Marketing Planpsychology Narrative Essay
The marketing mix is a marketing tool. It is a checklist.
It focuses attention on the various elements of marketing needed to carry out the marketing strategy. It consists of four factors (product, price, promotion and place) cemented together by effective market research. I am going to use these factors to persuade people to use my business.Product- A product is something that is offered to the market.
Businesses need to understand what the product is and what it means to the consumer. A product can be a good e.g. a washing machine, a service e.g. hairdressing, a place e.
g. a tourist destination or a person e.g. football player.
In the case of my product, it is both a good, as I am providing people with food and also a service as I am cooking the food for them. My product is already in an existing market so in order to keep up with my competitors I have to make my product a little bit different from them. The best way of doing this is to find out the modification that will have the most customer appeal. From my questionnaire analysis, I have found that to differentiate myself from my competition I need to provide the best food I can in big portions with the finest service and of a top clean standard.
I am aiming my product at mainly men between the ages of 30 and 55 who are in manual jobs as my business will be located on an industrial estate which is near to where my target audience work. However, the business will appeal to all ages as I have found out from my questionnaire analysis that all ages and genders visit cafes. The products that I decided were based on my market research.Price- Price is the amount paid by the customer for a good or service. Price plays a strong role in marketing the product. It is fundamental to most consumer buying decisions.
I can use different types of pricing strategies and I will look at the prices of my competitors. The pricing is important because it will affect the success of my product. The types of possible pricing I could use are penetration pricing, price skimming and competition based pricing.Price skimming is where a relatively high price is charged for a short time where a product is launched onto the market.
I am not going to use this pricing strategy because it is inappropriate for any business starting up especially mine. I want my potential customers to be interested in my product straight away so I am going to have to have a lower price first rather than a high price. Once the business is more established then it may be possible to charge a higher price because people will be prepared to pay for it especially since you are offering something different i.e. big portions.
Penetration is where you set the starting price lower than a your competition price in order to achieve a larger market share. This will be the pricing strategy I am going to use because I want to make the product well known and sell more of it. From my questionnaire analysis, I found that a number of people were happy with the prices that they pay in the cafes they visit. To entice these customers away from my competition, I need to have lower based prices first.
For example maybe charging ï¿½3.50 for a full English breakfast and raise the price when I have a regular client base. As I mentioned before, once the business is established it may be possible to raise the price because the demand for my product will be higher.There is also competition based pricing. This is where you based the price of your product around your competitors’ prices. I am not going to use this type of pricing method because I need to set my business apart from my competition and the way to do this will be introducing lower prices.
Once my business becomes more established I will try raising the prices to the prices of my competitors where I have already gained loyal customers as this is an important part of making my business survive. Although price is important, many of my questionnaires said it’s not that important. Many also said that a good atmosphere and good quality food was important.Promotion- This is telling consumers and possible consumers about a product. The aim of promotion is to persuade the customer to buy the product.The two forms of promotion I will mainly use are advertising and point-of-sale.
Advertising includes direct advertising such as through the TV, radio andnewspapers. It also includes indirect advertising such as product placementPoint-of-sale is promotional material is often used where the product is being sold. It may include displays, free samples or special offers.I want my product to be successful so the promotion of my product will be vital in ensuring success. I need to ensure that my marketing strategy is good otherwise my product will not be successful.As I wrote before, I will be advertising my product through leaflets and newspapers.
I also thought it was a good idea to advertise through local radio such as Time 106.8 fm. As it is only a small business, I will not be advertising through television but merely just through newspapers, leaflets and radio so the local people will be able to see it. A good place to put it in the newspaper would be in a section where men are more likely to read it such as sport or cars. Leaflets will be handed around the factories and where general manual labouring will be in the estate. I will also hand them out to people at the train station and industrial estates and place them on car windows in the local high street and car parks.
This has proved to be a successful way of advertising as my parent’s cafï¿½ used this method.I am going to combine the leaflets by advertising the business but also using promotional material like vouchers. The vouchers on the leaflet have special offers such as free cup of tea, free meal on your first visit and ï¿½1 off any meal any time which will stop people simply discarding when being given it.. I will be displaying widely within the cafï¿½, mainly in the windows so people will see that we are new and are different to our competitors.
Word of mouth must also be maintained widely so that my business is promoted.Below is an example of the flyer that I will be using to entice customers.Place – This is about availability and making the product available to customers. It includes the physical place, availability and timing.The place that I am launching my product is Erith industrial estate.
I have found a property there where I will be based. It is close to where my target audience work, so will more than likely use it. I will be having a small shop to start off with and it does have 18 fully furbished tables, which are both 2 table and 4 table. I am using the method of distributing directly to the customer because I am not selling through a wholesaler or retailer. The times I will be opening from will be 7am to 6pm weekdays and 7am to 5pm weekends.
I need to have a retail outlet shop because I need customers to come to me. I have also considered the possibility of take away when my business takes off.