Marketing Mix and Social Trends

Product
A product is an item/service that is offered for sale.
Product life cycle + Boston matrix can be done to establish where the product is in the market.
Price
Price is the amount customers are charged for items. Pricing strategies: cost-plus, penetration pricing, psychological
Place
Place is the point where products are made available to customers. A business has to decide on the most cost-effective way to make their products easily available to customers.
e.g. high street, distribution channels( the way in which products are sold)
Promotion
Promotion refers to the methods used by a business to make customers aware of its product. There is Above the line promotion e.g Media and
Bellow the line e.g. leaflets
Marketing mix
The marketing mix is a business tool used in marketing. The marketing mix is often crucial when determining a product or brand’s offer, and is often associated with the four P’s: price, product, promotion, and place.
Sustainability
‘Not consuming more natural resources than can be regenerated’
If firms don’t use sustainable resources there is a threat they will be depleted (empty) in the long term
Retailer purchasing power
Big businesses have market power, they rely on suppliers to provide their inputs but very often these suppliers are small businesses.
Large retailers now have a huge influence in the up (they control 80% of grocery sales)
Ethical Trading
Advantages of acting ethically:
Companies can use their ethical stance in marketing materials
It can help companies avoid bad publicity
Disadvantages of acting ethically
It usually involves higher costs
It may reduce revenue if the higher costs lead to higher prices
Online retailing
Companies such as amazon and eBay
Benefits of Online retailing
Being able to sell a wide range of products 24/7
Being able to reach a wider audience
Reduced costs, since expensive shops are not required
Some suffer from
Security risks
Possible lack of trust from consumers
Not being able to sell to those who don’t have internet
Food Miles
This refers to ‘The distance which food is transported when moving from producer to consumer’. E.g. asda have adopted a ‘locally produced’ range of products in each store.
This way businesses can promote themselves as well as helping the community in which they operate
Environmental factors
People are always worried about the environment and businesses can use this as a marketing tool. E.g. reducing pollution, improving energy efficiency.
This can create a good brand image.