Mod.5

• Marketing mix


  A set of controllable and connected variables that a company gather to satisfy a customer better than its competitor
• Marketing mix


  • Originally there is only 4 – Product, place, price and promotion. But the model has been continually modified and added 3 more elements – People, packaging and Positioning (7 P's)
• Product


  1. Marketing strategy typically starts with the product. Marketeer can't plan a distribution system or a set a price if they don't know exactly what the product will be offered on the market

  2. Product refers to any goods or services that are produced to meet the consumers' wants, taste and preferences

  3. Goods can be categorized into business goods or consumer goods

  4. A buyer of consumer goods may not have a thorough knowledge of the goods he buys and uses

  5. Services can be divided into consumer services, such as hair styling or professional services, such as engineering and accounting
• Place


  1. Place represent the location where the buyer and seller exchange goods or services

  2. It also called as the distribution channel

  3. It can include any physical store as well as virtual stores or online shops on the internet

  4. Channel 1: Contains two stages between producer and consumer – a wholesaler and a retailer

  5. Wholesaler – typically buys and stores large quantities of several producers' goods and then breaks into bulk deliveries to supply retailers with smaller quantities

  6. Channel 2: Contains one intermediary, typically a retailer

  7. Retailer – a company that buys products from manufacturer or wholesaler and sells them to end users or customer

  8. Channel 3: 'Direct – Marketing' channel, since there is no intermediary levels. In this case the manufacturer sells directly to customers
• Price


  • The value of money in exchange for a product or service
  • The amount or value that a customer gives up to enjoy the benefits of having or using a products/service
• Pricing strategy


  • Penetration pricing - price charged for products and services is set artificially low in order to gain market share
• Promotion


  • The complete set of activities, which communicate the product, brand or service to the user
  • The idea is to attract people to buy your product over others
• People


  • Your team, a staff that makes it happen for you, your audience, and your advertisers
  • People are the ultimate marketing strategy. They sell and push the product
  • People are one of the most important elements of the marketing mix today due to the rise of the services industry
  • If the retail channels are not handled with the right people, the product will not be sold
  • The people rendering the service must be competent and skilled enough so that the clients will patronize your service
• Packaging


  • The outside appearance of a product and how it is presented to the customers
  • Packaging is highly functional. It is for protection, containment, information, utility of use and promotion
• Positioning


  • When a company presents a product or service in a way that is different from the competitors
  • Positioning refers to a process used by marketers to create an image in the minds of a target market
• Positioning


  • Two people are interested in buying a phone; one wants a phone that is cheaper in price and fashionable while the other buyer is looking for a phone that is durable and has longer battery life and yet they buy the same exact phone
• Brand Name


  • A name, symbol, or other feature that distinguishes a seller's goods or services in the marketplace
  • Your brand is one of your greatest assets because your brand is your customers' over-all experience of your business
• Brand strategy


  • A long-term design for the development of a popular brand in order to achieve the goals and objectives
  • A well-defined brand strategy shakes all parts of a business and is directly linked to customer needs, wants, emotions, and competitive surroundings
• Purpose


  • Functional - Assessments of success in terms of fast and profitable reasons
  • Intentional - Fulfillment as it relates to the capability to generate money and do well in the world
• Consistency


  • Avoid things that don't relate to or improve your brand
  • Consistency aids to brand recognition, which fuels customer loyalty
• Emotion


  • Allow the customers have chance to feel that they are part of your brand
  • Find ways to connect more deeply and emotionally with your customers. Make them feel part of the family and use emotion to build relationships and promote brand loyalty
• Flexibility


  • Consistency targets at setting the standard for your brand, flexibility allows you to adjust and differentiate your approach from your competition
• Employee involvement


  • It is equally important for your employees to be well versed in how they communicate with customers and represent the brand of your product
• Loyalty


  • Loyalty is an important part of brand strategy. The emphasis on a positive relationship between you and your existing customers sets the tone for what potential customers can expect from doing business with you
• Competitive awareness


  • Do not be frightened of competition. Take it as a challenge to improve your branding strategy and craft a better value in your brand