Chapter 7 Applying Marketing Mix

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  • B2B
    Product - monitor TV broadcast & training
    Price - sales force in EUR
    Place - sales force in EUR
    Promotion - exhibitions, email campaigns
    People - professional behaviour of sales & support people
    Process - capturing user requirements & user problems is critical
    Physical evidence - less important due to product - in house training conveying professionalism
  • Not for Profit
    Product - specialist care for old people & support advice
    Price - free services (donations, profit from retail shops)
    Place - more shops
    Promotion - older people like printed material. website secondary.
    People - qualified staff & volunteers
    Process - patients referred by NHS
    Physical Evidence - hospital rooms. Training
  • Small and Medium Sized Enterprises (SMEs) definitions
    Employees Turnover Balance sheet total
    Medium sized <250 <50m <43
    Small <50 <10m <10m
    Micro <10 <2m <2m
  • Marketing Mix for large national & small organisation B2C furniture manufacturer
    Large Small
    Product- Mass Production Bespoke P per customer
    Price - Very cost-effective so price low High
    Place - Via retail parks Direct
    Promotion- Mass TV advertising Direct Mail & Personal Selling
    People- Limited knowledge-sales focused. Craftsmen&knowledgable
    Physical Evidence - priority for packaging. Limited to invoices &.
    is protection during delivery. business cards
  • National & Regional differences
    • regional differences within & between countries
    • cultures & attitudes vary
    • mass produced slice bread in UK= normal ITALY GOD NO FRESH!!
  • International Markets opportunities

    • open markets & better integration of global markets have stimulated awareness of international marketing opportunities
    • marcomms tools (digital) have cost-effective ways to enter international markets
    • some orgs enter as C living overseas orders on website
    • some orgs are strategic - too much comp at home, want to expand, joint ventures using agents
    BUT
    • time difference & distance
    • global more competitive that org's domestic sector
    • local competitors may have edge
  • International Marketing Issues:
    1. Cultural & religious differences - consumer needs & usage patterns differ vs back home
    2. language barriers - brand consistency
    3. difference in education levels
    4. media availability & consumption - social media band
    5. legal environment - different laws and regulations vs UK market
    6. different product placement / administrative procedures
  • International marketing strategies
    Standardised -> across all international markets builds global brand recognition & loyalty = beneficial as people travel more
    Adaption -> to each local market appealing to local sensibilities, culture & language. More complicated and costly, but may increase brand appeal in diff countries. Good if P adapted to local market
  • International Marketing Mix approach
    Product
    Standardised = same as home market giving economies of scale in production costs
    Adapted = to local requirements - style, size, colour
    Price
    Standardised = same irrespective of economic circumstances
    Adapted = to local economy & currency
    Place
    standardised = to fit with distribution methods
    Adapted = to fit with local buying methods
    Promotion
    Standardised = universal to maintain message
    Adapted = to culture & language
  • International Marketing Mix approach

    People
    standardised = same training & style. part of brand " have a nice day"
    adapted = local customs incorporated

    Process
    standardised = Standard User Experience (UX)
    adapted = to social preferences, internet availability etc

