PART A – WRITTEN ASSESSMENT

Review of the Marketing Mix

Reporting on one adjustment you would make to the mix
Task Description

This is an individual task and must reflect your own work.

Part A requires you to complete additional work for the same report you wrote in
Assessment 1 on the Marketing Mix of an organization or product or service of your
choice.

YOU ARE REQUIRED TO REVIEW ANY ADJUSTMENTS YOU WOULD MAKE TO AT

LEAST ONE ELEMENT OF THE MARKETING MIX. YOU MAY REPORT ON CHANGES
THAT HAVE ACTUALLY TAKEN PLACE OR YOU MAY BE CREATIVE AND SUGGEST
CHANGES THAT YOU BELIEVE SHOULD TAKE PLACE TO IMPROVE THE
MARKETING MIX. INCLUDE THE FOLLOWING POINTS:

1. If you believe you could improve one element of the marketing mix you
wrote about in part A, what would it be? (5 marks)

2. a. How would you know this? (5 marks)

b. How would you evaluate, monitor and test this element? (5 marks)

c. Specifically what adjustments would you make? (5 marks)

d. How will this adjustment improve the situation for the company or the
consumer?
(5 marks)

PART B – WRITTEN OR ORAL QUESTIONS

1. What is the marketing mix? Describe each of the four elements in a sentence
for each one. (4 marks)
The Marketing Mix refers to the combination of elements, known as the 4 P’s, that a
company puts together to best satisfy the target market:

 Product
The product is the physical item or service that you will provide to the customer,
or it could be a combination of both. - The most successful product will be one
 that has been developed specifically with the customers needs in mind, and how
well it satisfies those needs.
 Place
Place is all about how the product is distributed to the customer. - It involves
getting your product in the right place for your target market – making sure it is
available when and where they want it, or where and how the product is sold.

 Promotion
Promotion is any form of communication you may have with them to deliver
information about your product which may assist in persuading them to buy the
product or use your service.

 Price
Price is how much the customer pays for the product or service. - Price takes into
consideration the perceived value of the product to customers. Price can be both
too high or too low, to meet target expectations. The positioning of the product is
important when considering the right price.

2. In your own words, explain three different pricing strategies that might be
used for a new product launch? (3 marks)

Price skimming: Price skimming is a price strategy that involves setting a

high price before other competitors come into the market. Therefore, the
price strategy is usually used by a first mover who faces little or no
competition.
Price skimming is not a viable long-term pricing strategy, as competitors will
eventually launch rival products and put pricing pressure on the first
company.
Price skimming is used to maximize profits when a new product or service is
deployed. Therefore, the pricing strategy is largely effective with a
breakthrough product, where the firm is the first to enter the marketplace.
In such a strategy, the point is to generate the maximum profit in the shortest
time possible, rather than to generate maximum sales.

Advantage of the price skimming is

 It helps a company quickly recover its cost of development.
 It generates a high profit margin for the company.
 It helps building a high-quality image and perception of the product.

Disadvantage of the price skimming is

 Early adopters may feel ripped off, therefore if the company has a history of
price skimming, customers may wait a couple of months before purchasing
the product at that company. > This might lead to losing customer’s truth.
 Consumers may not be willing to purchase the product due to the high price.

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  Price skimming strategy is not a viable long-term strategy, as the competitors
will eventually enter the market with the rival products and exert downward
pricing pressure.

Penetration pricing: Penetration pricing is a price strategy that entering the

market of a product with below-average prices, price the product lower than
the competition to drive sales. Companies advertise new products at low
prices, with modest or nonexistent margins. It is a great strategy to add to
your marketing mix to grab a huge portion of the potential customer base
early on or to capture customers from your competition.

Advantage of the penetration pricing is

 It helps penetrate the market by getting the attention of more customers
than a higher price otherwise would, due to the low price. It can also take
consumers away from the competition.
 It helps improving the brand loyalty around a product launch. The low price
brings in new customers and a product that offers good value and quality will
keep them around once the price increases.

