Business Case Exercice Pricing Pfd

BUSINESS MANAGEMENT I

1BM.2.4T

MARKETING

2.4 MARKETING MIX
Definition: the elements of a business’s marketing that are designed to meet the needs of its customers. The four elements areoften called 4 ‘Ps’ –
 Price

Product

promotion
 place

MARKETING
MIX

PRODUCT

Appearance
Function cost

PRICE

Cost band
Competitor
based Consumer
based

PLACE

RetallersWholesalers
Distribution

PROMOTION

Advertising
Sales promotion
Personal selling

Sometimes packaging is also included.
When considering the marketing mix of services, other factors arealso considered in the marketing mix
 People involved in providing the service
 Process mechanisms, activities and procedures
 Physical evidence
All elements are important; however, at timesbusinesses may stress one or more elements of the mix. What is important for a business is that its marketing mix is
integrated. This mean that the different parts of the marketing mix must fit togetherwell. Ex a business launching a new range of hand-made, luxury organic cheeses at over
50% higher than rival cheeses, promoted in specialist food magazines, packaged by hand in high quality materialsand with a taste, texture and smell positively commented
upon by food experts. It would not make sense to distribute such cheeses through discount supermarkets. Each element of the marketing mixshould support the other. In
our example it may mean distributing the cheeses through high quality specialist cheese shops and delicatessen.

BUSINESS MANAGEMENT I

1BM.2.4T

MARKETING

PLACEPROM
OTION

PRICE

PRODUCT








How consumers use the product. [Ex. furniture manufacturer. Different market products: for home (stress features, quality, design, level ofcomfort) than for
office use(sturdy, functional, withstand regular use, be long lasting)]
The appearance of the product. Ex. Colour, shape, taste and size, aroma)
Financial factors
The product’s...