Concept check
Date: 2015-10-07; view: 420.
Ps
The marketing mix
The concept is simple indeed. Think about any mix in normal daily life for example a biscuit mix, all biscuits contain flour, sugar, milk and eggs however you can alter the final mix by altering the ingredients. So for sweet biscuit add more sugar. It's same with marketing mix or 7 p's the offer you make your customer can be varied by altering marketing mix so for a high profile brand, increase the focus on promotion and desensitize the weight given to price. There are 4 basic element in the marketing mix, but it can be increased by adding 3 more marketing mix elements. The first four marketing mix (product, price, place, promotion) belong to tangible products and other 3 (people, process, physical evidence) belong to services.
What are features of good products? A good product must be DICEE.
Deep: product must have multiple features in it and should be able to serve multiple purposes that is called deep product. Intelligent: A firm must make a product which is intelligent the example of intelligent product is Panasonic's torch light in that torch light you customer can use any of the different size batteries which one is available to customer. Completeness:company must not just provide a simple tangible product but also provide post and after sales services and documentations. Elegant: product must be elegant in looks and heart touching. Emotive: design the product like that company should add emotions of customer in product. Product must be the solution of customer's problem or a package of benefits to customer. Nature of product is also often depending on which generic strategy company is using. If company is operating at low cost the company will be offer a very basic product with very basic facilities in it. That product is called core product. If company is operating at differentiation then company will be offering an actual product by adding little luxury to basic product. However if company is operating at best value strategy they will be providing augmented products. Augmented product is an actual product in which you add services. Other decision regarding products is to deciding product range, product width, quality, warranty, after sale services, packaging, branding and appearance etc.
The factors which can influence pricing are: economic influence, competitors pricing, quality conditions, discounts, payment terms, trade allowance.
Place is known as a channel, intermediary or a distributer. It is the mechanism through goods is carried from manufactures to end user. The decisions regarding place are: location, logistics, channel members, channel motivation, market coverage, service area, internet, mobile.
Promotion groups AIDA. A is attention; we must get customer's attention towards our distribution channel. I is interest; demonstrate product features and benefits this is to get customer attention. D is desire; what is the product used for? Which need the product can fulfill? We need to create the desire for that product and then match the desire with need. A is action; take the product to customer rather than customer comes to you. Take action first to sell the product. Other concerns are to advertise, sale and media budgets.
Services are intangible. The people who render services are part of that product. If peoples are good educated the quality of service will be better.
Services are a package of process offered to customer. So processes are part of products. Quality of process will determine the quality of product. Therefore process is compulsory part of services.
Due to intangible nature of services the customer satisfaction is important and has to be on the spot. To serve this purpose other services p's must be good.
1) Compare and contrast the terms marketing and selling concepts. .
2) Why is marketing research important?
3) Fill in the table.
| Term | Function |
| Customer research | |
| Promotion research | |
| Product research | |
| Distribution research | |
| Sales research | |
| Marketing environment research |
4) How do marketing decision makers know when it will be profitable to conduct research?
5) Describe the chart on the main concepts of marketing research.
6) What characteristics should a good product have?
7) Are there any factors that influence the pricing strategy?
8) Name the decisions which are important in placing a product on the market.
9) What does the acronym AIDA stand for?
10) Name the 7Ps of the marketing mix and explain the importance of a target market for each of them.
| Key learning points · A market is an aggregate of people who, as individuals or as organizations, have needs for products in a product class and who have the ability, willingness, and authority to purchase such products. Markets fall into three categories: (1) consumer markets, (2) industrial markets, and (3) reseller markets. · Marketing is the term given to those activities which occur at the interface between the organisation and its customers. The ‘marketing concept' assumes that the producer's task is to find wants and to fill them. Market researchis the process of collecting, analysing and presenting useful information about consumers. · A company's marketing mix is the combination of marketing activites it uses in order to promote a particular product or service. Marketing mix is 7Ps where the first four marketing mix (product, price, place, promotion) belong to tangible products and other 3 (people, process, physical evidence) belong to services. |
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