The Marketing Mix and Consumer Behaviour Week 4 - 2

The Product Onion The Actual Product The Extended Product The Augmented Price

The Marketing Mix Price All customers have some idea – a perception - about how much a product will cost them to buy It may be ridiculous low in which case the promotion needs to clearly demonstrate the value It may be perceived as being higher than it actually is / needs to be often when people do not understand the contents of the product – mystery in some technology – Keep the price to give maximum value – Increase the price to maximise value and provide investment in the future.

The Marketing Mix Place Chapter 17 After the product selection has taken place the decision of where / how to buy will be made often part of the search Consumers will have learned behaviour always go to a shop which has good service and knowledgeable staff Many people will have since only 2000 consider the internet as a serious credible option and TRUSTED eg Amazon started in books, cds easy to post have now moved onto other products – higher value often customers expect lower prices but also value the speed of service – delivery RETAIL DISTRIBUTION IS AN INTANGIBLE PRODUCT

Creative Aspects Humour Size Position Association like the message like the product Film – Movie style – life style Music

The Marketing Mix Promotion D R I P

The Marketing Mix Promotion A I D A (Strong 1925)

The Marketing Mix Promotion Hierarchy of Effects (Lavidge & Strong 1961)

The Marketing Mix Promotion Information Processing (McGuire 1978)

The Marketing Mix Promotion - Sales Promotion REASON TO BUY Operant Conditioning – Rewards Competition JND – extra product – reduced price - Perception Exponentiation – free sampling Loyalty schemes – reward loyalty