    Physical Evidence
    standardised = same with multiple languages on all packaging
    adapted = to appeal to locality
  • Applying Marketing Mix to Products and Services
    Product
    • product - tube of quality brand sensitive toothpaste
    • service - dental check up
    Price
    • product - high to reflect product quality & maintain brand image
    • service - low as possible to encourage regular check-ups. Higher price for subsequent services
    Place
    • product - wide distribution in supermarkets & dental practices
    • services - easily accessible & convenient. Close to other services & facilities to enable multi-purpose visits
  • Applying Marketing Mix to P & S
    Promotion
    • product - effectiveness & expert opinion. Sales promotions based on encouraging trial
    • services - local promotion. Focus on benefits for whole family
    People
    • P - ensure retailers & dentists understand product value. Provide informed advice line/website for sufferers
    • S - professional, qualified, trained. Friendly & reassuring receptionist
    Process
    • P - quick & easy to try buy again
    • S - easy to book appointments. Text reminders
    Physical Evidence
    • P - high quality packaging
    • S- clean, hygienic premises, relaxing enviro - toys for children
  • Consistency with Positioning
    • essential to send the same message which is consistent with positioning of p/s/brand. If not C will not be convinced by offering.
    • If offering positioned as luxury then likely high price & good quality design & packaging reflect this.
    • Marketing mix changes must consider impact on this positioning, not just thinking about short term sales.
    • A change in positioning must be reflected in the marketing mix
  • Adaption to Objectives and Target Market
    • marketing mix must align to achieve corporate objectives & if there are changes in obj then adaption required - e.g - if new objectives set to achieve high level market penetration then product must be adapted for mass-market consumption with ease of use in design so people get max out of it quickly & priced to get market to trial product.
    • comms adapted to get WOM on/offline to create market buzz
  • Marketing Mix Tactics to build & maintain relationships
    Product
    • transactional - a printer
    • relationship - a printer & additional consumables (paper)
    Price
    • transactional - full price
    • relationship - discount for 2nd purchases
    Place
    • transactional - distributor not expected to have relationship with end customer
    • relationship -distributor important in bulding & maintaing relationship
    Promotion
    • transactional - encouraging purchase
    • relationship - building loyalty
  • Marketing Mix Tactics to Build & Maintain Relationships
    People
    • transactional - minimal training
    • relationships - trained to understand & relate to customer
    Process
    • transactional - standard transaction
    • relationships - includes data capture for CRM
    Physical Evidence
    • transactional - disposable packaging
    • relationships - iconic packaging (keeping iPhone box due to quality)
  • Marketing Mix for Market Penetration!!!
    1. Product - easy to use, limited options
    2. Price - low enough to encourage purchase
    3. Place - mass market to make purchase easy
    4. Promotion - high level advertising to make market aware & Sales Promotion to encourage trial
    5. People - mass training of sales staff
    6. Process - easy to use online ordering
    7. Physical Evidence - designed for easy use
  • Marketing Mix for reaching new segments
    1. Product - New configuration or added extras
    2. Price - differentiated pricing to reinforce difference
    3. Place - new outlets or web channels
    4. Promotion - new media aligned to the market
    5. People - specialised customer service
    6. Process - easy to use online ordering
    7. Physical Evidence - new design to highlight differences
  • Marketing Mix for developing new products
    1. Product - product extension or completely new?
    2. Price - usually higher price to mark newness
    3. Place - choice of channels where old product was purchased
    4. Promotion - Sales Promotion to encourage switching, loyalty discounts
    5. People - training of staff in differences & benefits
    6. Process - easy or switching
    7. Physical Evidence - similar design, sizing to mitigate disruption
  • Integrating digital techniques into the Marketing mix
    1. Product - addition of app to control usage
    2. Price - discount for online purchase or usage (reflecting reduced cost of physical elements ( paper statements)
    3. Place - convenient web channels (amazon)
    4. Promotion - online vouchers to encourage trial/switching
    5. People -training of sales staff to respond online-chat boxes/ FAQ
    6. Process - easy to use online ordering
    7. Physical Evidence - may be removed but where it does exist it still needs to match positioning
