29: Designing an effective marketing mix

Question 1

Marketing Mix

Answer 1

the integration of product, place, promotion and pricing designed to achieve the marketing objectives of the business.

Question 2

Product

Answer 2

Product refers to the features and functions of the product or service being offered. If a product has a unique selling point/proposition, it means that one of these features or functions is not available anywhere else.

Question 3

Promotion

Answer 3

Promotion concerns communication with consumers. A new product could meet all the needs of the customers, as identified in primary market research, but unless they are aware of its existence, the product or service will not be bought.

Question 4

Place

Answer 4

Place is where the purchase can be made by the customer. Traditionally many products were purchased through retail outlets or catalogues. Today, the growth of e-commerce is such that an increasing amount of purchasing is via the internet. This applies to both the consumer and business markets.

Question 5

Price

Answer 5

Price refers to how much the consumer is expected to pay for the product or service.
The price should give an indication of the value of the product, and can be altered as demand for the product changes.
New, innovative products are usually given a very high price to reflect their unique qualities, here as new products launched into a very crowded and competitive market such as biscuits or soft drinks could have a low price to attract the attention of consumers.

Question 6

Integrated marketing mix

Answer 6

This makes sure that the 4Ps give consistent and coherent message to cutovers about the product.

Question 7

Influences on the marketing mix:

Answer 7

• Finance. How much money does a firm need to spend on marketing? If the elements of the mix are used in an integrated and creative way, the impact on customers can be just as positive.
• The needs of the market/market research.
  The marketing mix should be based on the identified needs to customers which in turn should come from market research. It is also important to carry on market research as the firm grows as the needs of customers change over time and the marketing mic may have to be adapted to take this into account.
• Competitor actions.E.g. if a major competitor brings out a new product or lowers its prices, other firms in the market must react to safeguard their position and retain their market share.
• Technology. ‘Place’ been affected where goods are bought and sold, with the internet becoming a major source of business. This has been particularly useful for small businesses as the costs are so low.