2.2.5 Pre-learning (The Marketing Mix)

​The Marketing Mix (7Ps)

U2 AOS 2 Business Management - Term 3 Week 5 Pre-learning

By Adele Wyers

This term refers to a set of marketing tools or tactics that are used to influence customers and attract them away from competitors.

Traditionally it was the 4 Ps shown here. Now it also includes people, process, and physical evidence.

​

The Marketing Mix

You can see the full marketing mix in this mind map.

Note: we will spend the most time on the first 4Ps (the originals) or product, price, place, and promotion.

​

The Marketing Mix

Product is anything you offer that can be purchased - goods, services, experiences, events, perople, places, etc.

Business goods and services are provided to other producers. Consumer goods are sold to everyone else (categories shown in image).

​

1. Product

You may have previously learnt about goods & services.

GOODS - tangible products (you can interact with).

SERVICES - intangible products (things done for you).

In this topic, the word PRODUCTS refers to both.

​

1. Product - Important Reminder

Review the type of consumer goods and related marketing straetgies before answering the question on the following slide.

1. Product

Dropdown

Strategies that allow for a wide exposure of the product are best for

Select answer

, while ​

Select answer

require marketing strategies that create exclusive distribution rights. A smoke detector is an example of ​ ​

Select answer

that people need to be reminded about.

Multiple Choice

Intangible products are also called ....

• goods

• services

Remember that marketing is not just for an existing product.

It is an essential part of developing a product that meets consumer needs and can be effectively sold to the target market.

Here is the process:

1. Product Development

Reorder

Put the product development process in the correct order.

• idea development

• idea screening

• idea evaluation

• developing the product

• commercialisation of the product

1

2

3

4

5

• 1
• 2
• 3
• 4
• 5

A company should consider the mix of products they offer, to capture as much of the market as possible.

Breadth - different product lines. Depth - Variety of options in a product line.

1. Product Mix

Remember that marketing is not just for an existing product.

It is an essential part of developing a product that meets consumer needs and can be effectively sold to the target market.

Here is the process:

1. Product Development

Multiple Choice

There are multiple types of coke offered. Is this breadth or depth of product mix?

• breadth - there are many product line options

• depth - there are many options within the same product line

Multiple Choice

The company Coca-Cola sells soft drinks, Minute Maid juices, and water. Is this an example of a product mix that has breadth or depth?

• breadth - there are many product line options

• depth - there are many options within the same product line

Branding of the product is also important to make products stand out from the competition. Making them appear different is called product differentiation.

The business who does this best and has the highest market share is the brand leader.

Often, the brand can be extended beyond its original product. This is called brand stretching.

1. Product Positioning & Packaging

Example: Golden Gaytime Ice-Cream

The product is differentiated by its name and biscuit coating.

It is owned by Streets, who are brand leaders in the Australian ice-cream market.

The ice-cream has product mix depth due to its many flavours. It also has brand stretching because it comes in other forms now - not just ice-cream!

1. Product Positioning & Packaging

Multiple Choice

Is this picture an example of product mix depth or product stretching?

• product mix - depth

• product stretching

How to package the product is also important - it protects the product from damage.

The right packaging also acts as:
- Promotion/advertising
- Builds branding
- Differentiates from competitors
- Provides information about the product
- Leads to impulse buys

1. Product Positioning & Packaging

Setting the price for a product is an essential part of marketing.

Pricing a product for a market depends on:

- Costs of production
- Stage in product life cycle (next week)
- How well known the product is
- Competition from others
- Target market segments
- What consumers can afford/are willing to spend

1. Price

Here are the three main pricing strategies for a business to consider.

1. Pricing Strategies

Drag and Drop

When products from different competitors are priced similarly, this is an example of

Placeholder

. The company who lowers or raises this price to a new standard shows price ​

Placeholder

.

Placeholder

starts with lower costs to attract customers away from other businesses. The alternative is to market the product as a luxury and charge more, which is called ​

Placeholder

.

Drag these tiles and drop them in the correct blank above

the going-rate

leadership

penetration pricing

skimming pricing

Once products are deisgned and priced, they need to be placed somewhere that they are accessible to the consumer.

Can you get the right amount of the product to the right location at the right time?

To get products to consumers, you need to use direct or indirect distribution channels.

3. Place

Multiple Choice

What is a direct distribution channel?

• A channel that involves only online sales.

• A channel where products are sold directly to consumers.

• A channel where products are sold through intermediaries.

• A channel that uses only physical stores.

Multiple Choice

What is a key difference between direct and indirect distribution?

• Indirect distribution involves no intermediaries.

• Indirect distribution is faster than direct distribution.

• Direct distribution always costs more.

• Direct distribution allows for more control over the brand.

This is where the business communicates with consumers about their products and services.

How to communicate:
- Advertise to mass market (newspapers, TV, radio) or create publicity
- Advertise to segment (magazines, internet, social media)
- Direct or personal selling to the customer
- Offer sales promotions (discounts)
- Have a website for business details/values

4. Promotion (Ads!)

Multiple Choice

________ reaches large groups of audiences at a high frequency

• Advertising

• Personal Selling

• Sales Promotion

• Public Relations

Multiple Choice

What is the main purpose of promotion?

• To confuse customers about the benefits of a product.
• To manipulate customers into making purchases.
• To deceive customers into buying products they don't need.
• To inform potential customers about a product or service and the results they should expect from using it.

Multiple Choice

Commonly used to obtain an increase in sales short term. For example, coupons or discounts.

• sales promotion

• advertising

• personal selling

• direct mail

The final three Ps!

PEOPLE: how staff treat customers will impact how they view the business and if they will buy or recomend the product.

PHYSICAL EVIDENCE: businesses need to keep evidence of transactions, provide pleasant environments, and use location for branding.

PROCESS: ensure customer satisfaction by making their process of doing business as efficient as possible

5-7. People, Physical Evidence, Process

Multiple Choice

Employees at a luxury hotel receive extensive training to provide top-tier customer service.

• People

• Physical Evidence

• Process

Multiple Choice

A retail store ensures that its interior design reflects the brand’s image and creates a welcoming atmosphere.

• People

• Physical Evidence

• Process

Multiple Choice

The uniforms worn by staff in a high-end restaurant are carefully designed to reflect the brand’s luxury status.

• People

• Physical Evidence

• Process

Multiple Choice

An online shopping website offers a seamless checkout process, allowing customers to make purchases quickly.

• People

• Physical Evidence

• Process

Multiple Choice

A fast-food chain ensures that employees are trained to prepare meals consistently across all locations.

• People

• Physical Evidence

• Process

Open Ended

This is now the end of 2.2.5 (Chapter 12.1). To avoid the forgetting curve, you need to do a brain dump of everything you have learnt so far about the marketing mix of product, price, place, promotion, people, physical evidence, process.