Marketing Strategy

The importance of the different elements in the marketing mix

The importance of the different elements in the marketing mix

• The marketing mix has a significant impact on consumer decisions

  • Businesses need to thoroughly consider each element when developing a suitable marketing strategy so that it is attractive to the intended target market

  • A change in one element can have a significant impact on the others

    • For example, an increase in price may require a redesign of packaging to encourage customers to recognise a product is high quality

  • The marketing mix should change as a product moves through different stages of its product life cycle

    • For example, newly-launched products may be sold at a low price initially until sales start to grow; at this point, the price may be increased to improve profit margins 

• If the marketing strategy fails to combine the elements of the marketing mix appropriately, the marketing objectives are unlikely to be achieved

Why each element is important

1. Product

• The product/service is the heart of the marketing mix and determines all other elements

  • Price, the target market, distribution methods and promotional activity stem from the product

• If the product changes, then all other elements of the mix will likely need to change

  • For example, the launch a premium version of a product may require an increase the price and redesigned promotional activity to reflect the new product's image

• Questions to consider

  • Is the product brand new, or is it an existing product?

  • What type of product is desired by the target market?

  • What changes need to be made to the product to make it more desirable?

2. Price

• The price of a product is closely linked to its perceived brand value

  • If a product is priced too high, it may be perceived as too expensive by the target audience, leading to lower sales

  • If a product is priced too low, it may be perceived as low quality, leading to lower sales

• Increasing the price may require changes to the promotion strategy, which are aimed at convincing consumers of the product's value

• Questions to consider

  • What price do rivals charge?

  • What price is the target market willing and able to pay?

  • What impact might promotional pricing have on demand?

3. Promotion

• The promotion strategy can affect the price and distribution channels

  • For example, if a business decides upon promotional activity that emphasises luxury, it may need to increase the price to reflect the product's value

• Questions to consider

  • What is the promotional budget?

  • How does the target market respond to different methods of promotion?

  • What methods do rivals use to promote their products?

4. Place

• Distribution and sales channels affect the price and promotion strategy

  • For example, if a business decides to use specialist distribution channels, it may need to increase the price to reflect the exclusivity of the product

• Questions to consider

  • What channels of distribution are most appropriate for the product?

  • Where does the target market expect to be able to buy products?

  • What channels of distribution do rivals use?

Recommending an appropriate marketing mix

Recommending an appropriate marketing mix

• Each business combines the different elements of the marketing mix in unique ways for each product or range they sell

Factors affecting the structure of the marketing mix

Marketing budget for the project

• Which advertising media or promotional tactics are affordable?

  • Large budgets will allow a business to use mass media such as TV advertising, whilst smaller budgets may afford limited promotional activity using social media

Marketing objectives to be achieved

• Is the plan to increase market share or launch a new product range?

  • Increasing market share may require an emphasis on low prices, whilst skimming may be important when launching a new product range

The intended target market for the product

• Is the product to be aimed at families or single-person households?

  • Products aimed at families may be sold in large multipacks, whilst single-person households may be targeted with smaller quantities of standard products

Is it a balanced marketing mix?

• Do the elements of the mix effectively complement each other?

  • Luxury products are likely to require a premium price, whilst products sold in supermarkets may be sold in bright packaging to stand out from other brands