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Marketing Mix - DOC

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					IEN-Start of Minjiang University
Fuzhou, China BSBMKG502A – Establish and adjust the marketing mix Marketing Mix Resit Exam Individual Project ----------------------------------------------------------------------------Student are required to develop a marketing mix of a chosen product. You will develop strategies for the product itself, its pricing, distribution and promotion. Remember too, that while you will work on each element of the mix separately, they should be consistent with each other; in marketing terms, the elements of a marketing mix are interdependent – that‟s why its called a mix. Part 1: 30%

I. Product Strategies (see Chapter 7, 8 and 9) Product description (a product can be a physical good or an intangible service). Describe your good or service in terms of the wants it can satisfy. (see also chapter 1) (3 lines) Product classification Is your product a consumer good, business good, or service? Can you further classify it into an appropriate sub-category (see Chapter 7 goods and Chapter 9 for services classifications)? Note how these classifications night affect your product strategies. (3 lines) Likely adoption rate If yours is a totally new product assess it on the basis of the five characteristics that seem to influence the speed of product adoption. (5 lines) Product lifecycle stage What stage of lifecycle is your product category at? (remember, PLC refers to the category, not your specific version or brand). Note any implications this might have for marketing strategy. (3 lines)

Product mix List the sizes, variants, colours, types and levels of service and options that you will include in your product line. (10 lines) Brand What will you call your new good or service? Assess your brand against the characteristics of a good brand. Will you use an individual family, or combined brand strategy? (3 lines) Packaging If your product requires packaging, what materials, styles, colors will you use? What information and promotional messages will you include? (3 lines) Other product features How will you use design, color, quality, warranties and servicing to add appeal to your product? (4 lines) At this stage you should have a clear outline of the good or service you are planning to offer to the market and how you will manage its various aspects.

If you are compiling a marketing plan for a service, the strategies you have worked through so far will be relevant and useful (except of course, for those, such as packaging). There are also three additional elements of the mix often used by services firms: Physical Evidence If yours is a people-based service. What types of people will be ideal as the points of contact with customers – age, gender, personality, knowledge, skill, attitudes? Some marketing plans will also include job specifications, recruitment, induction and training – other firms cover these aspects in a Human Resource Plan. (5 lines) Process Strategies How will you manage the experiences customers have when they interact with your firm? Consider processes for initial contact by phone, email or in person, contact during service delivery, and contact at time and place of purchase. (5 lines)

II. Pricing Strategies (see Chapter 10 plus Chapter 9 for additional aspects on pricing services)
Now you are ready to establish your pricing strategies. Pricing goals Is your main aim to make an initial level of profit, to establish your product in the market place with a certain level of sales, or to fit into an existing market and avoid “rocking the boat”? (2 lines) Product cost Prepare a cost schedule for your good or service – distinguish between variable and fixed costs. You may have to estimate some costs at this stage. (6 lines) Expected price What price will customers expect to pay for a good or service like yours? (this is normally expressed as a range) What factors have you used to establish your expected price? (3 lines) Price elasticity What do you believe is the shape of your demand curve? Will demand be very or not very responsive to changes in price? (2 lines) Setting the base price Set an initial base price using the three methods outlined in the text-cost, demand, and competition. Cost-plus Take the product cost established above and add an „acceptable‟ profit margin (or mark-up) (2 lines) Demand Use your expected price above to estimate the price you believe customers will be willing ot pay for your product. (2 lines) Competition List the prices that the three most direct competitors to your product are charging. Note any advantages or disadvantages that these products may have compared to yours. In particular, consider whether you want to be positioned above or below competitor‟s price.

(3 lines) Now, it is a matter of judgment for your to consider the three methods and finally to set the base price for your product. (1 line) Adjusting the base price You need now to establish the price(s) that your customers will actually pay. Discounts and allowances List any price reductions you will make for large quantities, trade customers, fast payment , or promotions (4 lines) Freight If your product needs to be transported, calculate how you will adjust your price to account for freight costs. (3 lines)

Other pricing tactics List other pricing tactics you might use such as flexible pricing for different customers, line pricing, odd pricing. Also consider how you will respond if a competitor attacks you with price – it‟s always better to be prepared for this possibility. (4 lines)

III. Distribution Strategy (see Chapter 11)
You must now decide how you are going to ensure your product is conveniently and effectively available to your customers. Channel tasks List the various tasks that will need to be performed to give a customers access to your product; physical handling, storage, delivery, order processing, installation or technical services, returns, servicing and repairs. Note next to each of these who, ideally, will perform these tasks, you or a middleman? (4 lines) Channel choices Note the channels currently available (egg through wholesalers to retailers, direct to retailers, online, catalogue, etc.). Note also any characteristics of the market, your product, the available middlemen, and you own preferences and capacities and financial strength that might suggest why one type of channel should or should not be used.

