1. And the Marketing Mix (4p’s)

2. Marketing Mix The 4 Ps Product Price What product(s) should we sell?
How should they be branded?
What is the best positioning?
Price
What are the pricing objectives? How much should we charge?
Product
Price
The 4 Ps
Marketers have essentially four variables to use when crafting a marketing strategy and writing a marketing plan. They are price, promotion, product and distribution (also called placement). They are sometimes referred to as the four Ps. A marketing mix is a combining of these four variables in a way that will meet or exceed organizational objectives. A separate marketing mix is usually crafted for each product offering. When constructing the mix, marketers must always be thinking of who their target market are. Mix coherency refers to how well the components of the mix blend together. A strategy of selling expensive luxury products in discount stores has poor coherency between distribution and product offering.
Promotion
What value does our product add for consumers?
What is the best way for us to convey our message to consumers?
Place
Where, when and how will consumers access our products?
How will we distribute?
Place
Promotion 2

3. Marketing Mix (4 P’s)
PRODUCT/SERVICE – the actual product, (design, colour, materials, taste, scent) or service the company sells.
PLACE (CHANNELS OF DISTRIBUTION) -These are the methods of how goods or services are distributed to and reach the consumer. ex transportation and where the customer can purchase the product/services.

4. Marketing Mix (4 P’s)
PRICE -Must consider how much it cost to make, variable and fixed costs and desired profit
PROMOTION - to increase the awareness of their product/service to potential customers and to convince them they are better than anyone else’s (competitors).

5. 1) Promotion Image and Branding
Branding is establishing an identity for a product that differentiates it from the competition.
It is made up of a brand name, logo, slogan, and trademark and creates brand loyalty.

6. Types of Brands
A National Brand is a product which is branded by a manufacturer's brand and is typically supported by heavy advertising.
Coca Cola and Heinz Ketchup would be examples of this.

7. Types of Brands
A private Brand or “Store Brand” label is a brand that a retailer creates to exploit their corporate image
Only that retailer can sell it
It allows them to differentiate themselves (And control price and quality)
Examples:
Loblaw’s “President’s Choice”
Shopper’s Drug Mart’s “Life” brand
HBC’s “togo” brand

8. Types of Brands
Generic Brands or “No Name Brands” The lowest cost because the labeling and packaging is cheaper
There is no promotion for this type of brand.

9. LOGO
A logo is the part of the brand in the form of a symbol that is usually registered
A brand mark and trademark are examples of a logo

10. SLOGAN
A slogan is a catchy phrase used to remind the consumer of a company or brand
Harvey’s makes a hamburger a beautiful thing”

11. Target Market
All the characteristics of the market segment, (customers), that you are selling to.

12. Demographics Age range Income range Gender Marital status
Number of Children
Occupation
Geographic Location

13. Psychographics Attitudes Opinions Interests Lifestyle
Needs to be filled
What or who influences the purchase decision
How will find out about your product

14. 2) Price?
Definition:
The amount of money, asked for or given in exchange for something else.
It is an arbitrary amount determined by marketers.
PRICE = VALUE
Pricing is one of the 4Ps of the marketing mix:
The price of the product or service affects
How much demand there will be
How much you will sell
How consumers will view your product
How much competition you will have
* * Price too high, risk not selling
* * Price too low, risk not selling

15. Imagine you want to buy some chocolate. Which of these will you buy?
Move to the corner of the room that matches your choice. Discuss why you chose that product.
Broken chocolate bar pieces from the bulk food store.
Price: $1 for about 2 bars
Toblerone bars.
Price: $6.99 for a large “gift size” bar.
GODIVA chocolates – considered by many to be “the best”
Price: $20 for a small box of about 12 chocolates
Widely available chocolate bars.
Price: $1 each

16. Imagine you are going to buy a car. Which of these will you buy?
Move to the corner of the room that matches your choice. Discuss why you chose that product.
Lamborghini Gallardo – often mentioned in rap songs.
Price: $250,000
Audi TT – a cool design featured in several movies.
Price: $60,000
A sporty and economical new Toyota Echo
Price: $15,000
1983 used Datsun
Price: $600

17. Imagine you are going to buy ketchup. Which of these will you buy?
Move to the corner of the room that matches your choice. Discuss why you chose that product.
Annie’s Organic Ketchup
Price: $4.50
Hunt’s Ketchup
Price: $1.99
Heinz Ketchup
Price: $3.50

18. What influences a price?
Convenience
Status and image (positioning)
Trends
Competition
Quality
Cost to make and sell it
How much the target customer will spend for it
Profit that a company wants to make
How much a company wants to sell
How quickly they want/need to sell
Others?
Pricing is one of the 4Ps of the marketing mix:
The price of the product or service affects
How much demand there will be
How much you will sell
How consumers will view your product
How much competition you will have
* * Price too high, risk not selling
* * Price too low, risk not selling

19. Psychological Pricing
Refers to techniques that create an illusion or impression for customers that make them buy

20. Psychological Pricing Techniques
Odd-even pricing $2.99 or $100
Odd numbers convey bargain!
Even numbers convey quality
Prestige Pricing expensive $1000+ Rolex watches
Conveys status
You’ll look rich or cool

21. Psychological Pricing Techniques
Multiple Unit pricing 4 chocolate bars in a pkg
You think you’re getting a bargain
Increases sales volume
Bundle Pricing shampoo and conditioner bundle
Price is lower than if you bought separately
Getting a bargain

22. Psychological Pricing Techniques
Promotional Pricing
Loss leaders – sell products at cost or below to get customers in to the store
Prices reduced for a certain time, ie. at holidays
Everyday Low Prices (ELDP)
Low prices every day with no intention of raising them or offering more discounts

23. 3) Product - Product Mix
Includes all the different products that a company makes or sells.

25. Developing Existing Products
Line Extensions – new product lines, items, or services
Original Product
Newer Products

26. Developing Existing Products
Product Modifications – an alteration in a company’s existing product

27. 4) Place - Distribution?
The paths of ownership that goods follow as they pass from the producer to the consumer
In other words….
How a product gets from the producer to the customer.

28. Distribution Intensity
Intense Selective Exclusive
# of Dist. Many Fewer Rare
Cust. Exp Quick & easy Several visits Willing to Travel
Service Minimal Some High
Competion High Medium Low

29. Direct Distribution Direct link between the producer and the consumer
Ex: Dentist, Roots, many restaurants
Good technique when sales representatives are involved
Producer
Consumer

30. Indirect Distribution
Intermediaries take possession of the goods, add a mark-up, and then resell them to consumers.
Importers
Wholesalers
Retailers

31. Indirect Direct Manufacturer Manufacturer Wholesaler Retailer Consumer