All about Processor Marketing (includes 4 P’s of Marketing Mix)

marketing mix and 4 P’s
activities integrated and balanced to complement each other;
Product, Price, Place, Promotion
Product
focus on potential customers; revolve around characterisitcs of packaging, product, and general image.
definition: output of a firm that has some value added to the original raw commodity
customer service, product design, brandnames, trademarks, patents, warrenties, product lifecycle, product positioning, new product development
4 groups of consumers. 1: Belongers
35% of pop; generally tradition, conservation, conventional, nostalgic, sentimental, and unexperimental. prefer brands
2. Acheivers (one of main focus of marketers)
32% of pop; enterprising, hardworking, hold values focused on a better life; generally middle age, white, an working in successful managerial, professional technical, or sales occupations
3. Inner Directed (another main focus of marketers)
more money to spend on food; often from achiever family backgrounds, highly educated, and hold technical professional jobs; socially concerned and often believes in holistic health and inner growth
4. Need Driven
driven by need rather than preference; money restricted; low incomes, greater number of minorities, high unemployment levels, high proportion of females. focus on price typically use coupons. usually purchase “store” brands.
Products and groups examples
canned fruits and vegetables – belongers and need driven
canned fruits and veggies with no salt/sugar added: inner directed
Promotion
Communication of good, positive aspects of the market and his products to potential customers; communication link between sellers and buyers; may communicate messages directly thru sales people or indirectly thru advertisements
Place
develop the best conduit for ultimate customers; everywhere or just one or two places; existing channels and integration
involved mode of transportation, warehousing, inventory control, order processing, and selection of marketing channels; consumers find their products in proper quantities at the right times and places
Price
important and easiest to change; level conveys quality image; deals with methods of setting profitable and justifiable prices; subject to regulation and public scrutinty; good pricing strategy: created customer value, builds/strengthens customer relationships with firm and products
Processor Sales Must
persuade buyers to try new prodcuts, check retail displays, obtain orders, inform store managers, relay sales intelligence
Sales promotion
POP displays, sales contest, trading stamps, sweepstakes, bonus packs, free samples, cents off deals, cents off coupons, exhibits at trade shows
Use of Promotion
goals: to categorize products in terms of life cycle and inform potential customers as to existence and diserable attributes of a new product; competitive and reminder advertising. brand insistence vs brand preference
Product life cycles
start off with heavy promotional expenses and no profit. growth increases sales and profit. maturity max sales and profit. decline decreases sales and profit.
Decisions about place
distribution center: transshipment warehouse that receives box cars and truckloads of products and then quickly sends trucks with assorted items to retailers
wholesaler retailer: contractural or ownership integration that typically links wholesale and retail
Pricing
large national brand processors are price takers; general foods; skimming market vs market penetration; effective pricing considers both costs and demand. Price changes because precieved demand or cost changes, promote intrest and product sales, repeated specials