The marketing mix is geared toward providing a business with a firm basis for success, but it's also very much about appealing to the sensibilities of current and potential customers; and if there is one thing, one simple fact, that all businesses should bear in mind when going about their day to day work its that it cost 10 times as much to attract new customers than it does to retain old ones.
A business's goals, aims and their overall marketing plan will have a big effect on price, as a good pricing strategy is one of the major driving forces behind a business, and can be used as a means of enticing customers away from rival competitors. It should be noted however that if a business tries too undercut everyone else, more often than not, it will lead to nothing more than that business going under; it is very much a balancing act.
One way in which businesses that are not conveniently located can combat this is by selling their products online via an e-commerce platform such as Amazon or eBay, both of which have the kind of footfall that no high street could ever possibly generate. The competition is higher, but not having an online presence is becoming extremely detrimental to businesses.
This is why good marketeers will pour a good deal of research into products before basing a business around the selling of them; and if they're creating new product then they will follow a rigorous New Product Development processes to determine the products viability. This process is comprised of 8 steps and consists of:
1. Idea generating
2. Idea Screening
3. Concept Development
4. Business Analysis
5. Product Development
6. Product Testing
7. Limited release
8. Full commercialisation
Generating new products is very important, as there are very few products that will remain popular and in demand for extended periods of time (these are known as “cash cows” and are very rare), most products, even successful ones, however will go through the product life cycle, which is:
1. Development – The aforementioned process
2. Introduction – Product is made available in the market
3. Growth – Sales gradually increase in number and frequency
4. Maturity – The product is well known and growth slows down but continues
5. Saturation – Growth stops and peaks, demand is steady
6. Decline – Frequency of sales drop
7. Obsolete – New, better products become available and sales drop to unsustainable levels
The products that a business offers is incredibly important, and is arguably the most crucial element of the marketing mix as no amount of advertisement or price reductions will help to sell and unwanted product.
Online promotion is a very strong means of promoting a business, as these days the majority of people will use the internet at least once a day , 25% of the UK work using computers, and you can receive accurate data regarding how many people your advertisement reached and was viewed by; something that a lot of other avenues cannot offer. Other potential avenues of promotion include: