Marketing Mix: Strategies for Business Success
Tools of the Marketing Mix
1. The Marketing Mix integrates and combines the decisions the company has taken on the attributes of their product, the prices set for each of them, the chosen distribution channel to bring them closer to the end customer and, finally, communication or promotion who will carry out to be known and appreciated by the market. Having chosen a market or segment that is addressed, should realize their plan of action to stimulate demand for its products, you must define your marketing mix plan, decisions on the four Ps of marketing:
- Product
- Price
- Distribution
- Promotion or communication
2. Product Policy
A product is a good or service that meets a need, having a large number of similar products that meet similar needs. The policy objective of the product is differentiated from the competition for building brand awareness and favorable product.
Product Components:
- Basic function performed
- Technical
- Ancillary services (customer service, warranty, etc.)
- Symbolic values allocated
Range of Products are all offered by the company and product line are those with similar characteristics.
Features Range:
- Size (number of lines you have)
- Depth (number of products per line)
- Consistency (ratio similarity between the lines)
Product Attributes:
- Quality (may be technical and / or commercial)
- Design (external presentation of the product, with several conditions)
- The size and number (different sizes for different segments)
- Services Annexes (try to make the product more attractive)
- Image (perception of the product by consumers)
3. Product Identification
Product identification: through the brand (name, symbol, or logo that identifies a company’s products and differentiates them from competition), model (identified products of the same brand), and packaging and label (containing and protecting the product, promotes and identifies).
Strategies:
- Single brand (for all products)
- Multiple marks (one mark for each segment that addresses the product)
There are also store brands or brands that use large distributors to distribute products, manufacturer hiding for greater control of the market and consumer loyalty.
4. The Product Life Cycle
Phase:
- Introduction: New product launch, sales are not very high, high advertising costs (losses).
- Growth: Product successful, grow sales, more competition, lower cost, effort differentiating benefits.
- Maturity: Stagnant demand. Strategies: increasing value-added (quality) or lower costs to lower prices.
- Decline: Low demand, falling sales, phasing out the product (selling stocks, switch to other products).
It must decide whether to stop marketing the product (replacing it with another) or do a marketing effort to renovate and keep it on the market.
5. Price Policy
The price is the amount of money paid for the purchase of a product. It is a fundamental aspect of consumer choice (though not sole).
Methods of Pricing:
- Margin on cost (it adds a percentage to the cost of obtaining price)
- Prices of Competition: Is set below (if there is high demand, we have lower costs or sufficient margin) or above (if we believe in quality and there are conditions favorable market or high demand)
- On Demand: To test the performance of sales to vary the price (depending on whether the property is or is not close substitutes and their need for the consumer).
Strategies or Pricing Policies:
In order to increase sales:
a) Differential Pricing Strategy: Sell the same product at different prices depending on the characteristics of consumers or the need to promote sales. More common: lower prices (promotions, offers, launch, discount for purchase of various products, etc.). Less common: rising prices (premium brands with differentiation strategy).
b) Psychological Prices: The price is intended to convey something about the product. Prices of prestige (high to providing quality), prices magical (9.95), or usual prices (consumer goods often).
c) Strategies for Product Lines: It uses the strategy of real captive (lowered the price to rise the product but their accessories), set a price with two components (fixed more variable), or package prices for complementary goods.
d) Strategies for New Products: Strategy skimming (high at the beginning to capture the elite of the market and then download it to attract other segments) or penetration (low prices since the beginning).
6. Communication or Product Promotion
To sell the product needs to be known.
Communication Tools:
1. Advertising: Techniques, media, and outreach activities that companies use to inform the public of their products and persuade them to buy them. Should communicate the benefits of the product and refer to a target audience (segment) by choosing the appropriate media (TV, radio, newspapers, Internet) and support (string, newspaper, or specific web where announced).
Objectives: Increase sales, change consumer habits, and disseminate the product.
2. Sales Promotion: Trying to raise sales to short term. Consumers can be used (gifts, sweepstakes, refunds, etc.) or retailers (discounts, premiums, and sales targets, etc.).
3. Sales Force: A set of a company’s business. Allow the sale and collect information from customers. Basic well-organized sales team.
4. Public Relations: To convey a good image abroad (consumers, suppliers, institutions, society). Called social marketing sponsorship (grants to various activities).
5. Direct Marketing: Direct client contact – company (letter, fax, phone, etc.). Quickly the result is known.
7. Product Distribution
Allows (in quantity, time, and conditions) access to the product seller. This is done using the distribution channels or intermediaries.
Classes of Distribution Channels:
1. By its Length: Can be direct (without intermediaries), short channels (producer-detalists-consumer), and long (several wholesalers or intermediaries between producer and retailer, are more cost but you reach more people).
2. According to the Link Between Distributors: Horizontal connecting channels (companies that perform the mime function) and vertical connection (companies perform different functions).
3. According to Form of Selling: Selling a shop and no store (by mail, catalog, phone, TV, internet, automatic, etc.).
Functions of the Distribution Channel:
- Reducing the number of contacts made by the company
- Act as warehouses
- Spread the product
- Provide additional services and product offerings focus
Distribution Strategies: Depending on the type of business and the market in which it operates. Methods of distribution: exclusive distribution (a single intermediary on geographic area), intensity (using the number of outlets), and selective (middle option).