11.3 Developing a Marketing Mix - Introduction to Business

Introduction to the Marketing Mix

• Definition: A marketing mix is tailored to meet the needs of a specific target market using strategies for each of the 5Ps.
• Importance: A marketing mix is only as strong as its weakest component, and each element must be well-integrated.

Product Strategy

• Starting Point: Marketing strategy begins with the product.
• Definition of Product: Includes goods, services, or ideas.
  • Goods: Tires, MP3 players, clothing.
  • Services: Hotels, hair salons, airlines.
  • Ideas: E.g., go green, donate blood.
• Industry Examples: Industries like avocado or milk use marketing to maintain long-term viability.
• Product Strategy Components: Branding, packaging, colors, warranty, accessories, service programs.
• Brand Value: Names like Ralph Lauren, Gucci add additional value to products.

Pricing Strategy

• Basis: Demand for the product and production cost.
• Impact: Price must be balanced with other 5P components.
• Perception of Value: Higher prices often imply higher value, especially in services.
• Special Considerations: Introductory prices or high initial prices reducing over time.

Place (Distribution) Strategy

• Definition: How a product flows from producer to consumer.
• Components: Physical location, inventory systems, supply chain management, web presence.
• Examples:
  • Avon uses a direct salesforce.
  • Clinique sells through department stores.
  • Cover Girl uses drugstores.

Promotion Strategy

• Components: Personal selling, advertising, public relations, sales promotion, social media, e-commerce.
• Promotional Mix: Coordination among all promotional tools.
• Public Relations: Builds company image; least controllable, requiring relationship-building.
• Sales Promotion: Directly stimulates sales through incentives.
• Social Media and E-commerce: Important tools for brand visibility and relationship building.

Not-for-Profit Marketing

• Application: Marketing principles help not-for-profit organizations develop effective marketing mixes.
• Focus: Generating funds to cover expenses or expand services.
• Examples: Symphonies, museums, organizations like the American Heart Association.

Concept Check

1. Marketing Mix: Blending of the 5P strategies to support a target market.
2. Components: Product, price, place, promotion, plus one more (depending on the model).
3. Techniques for Not-for-Profits: Help identify target markets and create effective marketing strategies.