- Level: University Degree
- Subject: Business and Administrative studies
- Word count: 1147
the marketing mix report
Extracts from this document...
Introduction
THE MARKETING MIX REPORT Introduction This report focuses on identifying the marketing mix. Though out the report I will be discussing the importance of the marking mix and how it can be used to build a successful business. I will also be considering and expanding on the 4 P's (Promotion, Product, place, and pricing). The marketing mix The marketing mix is the set of ingredients, which the firm uses in order to achieve its objectives. It focuses on the various elements of marking needed to carry out the marking strategy, which are designed to meet the needs of the customers or the market segment and consist of four main parts (Promotion, Price, Product, and Place. Packaging is an extra part). In order to satisfy customers' needs, businesses must produce the suitable product or service for their segmentation, at the right price, make it available at the right place, and let the potential customers know about it through promotion. If all of this is done correctly the business should meet its objectives. Product A product is something that is offered to the market, it is not just a physical equipment. ...read more.
Middle
Can it carry the product to the break-even point? * Product development. Producing and testing Prototypes * Test Marketing. This follows, rather than precedes, the decision to go ahead. * Commercialisation. Developing the marketing strategy Pricing Penetration pricing is appropriate when the seller know that demand is likely to be elastic. A low price is set in order to attract customer to the Product. Penetration Pricing is normally associated with the launch of the new product for which the market needs to be penetrated. Because a price starts low, even though a product will developing market share, the product may initially make a loss until consumer awareness is increased. Skimming involve setting a reasonably high initial price in order to yield initial results from those consumers willing to buy the new product. At the launch of a new product the wound be very little competition therefore the demand of the product may be relatively inelastic. Customers would have very little knowledge of the product; therefore the initial price needs to be reasonable. Once the first group of customers has been satisfied, the seller can then lower the prices to make sales to new groups of customers. ...read more.
Conclusion
The advantage of deciding to directly sell would mean you are in direct contact will your customers and can easily detect the subtle changes which are occurring and adapt to the changes; i.e. demand for price changes or overall demand for your products. You also have complete control over your product range, how it is sold and at what price. Direct to retailers If you don't want the expense of opening and running your own retail outlet to sell to your customers, then you might consider selling to existing retail outlets. This would obviously save your company a lot of money setting up a variety of retails outlets to cover areas regionally or nationally. However, the administration behind running a system like this would be considerable. Firstly you would have to have a sales teams to consult with the retailers on new products, price and promotion. You would also have to have a method of distributing to many small outlets in which ever region of the country you are selling to: this would cost a small business quite a lot of money and effort. The financial side also needs to be considered as you will have to administer a number of small accounts at the same time. ...read more.
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