Unit 8 Marketing Mix

It is developing a desirable product and deciding on its packaging

Finding out what sort of customers might buy the products and how to get their attention.

Where the product should be sold on the target market and how to get it there

How much should be charged for the product to achieve sales and profit gains

Anything capable of satisfying a consumer’s needs and wants

• it attracts the customer’s attention • It protects the product inside from getting damaged during transport, storage and handling • Provides information and builds the brand image as it reflects the brand’s identity

Marketing strategy that attempts to distinguish the company’s products from competitors

The factor that differentiates a product from its competitors, such as lowest cost, highest quality, or the first ever product of its kind.

A unique identity associated with a product’s name or business.

• Allows the business to charge a higher price than less known brands as consumers see their products as premium, higher quality or more reliable • They can launch a new product into the market more successfully • Builds consumer trust and emotional connection, encouraging repetitive purchases

• Identify the target customers and define them through market research • Identify the product’s USP and the value it creates for customers • Choose advertisement platforms that align with the business’s brand image • Foster healthy customer relationships • Package the product in a way to represent the brand’s idea

The business wants the price as highest as possible to maximise profits while consumers wants to pay less as possible.

• The production cost of product • Competition • Business objectives

The price elasticity of demand directly influences sales as it impacts quantity demanded.

The extent at which the product changes due to price

Setting the price at or similar to competitors

Setting prices lower than competitors to initially gain market share then raising prices later once customer loyalty develops and market share has been gained

Lowering the price below production cost to drive competitors out of market and raise prices in the future

Setting the price initially when there is no competition to maximise profits in the short term.

Reducing the price of the product in the short term to attract consumes and increase sale volume

Using prices to influence consumer perception of a product and its value for money

• it affects the profitability of the product and how much revenue the product can generate from each sale • Influences the consumer’s opinion and perception as the price sends a message about the product’s quality and value

• Potentially increases consumer sales as it raises their awareness on the products • Encourages sales as effective advertising persuades consumers • It builds brand image and loyalty

• Consider the advertisement’s objective • Decide the budget • Create the campaign, identify the target audience, appealing material • Select the medium you will advertise on • Evaluated the effectiveness of the campaign