The marketing mix covers the four P's: product, price, place, and promotion. Each element is related to the others and should work together to achieve the desired effect. An effective marketing mix achieves marketing objectives, meets customer needs, is balanced and consistent, and creates a competitive advantage by matching corporate resources. For example, the launch of the iPhone blended elements like innovative phones in one, 3G connectivity, O2 exclusive distribution, and prices from £350-£750 through web and TV advertising.
2. Introduction The marketing mix covers the way a business uses price, product, promotion and distribution (place) to market and sell its product
3. The Four P’s The marketing mix is often referred to as the Four P’s Product Price Place Promotion The product or service that the customer buys How much the customer pays for the product How the product is distributed to the customer How the customer is found & persuaded to buy
4. Why is it called a marketing MIX? Because each element of the marketing mix is related to the others. Elements of the mix should work together to achieve the desired effect
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6. Example – launch of iPhone Product Three products in one – phone, iPod & web browser 3G broadband connection Innovative design Place O2 exclusive distribution (locked) Unlocked phones from online retailers Price Depends on phone tariff & model £350-£750 range Price falling Promotion Web & TV advertising Retail distribution Widespread PR coverage Product placement
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8. Example of the blend Product and price Cost must be taken into account when setting price Promotion and price Cost of promotion is taken into account when setting price Product life cycle and price Price set in relation to stage in the product life cycle Product and promotion Promotional mix should be varied in relation to product Product and place Nature of the product is a major factor in distribution strategy
9. Businesses emphasis different parts of the marketing mix Emphasis on Examples Price Discount supermarkets Low-cost airline Promotion Soap powders Furniture retailers Product Luxury motor vehicles Tailor-made holidays Place Convenience stores Coffee shops
