Marketing Mix (17.2)

Let's say a company in Dubai needs light bulbs for a new facility they just built. They place an order for light bulbs from a distributor in Michigan. Now this light bulb distributor actually gets their light bulbs from a manufacturer in Tennessee, and will have them drop shipped to Dubai. This process used to work much differently. If a company needed something, they were much more likely to get it from nearby, instead of ordering from halfway across the world. With the advent of the Internet age and advanced technology, companies have the flexibility to look for the best products and prices, regardless of their location. And that company in Dubai found the company in Michigan because of marketing. Things like technology and customers'wants and needs are always changing, so marketing has to be dynamic and constantly evolve with that. And that's what brings us to the marketing mix. This is the second video in Unit 17 Marketing. Take a look at this breakdown, which shows you how often this unit comes up on district, state, and international exams for each of the different clusters. Hello and welcome. This is Lesson 17.2 Marketing Mix. Now let's get to work team. In this video, there are three important topics that we will be covering. First, we're going to introduce the marketing mix. Then, we're going to dive deep into the four P's of marketing. Finally, we're going to talk about attracting customers. What is the marketing mix? Well, it's a strategy for using the four P's of marketing to attract the target customer. Those are product, price, place, and promotion. We introduced those in an earlier lesson. There are hundreds of different ways to apply each of the four P's. and how a marketing team uses them makes up the marketing mix. This can be made for a single product or for an entire business. Creating a successful marketing mix depends on choosing the right product, selling it at the right price, making it available at the right place, and promoting it in a way that will reach the target customers. Here's an example of how an ideal marketing mix would play out from the customer's perspective. Say it's winter and it's getting really chilly out. You decide you need to start looking for a jacket. You google jackets and an ad for a jacket with a design you really like shows up for $75. This is perfect because you had set aside $90 for purchasing a jacket. You click on the ad, which takes you to the jacket on the store's website. The website shows you delivery options as well as how you can pick it up at a location near you. So, you go to the nearest store and you pick up your jacket. You try on your new jacket, and you're impressed. Notice how the four P's work together to provide you with the best customer experience. The product was the jacket with the design you really liked. The price was within your range. The promotion showed up when you googled the item you were looking for. And the place. was close enough to you that actually picking up the jacket was convenient. If this wasn't the case, there was also a delivery option. This is an ideal marketing mix. Notice that as the customer, you weren't part of the marketing mix, but rather you were the target of the marketing mix. Now that you have an idea of what the marketing mix is, let's talk about each of the four P's in greater detail. After all, the marketing mix is all about decisions relating to the four P's, so it makes sense to really take the time to understand them. Once again, the four P's are product, price, place, and promotion. You should really make an effort to be comfortable with this if you're in the marketing cluster because it can show up on a lot of role plays. The first P of marketing is product. If you don't remember, a product is anything that can be bought and sold. It's the most important because the other three P's of marketing depend on product. Products can be goods, services, or ideas. A good is a tangible item, like jeans or a cell phone. A service is an action that is done for you, like a haircut or a concert. And an idea is a concept, cause, issue, image, or philosophy that can be marketed. Charities absolutely market their cause as their product. Interestingly, people can be marketed like products. Think about a celebrity. You wouldn't usually consider a person to be a product, but marketers use their brand or public image to sell more concert tickets or buy more products. For example, Harry Styles is marketed as an inclusive feminist in order to attract more fan support. Now that we've covered product, let's get into price. Price is the amount of money exchanged for a product. Businesses are continuously trying to find the balance between having a competitive price and still being profitable. The next P is place. which refers to the activities involved in getting a product to the end user. Sound familiar? Place is also known as distribution, which we talked about in a past video. Place decisions involve determining when, where, and how products get to customers. Additionally, place decisions determine whether your store is brick and mortar or online. For example, gas stations used to only sell gas, but now most of them are also small convenience stores because of the marketing mix. Right, gas stations are selling gasoline to people in their cars. That same customer might also want a snack or a drink while they're in their car. By having snacks and drinks in the same place as gasoline, you increase potential sales. Essentially, the goal of place is to give the customer what they want, at the right place, at the right time, and at the right price. When products are not available when a customer wants, they get upset. and turn to your competitors instead. The last P of marketing is promotion, which is the process of communicating with potential customers in order to influence their buying decisions. Basically, a customer can't buy a product if they don't know it exists. Promotion often includes details about the product, place, and price. For example, you may have seen advertisements of companies showing off their low prices for products available at stores near you. Now, we have previously covered the promotional mix, which includes selling, advertisement, sales promotion, and public relations. Selling involves approaching a customer in a store to sell to them. Advertising is Promotions using TV commercials, billboards, social media posts, and more. Sales promotions are coupons and discounts. And public relations, or PR, promote goodwill between the company and the public. For example, a company that announces its partnership with a local children's hospital is engaging in PR. So how do we actually apply the marketing mix? The first step is identifying and attracting your customer. If you don't know, a customer is an individual, business, non-profit, or governmental agency who purchases goods or services. If a customer gets a product for themselves, then they are the consumer. There are two components to attracting customers, targeting the right people, and then building relationships with them. Let's start with targeting. You need to actually know and understand who your current and potential customers are in order to adequately satisfy their needs and wants. In the past, there were a limited range of products available, and they were advertised to just about everyone. As we discussed at the start of this video, Marketing is dynamic and times have changed. Marketing became more specific and different companies attempted to reach different types of audiences. The group of people that a company tries to reach is known as the target market. For example, one clothing store might be trying to attract business people with more formal attire, while another store could be targeting children with colorful prints. The second part of marketing is building strong relationships with target customers. A long-term relationship leads to satisfied, loyal customers, a company's most valuable asset. Research shows that it's less expensive to keep a customer than it is to get a new one. So there's a financial motive behind developing strong relationships with customers. One way to build relationships with customers is through purchase incentives, which are strategies for persuading a customer to make a purchase. Examples include loyalty programs, discounts, free products, and so on. Airlines usually have frequent flyer programs, Starbucks gives you a birthday drink as part of their loyalty program, and Target sends you personalized coupons for products that they think you might be interested in. They do this to establish customer loyalty via long-term buyer-seller relationships. Now that we've gone over all the content, it's time to test your knowledge with a real deck of questions. Pause the video and try to answer. The answer is B, product. From this video, we know that each of the answer choices is one of the four P's of the marketing mix. We just need to figure out which one it is. As we discussed, product strategies refer to decisions businesses make regarding what products to sell, which is dependent on what customers actually need. This is precisely what the marketer in this example is trying to do. So he's involved in a product decision. And here are the sources we used for this video. Feel free to check them out if you still have any questions. Alright, that pretty much sums up Lesson 17.2, Marketing Mix. Great work, team, and we'll see you in the next video.

