Balderson and Mombourquette,

Canadian Entrepreneurship & Small Business Management,

10th Edition

Presentation prepared by:

Peter Mombourquette of
Mount Saint Vincent
University
 CHAPTER 8
MANAGING THE MARKETING MIX

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Learning Objectives
LO1 Recognize the importance of the marketing mix.
LO2 Explain how products are created.
LO3 Discuss the three methods of setting price.
LO4 Explain the different pricing strategies employed by
small and medium businesses.
LO5 Identify the major elements in a promotional
campaign.
LO6 Compare and contrast the different promotional
tools.
LO7 Discuss the difference in marketing to consumers
compared with marketing to businesses.

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The Role of the Marketing Mix in Small
Business
A good marketing mix will create value and long-term
relationships with target customers and distinguish a
business from its competitors.

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Developing the Product or Service
◦ Develop Product or Service Policies
◦ Decide How the Product Will Be Manufactured
◦ Understand the Product Life Cycle
◦ Determine Factors That May Accelerate Product or
Service Adoption

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Product Life Cycle

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Developing the Product or Service
Determining Factors That May Accelerate Product
or Service Adoption
◦ Relative Advantage
◦ Complexity
◦ Divisibility
◦ Communicability of Results

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Developing the Product or Service
Understanding How the Customer Classifies the
Product or Service
◦ Convenience products
◦ Shopping products
◦ Specialty products

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Developing the Distribution System
Channel Options
◦ Manufacturer to Consumer (Short-Direct Channel)
◦ Manufacturer to Wholesaler/Retailer to Consumer (Long-
Indirect Channel)
Channel Length
Channel Intensity
Multi-Level Marketing

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Methods of Setting Price
◦ Cost-Based Pricing – Once the cost is determine a
percentage markup is added to reflect the profit
objective of the firm.

◦ Demand-Based Pricing – Price takes into consideration

consumer sensitivity to price.

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Methods of Setting Price
◦ Competition-Based Pricing – firms take into
consideration prices of competitors.

◦ Value-Based Pricing – price reflects the value of the

entire purchasing experience

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Promotion
Steps in a Promotional Campaign
1. Set Promotional Objectives
2. Determine the Target of the Promotion
3. Understand the Target’s Needs and Perceptions of the
Product or Service
4. Develop the Relevant Theme
5. Determine the Method or Media to Use
6. Develop a Specific Promotional Message

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Promotion
Steps in a Promotional Campaign (cont.)
7. Set the Promotional Budget
8. Implement the Promotional Program
9. Evaluate the Effectiveness of the Promotion

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Types of Promotion
◦ Advertising
◦ Advertising is a non-personal form of promotion. It is
directed at a mass audience through various forms of
media such as television, radio, newspapers, magazines,
billboards, the Internet, and direct mail
◦ Sales Promotions
◦ Sales promotions are also non-personal forms of
promotion, but they are directed at a much more
restricted audience than is advertising

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Types of Promotion
◦ Personal Selling
◦ Short distribution channel
◦ Traditional Promotional Methods
◦ Direct Mail
◦ Telephone Directories
◦ Newspapers/Magazines
◦ Radio
◦ Television

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Types of Promotion

Non-traditional Promotional Methods

◦ Non-traditional promotional methods can be defined as
pursuing traditional business goals of sales and profits
through non-conventional means.
◦ Guerrilla Marketing – development of creative, catchy and
low cost methods to attract attention and grow sales.
◦ Public Relations - is defined as generating positive
awareness of your company.

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Internet Marketing
◦ Company Web Pages
◦ Search Engine Optimization (SEO)
◦ Pay-Per Click Advertising (PPC)
◦ Online Newsletter
◦ Direct Email to Customers
◦ Banner Advertisements
◦ Affiliate Programs
◦ Online Classified Advertising Sites

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Internet Marketing (cont.)
◦ Online Auction Sites
◦ Gamification
◦ Online Games
◦ Podcasts
◦ Webinars

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Internet Marketing (cont.)
◦ Photo Sharing Sites (Pinterest, Instagram, and Flickr)
◦ Video Sharing Sites (YouTube, Vine)
◦ Mobile Marketing
◦ Apps or Application
◦ Text/SMS Messages
◦ QR Codes
◦ Proximity/Location-Based Marketing

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Social Networking
Social networking sites are online communities where people
can meet new people, talk to current friends, and build their
networks. Examples include:
◦ Facebook
◦ LinkedIn
◦ Foursquare
◦ Twitter/Tumblr/Online Blogs

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Concept Checks
1. Why is the marketing mix important?
2. Discuss the important elements in developing a product or
service
3. Explain the product life cycle
4. What are the methods of setting price
5. List the steps in a promotional campaign
6. Describe what the term ‘Non-traditional Promotional
Methods’ means

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