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You just need to create a product that a particularly group of people want, put it on sale some place that those same people visit regularly, and price it at a level which matches the value they feel they get out of it; and do all that at a time they want to buy. Then you've got it made! "Marketing mix" is a general phrase used to describe the different kinds of choices organizations have to make in the whole process of bringing a product or service to market. The 4 Ps is one way - probably the best-known way - of defining the marketing mix.
The 4Ps are:
y y y y
Product (or Service) Place Price Promotion
y y y y y y y
What does the customer want from the product/service? What needs does it satisfy? What features does it have to meet these needs? y Are there any features you've missed out? y Are you including costly features that the customer won't actually use? How and where will the customer use it? What does it look like? How will customers experience it? What size(s), color(s), and so on, should it be? What is it to be called? How is it branded? How is it differentiated versus your competitors? What is the most it can cost to provide, and still be sold sufficiently profitably?
what kind? A specialist boutique or in a supermarket. or on billboards? By using direct marketing mailshot? Through PR? On the Internet? When is the best time to promote? Is there seasonality in the market? Are there any wider environmental issues that suggest or dictate the timing of your market launch. and how can you learn from that and/or differentiate? Price y y y y y What is the value of the product or service to the buyer? Are there established price points for products or services in this area? Is the customer price sensitive? Will a small decrease in price gain you extra market share? Or will a small increase be indiscernible. or to other specific segments of your market? How will your price compare with your competitors? Promotion y y y y Where and when can you get across your marketing messages to your target market? Will you reach your audience by advertising in the press. or the timing of subsequent promotions? How do your competitors do their promotions? And how does that influence your choice of promotional activity? . via a catalogue? How can you access the right distribution channels? Do you need to use a sales force? Or attend trade fairs? Or make online submissions? Or send samples to catalogue companies? What do you competitors do. and so gain you extra profit margin? What discounts should be offered to trade customers. or radio. or both? Or online? Or direct. or on TV.Place y y y y y Where do buyers look for your product or service? If they look in a store.
Always relate back to ones marketing plan when drafting a marketing piece to have a consistent tone of your message. Determining price levels.wants and expectations and geography. For a regional business high quality salesmanship. think locally and capture the customer cash that is the easiest to reach. salesmanship and other public relation and promotional activities. developing a highly specialized product or service or providing a product/service package containing an unusual amount of service.polity of the region .etc The neighborhood-first mantra suggests a heavy dose of community involvement in our local marketing efforts. You will need to decided on what marketing campaigns you will initiate which will decrease those 'quick decision' marketing offers. Marketing a product regionally/locally always comes with an advantage. marketing.better understanding of the people s mind set.and the advantage is one know the market situations . and a credit policy are the major factor affecting total revenue.4p s Marketing Strategy at Regional. personalized messages and interaction will create the desired perception. one have better PR . . Develop an information packet to offer for free to educate your prospects PRICE As a regional business that offers an unique product/service one can command a higher price on ones specialized product/service. pricing policies. National & International Level: MARKETING REGIONALLY Think small. PRODUCT Effective product strategies for a regional business may include concentrating on a narrow product line. PROMOTION This marketing area includes advertising.
There's nothing better than a satisfied client who refers their colleagues. go small. pamphlets in post-boxes and so on. Do you need a warehouse & distribution channels?. Twitter or LinkedIn and establish a profile where appropriate. Advertise: It may sound like you're headed into expensive territory. community notice-board. . special offers and anything else that will keep you top-of-mind. or Are you providing a service and you go to your customers? The successful implementation of the delivery of your product/service increases the trust your customers instill in you. like classified ads in your local newspaper. Look at groups like facebook. Are you setting up in your home and will mail your product?. Make sure that every client walks away happy. think about having season specials. Something like this might just put you one step ahead of your competitors. Search for websites relevant to you area of business or customer base. Keep a database of all your clients. so you can e-mail them seasonal greetings. group discounts or something extra for new customers. Additional points to be taken into consideration while going regional with your business y y y y y y Word of mouth can be your biggest deal-spinner. without becoming a nuisance. Network online: Online networking groups aren't just a social thing. friends or family to you. Are you strictly working on the internet. Many of these have free business directories where you can list your business Be visible in the community: Are there charities or organisations in your community you can provide services for free? You'd be amazed how many contacts you can make this way and you'll have the added warm and fuzzy feelings of doing some good Special offers: Depending on your type of business.PLACE The nature of business is an important factor in deciding the distribution process.