With the advent of the Internet age and advanced technology, companies have the flexibility to look for the best products and prices, regardless of their location. And that company in Dubai found the company in Michigan because of marketing. Things like technology and customers'wants and needs are always changing, so marketing has to be dynamic and constantly evolve with that. And that's what brings us to the marketing mix.

This is the second video in Unit 17 Marketing. Take a look at this breakdown, which shows you how often this unit comes up on district, state, and international exams for each of the different clusters. Hello and welcome. This is Lesson 17.2 Marketing Mix. Now let's get to work team.

In this video, there are three important topics that we will be covering. First, we're going to introduce the marketing mix. Then, we're going to dive deep into the four P's of marketing.

Finally, we're going to talk about attracting customers. What is the marketing mix? Well, it's a strategy for using the four P's of marketing to attract the target customer.

Those are product, price, place, and promotion. We introduced those in an earlier lesson. There are hundreds of different ways to apply each of the four P's.

and how a marketing team uses them makes up the marketing mix. This can be made for a single product or for an entire business. Creating a successful marketing mix depends on choosing the right product, selling it at the right price, making it available at the right place, and promoting it in a way that will reach the target customers. Here's an example of how an ideal marketing mix would play out from the customer's perspective. Say it's winter and it's getting really chilly out.

You decide you need to start looking for a jacket. You google jackets and an ad for a jacket with a design you really like shows up for $75. This is perfect because you had set aside $90 for purchasing a jacket. You click on the ad, which takes you to the jacket on the store's website. The website shows you delivery options as well as how you can pick it up at a location near you.

So, you go to the nearest store and you pick up your jacket. You try on your new jacket, and you're impressed. Notice how the four P's work together to provide you with the best customer experience. The product was the jacket with the design you really liked. The price was within your range.

The promotion showed up when you googled the item you were looking for. And the place. was close enough to you that actually picking up the jacket was convenient.

If this wasn't the case, there was also a delivery option. This is an ideal marketing mix. Notice that as the customer, you weren't part of the marketing mix, but rather you were the target of the marketing mix.

