- 1 Marketing Mix
There are four main controls that are employed to get products to chosen destinations. These controls are are Product, Promotion, Place and Price. They define the Marketing Mix and are referred to as the 4 Ps.
Product can be a tangible physical product or it can be a service. It calls for the formulation of and/or adapting the product to changing needs of the target customer.
The Promotion mix consists of the following four sub-components (Cohen, 1998: Pitt, 2002 and Van Lill, 2006):
It is a well-known promotional method but also a relatively expensive one. The important factors to consider are:
- Costs involved
- number of customers that will be reachable by an advertising campaign
- how purchase decisions are reached.
The most forms of advertising are newspapers, magazines, television, radio and internet websites.
- Personal Selling
It is a effective way to establish a positive image of a organisation in the minds of potential customers through the developmetn of a personal relationship. It is however, a time consuming and labour-intensive marketing tool.
- Sales Promotions
Sales promotins encompass all other forms of promotion that do not fit into the categories of advertising, personal selling or publicity (Van Lill, 2005). It includes methods like sponsorships, free samples, coupons, customers competions, exhibitions/displays and marketing materials like ashtrays, pens, ties, etc.
It involves attempts to secure editorials space rather than paid space in media. It may take various forms like press releases, press conferences and editorial reports in magazines.
Place is another important component of successful marketing. It simply means how a product or a service is provided and eventually sold; how it is distributed to target consumers for intended sales.
As Jed C. Jones states, 'provision of a product or service can occur via any number of distribution channels, such as in a retail store, through the mail, via downloadable files, on a cruise ship, in a hair salon, etc.' All of these channels offer options which are either direct or indirect, and they are classified as such.
Comparison with other similar products available on the market
- It is important to know what other products of the same nature are available on the market at the time and what their cost is
- What makes the product better in terms of the price vs its value
Performance of the Economy in general - Timing
- Is there a need to put a very high price tag when there is generally a problem in the world/local economy
- Need to consider whether products are essential or are considered as luxury products eg crude oil vs gold
Raw Materials or Inputs, Production Costs
- It is important to identify cheaper reliable sources of raw materials at the same time not compromising on the quality because that is going to affect the quality of the product
- Buy in bulk in order to get discounts and save on transportation and other costs
- Don't aim for too high returns within a short time
- Have sustainability plan