Download The Marketing Mix

Unit Plan - Marketing
The objective of all business enterprises is to satisfy the _______________ __________
____________ of the society.
______________________________________ is the activities of a company associated with
buying and selling a product or service. It includes advertising, selling and delivering products to
people.
The Marketing Mix
The __________________________ is the pivotal point and all marketing activities operate
around this central point. It is, therefore, essential that the entrepreneurs identify the
customers, establish a rapport with them, identify their needs and deliver the goods and
services that would meet their requirements.
In order to cater to the requirements of identified market segment, an entrepreneur has to
develop an appropriate marketing mix. Marketing mix is a systematic and balanced
combination of the four inputs which constitute the core of a company’s marketing
system.
The Marketing Mix is popularly known as the “_____________________” of marketing…
_________________________________________
_________________________________________
_________________________________________
_________________________________________
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The Marketing Mix (the 4 P’s of Marketing) includes:
Product, Place (Distribution), Price, Promotion
____________________________________
The first element of marketing mix is product. A
Product is anything that can be offered to a market for sale, acquisition, use, or consumption
that might satisfy a want or need. Products include ___________________ and/or
__________________ or a mix of both.
____________________________________
This is another key marketing mix tool, which
stands for the various activities the company undertakes to make the product
________________________ for customers to easily purchase. Place is the physical distribution
of products and services so that they are at the right time and at the right place.
____________________________________
It is one of the most difficult tasks of the
marketing manager to fix the right price. The variables that significantly influence the price of a
product are: _______________________ for the product, __________________ of the product,
_________________________ and government regulation.
___________________________________
Promotion refers to the various activities
undertaken by the enterprise to communicate and promote its products to the target market.
The different methods of promoting a product are through advertisement, personal selling,
sales promotion and
publicity.
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Now we go into more details of the four P’s
Product
_____________________________ is the different products (or services) a business sells. For
example…Ralph Lauren sells shirts, shoes, hats, pants, socks, umbrellas, coats, etc.
_____________________________ are the different colors, sizes, qualities of the products
which make up the product mix.
________________________________ is placing a product in a certain market to get a desired
customer response.
Place (Distribution)
___________________________________________ are the routes that products and services
take from the time they are produced to the time they are consumed.
The entrepreneur needs to find the most ________________________ way to ship products to
desired locations in a timely manner.
Channels of Distribution for retail goods include:

________________________________ (nights/weekends)

________________________ , fliers and ads

Take orders by ______________________ and send to customers

Create a ______________________ for your business
o Lets you to provide Product Information (directions) and allows your customers
to place an order through the Internet
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Receiving goods and/or supplies to re-sell:
– All businesses need to buy _____________ _____________, and goods to
resell…You need to locate distributors, wholesalers, and manufacturers through:
Physical Distribution:
•
Includes not only _______________________, but also ____________________
and handling of products within a channel
•
It is important for storage facilities to be _____________________________.
Price
•
Your pricing must be _______________ enough to compete with competition
but
________________ enough to cover costs and earn a profit
•
Before you can select a pricing strategy, you will need to establish objectives for your
pricing program. Examples of pricing objectives include:

____________________________________________

____________________________________________

____________________________________________

____________________________________________

____________________________________________
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•
Once you have considered your pricing objectives you must then determine the possible
prices to charge…there are 3 possible pricing methods:

__________________________ -Based Pricing - pricing is determined by how
much customers are willing to pay for the product or service.

