The Marketing Mix

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					Recap Marketing Model
                                      Marketing
 Diagram =                           objectives



 Marketing is about     Review
  thinking making                       Gather Data
  decisions and taking
  action…
                           Test
 The marketing model      options
                                     Form
  is a process to help               Hypothesis

  with this.
Marketing Model stages…

Co objectives – marketing objectives
Gather data (Market research)
Form Hypothesis on the 4P’s and or 3 C’s
Test Options – more market research
Review success
REPEAT PROCESS…..
Homework return – Levi Case Study

Q 5 – need to use the marketing model
 and state HOW WELL Levi used each
 stage.

Q6 – need to decide whether Market
 Research is an insurance or not!
1st – what does an insurance policy do?
 2nd – how well does MR follow this?
The Marketing Mix
      What is this?
The Marketing Mix

This has 4 key areas:
Product
Price
Place
Promotion….
What is a Product?
There are 4 general categories
 of „products‟:

Good             Can you think of
Service           an example for
                   each category?

Place
Person
Tangible & Intangible!

           What is the
           difference
            between
          TANGIBLE &
         INTANGIBLE?
Tangible & Intangible Products

      Tangible                 Intangible
 Is more quantitative…
                            Is more qualitative…
 Can be measured
  specifically & see the    Cannot be
  actual results             scientifically measured.

 E.g. Car speed, safety    Focuses on how people
  standards, efficiency      feel or the image or
  (mpg)                      pleasure gained…
Today & next lesson focuses on
PRODUCT…
                            More info
Product Life Cycle….      in textbook
                              unit 5.
Read through handout

Copy typical „Product Life Cycle
 Diagram‟
 Typical products at different life
              stages.
R & D
 Introduction
 Growth
 Maturity
 Saturation
 Decline

     For each product
   decide what life stage
       it belongs to!
R & D - Tesla
 Tesla – sponsored
  by Founder of
  Paypal – an
  electric sports
  car capable of
  250 miles on 1
  charge, 3 hour
  recharge, 0-60 in 4
  sec & top speed
  130mph & only
  £50,000
Roll up TV Screen
 A pioneering Teesside
  research facility aiming to
  make a paper-thin roll-up TV
  screen become a reality, has
  received backing from a
  major international player.

 The then make-believe
  subject of flexible roll-up
  computer and TV screens
  featured in the Tom Cruise
  film Minority Report in
  2002. But thanks to
  Teesside expertise that
  fiction could soon become
  a reality.
Apple Mac future plans




                         world's first computerized
                         "smart shoe." But
                         consumers will decide
                         whether the bionic running
                         shoe's $250 price tag - four
                         times the average shoe
                         purchase price at stores
                         such as Foot Locker - is a
                         smart idea. Adidas claims its
                         new shoe delivers on its
                         promise to automatically and
                         continually adjust itself to a
                         runner's size, pace, terrain
                         and even fatigue level.
Identify the implications of each life cycle
stage….
                    R&D           INTRODUCTION              GROWTH        MATURITY              DECLINE

                     none                   Low
Sales


                   Very High               Falling                                                 Very Low
Cost per unit


                   Very Few                                                     Lots
Competitors

                                                                                                remove weaker
                   Prototype
                                                                                                    items
Product

                  raise media                               target new
                  curiosity…                                 segments
Promotion focus


                     None                Limited
Distribution

                                                            Penetration                        Increase to exploit
                  not for sale!   Skimming or penteration   or push up    Competitive price   loyal customers? Or
Price                                                          price                                Discount
Identify the implications of each life cycle
stage….                 ANSWERS


                    R&D           INTRODUCTION              GROWTH          MATURITY               DECLINE

                     none                   Low              speeding up       At highest              Falling
Sales


                   Very High               Falling             Falling          At lowesr               Low
Cost per unit


                   Very Few                 few                growing            Lots                 Falling
Competitors
                                                              Product
                                                             modification     New models,          remove weaker
                   Prototype         One basic model
                                                                  &            diversified             items
Product                                                     improvements

                  raise media                                target new     Stress differences    Lower budget to
                                      Build awareness
                  curiosity…                                  segments      with competitors      keep costs down
Promotion focus

                                                            Growing no of     High levels of     Reduce unprofitable
                     None                Limited
                                                               outlets        distribution            channels
Distribution

                                                             Penetration                          Increase to exploit
                  not for sale!   Skimming or penteration    or push up     Competitive price    loyal customers? Or
Price                                                           price                                  Discount
Back to handout…. Apply Life cycle

Draw the Product life cycles for the
 products on your handout…..

  You will be called out to    Be prepared
 draw your interpretation….     to explain
            Note                   your
  the gradient of the cycle   interpretatio
     is IMPORTANT….                 n!
Extension Strategies

 These are ways to re-invigorate sales of a
  product after sales have hit maturity!

                                     Can you think
 New uses for product               of any recent
                                     products that
 Enter new markets                  have used any
                                        of these
 Develop product range                extension
                                       strategies?
 Change packaging
 Encourage more frequent usage!
Homework
 Textbook p 35 Case
  study B3 – Girl Power –
  answer all Q‟s
Hint:
Q 1 plot years on bottom
  axis & sales on vertical
  axis
Q 2 “what” means explain
  use at least 4 factors
  ….the Q is worth 10
  marks!

				
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posted:10/29/2011
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