marketing mix

• the marketing consists of the 4p's

  • price
  • promotion
  • product
  • place
• marketing is about meeting customer needs, wants and expectations through identifying them and developing products that meet those needs.
• price - When a business sells its goods, it must ensure they are priced right so customers buy them.
• price -

  • When a business sets a price for its products, they must ensure they reflect what is being sold but also priced so they will make a profit for the business.
  • The price of products can impact a business' sales immediately as customers will decide whether to buy the products or not.
  • The price of products can also impact the image of the business, and how well the business does compared to its competition. 
• There are 5 pricing strategies -

  • psychological
  • promotional
  • penetration
  • demand oriented
  • destroyer
• Psychological Pricing Strategy - This strategy involves setting prices at certain numbers which have psychological appeal to consumers. For example £9.99 instead of £10.00.
• Penetration Pricing Strategy - This strategy involves setting low initial prices for a product to attract customers away from competitors. The idea behind this strategy is that once the product becomes established, the price can then be increased.
• Promotional Pricing Strategy - This strategy involves offering discounts on products to encourage people to buy more than usual. It may be used during special events such as Christmas or Easter when businesses want to increase their sales.
• Demand Oriented Pricing Strategy - This strategy involves changing the price of a product depending on demand. If there is high demand, then the price goes up; if there is low demand, then the price comes down.
• Destroyer Pricing Strategy - This strategy involves reducing the price of a product below cost to destroy the competition. The aim is to drive out other businesses by making their products unprofitable to produce.
• promotion - this involves the way customers are made aware of the product available
• promotion -

  • Promotion can be done through advertisement and sales promotion.
  • Advertising can be done through using TV/radio advertisements, billboards, social media, websites, e-mails, and adverts in apps.
  • Each method of advertising has advantages and disadvantages.
  • For example: Tv adverts reaches a wide number of people, but they are expensive for businesses to use.
• celebrity endorsement is a big way in which businesses use sales promotion to increase sales
• celebrity endorsement is when a business pays a celebrity to promote a product or service to encourage customers to buy it
• celebrity endorsement comes with risks -

  if the celebrity was to be caught doing something that gains negative attention it can effect the business associated with them

  it cost a lot of money to pay a celebrity to be loyal to the company
• product relates to everything related to the product it's self, focusing on product development and providing a product or service that meets customers needs/ wants
• product development it the process of creating and introducing a new product
• 1. generating ideas - this is all about coming up with ideas for your product by brainstorming and using market research, customer feedback, tech developments
• 2. idea screening - potential ideas are evaluated and screened to make determine their feasibility. unlikely ideas are eliminated and more potential ideas are focused on
• 3.concept development and testing - select ideas are further developed into tangible products, this involves making prototypes, outlining specific features, conducting tests with target audiences and gathering feedback
• 4. business analysis - evaluating financial viability and market potential of a product concept, analysing costs, potential sales and profitability
• 5. product development - Once the concept is approved, product development begins. Testing, refinement, and modifications are carried out to ensure the product meets quality standards and customer expectations.
• 6. marketing testing -  Before a full-scale launch, the product is tested in a controlled market environment. This can involve limited distribution or a soft launch to gather real-world feedback, assess consumer response, and identify any necessary improvements or adjustments.
• 7. launch - In this final stage, the product is introduced to the market. It includes activities such as finalising branding and packaging, setting pricing and distribution strategies, implementing marketing and promotional campaigns, and ensuring effective distribution and customer support.
• there are 7 stages in the product development process;

  1. idea generation
  2. idea screening
  3. concept development and testing
  4. business analysis
  5. product development
  6. market testing
  7. launch
• product life cycle - the product life cycle shows the 4 stages a product goes through from conception to the end of its life;

  1. introduction
  2. growth
  3. maturity
  4. decline
• Stage 1 - introduction

  This is the most costly stage as lots of advertising and promotion is needed to encourage sales

  Sales will start to rise slowly as people become aware of the product

  Profits will start to appear slowly as sales rise and start up costs are repaid
• Stage 2 - Growth

  Sales will start to rise quickly as more people begin to use the product

  Profits will start to quickly as sales rise

   As the product gains traction and customer acceptance, sales volumes rise, and market share expands.
• stage 3 - maturity

  sales will be at their peak and profits are maximised

  The business focuses on maintaining market share, and extending the product's lifecycle through updates or product line extensions.

  sales will start to slow down as everyone who wants the product will have it
• stage 4 - decline

  sales will start to fall often due to the release of a new similar product

  The business may need to adapt its marketing strategies, explore new markets, or consider discontinuing the product if it becomes economically unviable.
• place - The place element focuses on making the product or service available and accessible to the target audience. It involves decisions related to distribution channels, logistics, inventory management, and ensuring the product is conveniently and readily available to customers.