Note the channels that other suppliers of your product type are using. (4 lines) Channel selection Review the channel tasks and channel choices above. Now you need to decide on the channel you will use. Will you distribute to end-users directly yourself or use middlemen? If direct, how will you do this – Internet, own outlets, own trucks, etc.? If indirect, how many levels and what types of middlemen will you use? (4 lines) Distribution intensity Review the factors determining distribution intensity. How many outlets will you use in each market area? (3 lines) Selection of channel members It may be too early to identify individual middlemen to help you distribute your product, but you can certainly consider the types of firms and individuals you want to deal with – their size, skills and capabilities, their ways of doing business. Keep in mind that the destiny of your product may well be in their hands. You might also note the type of arrangement you would like to have with these middlemen an informal agreement, formal contract, long-term/short-term extent of their responsibilities. (5 lines) Location of outlets If you are considering having your product available from your own outlet(s), you need to consider where it will be and how customers will access it. Look at the a map of your catchments area (the area your customers will come from). Consider roads, traffic flows, boundaries such as rivers, highways, railways lines, (even small details can be critical, such as whether there is a right turn arrow at traffic lights on an intersection leading to your outlet). Remember the three rules of real estate: location, location, location! List all suitable sites. Consider also aspects such as proximity to public transport, parking, ease of access to the building, opportunity for signage and physical presence. (3 lines) IV. Promotion Strategy (see Chapter 12) Your task here is to prepare a plan to promote your product. Campaign Plan Smaller firms will usually develop their own promotions. For a major promotional strategy it is likely that you will brief specialist promotional agencies to develop your campaign. Either way, you will need to include several aspects in your Marketing Plan

Customer situation and buying motives First review the analysis of your targeted customer groups ( see that section above). In particular, check    (5 lines) Promotional objectives What do you want your promotional activities to achieve? Be specific: build brand awareness, communicate a distinct advantage over a competitor, and demonstrate how to use the product? What specific message should your promotion communicate? (4 lines) Campaign theme Promotional activities are often constructed around a theme, a central idea that succinctly communicates the chosen promotional appeal. In other words, the theme can be related back to the objectives of the promotion. Themes are expressed as slogan (Oh! What a feeling, Which Bank?). The theme is then used consistently across all forms of promotion and helps to integrate the various elements. (3 lines) Promotion activities What tasks do you plan to allocate to the various forms of promotion? Promotional Form Personal Selling (3 lines) Advertising (3 lines) Sales Promotion (3 lines) Public relation / publicity (3 lines) Task What motivates purchases in this product category and What media do the target group read, listen to, watch. When, where and how do they buy products in this category

Choosing specific media You know your targeted customers, their buying motives and patterns. And their media usage. You also know the characteristics of the various media types. Using these data you can now choose specific media vehicles to spearhead the mass communication aspects of your promotion. Outline your specific media choices, not just television, radio, newspaper, Internet, etc, but specific stations, shows, publications, websites etc. Most firms today are using the Net as a major promotional medium. You will need to decide if your site will be for advertising, to effect transactions, to provide customer service, or a combination of all three. You will also need to consider how you will attract visitors to your site – Search Engine Optimization, banner ads, reciprocal links, plus a range of other directional reminders in other media. (5 lines) Budgeting At this stage you should note the costs of the various promotional activities you are planning. Remember, even large marketing organizations never have enough funds to do all the promotion they would like. Budgeting is usually a compromise between the amount required to do the job, and the amount realistically available. (5 lines) *************End*********** Report Requirements I. II. III. IV. V. VI. Title Page Introduction of the project Body context Recommendation Reference Appendices

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Good Luck! Ms. Jay / Mr. Chris


				
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