introduction to marketing (mc4050) tutorial/workshop week 3 marketing mix
TRANSCRIPT
Introduction to Marketing (MC4050)
Tutorial/workshop week 3Marketing mix
Agenda
• Revision and discussion• Group work on ‘Analysis of marketing mix of Holi event that was
organised at college’• Case study analysis of ‘TESCO’
Revision
levels of Product
Durable vs Non Durable products
Industrial vs Consumer products
Types of consumer productMarketing consideration
Convenience Shopping Speciality Unsought
Customer buying behaviour
Frequent purchase, little planning, little comparison or shopping effort, low customer involvement
Less frequent purchase, much planning and shopping effort, comparison of brands on price, quality, style
Strong brand preference and loyalty, special purchase effort, little comparison of brands, low price sensitivity
Little product awareness, knowledge( or if aware, little or even negative interest)
Price Low Higher High Varies
Distribution Widespread distribution, convenient locations
Selective distribution in fewer outlets
Exclusive distribution in only one or few outlets per market area
Varies
Promotion Mass promotion by producers
Advertising and personal selling by both producer and retailers
More carefully targeted promotion by both producer and resellers
Aggressive advertising and personal selling by producers and resellers
Examples Toothpaste, magazines, detergent
Major appliances, TV, clothing
Luxury goods such as Rolex
Life insurance, blood donation
Price
8
Place Decisions
• Channel selection• Market coverage• Locations• Transportation• Logistics
10-10
Consumer and Business Marketing Channels
10-11
Public Policy and Distribution Decisions
• Exclusive distribution (only certain outlets to carry its products)• Exclusive dealing (dealers not handle competitor’s products)• Exclusive territorial agreements (producer agree not to sell
to other dealers in a given area or buyer agree to sell in its own territory)• Tying agreements (sell to dealers only if they will take some
or all of the rest of the line)
10-12
Transportation• Trucks• Railroads• Water carriers• Pipelines• Air• Internet• Intermodal transportation
Intermodal transportation:• Fishyback: water and trucks• Piggyback: trucks and rail• Trainship: water and rail• Airship: air and water
People, process and physical environment
The Marketing Mix
• Blend of the mix depends upon:• Marketing objectives• Type of product• Target market• Market structure• Rivals’ behaviour• Global issues – culture/religion, etc.• Product portfolio
• Product lifecycle• Boston Matrix
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Workshop week 3
• Group work on ‘Analysis of marketing mix of Holi event that was organised at college’• Case study analysis of ‘TESCO’
Class work: group activity
• Work in group to analyse the ‘marketing mix’ of the Holi event that was held on college.• Recommend on how the event could have been even better.
Case study analysis of TESCO
Case study analysis of ‘TESCO’
1. Cohen saw that he had a clear competitive advantage, because his supermarkets had a lower cost base than traditional corner shops and therefore he could undercut other shops.
Removing price controls would therefore benefit him in the long run- as indeed has proved to be the case. Providing customers with better value for money (which doesn’t necessarily mean lowest possible prices, of course) is always advantageous
Case study analysis of ‘TESCO’
2. Price is not the only way to compete. Most people do not buy the cheapest- they buy products that represent best value for money.Providing extras such as the ‘one in front’ creates a better value proposition, at relatively low cost to the firm- the value to the customer is vastly greater than would be the tiny reduction in prices the company could make if it did away with policy
Case study analysis of ‘TESCO’
3. The separate own-brand labels exist to provide for the needs for different segments of the marketPrice sensitive customer use value brands, people seeking value for money look for ordinary tesco brand, and people seeking something luxurious might buy the Tesco’s finest
Case study analysis of ‘TESCO’
4. Advantage of loyalty cards:enable tesco to record individual customer purchasing patternallows Tesco to plan better for meeting customer needs and also
to target special offers and promotions accuratelyfrom the customers view point, the cards are much more
convenient, and having special offers that are accurately targeted reduces the amount of junk mail the customer receives
Case study analysis of ‘TESCO’
5. Stocking organic products enables Tesco to meet the needs of a health conscious group of people.At the same time organic product tend to be more expensive, so the majority of Tescos customers currently prefer the cheaper factory-farmed products