MARKETING VALUE- A PERCEPTION - Form utility- raw materials into usable product - Place utility- making product available to consumers - Time utility- available when needed - Possession- allowing consumers to own/ use it Value = 'total offering' - Reputation - Product features - Associated ideals - Quality & price Value is hard to quantify + can change interpersonally Value = Quality/ Price Value is necessary for the seller = a mutually beneficial partnership · Marketing environment ROLE OF MARKETING · Marketing- total system of interacting activities designed to plan, price promote and distribute products to customers. · Essence of marketing- discovering consumer wants + satisfying them · Multifaceted- all strategies working towards business objectives MARKETING MIX · 4 Ps- business has control over them- uses them to reach target market · Business control resources (information, finances, employees etc) that also help reach objectives · Business must determine the emphasis placed on each variable · Determined by product position on life cycle · Product marketed with image of exclusivity = marketing mix totally different than a practical item · Extended marketing mix- 4 Ps + 3 Ps of marketing PRODUCT . Deciding product · Packaging, labelling, design, brand name + guarantee- product is a combination of these · Consumers will buy products that satisfy + provide intangible benefits
· Intangible- send of security, prestige, influence etc PRICE . Correct price- amount consumer willing to pay . Correct price is hard to determine · Below, above or with competitors pricing? PROMOTION . Methods used by a business to inform, persuade + remind · Advertising, personal selling, relationship marketing, sales promotion + public relations · Changes in tech= changes in information and communication technology · Impact how a business promotes- online PLACE/ DISTRIBUTION · Channels of distribution · Intermediaries (go between)- wholesaler + retailers · Intermediaries (except retailers) invisible- consumer knows little about their role · Number of intermediaries dictates how heavily your product will be spread · High end brands = restricted to specialised outlets . Coca-Cola = distributed everywhere DIFFERENTIATION Points of differentiation- can be simple or complex (changing packaging or offering greater customer service + better value for money) SWOT · Changes in external environment alters course of business · Business must constantly monitor these changes- looking for opportunities to exploit + threats to avoid · Internal forces- largely within businesses control- unique to each business + helps managers assess strengths and weaknesses · Identification + evaluation of strengths + weaknesses- internal and external · Provides information needed to complete analysis + gives indication of business position compared to competitors · Marketing plan should reflect this info · Once analysis conducted- assessment of the products position on the product life cycle should be carried out · Allows different marketing strategies to be used at different stages of product's life
Helpful Harmful What are the strengths of the business? · What is the business good at? · Is the business's product popular? · Are customers loyal? . Does the business