1. The Marketing Mix The 4 P’s Product

2. Important consideration for the product... It must meet the needs or wants of the customer It must meet the needs or wants of the customer Quality is important Quality is important You must produce the right amount You must produce the right amount or your costs could be more than your revenue 

3. Product differentiation Making one product different from another through: Design Design Formulation Formulation Name/branding Name/branding Promotion Promotion Packaging Packaging

4. Price Price Before setting a price, a business needs to consider … Competitors Competitors Customers Customers Costs Costs

5. Market penetration pricing Market penetration pricing Where a firm charges a very low price when the product is new to get people interested in it. Where a firm charges a very low price when the product is new to get people interested in it. The price is likely to be raised later as the product gains market share The price is likely to be raised later as the product gains market shareProblems??? Poor image? Less Profit? Difficult to raise price later?

6. Skimming is the opposite – where a firm charges a high price to begin with to gain a high profit Skimming is the opposite – where a firm charges a high price to begin with to gain a high profit It then lowers the price to help it become a mass-market product. It then lowers the price to help it become a mass-market product. What types of products use this type of pricing strategy? Possible problems? Possible problems?

7. Competition pricing Competition pricing Setting your price similar to competitors for similar products. Setting your price similar to competitors for similar products. Avoids price competition and is a safe strategy. Avoids price competition and is a safe strategy. So, how else can a business compete if not on price? So, how else can a business compete if not on price? Possible problems? Possible problems? How will we stand out?How will we stand out?

8. Promotional pricing Promotional pricing eg discounts, special offers & sales eg discounts, special offers & sales When is this strategy used? To increase sales To shift old stock Loss Leaders? Loss Leaders? Products which are priced so cheaply that the retailer makes no profit on the product Products which are priced so cheaply that the retailer makes no profit on the product Why do this?

9. HOMEWORK HOMEWORK BRING IN 1 ITEM OF PACKAGING YOU CAN FIND AT HOME! TRY TO FIND SOMETHING ‘DIFFERENT’!

10. YOUR PACKAGING...

11. QUANDRY I am a type of packaging I have 3 letters!

12. Packaging So, we have looked at different types of packaging... What is packaging used for? Deliver products safely to the consumerDeliver products safely to the consumer Prevent deterioration & damagePrevent deterioration & damage Enable easy storageEnable easy storage Provide information (medicines!)Provide information (medicines!) Promote the product through the colours, design and lettering.Promote the product through the colours, design and lettering.

13. PROMOTION What is the purpose of promoting a product? INFORM customers about the product PERSUADE customers to buy from you TELL customers about the benefits of the product Also... Improve company image Increase Sales/Market Share Extend the “life cycle” of a product MUST BE MEASURED TO SEE IF SUCCESSFUL!

14. PROMOTION So, how is it done? 2 mins to brainstorm... Above the line – TV, Radio, Media Below the line – all other methods Will more promotion = higher profits?

15. PROMOTION Why might it not work? Not aimed at the right audience Not enough spent on the budget Might be too tacky for people to like! What adverts annoy you the most?