Now that you have an idea of what the marketing mix is, let's talk about each of the four P's in greater detail. After all, the marketing mix is all about decisions relating to the four P's, so it makes sense to really take the time to understand them. Once again, the four P's are product, price, place, and promotion. You should really make an effort to be comfortable with this if you're in the marketing cluster because it can show up on a lot of role plays. The first P of marketing is product.

If you don't remember, a product is anything that can be bought and sold. It's the most important because the other three P's of marketing depend on product. Products can be goods, services, or ideas.

A good is a tangible item, like jeans or a cell phone. A service is an action that is done for you, like a haircut or a concert. And an idea is a concept, cause, issue, image, or philosophy that can be marketed. Charities absolutely market their cause as their product. Interestingly, people can be marketed like products.

Think about a celebrity. You wouldn't usually consider a person to be a product, but marketers use their brand or public image to sell more concert tickets or buy more products. For example, Harry Styles is marketed as an inclusive feminist in order to attract more fan support. Now that we've covered product, let's get into price.

Price is the amount of money exchanged for a product. Businesses are continuously trying to find the balance between having a competitive price and still being profitable. The next P is place. which refers to the activities involved in getting a product to the end user. Sound familiar?

Place is also known as distribution, which we talked about in a past video. Place decisions involve determining when, where, and how products get to customers. Additionally, place decisions determine whether your store is brick and mortar or online. For example, gas stations used to only sell gas, but now most of them are also small convenience stores because of the marketing mix.

Right, gas stations are selling gasoline to people in their cars. That same customer might also want a snack or a drink while they're in their car. By having snacks and drinks in the same place as gasoline, you increase potential sales.

Essentially, the goal of place is to give the customer what they want, at the right place, at the right time, and at the right price. When products are not available when a customer wants, they get upset. and turn to your competitors instead. The last P of marketing is promotion, which is the process of communicating with potential customers in order to influence their buying decisions. Basically, a customer can't buy a product if they don't know it exists.

Promotion often includes details about the product, place, and price. For example, you may have seen advertisements of companies showing off their low prices for products available at stores near you. Now, we have previously covered the promotional mix, which includes selling, advertisement, sales promotion, and public relations. Selling involves approaching a customer in a store to sell to them. Advertising is Promotions using TV commercials, billboards, social media posts, and more.

Sales promotions are coupons and discounts. And public relations, or PR, promote goodwill between the company and the public. For example, a company that announces its partnership with a local children's hospital is engaging in PR.

So how do we actually apply the marketing mix? The first step is identifying and attracting your customer. If you don't know, a customer is an individual, business, non-profit, or governmental agency who purchases goods or services.

If a customer gets a product for themselves, then they are the consumer. There are two components to attracting customers, targeting the right people, and then building relationships with them. Let's start with targeting.

You need to actually know and understand who your current and potential customers are in order to adequately satisfy their needs and wants. In the past, there were a limited range of products available, and they were advertised to just about everyone. As we discussed at the start of this video, Marketing is dynamic and times have changed. Marketing became more specific and different companies attempted to reach different types of audiences.

The group of people that a company tries to reach is known as the target market. For example, one clothing store might be trying to attract business people with more formal attire, while another store could be targeting children with colorful prints. The second part of marketing is building strong relationships with target customers. A long-term relationship leads to satisfied, loyal customers, a company's most valuable asset. Research shows that it's less expensive to keep a customer than it is to get a new one.

So there's a financial motive behind developing strong relationships with customers. One way to build relationships with customers is through purchase incentives, which are strategies for persuading a customer to make a purchase. Examples include loyalty programs, discounts, free products, and so on. Airlines usually have frequent flyer programs, Starbucks gives you a birthday drink as part of their loyalty program, and Target sends you personalized coupons for products that they think you might be interested in. They do this to establish customer loyalty via long-term buyer-seller relationships.

Now that we've gone over all the content, it's time to test your knowledge with a real deck of questions. Pause the video and try to answer. The answer is B, product.

From this video, we know that each of the answer choices is one of the four P's of the marketing mix. We just need to figure out which one it is. As we discussed, product strategies refer to decisions businesses make regarding what products to sell, which is dependent on what customers actually need. This is precisely what the marketer in this example is trying to do.

So he's involved in a product decision. And here are the sources we used for this video. Feel free to check them out if you still have any questions. Alright, that pretty much sums up Lesson 17.2, Marketing Mix. Great work, team, and we'll see you in the next video.

Transcript for:Marketing Mix (17.2)

Transcript for:
Marketing Mix (17.2)