Marketing-Mix-Assignment PDF

Preview

Summary

Marketing mix...

Description

Marketing Mix Assignment

Table of Contents Task 1: The role of Product or Service and role of place in the marketing mix......................4 Analyze how the features and benefits of a product or service are used in the marketing mix...4 Describe the use of the marketing mix at each stage of the Product Life Cycle.........................6 Stage1: Market Development:.................................................................................................6 Stage 2: Market Growth:.........................................................................................................7 Stage 4: Market Maturity.........................................................................................................7 Stage 4: Market Decline..........................................................................................................7 Analyze the role of direct and indirect distribution channels to move products and services from the provider to the buyer.....................................................................................................7 Different types of distribution channels...................................................................................8 Analyze the use of intensive distribution, selective distribution and exclusive distribution in the market coverage of products and services.............................................................................9 Intensive distribution...............................................................................................................9 Selective distribution...............................................................................................................9 Exclusive Distribution...........................................................................................................10 Task 2: Pricing and Promotion...................................................................................................11 Analyze the use of pricing to reflect the perceived value of the benefits of a product to the buyer..........................................................................................................................................11 Analyze the use of pricing to offset the costs of product manufacturing and/or service delivery ...................................................................................................................................................13 Market Penetration Pricing....................................................................................................13 Economic Pricing...................................................................................................................13 Skim Pricing..........................................................................................................................14 Analyze the aims of promotion in the marketing mix...............................................................14 Creating Awareness................................................................................................................14 Getting Consumers Try New Products..................................................................................14 Increasing the amount and frequency of use.........................................................................15 Providing Information...........................................................................................................15 Explain how the success of a promotional campaign is measured............................................15 Prioritize Objectives over tools.............................................................................................15 Measure Direct Sales Revenue..............................................................................................15 Measure ROI..........................................................................................................................16 1|Page

Task 3: The role of the people in the Marketing Mix for the Senior Management Team.....17 Introduction................................................................................................................................17 Analyze the importance of recruiting the right people to become customer facing staff in businesses..................................................................................................................................17 Customer-Business relationship............................................................................................17 Relationships add value to transactions.................................................................................18 People provide expertise........................................................................................................18 Analyze the importance to businesses of training customer-facing and noncustomer-facing...19 Staff............................................................................................................................................19 Staff are knowledgeable and skilled......................................................................................19 Staff can add value.................................................................................................................19 Staff can support sales, and marketing..................................................................................19 Staff have appropriate attitude and appearance.....................................................................20 Staff take responsibility.........................................................................................................20 Conclusion.................................................................................................................................21 Merit Task: Evaluate the use of Customer Relationship Management in businesses................21 Strengths of CRM..................................................................................................................21 Weaknesses of CRM..............................................................................................................21 Task 4: The role of Process and Physical Evidence..................................................................23 Introduction................................................................................................................................23 Process Activities...................................................................................................................23 Explain the role of marketing processes which take place with the customer present..............24 Explain the role of marketing processes which take place before and after the customer interface.....................................................................................................................................25 Integration of telemarketing and internet marketing.................................................................25 Analyze how the role of process in the marketing mix leads to customer focus.......................26 Customer retention.................................................................................................................26 Cross Selling..........................................................................................................................26 Can tailor process to needs of different individuals..............................................................26 Analyze the role of physical evidence in the marketing mix.....................................................27 Physical environment.............................................................................................................27 Ambience...............................................................................................................................27 Spatial layout.........................................................................................................................27 2|Page

Corporate branding: signs, symbols, artefacts; packaging, webpages, brochures, uniforms, business cards........................................................................................................................28 Conclusion.................................................................................................................................28 References.....................................................................................................................................29

