marketing mix, planning & objectives

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GCSE Business GCSE Business StudiesStudiesRevision Presentations 2004Revision Presentations 2004

Marketing Mix, Planning & Objectives


GCSE Business GCSE Business StudiesStudies

Marketing Mix - Introduction

MarketingMix

Product Price Place Promotion

Often referred to as the “Four P’s of Marketing



Product

Can be both

A tangible good (e.g. iPod media player)

A service (e.g. cinema)

Product is something that satisfies customer needs and wants

Many products try to develop an associated brand – a name, design, sign or symbol that helps it to be differentiated from competitor products

Products rarely last for ever – they have a “life cycle”

Businesses need to think carefully about new product development if they are to remain competitive



Price

Price – the value a customer is prepared to pay in exchange for taking ownership of a product, or receiving a service

Price directly affects revenue

Revenue = number of units sold x price

But how much a customer buys (“demand”) is also affected by price

So an increase in price doesn’t always mean an increase in revenue

Various methods of setting a price

Pricing strategy is important

Products need to be “competitive”

Price needs to be consistent with the overall objectives of the business



Place

Not really a “P” – since Place is all about distribution

Channels of distribution – the method by which goods or services are transferred from producers to consumers

In most markets there are several distribution channels

E.g. wholesalers, agents, retailers

Business may use one or more channels

Direct selling (i.e. from producer direct to consumer) is an increasingly popular method of distribution

E-commerce (selling via the Internet) is another kind of distribution channel



Promotion

Covers all the different ways a business can communicate with its customers; e.g.

Personal selling

Direct marketing

Advertising

Sales promotion

Public relations

Sponsorship



Marketing Planning

Marketing planning – all about deciding what the marketing objectives are – and coming up with a way of achieving them!

Main steps

Do an annual audit to establish “where we are” by gathering data through market research etc

Set SMART marketing objectives

Create and evaluate alternative strategies to deliver objectives

Implement strategy by changing the marketing mix i.e. day to day tactics

Evaluate the success of marketing activities in meeting set objectives before the next annual audit



Marketing Audit

A marketing plan is usually prepared following a review of the current situation (sometimes called a “marketing audit”) that looks at questions such as:

What are our existing products and brands?

Are the markets we do business in growing?

If so, how fast?

Who are our competitors?

What advantages (if any) do we have over them?

How effective has our marketing been in recent history?

Are there ways in which we could achieve the marketing objectives differently and more profitably?



What are Marketing Objectives?

Marketing objectives are the expected outcomes a business is trying to attain through its marketing activities at the end of a given time period

Ideally - marketing objectives must be SMART (see next slide)

Marketing objectives need to be in line with the other objectives for the business

Marketing objectives can be used as a way of measuring performance over time



SMART Marketing Objectives

Ideally, marketing objectives need to be SMART

S = Specific: i.e. state what the firm is seeking to achieve e.g. increase sales

M = Measurable i.e. set in terms of a number value e.g. achieve sales of £1m or increase market share to 15% etc

A = Achievable i.e. the target can be met within the resources of the firm

R = Realistic the target must be achievable in terms of financial and human resources available.

T = Time bound i.e. within a given period of time e.g. 12 months



Marketing Strategies

BusinessStrategy

Example Marketing Strategies

Grow sales Launch new products

Expand distribution (e.g. open more shops)

Start selling products into overseas markets

Increaseprofits

Increase selling prices

Reduce the amount spent on televisionadvertising

Build customer

awareness

Implement a public relations programme

Invest more in advertising

marketing mix, planning & objectives

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