______________-Based Pricing - pricing is determined by using the wholesale
cost of an item as the basis for the price charged.
•
_______________________________ - price is determined by adding an
amount to the wholesale cost of an item. The formula you use is:
_________________________ X ________________________ = _________________________
then you finish the calculation
•
Wholesale Cost + Markup Amount = Retail Price
Example of Markup Pricing…
Assume a can of artichokes hearts costs you $1.77 and you decide to add 40% to
your wholesale cost to determine your retail price that you charge your
customers…
Wholesale Cost X Percentage Markup = Markup Amount
$1.77 X .40 = $.71
then you add the markup amount to your wholesale cost
Wholesale Cost + Markup Amount = Retail Price
$1.77 + .71 = $2.48
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___________________________________ - price is determined by
subtracting an amount from the retail price of an item
___________________________________ - pricing is determined by
considering what your competitors charge for the same product or service
Pricing a Service:
______________________________ is when the price you charge your customers for the
service is based on how long it takes to complete the service. (lawyers, plumbers, cleaning
service)
Example…assume you are a lawyer and you charge your clients $150.00 per hour. Next,
assume that you spent 22 hours on Mr. Slob’s case…how much do you charge him?
______________________________ is when you bundle or combine a number of services and
charge one price for all of the services instead of charging the customer separately for each
service (Triple Play)
______________________________ is the lowest price identified in the price range is based on
the costs of the product or service sold to the seller. When using this method you must include
all of the expenses involved in making and selling the service or product.
To determine the breakeven point you…
Total fixed costs / (selling price - variable costs) = breakeven point
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Promotion
The ______________________________ is a strategy for promoting your business by using
some or all of the following:
•
________________________________
•
________________________________
•
________________________________
•
________________________________
__________________________ is a paid form of communication sent out by a business about a
product or service. Advertising should help a business convey a positive image.
________________________________________ is the act of establishing a favorable
relationship with customers and the general public.
Advertising should clearly communicate your intended message and image you want. For
example, if you want to be known as the business with the lowest prices then you should make
sure that your advertising highlights your good prices.
There are different forms of advertising some include:

_______________________ Advertising – best way to reach a large number of people
quickly, but it costs a lot and often reaches a too broad.

_______________________ Advertising – reaches a lot of people and you can target
the channel that plays to the same group of people that you consider your target
market. It has the disadvantage of being purely audio message and you can’t show your
products.
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
_______________________ Advertising – good for small businesses because it:
o Is relatively inexpensive
o Targets a limited geographic area
o Reaches a large number of people

_________________________________ Advertising – Disadvantage is that people only
look in the directory when they are already in search of the particular type of business.

