1.4.3. The marketing mix

Personalised Learning Checklist (pg 42+43 of your revision guide)

R A GI can identify the elements of the marketing mix (4P's)

I can explain how elements of the marketing mix work together.

I can explain how a competitive environment would impact on balance of the marketing mix

I can explain how changing consumer trends can impact on the balance of the marketing mix

I can explain the impact of technology on the balance of the marketing mix (digital communication, e-commerce)

Worksheet

The 4Ps of marketing

• In order to get customers to buy a product, a business needs to make sure it is the:

• Right product (Nike Air Jordan 5 Retro)

• Right place (www.nike.com)

• Right price (£160)

• Right promotion (Free postage and no hassle returns policy if they don’t fit)

Make a mind map of the 4P’s with what you already know. Use Colour 1

Add notes to your mind map in a different colour as you go through the lesson to show what new content

you have added.

•Use the next few slides to fill in your wordfill, pause the PowerPoint when you need to.

Product

•A small business will need to think carefully about the product (or service) mix that it offers

• For example a small cycle shop will sell; bikes, clothes, shoes, water bottles, helmets and bells

• The product or service should satisfy customer needs

Sisters who sold

baby products from

their box room to

make pocket

money on

maternity leave

build a £4.2 million

business loved by

celebrities and

royalty HERE

Price https://www.youtube.com/watch?v=XBmWEduod5k

•A small business will also need to think about the prices that they charge for their products or services

•They need to be competitive but also make enough money to make a profit

•There are several pricing strategies they could use – coming up on next slides

Place

• A small business will need to think about how it will get its products or services to the customers, it has a series of choices:❑It could sell goods it makes on the Internet directly

to the consumer

❑It could open a shop or retail premises

❑It could sell its goods through retailers and shops

❑It could sell to wholesalers, who then sell to retailers

“Pencil me in” is

one of the sole

traders of 2016

– they have a

shop and a

website

Promotion

•A small business will also need to decide how it will attract and persuade customers to buy

• They may use a variety of methods;• Price promotion, for example £20 off• Adding value – by offering something extra like a bundle

deal (BDUQC)• Sales promotion – limited offer to motivate consumer to

make the buying decision

The impact of competition on business decision makingHow the elements of the marketing mix work

together

The marketing mix – how the elements work together

Product PlayStation 4 Pro 1TB (what is it’s USP?)

Price

Place

Promotion

The marketing mix – how the elements work together

Product PlayStation 4 Pro 1TB A large majority of games are available on both the PlayStation 4 and Xbox One. Though both platforms have popular exclusive franchises, the PlayStation 4 (Pro or standard) sees more exclusive games each year.

Price £489.99

Place GAME online store, high street gaming stores, Amazon

Promotion Comes with Dualshock Controller+ Wireless Headset+ Dishonored 2+ Infinite Warfare & NOW TV 3 Month Entertainment

Bundle deal = added value for the consumer and incentive to buy

Balancing the marketing mix based on the competitive environment

• If there are lots of competitors in the market – then a business may follow one of two strategies:

a) Be a low price provider of the product or service e.g. Poundland

b) Differentiate it’s products / services in the market place e.g. Lush cosmetics

Low cost marketing strategy (maximum sales at low prices)

• If the product is low cost it is likely it will be a mass market product

• The product will be low priced (no frills) to gain sales

• The promotion will be through the mass media such as radio and newspapers (NOT TV as this is very expensive)

• Placement of the product will be in supermarkets or where the mass market can gain access to it

Differentiated product strategy

• If the product is high cost it is likely it will be a niche market product

• The product will be high priced with added value through its uniqueness (BDUQC)

• The promotion will be through the niche market media such as specialist magazines or celebrity endorsement

• Placement of the product will be in exclusive locations (consider links to your learning about the location topic)

Irregular choice shoes

Pause - ThinkDescribe the 4 P’s (marketing strategy) of your designated product (6 mins)

What’s the most important element of the marketing mix for this product? (THINK, WHY? Pause)

Over to you

Stretch (ALL)• Draw a mind map diagram to show the ‘marketing mix’ for each the following;

1. Cadbury Cream Egg

2. Tesco’s stores

3. Ryanair / Easyjet

Challenge

4. Think about your answers to the questions above - When you have considered the ‘marketing mix’ can you identify which strategy it pursues (Low cost / Differentiation)?

5. Can you draw lines to indicate links between elements of the mix – along these lines write an explanation of how and why these components are connected/work together. OR rank the 4P’s in order and explain why some are more or less important.

6. Consider the marketing mix for Cadbury Creame Egg. Can you write a promotional TWEET for #cadburycreameegg with a maximum of 140 characters (letters)

7. In 125 words or less describe why the elements of the marketing mix need to work together as a strategy

The impact of competition on business decision makingBalancing the marketing mix in a competitive

environment

Competitive environments

• The competitive environment refers to the number and relative power of businesses competing in one market. A business will need to balance all aspects of the Marketing mix in response to its competitors.

1. May need to undercut rivals / price war

2. Promotional activity / product differentiation

3. Boost brand awareness / increase brand loyalty

4. Increase the places where the product is sold to maintain or increase market share (e-commerce)

The impact of changing consumer tastes on the marketing mix

• For example in the skincare market consumer tastes are changing

•Consumers are now concerned about• Pollution• UV damage• Allergies

• This means that companies who make skincare products will need to adapt to survive

The impact of technology on the marketing mix: e-commerce

• Electronic commerce (e-commerce), the process of selling products and services online, is a golden opportunity for budding entrepreneurs.

• Many new businesses launch exclusively online as it’s an easy way to get sales, to reach both UK-wide and international customers.

• For retail businesses, an e-commerce website offers the advantage of being open 24/7; a storefront that is always accessible to all customers.

E-commerce examples of small business (click graphic to rate websites)

The impact of technology on the marketing mix: digital communication

Fill in the diagram to show the impact of e-commerce and digital communication on businesses.

Product Price

Place Promotion

The impact of technology on the marketing mix: digital communication

Product

Online polls can find out customer feedback and find out their needs and wants – business then has to deliver this

Price

Easier for consumers to compare prices on the Internet, so business needs to differentiate its products or be the low cost leader

May need to offer bundle deals to overcome this and avoid a price war

Place

Businesses can now reach a wider geographical market then ever before

No longer huger barriers to entry for retail - a simple website can be made cheaply

Promotion

Advertising now available in new media e.g. electronic posters, offers new opportunities for businesses to get their message to consumers

Sales promotions can use 3D simulations e.g. a hotel room 360 examples here

Assessment activityhttps://forms.office.com/Pages/DesignPage.aspx?origin=shell#FormId=7OQtl-

PWpUq1ChALcoWhkE5WHbEmOetPod8_SRP63ApUQTkxUldJQ09RTzkzQUVVUFAyRkZITExYVS4u&FlexPane=Settings

• Click on this link above to take you to the Microsoft form quiz for this lesson (you can fill your answers directly into the computer.

• Or attempt these on paper and email across to Mrs Moor (photo as attachment, or word document as an attachment or in an email as the text.

• Pag 42 in your revision guide will help if you need it!

Sample question 1

Answer question 1