Wednesday, 23 November 2016

Influences on the Marketing Mix

Introduction         

       The positioning of a product is not always fixed. It can change.
       It may need to be adapted when internal and external conditions change.

Internal and External Influences


Type of product

       A large influence is the type of product.
       There are two types of product, industrial and consumer.

Consumer

       Bought by households.
       Differ in the way consumers buy them.
       Different types of consumer product include:
       Convenience – bought frequently, little planning required, low customer involvement, price usually low, mass promotion and widespread distribution.
       Shopping – Bought less frequently, customers are careful about suitability, price, quality and brand, more selective distribution meaning fewer outlets, both the producer and reseller will advertise it.
       Speciality – Unique characteristics or brand, buyers make a special effort when buying, high price, exclusive distribution or limited outlets and promotion is carefully targeted.

Industrial

       There are multiple types of products for industrial.
       Materials and parts – raw materials and components, sold mostly to other businesses and price and service are key issues.
       Capital items – Products used in production (of another product) or operations. It includes IT systems, buildings and infrastructure.
       Supplies and services – Operating supplies (just supplies) and business services (such as maintenance and security).

Marketing Mix for Business to Business

       Specialist buyers and sellers – they know what they are talking about.
       Dealing with professional buyers.
       Buyer seller relationship needs to be good. There is an emphasis on repeat business.
       The value of the purchase tends to be higher (as things are bought in bulk)
       Quality and price are important as it affects another company. Prices are often negotiated.
       Support is a greater requirement.

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