The Marketing Mix

The Marketing Mix



The Marketing Mix
Product
Your Marketing plan has to​ be built around your product .​
But before distribution can begin,​ market research needs to​ be performed .​
Analysing the​ Market place and researching what competitors are doing will bring perspective to​ your Marketing strategy and vision .​
It will also provide key indicators on​ pricing and potential .​
Something to​ consider is​ your product's life cycle which is​ important in​ determining when the​ market will reject your product.
Once a​ product is​ launched into the​ market,​ a​ stable growth in​ sales is​ common at​ first .​
This will eventually stabilise as​ the​ product gets older,​ and as​ more competitors enter the​ market it​ eventually will start declining to​ the​ point of​ elimination .​
It is​ difficult to​ tell where a​ specific product is​ within the​ lifecycle or​ how long each phase will last .​
This is​ dependent on​ many factors within the​ market and how they are dealt with .​
Many companies have adopted strategies to​ combat a​ shortened product life by releasing improved versions.
Price
Marketing Mix:PriceWhen entering the​ Market for the​ first time,​ pricing is​ something that can either 'make you​ or​ break you' .​
Small businesses tend to​ think that they need to​ offer really cheap prices to​ stand a​ chance of​ survival .​
Thats not the​ case .​
It all depends on​ what you​ do,​ what you​ can do and what you​ are willing to​ do .​
We all know about demand and supply,​ an​ abundent supply forces prices to​ drop because demand decreases .​
We see it​ in​ the​ UK today,​ many companies offer the​ same service in​ the​ same area but still seem to​ make it .​
How? Its called Value Added Services .​
Taking a​ standard product that is​ available on​ the​ Market and adding something that is​ unique and beneficial to​ consumers ensures that your product has a​ chance .​
It also allows you​ more flexibility on​ Pricing.
Economic
Price is​ kept as​ low as​ possible .​
a​ strategy most associated with Supermarkets who tend to​ make a​ very low margin on​ goods like tin food.
Skim
This strategy is​ adopted by companies that have a​ unique product or​ competitive advantage and can therefore charge a​ high price .​
The strategy does not last for too long because a​ high price tends to​ open the​ door to​ competitors .​
This eventually results in​ increased supply which inevitably lowers the​ market price.
Penetrate
This involves setting the​ price as​ low as​ possible in​ order to​ gain a​ substantial share in​ the​ market .​
Once this has been achieved price can be increased .​
a​ strategy prominent amoungst Telecoms companies in​ the​ UK.
Premium
Similar to​ Skim pricing,​ this strategy is​ popular amoung companies that offer a​ unique product or​ service .​
The difference between the​ two is​ that Premium pricing is​ usually associated with a​ product that satisfies a​ niche market.
Bundle Pricing
A popular strategy where products are combined to​ form one package.
Value Pricing
Where factors in​ the​ market force companies to​ lower prices to​ retain sales.
Psychological Pricing
Uses emotive perception rather than rational to​ persuade the​ consumer...£1.99 instead of​ £2.00.
Position
Many small businesses associate position with location only .​
It is​ much more than where your business is​ physically situated or​ where your distribution areas encompass .​
It is​ about creating a​ unique identity for your business,​ a​ Brand which will act as​ a​ platform from which to​ launch your products .​
In other words,​ position applies to​ your place in​ the​ Market .​
Does you​ company name reflect what you​ are about,​ will consumers be able to​ instantly recognise you?
Promotion / Distribution
Who are your customers .​
If you​ don't know who they are and what they want,​ you​ will not be able to​ promote effectively .​
Target,​ target,​ target .​
Most of​ your information will come from Market Research and analyses .​
Things like Average age,​ yearly spend,​ customer groups,​ buying habits are all important facts that help make promotion effective and easy .​
Once you​ identify your perfect customer,​ you​ need to​ figure out the​ best way to​ reach them .​
Remember...Getting your Marketing message heard! Choosing a​ communication channel is​ of​ utmost importance .​
The wrong one being chosen will result in​ the​ wrong audience being reached.
Check out our Advertising section for more information .​
Your Marketing plan will act as​ your mission statement,​ what you​ intend to​ do in​ order to​ reach your objective or​ Vision.




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