Marketing Mix

For marketing to be successful, an organisation has to combine a successful mix of the right product, sold at the right price, in the right place, using the most suitable methods of promotion.  The elements of marketing used by organisations are known as the 4 Ps:

  • Product – the good or service offered.
  • Price – the amount charged to consumers.
  • Place – the location or method of distribution.
  • Promotion – how to inform, remind, persuade

Product

The product is the good or service that has been produced – it must meet the wants and needs of the customer.

Different customer groups have different requirements so most businesses will produce different versions of the products for different market segments.  For example Kelloggs have Frosties for children, Special K for the weight conscious.

Price

The price is the amount that consumers must pay for a product.  Lower prices usually lead to higher sales volumes and vice versa.

Profit levels are not entirely linked to the number of sales however as a high profit mark-up on a lower sales volume can be more profitable than a low profit mark-up on a high sales volume.

Place

Organisations must decide where and how they will distribute their product to their customers.  This involves making decisions on:

  • The location of the business – manufacturing or retailing;
  • The method of distributing (transporting) finished goods to customers. 

Promotion

Promotion aims to:

­­­­­­­­­­­Persuade the customer to buy the product – e.g. L’Oreal cosmetics “You know you’re worth it”

 

Inform the customer about the product/service – eg. political party broadcasts

Remind the customer that the product exists – e.g. Heinz baked beans (first sold in UK in 1886)

Methods of Advertising

Businesses can advertise in a number of different ways and will choose the method most likely to reach their target customer (i.e. who the product is for).  The most common examples include:

  • TV
  • Radio
  • Social Media
  • Magazines
  • Cinema
  • Product Placement
  • Pop-ups in games

Sales Promotions

These are ways other than advertising of encouraging consumers to buy:

  • Special Offers e.g. BOGOF
  • Free samples/gifts
  • Vouchers/coupons
  • Competitions

 

 

 

 

Celebrity Endorsement

This is when an organisation approaches celebrities/influencers to appear in adverts or to be seen using their products/service on social media.  The celebrity must make it known and clear if this is a paid sponsorship when promoting on social media.

Examples include:

  • Gary Lineker – Walkers Crisps
  • Jennifer Aniston – Aveeno
  • Kardashian Family – Lumee Phone Cases

Sponsorship:

Supporting an event, activity or organisation by providing money or other resources that is of value to the sponsored event. This is usually in return for advertising space at the event or as part of the publicity for the event.

Example include:

  • Tesco – Race for Life
  • Virgin Money – London Marathon
  • BBC – Children in Need