why is the PLC useful to managers 3 part answer By understanding what stage the product is in the manager is better able to plan marketing mix decisions (p296) – If the product is in maturity advertising could be more persuasive – If the product is in maturity extension strategies might need to be considered – If the product is in introduction and has a USP then price skimming could be used

Why is PLC useful to managers – Provides useful information about cash flow, how cash flow will be different during stages (295) – This cash flow information shows the need for a balanced product portfolio

Balanced product portfolio

Firms with a portfolio of products will generally be introducing new products at regular stages. As one product matures and eventually declines it is replaced by products that are new and growing.

Here the newer products, in introduction or growth are not generating sufficient cash flow, so this is offset by having products in maturity that have strong cash flows.

Limitations of PLC It is a model and may not represent reality. The bus environment is constantly changing, no two products have the same cycle, the length of stages are different for every product Past data may not predict future trends Needs to be used alongside sales forecasting, also management expertise

Solutions Education to break the cycle The perfect punishment – does not exist Restorative justice, victim and offender meet face to face………. Circle sentencing Prison workshops – rehabilitation More capital punishment for serious crimes Get tough, harsh