MARKETING NATIONALLY Marketing Nationally requires harder work than marketing locally. For large-scale distribution. As the product has to be marketed nationally it is easy to understand the what the customers want. AU such decisions need to be taken by the marketing division of the Organisation. In taking a business to a higher level. Transportation. One should have great confidence in their product first before taking this step. Types of intermediaries available for distribution. large numbers of outlets are required for the distribution of products of mass consumption such as soaps and oils. Product Take note of the wants and needs of the potential customers. retailers and other marketing intermediaries are required. various decisions regarding the product are required to be taken. Marketing will be easy and quick if the decisions taken on various aspects of a product are appropriate. the services of wholesalers. for the marketing of speciality products like refrigerators and TV sets. Once we have that great product. Physical distribution (place mix) includes the following variables: a. In marketing process. Such decisions should be based on current marketing environment. marketing a product nationally. On the other hand. Cooperation of other departments is also necessary in marketing decision-making. Distribution marketing channels available for distribution. warehousing and inventory control for making the product available to consumers easily and economically. information available through marketing research and so on. For instance. selective distribution through authorized dealers is quite convenient. nature of market competition. and c. as the company is familiar with the behavior pattern of the customers. Which is not much difficult as the company is marketing nationally. targeting the whole country as customers would be the next step. consumer expectations. . b.
a manufacturer has to use other sales promotion techniques at the consumer level and at the dealer level. Display of goods for sales promotion. Physical distribution of product is possible through channels of distribution which are many and varied in character. Promotion mix includes the following variables: a. e. Sales promotion measures introduced at different levels. After-sales services are also useful for promoting sales of durable good and is lot easier if have to be provided nationally. and . Advertising and publicity of the product.Promotion Promotion is the persuasive communication about the product offered by the manufacturer to the prospect. Consumer psychology is favorable for extensive use of such sales promotion techniques. Physical distribution (place mix) includes the following variables: a. Types of intermediaries available for distribution. Personal selling techniques used. The techniques at consumer level include displays. In addition to advertising and personal selling. small gifts and free samples. Such activities are varied in nature and are useful for establishing reasonably good rapport with the consumers. Distribution marketing channels available for distribution. Place Physical distribution is the delivery of goods at the right time and at the right place to consumers. Public relations techniques used for keeping cordial relations with dealers and consumers. attractive container and consumer contests. c. b. exhibitions. d. b. Promotional activities are necessary for large scale marketing and also for facing market competition effectively. discount coupons.
selective distribution through authorized dealers is quite convenien Price Price is one more critical component of marketing mix. c. Pricing decisions and policies have direct influence on the sales volume and profits of the firm. Market price of a product also needs periodical review and adjustments. consumer behavior. language of the land. Terms of credit sale. Discounts and other concessions offered for capturing market. e. Terms of delivery.c. Pricing has an important bearing on the competitive position of a product. for the marketing of speciality products like refrigerators and TV sets. large numbers of outlets are required for the distribution of products of mass consumption such as soaps and oils. b. On the other hand. and Pricing strategy selected and used. A marketing manager has to select a channel which is convenient. Price mix includes the following variables: a. The price charged should be high enough to give adequate profit to the company but low enough to motivate consumers to purchase product. economical and suitable for the distribution of a specific product. It is the valuation of the product mentioned by the seller on the product. government policies. For large-scale distribution. the services of wholesalers. Transportation. retailers and other marketing intermediaries are required. culture. d. For instance. While marketing nationally the company is well aware about the market situations. It should also be suitable to face market competition effectively. Pricing policies. . Pricing can also be used for capturing market and also for facing market competition effectively. warehousing and inventory control for making the product available to consumers easily and economically.
Mistakes in translation can be major. Some products can be introduced into foreign markets without modification (cameras. with the changes that are currently taking place regarding free trade. and improving your international marketing skills can have a positive impact on your entire operation.and this varies from country to country. the package will have to be specifically designed. and packages may need metric units of measure.Shipping products overseas with no modification may be viewed as a surplus disposal program and may not succeed over the long term. Promotion Much like product and its package. information must be printed in the customer¶s language. The international market offers a unique challenge. Product Your product (which includes the package) will probably need some modification for the export market. The export market may provide expansion opportunities that are simply not available in the domestic market. but other products need major modification or are specifically designed and developed for the international market to begin with. Finally. Color schemes are also a consideration. competing on the international market may be a fact of life for all businesses. Even if the product doesn¶t need modification.Colors suggest particular images in all cultures. battery-operated consumer electronics. but be sure the message is translated by a native speaker who is also familiar with the target market.MARKETING INTERNATIONALLY Getting involved in international marketing has several potential advantages. leaving a lasting negative or humorous impression that is expensive to change.What media to use also varies by country. . The best defense may be to develop an active global offense. Some countries don¶t have commercial television or radio time. or restrict commercial access to these media. modification in advertising and promotion should be expected.machine tools. Brand names don¶t always translate appropriately. Export marketing can have a diversifying impact on revenues without adding product lines significantly different from what you currently produce.It is possible to maintain your domestic theme in your foreign message. for example). Acquire enough understanding of the culture to avoid word sand colors that attach an inappropriate image to your product.
