session marketing mix. session outline market positioning mix elements perceptual maps marketing mix...
TRANSCRIPT
Session
Marketing Mix
Session Outline
Market Positioning Mix Elements Perceptual Maps Marketing Mix 4 C’s People
This Session
Weekly Activity:Positioning Business Answer the 3 Levels of Strategy questions for
your business: Corporate - What business should I be in? Business - How should I compete against my
competition? Functional - What strategies will I use to my
position my business to my target customers? The answers to these questions will form the
basis for implementing your Marketing Plan.
Market Positioning
‘…developing a specific marketing mix to influence potential customers’ overall perception of the organisation itself, a brand, a product range or line.’
Topic Example Video
The following video discusses market positioning.
Take note of the key points. http://www.youtube.com/watch?
v=4VxI85DvQjM
Market positioning ‘…developing a specific marketing mix to
influence potential customers’ overall perception of a brand, a product line or the organisation itself.
The way the product is perceived by the consumers on important criteria’ (McColl-Kennedy et al. 1999, p.266)
Salient attributes are the important features or benefits the product offers.
Product positioning
The way that the product is defined by consumers based on important attributes.
The place that the product occupies in the consumers’ minds relative to competing products.
Product positioning map shows how consumers perceive competing products that serve a particular need based on a set of key attributes.
Image Positioning
An image statement is a general message often using semantics to communicate to people:
Image positioning involves creating consumer associations that are strong, favourable or unique when compared with the competition.
An outline of benefits and advantage points Product position enhancement Basis for advertising appeals
Branding
A name, term, sign, symbol or design, or combination of these, intended to identify the goods or services, of one seller or group of sellers and to differentiate them from those of competitors.
Topic Example Video
The following video highlights how branding can be used for positioning.
Take note of the key points. http://www.youtube.com/watch?
v=lIq_8MUPz5w
Positioning to target segments
Need to consider:
Positioning Strategies Marketing Mix Elements Level of Product Consumer Behaviour
Designing the right marketing mix
The most creative & challenging step in marketing is designing the right marketing mix
The marketing mix is the specific collection of actions & associated instruments employed by an organisation to stimulate acceptance of its ideas, products & services
Seven marketing mix elements
Total Offer to the Customer
First, the firm chooses the product to meet the identified need of the target segment
Second, the right distribution channel is used to make the product available
Third, the firm undertakes eye catching promotion
Fourth, the price platform is acceptable to the customer & firm
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-15
Perceptual Map
Topic Example Video
The following video the use of perceptual maps to identify market gaps.
Take note of the key points. http://www.youtube.com/watch?
v=BjkrdvDbIU0
Customer Focus Organisation Product (features
& attributes) Price Placement
(distribution) Promotion
Customer Considerations
(needs & wants) Cost Convenience
(location) Communication
What is a product?
Promotion
Place (distribution)
Price
Product is the heart
of the marketing
mix
Topic Example Video
The following video discusses the difference between products and services.
Take note of the key points. http://www.youtube.com/watch?
v=AyyvFASW6Nw
Product & Service What will your product and service strategies be? Briefly describe your products - fuller details can be put in the Appendix. How will you position your products in the market and how does that
compare to the competition's positioning? How will the product meet customer's needs? After the product is sold to the customer what will the policies be for
providing support, dealing with complaints and returned goods? Describe the unique features of your product - these could be style,
quality, brand name etc. Describe the uniqueness of the packaging - size, shape, material etc. Describe your service, warranty, repair and returns procedures.
What is the Product Concept?
A product is a bundle of tangible and intangible attributes that satisfy a buyer’s needs and wants.
Total product concept - consumers are buying the total bundle when they buy a product. Therefore, one physical product can target different market segments by varying the intangible component and thus satisfying different needs and wants of consumers.
Total Product
Topic Example Video
The following video outlines the 3 levels of product.
Take note of the key points. http://www.youtube.com/watch?
v=g2OKqeKFndg
Levels of Product
Products have three levels that need to be considered. These are;
the core product - the benefits of the product for the consumer
the actual product - the tangible or physical attributes of the product
the augmented product - the intangible or additional elements of the product.
Service
The result of applying human or mechanical efforts to people or objects.
Topic Example Video
In the following video, Brian McCarthy discusses Pricing.
Take note of the key points. https://www.youtube.com/watch?
v=POTBei26Jow
Common pricing strategies:Cost plus pricing •Competition based pricing •Loss leader pricing •Promotional pricing •Skimming strategy•Penetration pricing •Premium pricing•Economy pricing•Value pricing •Dynamic pricing •Product bundle pricing
Price
What impact has the internet had on pricing?
Price
• Allows price and product comparisons.• Prices are coming down.• Data collection allows sellers to tailor products and
prices.
Placement
How will you get your products to your customers? Describe how you ship your products to your
customers. What channels do you propose to use - will you
distribute directly, through distributors or via wholesalers or a combination of all three?
Describe the channels you will use for each product for each target market segment. Describe what coverage they give.
If using distributors or wholesalers, describe where they are located and what inventory levels they carry.
Topic Example Video
In the following video, Brian McCarthy discusses Distribution.
