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The Most Important Lesson in Marketing

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Marketing Mix(4 Ps)

The Marketing Mix

TARGET

MARKET

PRODUCT

Quality Features Options Branding packaging

Sizes Services Warranties returns

Factors dealing with developing the RIGHT product for the TARGET MARKET

Examples:

Exercise

Using the available products: What distinguishes their packaging? Which packaging is more eye-catchy? Which do you prefer? Which tastes better? Which looks better?

PLACE

Factors dealing with getting the RIGHT product to the TARGET MARKET

Examples: Channels of distribution Locations/outlet Transportation methods Inventory Physical handling

PRICE

Factors dealing with setting the RIGHT price

Examples: retail/list price Supply and demand Production costs Allowance (car trade-in) Payment period Credit terms

Exercise

Again using the products: What do you think the price difference

is? Why do you think this is so? Does it make a difference?

Prices:

Corn: DeodorantGreen Giant - $1.39 Speed Stick - $2.89

Del Monte - $1.29 Old Spice - $1.98

No Name - $0.99

Cookie: Gelatin:Chunks Ahoy - $3.49 Jell-o - $0.79

PC Chunky - $2.49 No Name - $0.59

PROMOTION

Factors dealing with communicating to the TARGET MARKET about the RIGHT product, at the RIGHT place to find it, for the RIGHT price

Examples: Advertising Personal selling Sales promotion publicity

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Uncontrollable Factors(STEEP)

Social, Cultural, Demographic Factors

developments and shifts in values and lifestyles

Examples:

birth rates, death rates, age distribution, marriage rates, fashions, divorce rates religious influences, geographical distribution

Technical and Ecological Factors

the supply and cost of natural resources environmental deterioration and pollution developments in new products, materials,

and technologies.

Examples:

Research and Development (abacus, calculator, computer etc.)

“Technology has the power to create new industries and destroy existing ones.”

Existing Business Practices

trends & developments in your business and the competitors

the demand for your type of business

Economic Factors

trends and developments in: disposable & discretionary

necessities and spendingcost-of-living levelconsumer savings and debtchanging patterns of consumer

spending

Political and Legal Factors

developments in: Legislation Government enforcement impact of public interest groups

(boycotts)

Examples:product safety, occupational safety, truth in advertising, price legislation, package regulation (English and French)

www.company.com

The Most Important Lesson in Marketing