3|Page

Task 1: The role of Product or Service and role of place in the marketing mix Analyze how the features and benefits of a product or service are used in the marketing mix Marketing mix is a set of marketing tools that a company uses to sell its product. It consists of product, distribution, promotion, and pricing strategies to produce and sell a particular good or service to the target market. A company must develop a deep understanding of the mentioned factors and conduct extensive research in order to build an effective marketing mix. Product consist of any good or service that the business offers to meet the needs and wants of their target customers. Product marketing mix consist of features and benefits that make up a product and contribute in successful selling of the product. Once product features and benefits are clearly defined, the rest of the marketing mix elements are identified. Every product has a certain set of characteristics that differentiate it from its competitors. These characteristics are vital to the product marketing mix as these characteristics meet an identified market need. Product characteristics further help the business in determining the product price, communication strategy and additional features. Hence, product features and characteristics lead to value creation. A business also needs to identify a feature which differentiates its product from its competitors. This particular product feature or characteristic becomes a unique selling proposition or a USP. This should also be communicated to the potential customers so that they consider the product superior to the competitor’s identical product.[ CITATION Mar20 \l 1033 ] The author further gives reference from the book Principles of Marketing by Philip Kotler to understand the use of product benefits in marketing mix. Kotler proposed three levels to look at the product: 1. Core: Businesses must identify the core benefit that the product offers to the consumers. For instance, a camera provides customers the benefit of storing memories forever. 2. Actual: This involves identifying the additional benefits to differentiate the product and highlight its USP. For instance, all camera may offer customer the benefit of capturing memories but an additional benefit would be Artificial Intelligence feature that allow camera to automatically

4|Page

provide best settings such as white balance and exposure according to the lightening condition and person’s skin tone 3. Augmented: A business can create loyal customers by considering further benefits it can offer such as extended warranties. [ CITATION Mar20 \l 1033 ]

Marketing campaigns of various companies are either feature driven or benefit driven. An example of benefit driven marketing would be Financial Services Marketing. Customers open an account with a bank because of the benefits they receive and not because of its branding. These benefits include cash back reward programs or lower APRs on their credit card balances. However, feature-based marketing also work for some businesses. Automotive Marketing is feature driven. Marketing campaigns for new cars don’t only focus on benefits of owning a car but also highlight the innovative features such as new camera technology in the car. [ CITATION Dan20 \l 1033 ] For instance, Coke marketing campaigns communicate features and benefits of coke according to its brand positioning. Coke is positioned as a carbonated drink which a part of every enjoyable moment with others as it provides uplifting refreshment, great taste and goes well with food.

Describe the use of the marketing mix at each stage of the Product Life Cycle Product can include natural product and services, experience, people, places, property rights, businesses or organizations, information and ideas. All products in markets have a product life

cycle during which they can be sold to earn profit. Hence, it is divided into PGC (Product life cycle) phases. [CITATION Mar16 \l 1033 ] Stage1: Market Development: During this stage a new product is brought to the market without any proved demand. Sales revenue for the product doesn’t exist and investment cost is also very high during this stage. [ CITATION The65 \l 1033 ] During this time, product has been newly launched in the market and sales volume is restricted therefore marketing mix does is not based on product and distribution. Basic elements of marketing mix for this stage includes price and promotion or both depending upon the market situation. Some of the marketing strategies include rapid skimming strategy where product is introduced at a high price with high promotional expenses. At this stage, most of the people are not aware about the product, customers are willing to pay the asking price and there is a chance of facing competition. High price recovers profit per unit while high promotional expenses are incurred to convince the market. Another strategy is slow skimming where product is launched at a high price but low promotion. The purpose is to generate as much profit as possible from the market. The last possible strategy could be rapid penetration where product is launched at low price but high promotional expense. Marketer tries to create awareness about the product in order to achieve larger market share through faster market penetration.[ CITATION The65 \l 1033 ] Stage 2: Market Growth: Demand for the product begins to rise as market expands rapidly with increasing profit[ CITATION The65 \l 1033 ] during this stage the product starts gaining market acceptance therefore marketing mix revolve around improving the product and distribution networks, reducing price for price sensitive customers and high promotional efforts. Company tries to explore and enter new segments. New distribution networks are designed and current ones are widened. Competitors have also entered by this time therefore company attempts to strengthen the competitive position by enhancing the features and quality of the product. Competitors are restricted by offering low price and high promotional efforts based on product conviction. [ CITATION The65 \l 1033 ]

