Marketing is the means of fulfilling consumer needs.
It is the process of identifying the right product for a particular target group. Promoted in the right way at the right time and in the right place it is most likely to be a success.1 Identifying the amount and the customers needs and wants2 Deciding which markets to serve3 Deciding what products and services to offer at what price4 Informing customers through advertising and promotion of the products5 Distribution – getting the goods to the clientMarketing mixMarketing mix is the full series of activities that may be used by a business to market its products. The mix consists of :1) ProductA product can be either goods or a service that is sold either to a customer commercially or an end consumer. The product must be striking and also unique, as a product will have many competitors from rival companies fighting for their product to be brought by the consumer. The product also must be aimed at the right person in the right price range and must be of the quality that the consumer expects it to be.2) PricePrice is the amount a customer pays for a product or service. The amount the customer then pays goes towards the company business they must decide how to price their product as over pricing can force the consumer to look elsewhere for what they need.
If the company prices the product at a low price they may lose profits. Businesses price their products in different ways they are:2.1) Competition based pricing – this is where all the companies price their product at a similar or lower price then all of the opposition. They will change their price or try to promote the product further so that the consumer will purchase their product.2.
2) Cost plus pricing – cost plus pricing is a pricing method used commonly by firms.2.3) Creaming or skimming – businesses sell a product or service deliberately at a high price this could cause slow sales this happens normally with television companies like plasma televisions over a period of time demand for the televisions fall and so does the price2.
4) Prestige pricing – this is where companies keep there product at a price fixed Companies like Sony and other prestigious companies charge more for their products than less prestigious companies such as Alba and wharfedale. Both companies (Sony, alba) may have all the same features but the consumer sees the prestigious company’s as the one with the better product that is better quality than lower brand companies such as Alba or wharfedale.2.5) Penetration pricing – this is where firms put their products at a lower price than other firms. Companies do this to gain market share quickly and to beat rival firms. They do this in order to make a larger profit at a lower price for their product once they win the market share they start selling their product at higher prices to make a larger profit. Penetration pricing is the opposite of price skimming.
2.6) Price discrimination – this is where different customers in different countries are charged more for a product or service. A mobile phone such as the new K750i will cost more in the UK than in Japan or china or other foreign countries.3) PlacePlace is part of the marketing mix, it is an important part of the 4p”s as it determines where the companies product is going to be sold and how the product will reach its destination. Where goods are sold will depend on the type of product it isThe majority of places where a product or a service will be sold to the consumer will be in a shop or a showroom other places where goods may be sold to the public are at :1 Wholesalers2 Direct sales3 The internet4 Mail order5 Telephone sales6 Door to door salespeople (Betterware catalogues)7 Exhibitions (car shows home exhibitions)How do goods get to the shops?This is achieved using channels of distribution:1. Products sold directly to producers farmer selling crop’s to producers.2. Salespeople are used by Betterware or other similar company’s to sell their products directly to the consumers.
3. Products are sold in large quantities by the manufacturer to the retailer. (Tesco buys products directly from manufacturers)4. Goods which are sold by a manufacturer onto the wholesaler they then sell the produce or goods onto a retailer such as londis or another type of small corner shop.
5. Products are sold to the consumer through shops that own the manufacturer (Marks and Spencer’s is a good example in their shop they only have their very own food which they own so they don’t have to pass any money onto the manufacturer unlike other companies such as Tesco’s who have to pass on an amount of profit to the manufacturer.Channels of distribution4 ) PromotionThis is where firms choose how a product or a service must be marketed and sold. The major methods of promotion are:1 Screening the product in a commercial on national television, broadcasting information about the product on radio, posters, or the world wide web.2 Sales promotion – discounts on the product or service, coupons, free offers, competitions (this can be done on TV in the post on the radio over the internet or over the phone). Demonstrations and displays in public (mostly in shopping centres or on the high street).
This is also known as below the line promotion.3 Direct marketing – this is where businesses personally contact someone and tell them about their product. This is done through telephone sales, teletext or E-mail.4 Sponsorship – person or an event5 Personal selling – this is done through sales representatives they are at trade fairs trying to sell a product to people6 After sales service and customer care – made or designed to put up customers confidence and their loyalty so they keep on coming up.7 Public relations (pr) – this is where a business gives a encouraging image about their product or by giving information about their product to the public or to the media.
Advantages and disadvantages of the various methods of advertisingAdvertisementAdvantageDisadvantageTelevisionThe business can show their product or service on national television and as we all know that television is being watched by millions of people around the country or the world the business and its product will surely get their products looked at probably boughtThis type of advertisement is very expensive also as we know many people have digital television and have over 300 channels (others could possibly have more) and it is very rarely that the product will appeal to the right kind of consumerThe newspapers, magazinesMany people from around the country read newspapers and see the product that the business is advertising. The person that the product then appeals to can tear out the information about the product and then later on possibly purchase itThe right type of people that the business may want to see their product may not always be around to see it and can always be missed.Local newspapersThis is suitable if the business want to advertise their product locally.
This type of advertising is cheap for the businessIt may not be as effective as there is a small audience and it can be easily missed by the readersRadioThis is a cheap effective way of targeting consumers as many people listen to the radio in their cars at home or on their personal stereosThere may not be the right type of consumer that is interested in the product that is being advertised and consumers don’t really pay attention to the advert . This is easily missed.Advantages and disadvantages of various methods of advertising continuedPosters and BillboardsAdvertising a product or a service on posters and billboards is a good way to promote it because it has a large amount of viewers. The billboard is also very large and this makes it eye catching.Though advertising a product or service in this way the company can only have a minor amount of information up on the billboard or poster about their product. The billboard or poster can also get destroyed this is because of the wind and the rain sometimes the posters or billboard get vandalised or get grapphiti all over itCinemasThis type of advertisement of a product or service will have a high impact on the audience because of the 3D surround sound and will be of the highest qualityThe more audience the businesses try to target the bigger the impact will be upon their profits.Leaflets and junk mailThis is a very cheap way of advertising something and the consumer can keep the leaflet if they are interested.
This type of advertisement is ignored by most people and is mostly thrown in the bin the moment it comes trough the letter box.Web sites on the internetThese adverts can be very interesting and can be of the highest quality. People can be easily targeted and people can easily visit the site to find out more about the product.These type of adverts can also be mistaken for viruses and quickly closed or ignored. These type of adverts are very annoying as they keep on popping up when you are trying to do something or doing your urgent work.