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BSBMKG502
Establish and adjust the
marketing mix
Housekeeping
 Emergency procedures
 Mobiles, security issues
 Break times/smoking policy
 This course is “interactive” – ask questions
 Respect, confidentiality, practice
 Ground rules
 No food or drink in class
 Check assessment due dates and submissions
 Check trainer SBTA email address
Objectives
 Know how to evaluate each component of marketing
mix
 Learn how to determine marketing mix for specific
markets
 Understand how to monitor and adjust marketing
mix
 Gain skills and knowledge required for this unit
Evaluate each component of
marketing mix
1.1 Identify key
characteristics of
products or services
and estimate their
significance to the
market
What are the key characteristics of
your products or services?
 What is your unique selling proposition?
 How does your product or service stand out from
your competitors?
 Do you offer better service or are your products and
services highly price competitive?
 Do you offer better value or are you offering the
most advanced technology?
Evaluate each component of
marketing mix
1.2 Review pricing
policy and analyse
pricing variables to
determine their
effect on demand
Pricing variables may include:
 Cost of ownership
 Credit terms
 Discount percentages
 Discount structure
 Financial deals
 Leasing arrangements
 Price point chosen
 Psychological elements
 Residual value
Pricing policy and analyse pricing
variables
 Typically, when you are addressing your pricing
strategy for products and services, you would analyse
pricing variables from normally listed prices based on
region, sales potential by location, dates, or other
marketing factors.
 The objective is to create a pricing policy or strategy
to achieve optimal balances between sales volume
and income per unit based on the product or service
characteristics you addressed earlier.
Pricing is central to profitable
marketing management
These would include:
 Strategic product launches
 Targeted advertising campaigns
 Seasonal or incentive based price deals
 Additional distribution channels
Price and its interaction with
promotions
 A typical strategy used by organisations is to observe
the manner in which sales of products or services
react to changes through a range of promotions.
 These changes may range from minor to major
depending on the alterations made from one
campaign to another.
Demand
 It is a commonly accepted principle in marketing that
states that there is a negative relationship between
the price of products or services and the quantity
purchased.
 It is based on the generally accepted rule in
economics that when a product or service becomes
more costly, fewer people will choose it.
Influencing factors
 If the demand is greater than the availability your
customers would likely change attitudes and be
anxious to buy products and services.
 You, the organisation, may be unwilling to supply
your products and services at the same or increased
rate due to a shortage in quantity.
 In this situation, to either satisfy demand or to
address the shortage your customers would have to
pay a higher price in order to get the product or
service they want.
Evaluate each component of
marketing mix
1.3 Analyse
promotional
methods to
determine their
importance to
marketing outcomes
Impersonal promotion such as:
 Advertising
 Sales promotion
Personal promotion such as:
 Direct marketing
 Face-to-face selling
 Personal selling
 Segmentation
Marketing is an umbrella term
covering:
1.
2.
3.
4.
5.
6.
Market research
Advertising
Promotions
Public relations
Sales
Customer service
What is your motivation?
 The most cost-effective method of getting your
message to the right people
 The most suitable method to suit your advertising
style
 The target audience for that product or service
 The specific instructions provided by the client,
customer or department
Your product or service?
 Where is your business based?
 Who do you want to advertise to?
 Why do you want to advertise?
 Is your product or service designed for a specific
market sector?
 Where is your main target audience located?
Sales promotions
These may include:
 Coupons
 Free samples
 Contests
 Demonstrations and exhibitions
 Interest free periods
 Temporary price reductions
Market segmentation
 Market segmentation is a marketing
technique used to enable a business to
better target its products or services at
the right customers.
 It is about identifying the specific needs
and wants of customer groups and then
using those insights into providing
products and services which meet
customer needs.
Evaluate each component of
marketing mix
1.4 Review channels
of distribution and
estimate their
significance to
marketing outcomes
Channels of distribution may
include:
 Dealers
 Delivery service
 Distributors
 E-business
 Franchisees
 Internet
 Mail order
 Podcasts
 Retail
Activity 1d
Evaluate each component of
marketing mix
1.5 Identify and
analyse level of
customer service
provision to
determine its
significance to
marketing outcomes
Level of customer service may
include:
 After sales service
 Call centre support
 Electronic client service
 No customer service
 One-on-one personal service
 Sales assistance for problems or queries
only
Identify and analyse level of
customer service
 An opportunity to measure how your performance
compares to that of your competitors.
 Benchmarking anything, including your customer
service support teams, requires that you collect data
on it.
Review customer satisfaction
 Customer service satisfaction refers to how satisfied
customers are with the levels of service you are
providing.
 The level of this satisfaction can be determined using
several methods, but the main objective in this
method is to review the information gathered.
Evaluate each component of
marketing mix
1.6 Identify potential
customer base and
key pressure points
Business profiling would likely
address:
 By identifying your business target market profile, its
demographics and its buying and spending habits,
you will be able to focus your marketing and
advertising efforts more effectively.
 Be aware that in reviewing these profiles to describe
the total market and selected market segments you
may likely identify multiple potential markets for
your product or service.
 Pinpointing the right market for you is essential in
describing your total market and then selected
market segments.
Customer profiles
 These include demographics such as - age, income,
gender, ethnicity, education level, Psychographics
(personality and lifestyle) etc, but they may also exist
within “clusters”.
 Some “clusters” are industry based which may
identify interests, lifestyles, purchasing behaviour,
attitudes and more.
Individual consumer
characteristics
 Demographics: Age, gender, income etc.
