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Marketing Mix

Marketing Mix B2C vs B2B Product


Differentiation factors
Importance of product
policy
Demand
Buyer/User
Product Life Cycle
Success of new products

B2C
Important but many
times price and
promotion are more
important
Direct
Same
Shorter than on B2B
Lower than 20%

Products characteristic

The consumer choses


from a large array of
characteristics

Packaging role

To promote and protect


the product

Services accompanying
the product

B2B
Product the most
important component of
the marketing mix
Derived
Different
Longer than on B2C
40%-60%
The consumer usually
has a series of clear
specifications which are
mandatory to him
To protect

Number of
accompanying services
Usually none except for
is high, the offer
household appliances
represents a solution
and not an individual
product

Marketing Mix B2C vs B2B- Price


Differentiation factors

B2C
High, sometimes price
being the decisive
factor
Between high and low
depending on the
nature of products
( common or luxury
products)

B2B
Average sometimes
even totally
unimportant

Price negotiation

Most of the times


nonnegotiable

Negotiable most of the


times

List price

List price is the final


price. Negotiations
concern extras

Usually as a result of
negotiations discounts
are applied

Financial assistance

Seldom

Permanent assistance
and loan options

Importance of price
policy

Demand elasticity

Most of the times


inelastic

Marketing Mix B2C vs B2BDistribution


Differentiation factors

B2C

B2B

Importance of
distribution policy

High because of the


brand recognition of
some retailers

Very important due to


implications on costs

Control within the


distribution chain
Channel length
Direct distribution
percentage
Intermediaries
specialization
Intermediaries
selection process

Producer and some


Exclusively to the
strong detailers ( ex.
producer
retail)
Usually long channels Usually direct channels
Under 20% of total
Over 75% of total
transactions
transaction
Many specialized
All intermediaries are
intermediaries
specialized
Many times is
emotional and less
based on efficiency
criteria

Economic and
efficiency selection

Marketing Mix B2C vs B2BPromotion


B2C

B2B

Mass media

Less Mass Media

Emotional communication

Rational communication

High tendency from consumer part


to avoid message

Consumer information seeker

Selective retention of message

Storage of communicational
message for later use

Short communicational message


10-12 words

Long communicational message


reflecting product complexity

The communication flow targets


individuals that most of the times
are the sole decision makers

The communication message


targets groups of individuals that
need to agree on the purchasing
decision

Mass communication is used


targeting market segments

Industry specific media are used to


communicate in order to target the
members of the acquisition center

Product Life Cycle Marketing


Strategies
Characteristic
s

Introduction

Growth

Maturity

Decline

Sales

Low

Rapidly rising

Peak sales

Declining sales

Costs

High cost per


customer

Average C/C

Low C/C

Low C/C

Profits

Negative

Rising

High

Declining

Customers

Innovators

Early Adopters

Middle majority

Laggards

Competitors

Few

Growing

Stable number,
down

Declining

MK
Objectives

Create product
awerness and trial

Maximize MS

Maximize Profit

Reduce costs
and milk the
brand

Product
Strategy

Offer a basic
product

Product
extension,
service,warranty

Diversify brands

Phase out
weak

Price Strategy

Charge cost-plus

Penetration

Price accord
compet.

Cut price

Distribution
Str.

Build selective
distribution

Intensive D.

More Intensive D

Go selective

Advertising
Str

Product awerness,
early addopters

Product
awerness, to
mass market

Stress brand
difference and
benefits

Reduce to
retain loyals

Definition
A service is any act of performance that one party can
offer to another that is essentially intangible and does
not result in the ownership of anything its production
may or may not be tied out to a physical product.

Distinctive Characteristics of Services

Intangibility. Unlike physical products, services cannot be


seen, tasted, felt, heard or smelled before they are bought.
A company can aply some positioning strategies so to
make the service appear tangible:
place- building, architecture;
People training;
Equipments computers, machines;
Symbols brand, logo;
Communication material printed;
Price;

Distinctive Characteristics of Services


Inseparability. Services are typically produced and
consumed simultaneously. Interaction with the client
when produced.
Strategies to reduce inseparability:
- service provider will learn to work with larger groups;
- service provider will learn to work faster;
- service organization can train more service providers;

Distinctive Characteristics of Services


Variability. Because services depend on who provides
them and when and where they are provided, they
are highly variable. In order to reduce variability a
company could:
1. Invest in good hiring and training procedures.
2. Standardize the self-performance process throughout
the organization.
3. Monitor customer satisfaction

Distinctive Characteristics of Services


Perishability. Services cannon be stored. To synchronize
supply and demand:
On the demand side:
- Differential pricing ( movies pricing);
- Nonpeak demand ( McDonalds breakfast);
- Complementary services (cocktail lounges in restaurants);
- Reservation systems (airlines, hotels);
On the supply side:
- Part time employees (seaside);
- Peak time efficiency (transportation services);
- Increased consumer participation (bag groceries, self check out);
- Shared services (hospitals);
- Facilities for future expansion (land for further development);

Marketing strategies for services firms


Holistic Marketing for Services:
- External marketing describes the normal work of
preparing, pricing, distributing, and promoting the
services to customers;
- Internal marketing describes training and motivating
employees to serve customers well.
- Interactive Marketing describes the employees skill
in serving the client.