Developing a marketing mix for a new product or service Essay

In this assignment I will be looking at how merchandise and services are marketed and look at how a selling mix is developed utilizing the four P’s: Merchandise. Price. Topographic point. and Promotion. The Marketing Mix provides an first-class model for developing selling program. They are by and large accepted as being made up of four parts which are: •Product

•Price
•promotion
•place
These are thoughts to see when marketing a merchandise and shall be described in more item below: – The Four ‘P’s
Merchandise
A merchandise is anything that can be offered to the market to fulfill a client demands and desires. Product include physical goods. services experiences. events. individual. topographic point and etc. It is hence the combination of goods and service that are offered to the mark consumer. A concern will constantly alteration and update its merchandise scope and mix to invariably delight their clients and be above rivals. A merchandise can be viewed in three different degrees:

Flat 1: The nucleus Product ( instead than the physical merchandise ) is the benefit of the production that makes it valuable to you. Level 2: The existent merchandise is the physical point. At this degree stigmatization and added characteristics and benefits are of import as this what will distinguish the merchandise from rivals. Flat 3: The augmented merchandise is extra value beyond the physical merchandise: it normally consist of after-sales service. guarantees. bringing and so on.

The extent of the mix is another important issue. If a concern doesn’t have many merchandises. there is a opportunity that one will travel out of day of the month as newer type of merchandises are in the market and this can earnestly damage the concern graduated table. It is recommended to ne’er hold one merchandise in one market as if the merchandise isn’t successful and fails this could intend a complete failure of the concern. Some concerns will accommodate and expect alteration. while others reacts to the demand to alter. An illustration of this is that IPhone makes alterations to their merchandises such as their nomadic phones. they add more characteristics to their merchandises giving their clients a scope of characteristics to look for in a merchandise. Once a concern has identified their mark group of clients it has to cognize what merchandises or services it needs to make and supply in order to appeal and pull to them.

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The information they provide their clients should exemplify the characteristics of the merchandise or service so that the clients know what to anticipate and it reaches their outlooks and the concern will do a net income. However it’s of import to take into consideration that the benefits to a client are non ever for a practical sense there are psychological benefits such as position for illustration. An illustration of this is if everyone has a specific phone and a individual went and got the same phone they may acquire it more for a position ground. The merchandise life rhythm construct reflects the theory that merchandise. like people. populate a life. They go through 4 phases. The chief phases of the merchandise life rhythm are:

•Introduction- researching. developing and so establishing the merchandise
•Growth-when gross revenues are increasing at their fastest rate
•Maturity-sales are near their highest. but the rate of growing is decelerating down. e. g. new rivals in market or impregnation
•Decline-final phase of the rhythm. when gross revenues begin to fall So understanding what portion of the rhythm your merchandise is in will determine your selling mix. Monetary value

Monetary value is the one component of the selling mix that gross ; the others produce costs. A concern must put a monetary value for a merchandise and in make up one’s minding the merchandises monetary value ; selling must follow a six-step-process. 1. Choose the monetary value objective-This could be to last or to maximise market portion. 2. Determine demand-the higher the monetary value. the lower the demand. 3. Estimate cost-charge a monetary value that covers the cost of bring forthing. administering and selling the merchandise. 4. Analyze competitors’ costs. monetary values and offers-take into history its rivals cost and monetary values puting its monetary value. 5. Choose a pricing strategy-there a figure of pricing. which is listed below. 6. Choose the concluding place-this is decided after proving on a scope of pricing points. Premium pricing

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This is where the concern will maintain the monetary value of a merchandise or service high in order to promote client to tie in it will high quality. Penetration pricing
This is when a merchandise is sold into a market at a low initial monetary value in order to bring forth gross revenues before the monetary value is increased. Economy pricing
Economy pricing is the calculated scene of low monetary value in order to hike gross revenues. Skim pricing
when establishing a new merchandise there will be less competition in the market place. Planing involves puting as moderately high initial returns from those consumers willing to purchase the new merchandise. Psychological pricing

This based on client pricing method. It relies on consumer’s affectional responses. subjective positions and feeling towards specific purchases. Captive merchandise pricing
This is a scheme that can use to merchandises with consumable supplies. This is where the pricing at high prestigiousness degrees. otherwise they will non sell ; clients equate higher quality with higher monetary values. Product line pricing

This is the pricing of different merchandises within the same merchandise scope at different monetary value points. Topographic point
Topographic point in marketing mix refers to where the merchandise is purchased from and how it’s distributed. For illustration. most consumer of confectionery will purchase merchandises form retail shops. Businesss need to accommodate their selling mix depending on the terminal customers- that is whether they are a consumer or reseller- as each seek different benefits from the same merchandise. Distribution

A concern may utilize two types of distribution method: indirect or direct. Indirect distribution is when a concern sells its merchandises via an intermediary such as jobber. who so sells to retail merchants. Direct distribution is where the concern sells and distributes direct to the clients. Choosing indirect distribution may intend that a concern loses some of the control over the pricing of their merchandises. as they have offer price reductions to jobbers and retail merchants. who may take to go through on salvaging to their clients. Online

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The growing of online shopping have given concerns a new topographic point to sell their merchandises to clients. This offers concerns an advantage as they can sell straight to the clients. This mean they can avoid the jobber and hence increasing the net income border on their merchandises. The promotional mix involves the blending of figure of variables to fulfill the demands of a business’s mark market and accomplish its organisational aims. With the promotional mix. a concern efforts to accomplish the best blend of promotional elements to accommodate their promotional aims. The constituents of the promotional mix are:

•Advertising
•Sales publicity
•Personal merchandising
•Public dealingss

Ad
This may be defined as paid publicities through assorted media by concerns. non net income organisations and individual’s that are in some manner identified in the advertisement message and hope to inform or carry members of peculiar audience. Advertisers have many tricked up their egos such as:

•Excitement
•Personality power
•Put-down: Business put down their competitions
•Jumping on the bandwagon: Ads promote the audience to fall in the crowd.

Personal merchandising
This is where a marketer presents a merchandise direct to a consumer frequently face to confront but can be done over the phone and through picture conferencing. Public dealingss
This covers a firm’s communications and relationships with its public. This includes clients. providers. shareholders. employees. the authorities. the general populace and the society in which the organisation operates. This can be formal or informal. Promotion is of import portion of effectual public dealingss attempts. It can be defined as the non-personal stimulation of demand for a good. service. individual or cause. Gross saless publicity

This is related to selling activities that autumn outside of the classs such as vouchers. trade shows. shows. samples and other promotional attempts that occur on an irregular footing. Some of these publicities are short term and timeserving. In this assignment I have examine how merchandises and services are marketed and look at how a selling mix is developed utilizing the four p’s: Merchandise. Price. Topographic point and Promotion.