2.1.7 Marketing mix The concept of marketing mix divided into product and service marketing mix. The service marketing mix consists of Product, Price, Place, Promotion, People, Physical Evidence, and Process, simply called 7P’s. The product marketing mix consists of Product, Price, Place, and Promotion, simply called 4P’s (Hartono, 2010 ) Product is defined as anything that can be offered into a market for attention, use, or consumption that might satisfy a need (Armstrong & Kotler, 2006). According to Hirankitti, Mechinda, and Manjing (2009) the service product offers service which can be explained based in the core service which represents the core benefit, and the secondary service which represents both the tangible and augmented product
Hence it can be said that promotion is a safe way to increase sales for the company. The company, like every year, plans to boost sales by lowering prices and increasing the shelf space of its products. It also wants to advertise this sale in the circular of the retailers that are being targeted. Although the sale sounds like a valid solution to the problem, a number of factors must be considered by the company before it launches its promotion. The company may face the risk of cannibalization of its other products that are not promoted.
Often a firm begins using sales promotions to differentiate its product or service from the competition. If the promotion is successful and leads to a differential advantage (or even appears to do so), competitors may quickly copy it. When all the competitors are using sales promotions, this not only lowers profit margins for each firm but also makes it difficult for any one firm to hop off the promotional bandwagon. Percy (2008) on the other hand contend that there are costs associated with promotion, and when a promotion is too successful, the unexpected increased costs can have a
We have sales promotion, digital, direct, indirect and guerilla marketing, database marketing, public relations, product placement and events. Although the importance and relevance of all these tools differ in consumer vs business to business marketing. Sales promotion for business to consumer marketing is about enticing consumers to buy your product. It lasts for a specific period of time and includes free samples of the product, free gifts, special prices, coupons for future shopping, premium product and contests. On the contrary, business to business sales promotion are not so extensive.
ZIKURA INSTITUTE Understanding of Marketing Mix Elements Introduction to Marketing Maadhin 3/30/2016 Marketing Mix The marketing mix is one of the most famous marketing terms and it is the tactical or operational part of a marketing plan. It is also called the 4Ps and the 7Ps. The 4Ps are price, place, product and promotion. The services marketing mix is also called the 7Ps and includes the addition of process, people and physical evidence. Steps to a perfect marketing mix that will get your business off to a flying start 1.
In the meantime the others will cross their fingers and cheer as their egg is dropping in the landing area. Sales promotions: Promotion is one of the 4 p’s of marketing. It’s one the major attributes of any product or services and it’s also known as marketing communication. To attract more consumers, companies engage in various promotion strategies and techniques which help them generate revenue. Unlike an advertisement which concentrates on giving the consumer a reason to buy, sales promotion offers an incentive to buy.
Pricing is the basic tactic adopted by the companies to attain their objectives. However, it is also the most complex of the tactics to be pursued by marketers. Too high a price could dissuade buyers away from the product and get attracted to competitive offers while a price that may be perceived as too low may cause buyers to doubt its quality and value. Contrary to popular perception, price is not calculated on the basis of cost plus a reasonable profit. It is based on the brand image created in the consumer minds and a level the market is willing to bear.
This marketing strategy is created based on P s of Marketing Mix defined as follows: Figure 2.2.1 : 8 Ps of Food and Beverage Marketing Mix a) Product Every event of yours is a product, so don’t forget to tailor it to the needs of the people whom you hope to attract. This includes looking at all ancillary activities which might take place in several stages like before, during and after the event. In a simplified manner, it includes pre-event days, promotions or contests on your website and social media pages, registration process of your event-day, food and beverage, spectator activities and post-event parties, recognition and awards. Reviewing competitive or complementary projects for watching what they do in conjunction with their events. Surveying potential participants and holding on focus groups for finding out what would get them to attend and the price that they are willing to pay, if you are charging a fee.
Merits of Sales Promotion: (i) Spoils product image: It can spoil image of the products as customers may feel that the products are of inferior quality that is why offered at discounts or low prices. (ii) Reflect predicament: Offering sales promotion techniques again and again indicates that there is no demand of the product which can create a crisis situation. Personal Selling: Personal selling involves face to face interaction between the buyer and seller for the purpose of sale. This does not mean getting the prospects to desire what the seller wants, but is also focused on customer satisfaction. Features of personal
INTRODUCTION Consumer market grows rapidly every year and the number of competitors among different types of products and goods increases steadily. To standout against competitors, every company tries to invent something new and to get the competitive advantage for providing the product to the end customer. One of the marketing tools that has become popular and important is product packaging which allows companies to be different from each other and to have more priorities among competitors. This has become a reason why nowadays there is a big variety of design packages on the supermarkets’ shelves. Packaging helps consumers to choose the product from wide range of similar products and stimulates consumer buying behaviour.