1. Introduction to Marketing (MC4050) Tutorial/workshop week 3 Marketing mix

2. Agenda Revision and discussion Group work on ‘Analysis of marketing mix of Holi event that was organised at college’ Case study analysis of ‘TESCO’

3. Revision

4. levels of Product

5. Durable vs Non Durable products

6. Industrial vs Consumer products

7. Types of consumer product Marketing consideration ConvenienceShoppingSpecialityUnsought Customer buying behaviour Frequent purchase, little planning, little comparison or shopping effort, low customer involvement Less frequent purchase, much planning and shopping effort, comparison of brands on price, quality, style Strong brand preference and loyalty, special purchase effort, little comparison of brands, low price sensitivity Little product awareness, knowledge( or if aware, little or even negative interest) PriceLowHigherHighVaries DistributionWidespread distribution, convenient locations Selective distribution in fewer outlets Exclusive distribution in only one or few outlets per market area Varies PromotionMass promotion by producers Advertising and personal selling by both producer and retailers More carefully targeted promotion by both producer and resellers Aggressive advertising and personal selling by producers and resellers ExamplesToothpaste, magazines, detergent Major appliances, TV, clothing Luxury goods such as Rolex Life insurance, blood donation

8. Price 8

9. Place Decisions Channel selection Market coverage Locations Transportation Logistics

10. 10-10 Consumer and Business Marketing Channels

11. 10-11 Public Policy and Distribution Decisions Exclusive distribution (only certain outlets to carry its products) Exclusive dealing (dealers not handle competitor’s products) Exclusive territorial agreements (producer agree not to sell to other dealers in a given area or buyer agree to sell in its own territory) Tying agreements (sell to dealers only if they will take some or all of the rest of the line)

12. 10-12 Transportation Trucks Railroads Water carriers Pipelines Air Internet Intermodal transportation Intermodal transportation: Fishyback: water and trucks Piggyback: trucks and rail Trainship: water and rail Airship: air and water

13. People, process and physical environment

14. The Marketing Mix Blend of the mix depends upon: Marketing objectives Type of product Target market Market structure Rivals’ behaviour Global issues – culture/religion, etc. Product portfolio Product lifecycle Boston Matrix 14

15. Workshop week 3 Group work on ‘Analysis of marketing mix of Holi event that was organised at college’ Case study analysis of ‘TESCO’

21. Class work: group activity Work in group to analyse the ‘marketing mix’ of the Holi event that was held on college. Recommend on how the event could have been even better.

22. Case study analysis of TESCO

23. Case study analysis of ‘TESCO’ 1.Cohen saw that he had a clear competitive advantage, because his supermarkets had a lower cost base than traditional corner shops and therefore he could undercut other shops. Removing price controls would therefore benefit him in the long run- as indeed has proved to be the case. Providing customers with better value for money (which doesn’t necessarily mean lowest possible prices, of course) is always advantageous

24. Case study analysis of ‘TESCO’ 2. Price is not the only way to compete. Most people do not buy the cheapest- they buy products that represent best value for money. Providing extras such as the ‘one in front’ creates a better value proposition, at relatively low cost to the firm- the value to the customer is vastly greater than would be the tiny reduction in prices the company could make if it did away with policy

25. Case study analysis of ‘TESCO’ 3. The separate own-brand labels exist to provide for the needs for different segments of the market Price sensitive customer use value brands, people seeking value for money look for ordinary tesco brand, and people seeking something luxurious might buy the Tesco’s finest

26. Case study analysis of ‘TESCO’ 4. Advantage of loyalty cards: enable tesco to record individual customer purchasing pattern allows Tesco to plan better for meeting customer needs and also to target special offers and promotions accurately from the customers view point, the cards are much more convenient, and having special offers that are accurately targeted reduces the amount of junk mail the customer receives

27. Case study analysis of ‘TESCO’ 5. Stocking organic products enables Tesco to meet the needs of a health conscious group of people. At the same time organic product tend to be more expensive, so the majority of Tescos customers currently prefer the cheaper factory- farmed products