3.3.4 Making marketing decisions: Influences on an Integrated Marketing Mix. Flashcards
How does the position in the product life cycle influence an integrated marketing mix?
Introduction stage should be focused on developing the product, with promotion being introduced just prior to launch.
Launch often features pricing strategies, with widespread promotion to raise customer awareness.
Growth - the focus on promotion will continue. Place becomes more important as distribution widens and more channels are needed.
To maintain sales through maturity - promotions and possible special offers may be used, with product modifications where appropriate.
How does the position in the Boston Matrix influence an integrated marketing mix?
Cash Cows - require promotion, so that customers are regularly reminded of their existence and strengths.
Stars require heavy promotion and possibly penetration pricing in order for them to increase their market share of the expanding market.
Problem children/question marks - if the business believes that they will succeed then it should focus heavily on promotion and/or training for people who have direct contact with customers.
Dogs - Make profit if they are small parts of a large market and so the complete rang of marketing mix activities should be integrated.
How does the type of product influence an integrated marketing mix?
Products with inelastic demand should command a high price. The remainder of the marketing mix needs to remain consistent with the image required to fetch a high price - promotion will need to emphasise the luxury features of the product.
Products with an elastic demand will need a lower price and therefore customer expectations of quality might be lower - in order to achieve a high profit, such products must be available in a wide range of places and feature frequent promotions, unless they are being sold on low price alone.
How do marketing objectives influence an integrated marketing mix?
Vary considerably, so the marketing mix must be adapted to the particular marketing objectives for a product.
If sales growth is required - product must appeal to many customers.
Marketing mix is likely to feature high levels of promotion combined with low prices.
The process of buying must be easy and the product made more widely available.
How does the target market influence an integrated marketing mix?
Target markets will vary considerable and so the marketing mix must reflect the desires and interests of that group.
How does competition influence an integrated marketing mix?
High levels of competition - price is more significant of an element. Even though this usually means lower prices, the business may use high price to differentiate itself in the marketplace - must then make sure the product quality matches the price.
How can positioning influence an integrated marketing mix?
Marketing mix must be consistent with the businesses chosen place for the product in the market.
