1. The Marketing Mix

2. Marketing Mix Most famous phrase in marketing Sometimes known as the ‘four Ps' The marketing mix consists of price, place, product and promotion.

3. The Marketing Mix

4. The Marketing Mix - Price There are many ways (strategies) available when pricing a product.

5. The Marketing Mix - Price Premium Pricing Maintaining an artificially high price in order to encourage favourable perceptions among consumers. Predicated on myth that high price equals high quality. Also referred to as prestige pricing.

6. The Marketing Mix - Price Penetration Pricing Maintaining an artificially low price on newly- introduced goods or services in order to gain market share. Once this objective is achieved, price is returned to market levels.

7. The Marketing Mix - Price Economy Pricing This is a no frills low-price strategy where production, marketing and distribution costs are kept to a minimum.

8. The Marketing Mix - Price Price Skimming Maintaining an artificially high price given lack of competition or due to significant competitive advantage. However, this pricing strategy is not sustainable as the higher selling price tends to attract new competitors into the market, thus leading to price declines as supply gradually increases.

9. The Marketing Mix - Place Place refers to channels of distribution, or the path through which goods are moved from the manufacturer/service provider to the user or consumer (final user).

10. The Marketing Mix - Place There are a few basic channel decisions that must be made by businesses: 1.Do we employ direct or indirect channels? (i.e., direct to the consumer or indirect via an intermediary such as a wholesaler, retailer, or agent?) 2.Do we use single or multiple channels?

11. The Marketing Mix - Place

12. The Marketing Mix - Product Product Life Cycle – Introduction Stage During this stage, the product is heavily promoted to create consumer awareness. If the product has few or even no competitors, a price skimming strategy is employed to maximize profits.

13. The Marketing Mix - Product Product Life Cycle – Growth Stage During this stage, numerous competitors are attracted into the market that offer similar products. Products become more profitable. Companies may also form strategic alliances, joint ventures or simply merge with one other.

14. The Marketing Mix - Product Product Life Cycle – Maturity Stage During this stage, revenues grow at a decreasing rate and eventually stabilize. Producers attempt to differentiate products by creating a favourable brand of one’s offerings in the minds of consumers. Price wars and intense competition continue.

15. The Marketing Mix - Product Product Life Cycle – Decline Stage During this stage there is a downturn in the market. More and more innovative products are introduced and/or consumer tastes change. Intense price-cutting occurs and many products are ultimately withdrawn from t he market altogether.

16. The Marketing Mix - Promotion Promotion represents the various aspects of marketing communication with the goal of generating a positive customer response. Promotion includes paid advertising, public relations, free publicity, direct marketing and personal selling and sales promotions.

17. The Marketing Mix - Promotion Advertising refers to paid-for promotion of commercial products using a variety of media sources directed towards particular target markets. Advertising is designed to create a favourable image of company products in the minds of consumers Examples: TV & radio commercials, newspaper and magazine ads, online ads, etc.

18. The Marketing Mix - Promotion Public Relations – Most large companies have PR departments which attempt to manage the image and reputation of both the products and the company itself. Publicity – Refers to media promotion of companies and their products that the company did not directly pay for such as newspaper articles, televised news reports, etc. Direct Marketing – Allows companies to communicate directly with their customers. Includes telemarketing, junk mail, spam, online pop-ups and billboards. Personal Selling – Face-to-face sales such as between salesperson and potential customer in a retail store. Ultimate goal is to close the deal, upsell or cross-sell to the customer. Sales Promotions – Designed to increase customer awareness and sales. Includes coupons, special events, free samples, contests, giveaways, etc.

19. The Marketing Mix Summary

20. Marketing Mix – The Two Cs The marketing mix also refers to the two Cs: consumers and competition.

21. The Marketing Mix - Consumers Marketers must determine the demographic characteristics (e.g., age, gender, income and education levels, etc.) of their target market, or most typical potential consumers.

22. The Marketing Mix - Consumers Marketers must offer significant customer value proposition, which refers to the benefits that consumers receive from the use of certain goods and services.

23. The Marketing Mix - Competition Marketers must also be cognizant of their direct (similar product) and indirect (discretionary income) competition.

24. The Marketing Mix - Competition Marketers must attempt to gain competitive advantage through (i) lower production costs via economies of scale (ii) lower marketing and distribution costs (iii) product differentiation in terms of price, quality and unique features and (iv) brand equity (awareness, loyalty and insistence).

25. Group Activity You will be divided into groups of 3-4. Each group will be assigned a different company from http://canadastop100.com/national/. You are to list and explain the 4 Ps for your assigned company. In addition, identify competitors and describe the typical consumer (target market) according to: income, age, gender, lifestyle, attitudes and beliefs.