Disadvantage of the penetration pricing is

 Above everything, low margin is the first disadvantage to come
 The low price of a product launch can lead to customers associating

Introductory pricing:
Introductory pricing is a price strategy to attract customers to a new product
by offering a special price and creating a new customer audience in order to
enter a new market for the company. It involves setting a reduced price at
the beginning in order to increase sales and then over some time, gradually
raise the price to make the product profitable.

Advantage of the Introductory pricing is

 High customer retention rate (Till the price increase).
 If it’s entering a new market, you can take the lead among the competitors.
 A new product with an attractive price is an excellent base for a successful
promotion.

Disadvantage of the Introductory pricing is

 Customers might be disappointed and feel the product is expensive when
they’ll see the price increasing after the promotion finish.
 In search of a better offer, some customers can switch from one offer to
another.

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 3. Describe three types of advertising media and explain one advantage of
choosing each one as a media channel. (3 marks)
-SNS marketing (Facebook, Instagram, Google)
 Easy to approach
 No high budget required
 Prompt responses and engagements from targets
 Easy to set up the suitable target for your market, and easy to try new
targets
 Easy to track the result of the advertise

-TV
 Able to choose a wide range of targets
 Strong visual impacts

-Magazines
 Very targeted
 Excellent details available

4. Explain how the level of customer service will impact upon marketing
outcomes. (3 marks)
The level of customer service is the most important thing to customers.
Because revenue increases with loyal customers, and loyal customers
increases with good customer services.
92% of consumers trust recommendations from friends and family.
76% of respondents said a positive review made them more likely to use or
visit the business, while 40% said a negative one made them not want to use
or visit the business.
And return customers tend to buy more from a company over time.
Also, return customers refer others to your company, as the research shows.
And they will often pay a premium to continue to do business with you
rather than switch to a competitor with whom they’re not neither familiar
nor comfortable.

5. Describe what segmentation is, and list 5 dimensions, or ways of segmenting

your target market. (5 marks)

Segmentation is the process of dividing a target market into smaller, more

defined categories. It segments customers and audiences into groups that

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 share similar characteristics such as demographics, geographics and
psychographics…, It is to define and identify your target market.

Demographic segment: Consider age, gender, income, location, family

situation, annual income, education and ethnicity.
If I would like to sell cloths, I must consider the annual income of target
consumers, age, considering what kind of cloth style they would prefer to
purchase, and gender if I would like to sell men’s or women’s, etc.

Psychographic segment: Consider how a person thinks, feels, and behaves.

It describes their opinions, interests, habits, lifestyles, activities, personality
of socioeconomic status.
If I would like to sell clothes, I must consider lifestyle, activities of my target
consumers, for occasions cloths, how often they go for a vacation, and what
kind of activities they enjoy to do, if they go out and go fancy restaurants
often, etc… So that I will be able to apprehend what kinds of occasions
clothing customers need.

Geographic segment: Consider physical location such as suburb, region, state,

or country. It could be also be city or rural environment or even climate
variations.
If I would like to sell clothes, I must consider if customers live around the
beach, or near city, if they prefer casual clothing or formal clothing.
If I would like to ship nationally, or internationally.
If the weather where my target customers live is hot or cool, etc.

Segment based on the user: How the target consumers will use the product
or the frequency of usage.
If I own a physical store in a specific area, some people would visit our store
just once (for vacations), some people would visit very often (for local
customers), and some people. And for some people who may think their own
style does not match with my store, or who are not interested in purchasing
clothing, would never come.

Segment of benefits: Benefit the customer wants from the product.

Benefit of shopping – Fun, comfort, relaxation, satisfaction.

6. Why is it important to set objectives at the beginning of a marketing plan. (2

marks)

7. What is product positioning and why is it important? (3 marks)

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 8. Why is it important to ensure that marketing mix decisions meet an
organisations objectives? (2 marks)
9. List 4 methods of gathering information you might use to monitor the
performance of your marketing mix? (2 marks)
10. Give an example of an organisation or product you are familiar with, who
adjusted a component of their marketing mix in response to evaluation.
Briefly describe that change or adjustment. (3 marks)

Assessment 2 total: 55 marks