Take note of the key points. http://www.youtube.com/watch?
v=Tb8bF2hCyLw
Major channels of distribution
ULTIMATE CONSUMERS
PRODUCERS OF CONSUMER GOODS
Retailers Retailers Retailers Retailers
Wholesalers Wholesalers
Agents Agents
Topic Example Video
In the following video, Brian McCarthy discusses Marketing Communications or more commonly, the Promotional Mix.
Take note of the key points. https://www.youtube.com/watch?v=-U-
FDO4nCAA
Promotional Methods
Advertising Publicity Public Relations Personal Selling Media
Announcements
Sales Promotion Internet Product Launches Functions Direct-response
Marketing
Promotional Mix
What is the thrust of your marketing message? What must you convey to make them buy? How will you inform your customers about your products? What promotion strategy will you employ - advertising,
telemarketing, seminars, trade shows, personal selling, public relations, testimonials?
Describe what media mix you will employ for advertising - magazines, newspapers, direct mail, television, yellow pages - and how often you will use them.
Describe the types of seminars and trade shows you will be using and the personal selling activities that you will use.
4Ps & 4Cs
Four Cs The Four Ps is also being replaced by the Four
Cs model, consisting of consumer, cost, convenience, and communication.
The Four Cs model is more consumer-oriented and fits better in the movement from mass marketing to niche marketing.
Product- Consumer
The product part of the Four Ps model is replaced by consumer or consumer models, shifting the focus to satisfying the consumer.
Price- Cost
Pricing is replaced by cost, reflecting the reality of the total cost of ownership.
Place- Convenience
Placement is replaced by the convenience function.
With the rise of internet and hybrid models of purchasing, place is no longer as relevant as before.
Convenience takes into account the ease to buy a product, find a product, find information about a product, and several other considerations.
Promotion- Communication
Finally, the promotions feature is replaced by communication.
Communications represents a broader focus than simply promotions.
Communications can include advertising, public relations, personal selling, viral advertising, and any form of communication between the firm and the consumer.
Topic Example Video
The following video highlights the 7 P’s.
Take note of the key points. https://www.youtube.com/watch?
v=ys7zx1Vc9po
Extended Marketing Mix
There have been attempts to develop an 'extended marketing mix' to better accommodate specific aspects of marketing.
For example, in the 1970s, Nickels and Jolson suggested the inclusion of packaging.
In the 1980s Kotler proposed public opinion and political power
Booms & Bithner Booms and Bitner included three additional 'Ps' to
accommodate trends towards a service or knowledge based economy:
People – all people who directly or indirectly influence the perceived value of the product or service, including knowledge workers, employees, management and consumers.
Process – procedures, mechanisms and flow of activities which lead to an exchange of value.
Physical evidence – the direct sensory experience of a product or service that allows a customer to measure whether he or she has received value. Examples might include the way a customer is treated by a staff member, or the length of time a customer has to wait, or a cover letter from an insurance company, or the environment in which a product or service is delivered
Extended Marketing Mix
Booms and Bitner included three additional 'Ps' to accommodate trends towards a service or knowledge based economy:
People Process Physical Evidence
People
People – all people who directly or indirectly influence the perceived value of the product or service, including knowledge workers, employees, management and consumers.
Process
Process – procedures, mechanisms and flow of activities which lead to an exchange of value.
Physical Evidence The direct sensory experience of a product or
service that allows a customer to measure whether he has received value.
Examples might include the way a customer is treated by a staff member, or the length of time a customer has to wait, or a cover letter from an insurance company, or the environment in which a product or service is delivered.
Physical Evidence Physical evidence is the material part of a
service. Strictly speaking there are no physical attributes
to a service, so a consumer tends to rely on material cues.
Physical evidence There are many examples of physical
evidence, including some of the following: Packaging. Internet/web pages. Paperwork (such as invoices, tickets and
despatch notes). Brochures.
Physical Evidence
Furnishings. Signage (such as those on aircraft and
vehicles). Uniforms. Business cards. The building itself (such as prestigious offices
or scenic headquarters).
7Ps & 7Cs
The 7 Ps The 7 Cs
Organisation Facing Customer Facing
Product = Customer/ Consumer
Price = Cost
Place = Convenience
Promotion = Communication
People = Caring
Processes = Co-ordinated
Physical Evidence = Confirmation
Fundamental Actions
The term 'marketing mix' however, does not imply that the 4P elements represent options.
They are not trade-offs but are fundamental marketing issues that always need to be addressed.
They are the fundamental actions that marketing requires whether determined explicitly or by default.
Choosing The Right Promotion
Marketers need to consider: The target market. The nature of the product. The stage of the product’s life cycle. Money available for the promotion.
Topic Recap Video
The following video recaps on the Marketing Mix.
Take note of the key points. http://www.youtube.com/watch?
v=ZoNZ_I5TYEk
Next Session Weekly Activity: Understanding Markets Select a category of passenger car from the list
used by VFACTS. To find this list, go to www.fcai.com.au and click on
“sales”, “cars” & “segmentation criteria” in the top menu
With this category as a basis, describe (or profile) a market segment that would be interested in buying a new vehicle, using each of the segmentation approaches discussed as sub-headings.
Explain your approach for each sub-heading.