Building%20a%20Successful%20Marketing%20Mix

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Building a Successful Marketing Mix

• Unit 3
• Topic 3.1.2

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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/typein
  .pl?itn2979

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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 Ps
• Product
• Price
• Place
• Promotion

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Marketing Mix
Neil H.Borden
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1. Product

• A product is a good or service produced
• by 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).

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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

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Heinz through the years
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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

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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?

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

1. Asda
2. Tesco
3. Staples
4. VIKING
5. WH Smith
6. Xerox

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How many did you get?

1. Asda 1.94
2. Tesco- 2.18
3. Staples 2.99
4. VIKING 2.99
5. WH Smith - 5.99
6. Zerox - 8.49

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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.

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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.

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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.

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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.

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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.

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1. Informative
2. Persuasive
3. Generic advertise an industry or business
   rather than a specific product

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TV advertising costs
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Other advertising costs
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Advertising the law

• Ads must be legal, decent honest truthful.
  They are controlled by the ASA and Ofcom .

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Sales promotions
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Sales promotion methods
In your groups, find 3 promotions that Asda or
Ikea are currently running.
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Packaging can also used as a method of promotion
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Packaging task
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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?

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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 Ps but often extended to
  the 7Ps (people, physical resources
  processes).

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Revisiting the Aim

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

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Analyse KFCs marketing mix
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• Continue working on
• 1 of the 3 independent study options