Different methods of packing.In export marketing the principles of efficient distribution still apply. Place (distribution) International marketing uses three distribution channels. so this operation will be different than our domestic distribution activities. Services of a freight forwarder are often necessary. and involves shipping from the production location to an export facility.for example. This involves different organizations. Coupons or contests involving games of chance. The third is distribution within the country you are exporting to. and transportation modes than your domestic distribution activities. If advertising and promotion are going to be an important part of your overseas marketing program.The second is distribution between nations. documentation. are not allowed in some countries. shipping modes. at least initially. Special packaging and documentation are required.The first is nationally . Government agencies and trade associations sponsor trade shows in foreign countries. get input from individuals or groups within the target market.what is considered the most effective media nationally.may be unavailable or ineffective in overseas markets. Use of consumer promotional mechanisms will also vary. Many foreign countries have distribution channels much different. and a more complex internal distribution system are typically associated with entering an overseas market. documentation. .Thus. involving a larger number of firms and a higher total markup. Trade shows offer a relatively inexpensive way to promote your product in a targeted international market. Most are more complex.
although it looks identical to an invoice that would be used in the case of a real sale. you may want to consider more complex pricing strategies to improve your competitive position or expand your market. means of payment. Your pro forma invoice must use the terms correctly to be an effective price quotation mechanism. prices. insurance.Price You should keep your pricing method simple at the beginning. To your production cost. The invoice contains information about the product. but the cost-plus method is a good starting point. An easy way to implement a cost-plus pricing procedure is to use a pro forma invoice. etc. documentation. A basic cost-plus procedure is probably the easiest to implement. duties.) and you have established your price. The term ³pro forma´ indicates the invoice is a quotation. . shipping methods and costs. Since a pro forma invoice is viewed as a legal offer to sell. Keep in mind that certain terms are used in international trade that contractually create an obligation for the seller. it is important that information on the invoice be correct. and delivery instructions. This pricing process ignores competition and the willingness or ability to pay in the destination market. As your experience and abilities in international marketing increase. A properly designed pro forma invoice form can be helpful in developing a price quotation procedure when using the cost-plus method. add an acceptable profit margin and the costs of getting the product to the destination (transportation.
with one major exception. and CRM these days is all about this. Customer Relationship Management (CRM) The emphasis today is to get more business from the same customer or concentrate on those customers who can deliver life-long value. Category Development Index (CDI) The CDI compares the percentage of total sales of a product category in a specific market with the proportion of the total population base that lives in that same market. Since companies can no longer distinguish themselves on the basis of their products. These programs are the first step in gaining more information about customers so that companies can move up the value chain. The assumption behind a loyalty program is that loyal customers need to be rewarded or recognized in some form. Customers can no longer be lured with rewards or discounts. An increasing exposure to traditional loyalty programs based on rewards for spending more. They seek a relationship that goes beyond these Traditional programs.Effect of BDI & CDI on CRM programs: BDI and CDI are two of the most useful tools available in evaluating sales potential of a product category or brand in a geographic market so that the markets where the product is distributed can be ranked by their relative sales potential. what sets them apart is the perceived value that they provide to their customers. Marketers talk of customer retention and customer life time value than customer acquisition.Making customers loyal. Brand Development Index (BDI) The BDI is calculated much like the CDI. have led to an increase in customer s expectations. The BDI is based on the percent of a brand's total sales in a market rather than the sales of the product category. . Companies are trying to make customers loyal to their products through an ongoing marketing process that focuses on value-creation and improved quality of service.
People like category but aren¶t buying your brand. .e.BDI & CDI can be used to determine usage pattern. Could be advertising product in category no one is interested in. BDI & CDI can play a role when formulating a Loyalty Program. (i. Is the Brand is liked more or does the Category of the Brand is doing better than the Brand itself an estimation can me made such that when Loyalty program is forwarded to the customer he is provided what he wants. If it can be determined what do people prefer? . also we can get an idea that how it helps in planning and promoting a brand or category and making improvements.) air conditioning for people that live in Iceland. but seem to love your brand Category is doing better than brand. There is potential for growth. Brand and category are low so advertising presents a risk. The design of the loyalty program will depend on what the customers require and what companies consider is a break-even point. HIGH LOW Brand is doing better than category.) LOW HIGH LOW LOW The above table gives an idea how BDI & CDI are related to the sales.BDI HIGH CDI HIGH RESULT Good sales potential for brand and category. People don¶t buy a ton of category.
bought most frequently in a given period of time and have also purchased high-value goods.Which in turn helps to analyise are the customers more loyal towards the Brand or towards the Category leaving much room to understand When (time). which stands for Recency. and Monetary value. . & for What (product-brand or category) the incentives. companies identify their best customers using the RFM formula. Frequency. rewards should be given. Typically. Where (place). A high RFM value is used to denote customers who have bought most recently.
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