Read how you can change your life

What is marketing-mix?

    According to Kötler, marketing is the science and art of exploring, creating, and delivering value to satisfy the needs of a targeted market at a profit. Marketing identifies unfulfilled needs and desires. It defines, measures and quantifies the size of the identified market and the profit potential. It pinpoints which segments the company is capable of serving best and it designs and promotes the appropriate products and services. Therefore, marketing is a mix of many variables that put together will aim at satisfying the consumer. This is why a marketer have to build a marketing strategy. The marketing-mix can be divides into 4Ps: Product, Price, Place and Promotion.

What is exactly marketing-mix?

     Product is at the core. A product is anything that can be offered to a market for attraction, acquisition, use, or consumption and that might satisfy a want or a need. There is a classification of a product:

• Convenience: something that is usually bought

• Shopping: something that we start to compare to another

• Speciality: when someone is a fan of a specific brand

• Unsought: something that at the beginning you do not want to buy but that you will possibly buy.

In this first step, you have to think about the product attributes (quality, features, style and design), then about the brand, the packaging, the labelling and finally you have to provide the consumer with a customer service. This is not only about products, but also about services.

Afterwards, you have to build a branding strategy starting with positioning (attributes, benefits, beliefs and values), then name selection (selection and protection), sponsorship (manufacturer’s brand, private brand, licensing, co-branding) and finally development (line extension, brand extension, multi-brand, new brands).

     Price must reflect the value of the “total package”. The price is the amount of money charged for a product, or the sum of the values that customers exchange for the benefit of having or using the product. There are two ways to set a price:

Cost-based value: setting prices based on the cost of producing, distributing, and selling the product plus a fair rate in return for effort and risk. In this case, the company has to take fixed, flexible, and average costs into consideration.

Value-based pricing: setting price based on buyer’s perceptions of value rather than on seller’s costs.

Moreover, there are internal factors (marketing strategy, business objectives and organizational considerations) and external factors (market characteristics, offer-demand relationship, and economy) that have an influence on the price.

You have to build a price strategy depending on where the product is in its life cycle and on the company’s objectives.

       Place is about costs and commercial possibilities. The place includes a lot of actors like companies, suppliers, distributors, and necessarily customers, in order to improve the performance of the entire system in delivering customer value. The key functions are information, promotion, contact, matching, negotiation, physical distribution, financing and risk taking.

Depending on the company’s objectives, there is a vertical or an horizontal channel.

       Promotion describes the different axes of communication with the market. Promotion is a tool that a company uses to persuasively communicate customer value and build customer relationships. Here, we speak about advertising, sales promotion, personal selling, public relation or direct marketing.

To develop an effective marketing communication, you must identify the target audience, determine the communication objectives, design a message, choose a media, select the media sources and then collect feedback. There are two types of strategies:

Push strategy: using the sales force and trade promotion to push the product through channels.

Pull strategy: spending a lot on consumer advertising and promotion to induce final consumer to buy the product.

, , , , , , , , ,

Leave a Reply

Your email address will not be published. Required fields are marked *


* Copy This Password *

* Type Or Paste Password Here *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>