  • MARKETERS NEED TO ADAPT THE MARKETING MIX IN CHANGING ENVIRONMENTAL CONDITIONS SO CUSTOMERS' NEEDS CONTINUE TO BE SATISFIED. MUST BE AWARE OF
    • changing macro and micro environmental factors
    • changes in competition
    • customer trends and needs
    • internal changes
  • Changes in society
    • MKIS alerts to changes in economy, technology, society, competitors & customer needs
    • economic theory = countries go through cycle of growth & recession and can impact other countries.
    • in recession income is constrained & employment declines = C want to cut costs/ seek bigger discounts so can cut price/ sales promotion etc
  • Response to competitive initiative
    • mix adjusted by improving product quality or finding new distribution outlets
    • prices cut but risk triggering a price war so should be avoided as can lead to spiral of price cuts resulting in costs reductions and losses.
    • price cuts undermine brand image
  • Societal changes & Marketing Mix
    • harder to responds to
    • ethnicity, ageing, changing attitudes. - more polish pop = polish tesco aisle
  • Technology Marketing Mix
    • changes in tech easily observable but hard to respond to
    • when to react - too soon before mainstream = little sales
    • higher costs
    • first to market = stand out & little competitiors
    • risk = new tech doesn't get pop
  • Political/regulatory Mix changes
    • new policies, legislation, codes of conduct must be responded to
    • change product/ way its promoted/packaging/lavelling
  • IF YOU CHANGE 1 ELEMENT OF MIX MUST CONSIDER ALL OTHER ELEMENTS TO ENSURE THEY'RE BALANCE AND CO-ORDINATED
  • Measuring and controlling the mix
    Key metrics can be used to measure the effectiveness of each element of marketing mix.
    Need to know to inform decisions on what is working well & where changes need to be made. Expenditure & costs need to be accounted for so mesure roi
  • Measure and Controlling the mix - PRODUCT
    1. Market share - the org's comparative sales
    2. Sales - attractiveness of product
    3. Repeat sales - quality of its performance
    4. Number of new product launches - org's ability to innovate
  • Measure and Controlling the mix - PRICE
    1. Degree of margin - the demand
    2. Level of discount - attractiveness of product
    3. Comparison with competitors - benchmark
  • Measure and Controlling the mix - Place
    1. Costs
    2. Margin given
    3. Volume they sell
    4. Growth - in costs or sales
    5. Stock levels
    6. Number of stock outs - when P not on shelves indicates if stock levels appropriately supplied & managed
    7. % of TM covered by distributor
    8. Satisfaction level C have - with distributor's knowledge & as representative of brand
  • Measure and Controlling the mix - PROMOTION
    1. Amount of media coverage achieved
    2. number of enquiries generated
    3. awareness levels
    4. Cost per contact
    5. Sales/call radios
    6. Cost of enquiry conversion by media
  • Measure and Controlling the mix - PROCESS
    1. Time to resolve a complaint - how long it take customer issue to be resolved & depends on type of issue
    2. Purchase steps - how many steps needed to get to customer from point of deciding to but to purchasing being completed.
  • Measure and Controlling the mix - PHYSICAL EVIDENCE
    1. Brand awareness
    2. Brand recognition
    3. Impact on customer experience
    4. Impact on customer satisfaction
  • Measure and Controlling the mix - PEOPLE
    1. Number of recommendations for individual staff received
    2. Peer reviews
    3. Customer feedback and satisfaction levels
  • Online metrics - ability to measure activity & achievements is benefit of online marketing
    Core online metrics
    1. CLICK THROUGH RATE - % viewers of an ad that make first 'click' through to target media. Within PPC advertising metric rapidly identifies initial success of advert & used by advertiser & publisher to select best adverts
  • Core online metrics
    2. Bounce rate - % of viewers who initially click on advert then immediately 'bounce' back to other website. High bounce rate = poorly targeted advert
  • Core online metrics
    3. Conversion rate - % of viewers who complete transaction to whatever is defined as a success by advertiser (sale e.g.)
  • Core online metrics
    4. Cost per Click - used with paid website adverts & used to assess results of other marketing activities provided clicks can be counted accurately
  • Web site metrics
    • cost per thousand impressions - cost of delivering 1,000 web impressions. Good eval of efficiency of campaign's reach, says little about impact the impression had on viewer
    • Click-through rate - % viewers clicked ad - good - how effective message was a getting response. bad - no knowledge about what happened next
    • average time on site - how interesting site is & content value
    • top organic searches - how visitors find site from search engines & the words
    • bounce rate - people who left - high = ineffective site