Marketing Mix The four tools a business can use to

Transcript:Marketing Mix The four tools a business can use to:
Marketing Mix The four tools a business can use to persuade customers to buy its product or service: Product, Price, Promotion, Place Ms. Marshall 6th Year Business 1 Overview of Marketing Mix Ms. Marshall 6th Year Business 2 Product 1. Brand Name 2. Packaging 3. Product Life Cycle Brand Name For this topic you will need to know the definition, the benefits, and some examples of global brands. Branding means creating an identity for a product that makes it easily identifiable and clearly distinguishes it from competitors. It usually consists of a brand name and logo. E.g. McDonald’s and their Golden Arches. Ms. Marshall 6th Year Business 3 Ms. Marshall 6th Year Business 4 Advantages of Branding Recognition Desire Loyalty Higher Price Bargaining Tool Benefits of Branding 1. Recognition: Branding improves recognition of the product and the business name and differentiates them from competitors. This makes it easier to advertise a particular product. It is cheaper and easier to launch new products if they are associated with an existing well-known brand name. e.g. Johnson’s & Johnson’s would be best known for baby care products but have diversified into products for adults too. 2. Desire: Branding helps to promote a desired image of a product to the target market. E.g. J&J look after sensitive skin… Ms. Marshall 6th Year Business 5 Benefits of Branding 3. Loyalty: Easy recognition and familiarity to consumers increases sales and promotes long-term customer loyalty. Brand loyalty occurs when customers repeat-purchase a particular product on a regular basis. They stick with the product even when the price goes up, which helps defend against price wars with competitors. E.g. Coca-Cola has a high level of brand loyalty in the soft drinks market. 4. Higher Price: Businesses can charge a higher price, thus increasing profits. Many customers perceive branded goods to be of better quality than own brands so they are willing to pay more. E.g. you would pay more for Coca-Cola than Tesco Cola Ms. Marshall 6th Year Business 6 Branding- Benefits 5. Bargaining tool: Branding can be used as a bargaining tool against retailers. Businesses can get a good price from shops for their goods because they know customers expect the product to be in stock. Pepsi and Coke will often enter into contracts whereby if you stock one you cannot stock the other, e.g. Coke and Mc Donald’s. Ms. Marshall 6th Year Business 7 Own Brands