__________________________________ Advertising

__________________________________ Advertising

__________________________________ Advertising

__________________________________Advertising
_________________ - free promotion generated by media coverage

_______________________________ – a written statement meant to inform the media
of an event or product
____________________________________ is direct communication between a prospective
buyer and a sales representative in which the sales representative attempts to influence the
perspective buyer in a purchase situation.
Sales representatives should know:
1. _______________________ Knowledge – sales rep must understand the features of the
product and the benefits that the buyer will enjoy if they make the purchase.
2. ___________________________________ Needs and Wants – sales rep must know
what needs or wants will be fulfilled by buying the product.
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Other Types of Promotion
________________________________ is the act of offering an incentive to customers in order
to increase sales. Sales promotion might take the form of:
•
_______________________________
•
_______________________________
•
_______________________________
•
_______________________________
•
_______________________________
•
_______________________________
•
______________________________- a refund offered to people who purchase a
product
________________________________is using the phone to market your product or service.
Miscellaneous Marketing Concepts and Terms
____________________________ is the percentage of a market owned by a business. The
total market for a product must be known in order for a market share to be determined.
Your market share will depend on the level of competition in your market. If you create a
market for an entirely new product or service you will have 100% of market share…at least for a
while until other competitors enter the market.
There are many ways to increase your Market Share…as we already know some ways are…
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•
____________________________________________________
•
____________________________________________________
•
____________________________________________________
•
____________________________________________________
•
____________________________________________________
But there is also…
___________________________________ is establishing informal ties with people who can
help your business grow. Joining organizations like the Rotary Club, trade associations, local
sport leagues, the Chamber of Commerce, the alumni association of your college.
Branding – Logo & Slogan
____________________ – A logo is a graphic mark or emblem commonly used by commercial
enterprises, organizations and even individuals to aid and promote instant public recognition.
____________________ – A slogan is a memorable motto or phrase used in a political,
commercial, religious, and other context as a repetitive expression of an idea or purpose.
______________________________ – A trademark is a recognizable sign, design or expression
which identifies products or services of a particular source from those of others. The trademark
owner can be an individual, business organization, or any legal entity. A trademark may be
located on a package, a label, a voucher or on the product itself.
________________________________ – Copyright is a legal concept, enacted by most
governments, giving the creator of an original work exclusive rights to it, usually for a limited
time.
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____________________________ – A patent is a set of exclusive rights granted by a sovereign
state to an inventor or their assignee for a limited period of time, in exchange for the public
disclosure of the invention. An invention is a solution to a specific technological problem, and
may be a product or a process. Patents are a form of intellectual property.
Stages in Product Life Cycle
The product moves through the four stages namely…
____________________________
____________________________
____________________________
____________________________
As the product moves through different stages of its life cycle, sales volume and profitability
change from stage to stage as shown in the figure below. The entrepreneur’s emphasis on the
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marketing mix elements also undergoes substantial changes from stage to stage. A brief
discussion of the marketing strategies in different stages of the PLC is given below:
_______________________________: The first stage of a product life cycle is the introduction
or pioneering stage. Under this state the fixed costs of marketing and production will be high,
competition is almost non-existent, markets are limited and the product is not known
much. Prices are relatively high because of small scale of production, technological
problems and heavy promotional expenditure. Profits are usually non-existent as heavy
expenses are incurred for introducing the product in the market.
__________________________________: The sales as well as the profits increase rapidly as
the product is accepted in the market. The promotional expenses remain high although they
tend to fall as a ratio to sales volume. Quite often, smaller firms move into the market during
the growth phase.
___________________________________: The product enters into maturity stage as
competition intensifies further and market gets stabilized. There is saturation in the market as
there is no possibility of sales growth. The product has been accepted by most of the potential
buyers. Profits come down because of stiff competition and marketing expenditures rise. The
prices are decreased because of competition and innovations in technology. This stage may last
for a longer period as in the case of many products with long-run demand characteristics.
A “_______________ _ _______________” is a product which provides a steady
stream revenues for many years and the seller doesn’t have to spend much
money on advertising or other selling expenses. A great example of a cash
cow is………
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Tide laundry detergent!!!! For many many years Proctor & Gamble have relied on
Tide to earn large profits with very little money spent on marketing efforts. It has been a
consistent “Money Maker.”
__________________________: This stage is characterized by either the product’s gradual
displacement by some new products or change in consumer buying behavior. The sales fall
down sharply and the expenditure on promotion has to be cut down drastically. The decline
may be rapid with the product soon passing out of market or slow if new uses of the
product are found. The seller needs to begin looking towards investing in newer and more
profitable product lines.
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Example of Product Cycle – The Typewriter
Introduction – The typewriter is introduced (July 1876 by inventor Christopher
Sholes) and it takes time for consumers to learn about the product. The
typewriter maker must advertise heavily educating the public about their product
and its function. Since sales are still low and advertising costs are high the maker
isn’t earning high profits. The first large maker of the typewriter was Remington
& Sons who also sold sewing machines. Remington marketed the typewriter to
offices who would make a secretary’s life much easier.
Growth – Sales increase rapidly as consumers hear about the new product.
Advertising expenses begin coming down and the maker is now earning good
profits. Remington began marketing to consumers as well as offices.
Maturity – Sales begin to level off. Competition increases. Profits decline, but
may remain positive for many years to come. Improvements occur such as the
“writing ball” and then electronic typewriter.
Decline – Overtime the typewriter has been completely replaced by first
electronic word processers and then computers (software) offering Microsoft
Word. In 1991 IBM, once the world’s leader in typewriter sales sold off their
typewriter division and exited the typewriter market for good. There is no
economic value or use of typewriters any longer in the United States, but still
selling in 3rd world countries.
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