 Psychographics: Personality and Lifestyle
 Consumer segments separated on the basis of
Demographics/Psychographics often differ in their
consumer behaviour
What do your customer pressure
points look like?
 Available funding
 Influence by their senior or key decision makers
 Uncertainty? What happens after the decision to buy
is made
 Uncertainty of making a bad decision
 Other external influences
 Personal restrictions
 Lack of vision
Evaluate each component of
marketing mix
1.7 Analyse and test
effect of components
of marketing mix on
each other, and
establish their
relative importance
to customer base
Marketing mix may include:
 Customer service variables
 Distribution variables
 Pricing variables
 Product or service variables
 Promotional variables
The 4Ps
 Product (or service)
 Place
 Price
 Promotion
Lauterborn's 4Cs
Another option in the marketing mix choice is the 4Cs
which presents the elements of the marketing mix from
your customer’s perspective.
It refers to the needs of the customer including the:
 Customer needs and wants, which is related to
products
 Cost or price points
 Convenience, which relates to place
 Communication or promotion
Activity 1g
Determine marketing mix for
specific markets
2.1 Identify and assess
environmental factors,
and their impact on
marketing mix
What are environmental factors
affecting the marketing function?
To further identify environmental factors, it is useful
to divide them into two categories:
 Internal environment
 External environment
The most common internal factors
affecting the marketing
 Senior levels of management
 The Structure of Boards
 The culture of the organisation
 The degree by which employees support
management
 Amount of support given by shareholders or
stakeholders in the organisation
Internal environment factors
include finance and accounting
 The amounts of budget allocation to marketing
 The methods by which the revenues and costs of
marketing are perceived
 The marketing plan
 Polices
 Liquidity of the organisation
 Asset and capital structure
Company image and acceptance in
the marketplace
 Brand
 Acceptance and ability to say, raise finances
 Partnerships or equity positions
 Sales contracts
 Launching new products
 Marketing resources
External factors are often governed
by your organisation’s ability to:
 Exert sufficient bargaining power
 Address any monopoly environment situations by
suppliers
 Address properly the options of substitute products
 The threat of goods or services not being available at
all
Competitors
 Do they share the same market?
 Do they only represent a small percentage?
 Do they have similar goods and services?
 Are they more price competitive or just discounters?
 Are they competing on product or service
differentiation?
Factors and forces
 Social and cultural factors
 Economic factors
 Political and legal external environmental forces
 Physical Forces
Determine marketing mix for
specific markets
2.2 Identify consumer
priorities, needs and
preferences affecting
marketing mix
Customer priorities, needs and
preferences may include:
 Required or preferred products/services
 Preferred price point
 Preferred purchase volume in units and in
dollars
 Preferred method of payment
 Preferred time and place for responding
 Preferred time and place to take delivery
 Preferred medium to respond to direct
response offers
Determine marketing mix for
specific markets
2.3 Consider product,
pricing, promotional,
distribution and service
variations, and evaluate
these against marketing
objectives, target
market characteristics
and desired positioning
Have you a current marketing plan
that you can reference?
 Marketing objectives
 Target market characteristics
 Desired positioning
 Marketing mix
Marketing objectives
 Do you know how your marketing objectives are
going?
 Do you know how they are going to be achieved?
Consider a SWOT analysis
 Identify the key opportunities and threats with
pricing, promotion, distribution and service
variations within your marketing plan.
 Evaluate these against existing and future marketing
objectives.
 Establish your desired positioning and importantly
the areas you want to work on.
 Remember to include a description of what success
will look like, and add some of your enthusiasm and
passion here too.
Determine marketing mix for
specific markets
2.4 Select marketing
mix that best satisfies
target market and
meets marketing
objectives
Selecting a marketing mix
 Making an informed decision involves presenting
your findings as either a business or marketing case
and possibly detailing the reasons why or why not.
 It involves considering each and every factor involved
with your previous assessments and understanding
of the marketing plan.
 It also involves comparing the benefits that will be
generated through your decision and the costs that
your business will incur.
Determine marketing mix for
specific markets
2.5 Ensure marketing
mix decision meets
organisational, strategic
and operational
marketing objectives
Monitor and adjust marketing
mix
3.1 Monitor marketing mix against
marketing performance and isolate
components for testing
3.2 Evaluate implications of altering
one or more components of marketing
mix in relation to market factors and
consumer response
3.3 Adjust components of marketing
mix in response to test results and
market response evaluation
3.4 Ensure adjusted marketing mix
meets budgetary requirements
3.5 Ensure adjusted marketing mix
continues to meet organisational,
strategic and operational marketing
objectives, and desired positioning
When do you monitor your
marketing mix?
 From the outset
 After a reasonable time, e.g. months
 As a result of a financial report
 Other?
Examples
 You will need to make adjustments to your selected
marketing mix if it is perceived as being outdated or
costs are escalating beyond the budget.
 This analysis and corrective action may mean
revaluating those engaged with the marketing (both
internal and external) to find improvements or
strategy correction.
 The marketing process.
Customer research
 Research of customers’ needs and expectations to
identify any opportunities for change
 Make informed assessments for possible changes in
your market
 Do you need to look at new opportunities?
 Should you and the marketing team further develop
current or new strategies?
Check final assessment activities
Assessment submissions
 Check with trainer for submission dates .
 Check trainers and assessors email address and how
to submit rest of your work.
Summary and Feedback
 Did we meet our objectives?
 How did you find this session?
 Any questions?
Congratulations!
You have now finished the unit…
‘Establish and adjust the marketing mix’