MARKETING MIXLesson objective:

To understand more about the key elements of the marketing mix

Starter• Complete the Marketing Mix research task on Moodle >

Theme 1 > Marketing Mix and Strategy > Marketing Mix research task

• You have 20 minutes to complete this

4 P’s of the marketing mix

Product Price

Place Promotion

Product and service design• Many businesses are keen to bring new products and

services to the market

• New products and services help to generate more revenue and help to ensure a business remains competitive

• The process of creating a new product or service is called product design – this involves the generation and development of ideas that ultimately leads to new products/services

Why is design important• Good design adds value to products and can be the key

differentiator that marks one brand from its competitors• Example – Dyson Ltd

• James Dyson created 5,127 prototypes of his first vacuum cleaner before he was satisfied that he had perfected the cleaning mechanism

• Dyson today has global sales of £6billion and profits of £800million a year. However they owe a lot of this to the visual (aesthetic) design of the product

• In 2001 the patent on Dyson’s ‘dual cyclone’ vacuum mechanism expired, yet the distinctiveness of the product has continued to generate huge sales, despite Dyson prices often being double that of their competitors!

What is a Design Mix

• The design mix shows whether a product will focus on function, cost or appearance.

• It can obviously focus on more than one, but the design mix diagram shows which one a product is closer to

• Every designer must consider;

• Aesthetics• Function • Economic manufacture (cost)

Aesthetics • Products or services should provide a sensory stimulation in

addition to providing a function (the look, feel, smell or taste of it)

• Designers must consider these elements as they have a direct impact on a consumer decision to purchase

• Some companies will use more expensive materials in order to add to the aesthetic design of their product – people may buy a product just because it appeals to the senses more

• As the cost of resources and manufacturing comes down over time, aesthetics is likely to become more important in the design mix• E.g. as computers/vehicles/mobiles etc… have become more

affordable over time, the way they look is now equally as important as how they perform (more so to some people)

Function • A product or service must be fit for purpose, it must be capable of

doing the job it was made for (nobody wants a waterproof jacket that lets the rain in!)

• It must be reliable, many manufactures offer long warranties to show they have confidence in the reliability & durability of their products• Products that aren’t fit for purpose are likely to be returned – costing the business

money

• Products should be convenient & easy to use, they should be easily maintained or ergonomically designed (so that people can interact with them safely).

• They should be safe for use – e.g. non toxic paints. If danger cannot be avoided (e.g. power tools) it is important to design the product with adequate protection

• If a business can design a product or service with superior functionality, this may be used as a USP • E.g. Volvo cars use their excellent safety features as a USP

Economic manufacture (cost)• A well designed product or service is more likely to be

economically viable – this means a business should be able to produce and sell the product/service at a profit

• The product has to make a profit and must be capable of being manufactured at a cost below the selling price if it is to be viable

All products• Will contain the three elements of the design mix,

however the way in which the overall mix blends these elements together depends partly on the aims of the designer and partly on the demands of the market segment it is produced for

The Design Mix

Cost Aesthetics

Function

The Design Mix

Cost Aesthetics

Function

Something here would focus

solely on being as cheap as

possible

Something here would do its job

as good as possible,

regardless of how it looked or how expensive it was

Something here would

concentrate firstly on looking good.

How well it performed or how expensive it was would come after

Task Design your own design mix diagram. Mark on the diagram where you think the following products would appear. You need to explain your decisions

FUNCTION COST

AESTHETICS 1. A Ferrari2. Tesco’s own brand Cola3. Apple iPhone4. A Big Mac5. A diamond engagement ring6. A bus

The design processMarket research on consumers

needs and state of the market

Identify gap in the market

Original idea developed

Design brief prepared

Approach designers

Choose design from initial

submissions

Models of prototypes made

up

Working samples made up and tested

Consumer trials on target groups

Tooling up for manufacture

Organise suppliers of raw

materials

Full scale production

Design mix and social trends• People have become increasingly aware about the effects

that their lifestyles are having on the environment

• Worries about global warming, resource depletion and pollution have encouraged many to adopt more environmentally friendly lifestyles

• Businesses are now also attempting to take into account environmental issues when designing their products

Changes in the design mix to reflect social trends

• Social trends refer to the way society as a whole behaves and the values that determine that behaviour. They are not static and are continually changing

• Sustainability - means that the purchase you make will not affect long-term supplies of the product. As consumers become more aware of environmental issues greater emphasis has been placed on sustainability and recyclability. Many consumers respond favourably to products which are environmentally friendly

Pause for thought• In economic terms, plastic bags are a cheap and effective

way for consumers to transport purchases, however environmentally speaking they are bad.

• The UK has just joined Wales in implementing a compulsory 5p charge for plastic bags

• Do you think this is good/bad? Why?

• You need to argue for and against the carrier bag charge – be logical in your arguments

Changes in the design mix to reflect social trends

• Ethical considerations – consumer concern over the ways in which products are produced have influenced many producers to alter the supplies they use and the conditions under which they are made.

• The Fairtrade movement has meant that many producers now think carefully about their choice of suppliers. Simply finding the cheapest supplier is no longer acceptable

Using the handout you have been given

• Make notes on the other social factors that can impact on the design mix

• Copy the key terms and their definitions onto your key term cards for revision

• You do NOT need to attempt the Jaguar task (Question 3) or the knowledge check questions at the end – this will be your homework!

You have 15 minutes

Case studies – read through and make notes on each of these…• Jaguar Land Rover are world leaders in the use of aluminium for lighter car bodies

to help reduce carbon emissions and reduce carbon footprint:

www.jaguarlandrover.com/gl/en/innovation/world-leaders-in-aluminium/

www.jaguarlandrover.com/gl/en/responsible-business/environmental-responsibility/

• Toyota is replacing robots with skilled humans to ensure fewer defects, better quality and less waste:

www.scdigest.com/ontarget/14-04-08-1.php?cid=7964

• Muddy Boots Foods is ensuring traceability for its range of beef burgers by using known suppliers of beef and other ingredients:

www.thetimes.co.uk/tto/public/smallbusinessmasterclass/article3470030.ece

• Starbucks is an example of a global brand which also makes use of ethical sourcing:

www.starbucks.co.uk/responsibility/sourcing

Homework • You need to attempt the Jaguar task (Question 3) and the

knowledge check questions at the end of the handout you were given earlier

• Next week I will be doing a folder check – you need to ensure that your folder is organised and your key term cards are complete