9.3: Marketing Mix

9.3
Marketing Mix
Empathy for, and understanding of the target audience is developed through thorough analysis of the market chosen.

Concept:  A planned mix of the controllable elements of a product's marketing plan commonly termed as 4Ps; Product, Price, Place and Promotion. These four elements are adjusted until the right combination is found that serves the needs of the product's customers, while generating optimum income.

• identified through market research 
• provides the designer with an accurate and appropriate brief of market requirements

Marketing mix—the 4Ps: product, place, price, promotion
The 4P's:

1. Product: standardization of products
2. Place: implications of interest selling for a company in relation to its supply chain and distribution network
3. Price: Cost-plus, demand pricing, competitor-based pricing, product line pricing, psychological pricing
4. Promotion: advertising, publicity, personal selling.

Product: standardization of products
The process of setting generally uniform characteristics for a particular good or service. Product standardization among the goods provided by different businesses operating in technology based industries can be useful for consumers since it permits competition among the various suppliers

• Standardization - different countries can have different standards for products eg. plugs, sockets, and voltage

GOVERNMENT STANDARDS

- Government sets standards for products. For example, in Europe the CE mark on electrical devices is a government regulated standard.

EU standard

COMPONENT STANDARDIZATION
- A part or component is standardized across products, such as USB ports or plugs.

USB Standards

INDUSTRY-WIDE STANDARDS
- certain industries have their own standards, such as the steel industry - they developed a limited range of sectional beams. This is more efficient and inexpensive compared to getting different types and sorts of sectional beams

Sectional beams for buildings

Place: implications of internet selling for a company in relation to its supply chain and distribution network
Where will this product be sold, geographically or physically? Online? Or in a store?

Many companies choose to sell directly to the consumer through the internet, while also selling suppliers and stores. There are advantages and disadvantages to both approaches, and also to using this hybrid model. Students need to consider the implications of internet selling for a company in relation to its supply chain and distribution network.


Strategies of setting price: cost-plus, demand pricing, competitor-based pricing, product line
An extremely important aspect of marketing: a product that has a price well fitted to it will attract consumers to make a purchase while generating profit.

• Penetration

Low price to increase sales and market share

• Competitor/Competition based pricing

Setting prices in comparison with competitors

• Psychological pricing

Consider the psychology of the price eg $199 over $200 (effective with consumer decisions)

• Cost plus
• Product line pricing
• Demand price/ Skimming

Types of Marketing Strategies

Promotion: advertising, publicity, personal selling
Promotion of the product can be achieved by using above and below the line methods to position the product and inform the current, potential or future consumer of its availablity. The aim of promotion is to most economically convert promotional investment and spending into actual sales. 

• Above the line: costly advertising and can be any of the following: newspapers, billboards, magazines, radios, mobile media, paid internet adverts, flyer distribution, direct mail, direct selling and tv advertising (most expensive).
• Below the line: more economical methods, such as public relations, point of sale displays, product packaging, distribution vehicle posters, window advertising, and emails (to name a few).

HELPFUL GUIDE TO THE 4P'S

https://www.cleverism.com/?s=marketing+mix