marketing mix

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The Marketing Mix:

The Marketing Mix

Marketing Mix:

Marketing Mix The blend of the four marketing elements of product, place (distribution), price and promotion

Product:

Product Product Mix: The different products and services a business offers Two Aspects to Consider: Selecting Product Features Color, size, quality, hours of operation, warranties, delivery, and installation Branding, Packaging, and Labeling Branding: the name, symbol, or design used to identify the product Package: the box, container, or wrapper in which the product is placed Label: information about the product on the package

Positioning:

Positioning Placing a product in a certain market to get a desired customer response What are the differences between a Hyundai and a Jaguar?

Place (Distribution):

Place (Distribution) Channels of Distribution: the routes that products and services take from the time they are produced to the time they are consumed Aspects to consider: Getting the product in a timely manner Channels of distribution usually result in lower costs than trying to do everything yourself Channels save time for buyers and sellers

Channel of Distribution for Retail Goods:

Channel of Distribution for Retail Goods Cotton fields/farmers (Raw Materials) Textile Mills Manufacturer Wholesalers Retailer Consumers

Channel of Distribution for Retail Goods:

Channel of Distribution for Retail Goods Stay open in evening hours and on weekends Use catalogs, fliers, other advertisements to reach customers outside living area Take orders by phone, fax, or ship directly

Distribution through Internet:

Distribution through Internet Websites On-line Catalogs ebay On-line Auctions

Channels for Service Businesses:

Channels for Service Businesses Single direct channel from entrepreneur to customer Product and consumption happens at the same time Some services utilize retailers to distribute their product (film developers)

Channels for Manufacturing:

Channels for Manufacturing End customers are generally NOT the customer for manufacturing Broad distribution or narrow distribution

Physical Distribution:

Physical Distribution How is the product transported? How is product stored? Transportation: Air Train Transfer truck Pipeline Ship Combination of methods

Physical Distribution:

Physical Distribution How is the product transported? How is product stored? Storage and Handling Options: Warehouses Packages must protect the product from production to sale

Price:

Price Set Your Price Objectives: Maximize sales? Increase profits? Discourage competition? Attract customers? Maintain an image?

Return on Investment:

Return on Investment One pricing strategy is to determine cost involved and then decide how much you desire to gain as a return on your investment

Obtaining Market Share:

Obtaining Market Share Market share: percentage of total sales by all companies in the market that a business captures Pricing strategy that gains market share will either be a lower price than competition or a comparable price for a higher quality product

Determining Price:

Determining Price Demand-Based Pricing: price set by how much the customer will pay Cost-Based Pricing: determining wholesale cost and placing a markup amount on the price Markup: amount added to the wholesale price Markdown: amount subtracted from the retail price

Determining Price:

Determining Price Competition-Based Pricing: price determined by what the competition is charging for the same good or service

Service Pricing:

Service Pricing Time-Based Pricing: hourly rate for a service performed Bundling: services are bundled together and sold at a discounted price Breakeven Point: all costs for a service are added to determine the lowest price a service may be sold at in order to cover costs (the point where sales revenues equal production cost)

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