Building a Successful Marketing Mix

Unit 3 Topic 3.1.2

Aim for today

• To understand the role of balancing the ‘4Ps’ in managing the marketing mix.

Podcast • http://www.bized.co.uk/cgi-bin/chron/typein/t

ypein.pl?itn=2979

The Marketing Mix

• The Marketing Mix is a combination of factors that help businesses sell its products

• The marketing mix is made up of the 4 P’s• Product• Price• Place • Promotion

Marketing Mix

Neil H.Borden

1. Product

• A product is a good or service producedby a business.

• To be successful, the PRODUCT must meet customer needs. It must do what it says, have the appropriate specifications and be appealing (where design/looks are important).

Task 1: Heinz Beans

List everything you know about Heinz Baked Beans.•Product: High quality Haricot Beans•Formula: Unique tomato sauce formula (updated to meet changing consumer needs) – reduced sugar & salt, micropots, meatballs, organic beanz.•Name: 2004 Heinz Baked Beanz then 2008 changed to Heinz Beanz. •Label: Changed to highlight nutritional benefits.•Varieties: Adapted for different countries

Heinz through the years

Heinz Packaging Innovation

• North America: The Heinz Dip & Squeeze™ for the foodservice industry makes eating on-the-go more fun and convenient.

• In the U.K., Australia, Indonesia & New Zealand, Heinz are converting to lighter-weight cans for products such as beans and soups.

• In China, infant food jars are wrapped in paper sleeves, a more environmentally friendly alternative to plastic shrink-wrap.

http://www.heinz.com/our-food/innovation/packaging-innovation.aspx

2. Price

• The price of a product must reflect the value customers place on it.

• No matter how good the product is, it is unlikely to succeed unless the price is right.

• PRICING can also be used as a strategy to build reputation and attract customers.

• Brands can be sold at a premium price. Why?

Task 2: Price – arrange these products in order from lower to higher

1.Asda2.Tesco3.Staples4.VIKING 5.WH Smith 6.Xerox

How many did you get?

1. Asda £1.942. Tesco- £2.183. Staples £2.994. VIKING – £2.995. WH Smith - £5.996. Zerox - £8.49

Brands attract a premium as:

1. Cost of product is usually higher;2. Cost of marketing is higher – ad campaigns &

other promotions used to support big brands.3. Higher price suggests to consumers that it is

higher quality;4. Higher prices allow the business owning the

brand to make more profit.

3. Place• Place is about how products are distributed from

producers to consumers. It involves ensuring that goods/services are available to customers where and when they want them.

Place – distribution channels• Distribution channels can be direct or indirect.• Wholesalers can sell their products to retailers

who then sell them to consumer. • The fastest channel and often the cheapest for

the consumer is where manufacturers sell directly to the customer, this is more common due to the growth of the internet.

TASK: Identify 2 products that use direct and indirect distribution methods and explain why the method is suitable.

4. Promotion

• Promotion is the communication between businesses and customers.

• It informs customers about the product, where it is, what it does and persuades them to buy it.

• Task: Create a 30 second radio ad to promote a new brand of Dog Food.

Promotions Promotions methods include:• Personal Selling• Sales Promotion• Public Relations• Direct Mail• Trade Fairs and Exhibitions• Advertising• Sponsorship

• Task: For every method, identify two businesses that use that type of promotion.

1. Informative2. Persuasive3. Generic –

advertise an industry or business rather than a specific product

TV advertising costs

Other advertising costs

Advertising & the law

• Ad’s must be ‘legal, decent & honest & truthful’. They are controlled by the ASA and Ofcom .

Sales promotions

Sales promotion methods

In your groups, find 3 promotions that Asda or Ikea are currently running.

Packaging can also used as a method of promotion

Packaging task

Paired Task

• Think of a product that you always use no matter if the competitions product is cheaper.

• Why do you do insist on the original product?

Marketing Summary

• The most important thing about marketing is anticipating and fulfilling customer needs. This is called consumer-orientation.

• To identify these needs, businesses carry out extensive market research.

• The marketing mix encourages businesses to consider customer needs when developing products.

• The mix is made up of 4 P’s but often extended to the 7P’s (people, physical resources & processes).

Revisiting the Aim

• Why is it important for do businesses to balance the ‘4Ps’ of the marketing mix?

Analyse KFC’s marketing mix

Continue working on 1 of the 3

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