3.4 - marketing mix

• Traditional Marketing Mix

  Product, Price, Place, Promotion
• Marketing mix


  Factors that firms consider when marketing a product
• The marketing mix used to be known as the 4Ps
• The 4Ps

  • Price has to be right
  • Product has to be right
  • Product must be distributed through the right places
  • Product has to be promoted in the right way
• Extra 3Ps

  People, Physical Environment, Process
• Service industries supply people to help or work for customers, they have become the biggest sector of the UK economy and so 3 extra Ps have been added to the marketing mix
• People


  The most important part of a service business, a customer is more likely to buy a service if the people providing it are well-trained, knowledgeable, reliable, friendly and efficient
• Physical Environment


  The presentation of the environment where a service is delivered is important
• Physical Environment


  • Customers expect a hair salon to be clean and stylishly decorated, with a comfy sofa on which to read magazines as you wait
  • Grubby seats and peeling wallpaper won't attract many customers
• Process


  Includes things such as waiting times, the ordering and payment systems and any after-sales service
• Process


  • The option to pay with PayPal might influence whether a customer buys from a particular online company
• Integrated marketing mix


  The 7Ps need to work together and complement each other, if just one of the factors is wrong, it can decrease the revenue generated from the product
• Integrated marketing mix


  • A company develops an innovative new product, but has an inefficient ordering and delivery process, meaning customers have trouble ordering the product, and have to wait weeks for it to be delivered, the company will get a bad reputation among customers and will sell fewer products
• Factors that influence the Integrated Marketing Mix


  • Market research
  • Competitors in the market
  • Target market segment
  • Where the company wants to position a product in the minds of customers
  • Location of the business
  • Type of product
  • Whether selling goods or services
  • Whether selling to another business or consumers
  • Product life cycle and the business's product mix
• Resources of a business

  Affect the Marketing Mix
• Integrated marketing mix


  • Influenced by factors within the business
• Marketing and corporate objectives of a business


  1. Affect the marketing mix

  2. E.g. airline wants to increase brand loyalty, offers frequent fliers exclusive departure lounge, extra customer service, promotions on certain tickets
• Businesses have to compromise on certain aspects of the marketing mix


  Due to their finances
• Small firm


  • Not enough money to promote a niche product through TV adverts, promotional pricing, point-of-sale displays
  • Must choose most effective method of promotion they can afford
• Suppliers tend not to offer credit or discounts to small businesses


  • They are only able to produce small quantities of goods at a time
  • This will impact the price and process aspects of the marketing mix
• Businesses don't have the right software to monitor customers' details


  • Must spend extra money on promoting products
  • Can't market directly to repeat customers
• Company with well-respected, luxurious brand image


  • Can charge more for their products than a budget brand
  • Lowering prices might affect their image
• Knowledge and skills of employees


  • Businesses can justify increasing prices
  • E.g. Halfords employees help find and fit car parts for extra payment, but need to promote these services
• Changing the Marketing Mix


  Can help to make a business More Competitive
• Markets


  • Dynamic (constantly changing)
  • New competitors/products constantly entering
  • Failed ones leaving
• Integrated marketing mix


  Needs to adapt to these changes
• In order to remain profitable, companies need to keep reviewing their marketing mix and altering their marketing decisions, taking into account the actions of competitors and other changes in the marketplace
• Competitive business


  Has something that customers want or need that other similar businesses don't have
• Company can improve its competitiveness

  1. By changing any one of the seven elements in the marketing mix

  2. Improve product quality

  3. Reassess promotion methods

  4. Use new pricing strategies

  5. Reconsider distribution channels

  6. Increase staff skills

  7. Improve processes for customers

  8. Make physical environment more inviting
• Technological advances


  • Reason why companies might change the marketing mix
  • E.g. widespread internet access has meant many firms have changed their method of distribution
  • Products need to change as technology advances, e.g. computer games now available as digital downloads
• Social factors, such as increasing number of pensioners


  Might prompt a change in a product, or how it is promoted
• New laws


  • Can affect the marketing mix
  • E.g. new standard for crash helmets would mean adapting products
  • Laws about how and where junk food can be advertised would change the promotion factor
• Three Types of Consumer Products


  • Convenience products
  • Shopping products
  • Speciality products
• Convenience products


  Inexpensive, everyday items bought regularly by lots of people, often bought out of habit, consumers don't put too much thought into buying them and don't bother shopping around for cheaper alternatives
• Shopping products


  Things like clothes, computers and washing machines that are bought less regularly than convenience products, more expensive and sold in fewer places than convenience products, people might pay more for a particular brand
• Speciality products


  Things consumers believe are unique in some way, and they'll travel to find the exact brand, perceived image and quality are more important to consumers than price
• Businesses need a Variety of Products — a Mixed Product Portfolio
• Product line


  Related products (including different sizes of the same product) with similar characteristics, uses or target customers
• Product mix


  The combination of all the product lines that a business produces
• Businesses aim to have a product mix that contains a variety of different products, all at different stages of the product life cycle