6|Page

Stage 4: Market Maturity At this stage, growth in sales revenue declines. This occurs because either the marketing expenses to protect the product from competitors are too high or potential buyers prefer alternative products.[ CITATION The65 \l 1033 ] The marketing mix at this stage is based upon efforts to develop customer loyalty which is achieved through incentives and promotional activities for the customers to prevent them from switching to competitor’s brand. The company does aggressive marketing to gain market share from the competitors at this stage. Stage 4: Market Decline Sales revenue and profit begin to fall due to less consumer appeal [ CITATION The65 \l 1033 ]. At this stage both marketing mix and marketing strategies go downwards. There are no new customers but the company can retain loyal customers. Marketing mix is based upon reinforcing the brand image to retain the loyal customers. [ CITATION Kri \l 1033 ]

Analyze the role of direct and indirect distribution channels to move products and services from the provider to the buyer Distribution networks or channels are developed by product manufacturers who get the product out of the factory onto the market and put a price tag on it so that it is ready to be displayed on shelf where it is reachable for the customer. They basically move product and services from the provider to the buyer. There are businesses and individuals who play the role of intermediaries. They act as wholesalers, retailers or brokers that eventually bring the product closer to the customers. These distribution channels not only directly impacts the price but also marketing decisions. Brands prefer different distribution channels based on the pricing of the product. For instance, middle ranged priced products are dispatched to mass merchandisers, high priced products are only shipped to specialized stores through distributers.[ CITATION Ana20 \l 1033 ] Direct Distribution channels involve providers selling directly to buyers without any involvement of an intermediary. This can be done through opening their own retail shops, mail order business or travelling salesman. Indirect distribution channel includes producer selling goods to wholesaler or retailers who resell them to consumers. Retailers include departmental stores, super markets or chain stores. This method of distribution is usually preferred for perishable goods but manufacturer has to incur the cost associated to transportation, warehousing and financing.[ CITATION Sak \l 1033 ]

7|Page

Different types of distribution channels Direct Sales This distribution model is used for selling middle priced products that are not included in daily purchase such as stationary, air purifiers or jewelry. In this model manufacturer directly sells the product to the customer without involving any intermediary. An example of such distribution model is Internet and E commerce where customers directly connects with the provider. Some marketing strategies to enhance direct sales include engaging in conversation with potential buyers that revolve around the product features, benefits, establishing personal connection, incentives to make the customer reciprocate, taking follow ups and feedback. Brokers and Distributers Brokers and distributers act as intermediaries who represent the provider in front of end customers. For instance, producer from food industry would need to employ a broker to take care of the sales, a distributer who would dispatch the goods to various shops. A broker usually has a portfolio of providers and retailers they work with. Hence, they will only offer a producer to a retailer if they are certain that retailers will list their items. Stores usually have contact with distributors and independent manufactures as well. Distributer purchases the goods from the vendor and resell it to a retailer at a higher margin. They manage the inventory and also new products Wholesalers/Retailers Most of the businesses prefer to work with wholesalers or retailers directly. These parties purchase the product from the manufacturer at the risk of purchasing products that might not resell in future. Businesses can establish an effective relationship with wholesalers and retailers by establishing a profitable relationship for both sides, letting the resellers know about their product and gathering feedback.[ CITATION Ana20 \l 1033 ]

Analyze the use of intensive distribution, selective distribution and exclusive distribution in the market coverage of products and services Market coverage is the practice of assessing the marketplace to identify the intensity of marketing campaigns and distribution channels that are needed to cover the market. Level of intensity is reliant on upon production capacity, target market size, promotion policies, and demand of product and service by the end customers.

8|Page

Intensive distribution This type of distribution strategy is adopted by manufacturers who aim to sell their products to as many outlets as possible. This strategy is preferred by businesses when they want to offer convenient shopping experience to customers for the kind of products they want to purchase on the spot. Therefore this provides customer a choice to choose another brand if the first preference is not available. [ CITATION Hit18 \l 1033 ] For instance, soft drinks or snacks. For these products total sales are dependent upon number of outlets. Redbox which rents DVD out of installed vending machines adopted intensive distribution strategy ...