Lesson 17.2: Marketing Mix

Introduction

• Example Scenario: Company in Dubai orders light bulbs from Michigan distributor, originally manufactured in Tennessee.
• Modern Business: Companies can source products globally due to the Internet and advanced technology.
• Marketing's Role: Dynamic and evolving to meet changing technology and customer needs.

Key Topics Covered

1. Introduction to the Marketing Mix
2. Four P’s of Marketing
3. Attracting Customers

Marketing Mix Overview

• Definition: Strategy for using the four P's (Product, Price, Place, Promotion) to attract target customers.
• Purpose: Can be applied to a single product or an entire business.
• Success Criteria: Right product, right price, right place, right promotion.

Example of Marketing Mix

• Customer Perspective: Searching for a jacket, finds a preferred design for a suitable price, picks up nearby or opts for delivery.
• Integration of Four P’s:
  • Product: Jacket design
  • Price: Affordable
  • Promotion: Appeared in search when needed
  • Place: Convenient location or delivery option

Detailed Look at the Four P’s

1. Product

• Definition: Anything that can be bought and sold (goods, services, ideas).
• Importance: Foundation for other three P's.
• Examples: Goods like jeans, services like concerts, ideas like charitable causes.
• People as Products: Celebrities marketed for brand/image.

2. Price

• Definition: Money exchanged for a product.
• Objective: Balance competitive pricing and profitability.

3. Place

• Definition: Activities to get a product to end user, also known as distribution.
• Factors: When, where, and how products reach customers.
• Example: Gas stations also selling snacks and drinks.

4. Promotion

• Definition: Communicating with potential customers to influence buying decisions.
• Methods: Selling, advertising, sales promotions, public relations.
• Examples: TV ads, social media, coupons, PR strategies.

Applying the Marketing Mix

Identifying and Attracting Customers

• Definition of Customer: Individual, business, non-profit, or government who purchases goods or services.
• Targeting: Understanding and reaching current and potential customers.
• Target Market: Specific audience a company aims to reach.

Building Customer Relationships

• Importance: Long-term relationships lead to loyalty and are financially beneficial.
• Strategies: Loyalty programs, discounts, personalized offers (e.g., frequent flyer programs, Starbucks birthday drinks).

Conclusion

• Knowledge Testing: Questions to test understanding of product strategies.
• Summary: Recap of Lesson 17.2 on the Marketing Mix.
• Encouragement: Continue learning in upcoming lessons.