marketing mix

• What is Marketing?


  Marketing is the process of identifying and satisfying customer needs and wants while making a profit
• Simple term

  • Finding out what people need and work while making a profit
• What is a target market?

  A target market is the group of people whom business aims to sell its products or services to
• Criteria for a target market

  • Age
  • Gender
  • Location
  • Income
  • Peilyle
• Example of a target market

  • Main target market for Lego = children + their parents
• Niche marketing


  A small specialised segment of a larger market for a particular product or service
• Example of niche market


  • Folding bikes
• Marketing mix


  A combination of 4 elements (product, price, place, promotion) that can help a business market its products to a target market and maximise profits
• 4 Ps of marketing mix

  • Product
  • Price
  • Place
  • Promotion
• Product element of marketing mix

  • Design
  • Product life cycle
  • Branding
  • Unique selling point (USP)
• Design


  The first stage in creating a product. Well-designed products are useful, attractive, easy to use and long-lasting
• Product life cycle


  The different stages that a product goes through from the time it is launched until it is taken off the market
• Branding


  A name, symbol, design or other feature that makes a product easy to recognize and distinguishes it from competitors
• Unique selling point (USP)


  Something that differs the product from its competitors, a unique market angle
• Examples of USP


  • Volvo's USP is safety
  • Toyota's USP is reliability
• Product life cycle different stages

  • Introduction
  • Growth
  • Maturity
  • Saturation
  • Decline
• Branding


  Helps business increase sales because consumers know and recognize the brand
• Branding

  • Makes product to carry with brand name
  • Easier to introduce new products from brand
  • Encourages customers to buy upgrades
  • Higher prices can be charged for branded products as consumers associate them with better quality
• Branding helps build brand loyalty
• Product Life Cycle

  1. Introduction

  2. Growth

  3. Maturity

  4. Saturation

  5. Decline
• Introduction stage

  the new product is launched. Sales will be slow as consumers become familiar with the new product
• Growth stage

  Sales increase rapidly as more consumers learn about the product
• Maturity stage

  Sales growth increases at a lower pace and may start to level off, often due to competitors entering the market
• Saturation stage

  Sales reach their peak because there are many competitors in the market and because most consumers already have a product
• Decline stage


  Sales fall due to changes in fashion or the introduction of a better product. The product may be withdrawn from the market.
• Example of product life cycle

  • Apple iPod
• Price


  The amount of money a seller charges a customer for a product
• Factors that impact selling prices

  • Demand and supply
  • Cost of making the product
  • Price charged for competing products
  • target market for product
• Competitive pricing

  The business sets a price that is similar to rival products
• Penetration pricing

  Business charges low price when product is new to get customers interested. Once product is known, prices will rise
• Peak-load pricing

  Businesses charge higher price during higher periods of demand and lower prices during lower periods of demand
• Cost-plus pricing

  Business calculates the producing cost of product, then adds percentage mark-up to make profit
• Place

  Where customers buy product and the channel of distribution used to get product to this location
• Channel of distribution


  The way in which a product gets from the manufacturer to consumers
• manufacturer-wholesaler-retailer-consumer

  ex; sweets, soft drinks
• Manufacturer-retailer


  • Ex: Tesco
• Manufacturer-wholesaler-consumer


  • Ex: buying books from wholesaler
• Manufacturer-retailer-consumer


  • Ex: farms shops, online shopping
• Promotion


  Making consumers aware of a product in order to increase sales
• Brand loyalty


  Businesses use promotion to create brand loyalty