Download Developing Your Marketing Mix

Developing Your
Marketing Mix
Chapter 18
What is a Marketing Plan?
 Used
to communicate a product to the
customers:
 Shows
competitive advantage
 Explains value proposition (benefits vs.
price)
 Example:
 Market
Disney Vacations, Satellite TV
Driven- All decisions are based
on the market.
4 Steps of
Developing a Marketing Plan
Consumer Analysis
 Market Analysis
Ex. Nielsen (www.nielsen.com)
 Development & Combination of the Marketing
Mix (4P’s)
 Break –even analysis

Step One: Consumer Analysis
(Profile)

Market Segmentation: Consumers who have a
similar response to a certain type of marketing.
Example: Volvo – Target’s women with young
children – “Safety”
 Surveys and Questionnaires
 Focus Groups and Product Testing

Step Two: Market Analysis


Use Market Segmentation to break down by
Psychographics, Demographics, Geographic's,
and Buying Characteristics.
Niche Segment: Very small group of customers.

Example: Rolls-Royce – Sells low quantity at high
prices
Step Three: The Marketing Mix


Combine the 4P’s (Product, Place, Price,
Promotion)
Be careful, if you change one “P” it might affect
the rest.

Example: Location of a fur coat store.
Break-Even Analysis
 The
break-even point (BEP) is
the point at which cost or
expenses and revenue are equal.
Break-Even Analysis
Marketing Mix | 4 P’s of Marketing


Marketers use different tools in order to get the
desired response from the customer or best
satisfy their needs. These tools are known as
The Marketing Mix.
Marketing Mix is probably the most famous
term in marketing.
Marketing Mix


The important thing to note is that all these four
P’s (variable) are controllable, subject to
internal and external constraints of marketing
environment.
Marketers, using different blends of these
variables, can target different group of
customers having different needs. So, a
customer may call marketing mix “the
offering”.
Marketing Mix
Pricing Strategies

Penetration Strategy: Initial low prices to gain
market share


Skimming Strategy: High initial prices to
recoup costs


Example: Low Airline Prices, Wal-Mart
Example: Plasma TV’s
Meat Beat the Competition: Match what
competitors are doing (Wal-Mart Article)
Pricing Strategies

Keystoning: Doubling the COGS to
arrive at the retail price.
 Example:
You pay $2 for a bracelet and sell is
for $4

Cost-Plus: Figure costs and then add
profit
Pricing Strategies

Value Pricing: Find the balance between
quality and price. Value is NOT the same
as cheap!

e.g. Some customers will pay extra for prompt delivery. (Fed-X)
Customers assign a personal value to a product or service e.g. a
teenager is willing to pay a premium price for a concert
performed by his idol.
