Marketing Mix Review and Assessment
Reviewing and assessing the marketing mix is a crucial skill in business studies. Companies constantly need to evaluate whether their marketing strategies are working effectively and delivering the desired results. This section will help you understand how businesses assess their marketing mix and make improvements.
Key Definitions:
- Marketing Mix Assessment: The process of evaluating how effectively the 4Ps (Product, Price, Place, Promotion) are working together to meet marketing objectives.
- Marketing Metrics: Specific measurements used to track and assess the performance of marketing activities.
- Return on Investment (ROI): A measure of the profit earned from a marketing investment compared to its cost.
✓ Why Review the Marketing Mix?
Regular review of the marketing mix is essential because:
- Market conditions change constantly
- Consumer preferences evolve
- Competitors may change their strategies
- New technologies create opportunities
- Business objectives may shift
☆ When to Review the Marketing Mix
Businesses typically review their marketing mix:
- At regular intervals (quarterly/annually)
- When sales targets aren't being met
- After launching new products
- When entering new markets
- In response to competitor actions
Assessing Each Element of the Marketing Mix
Product Assessment
When reviewing the product element, businesses consider:
- Sales performance: Are sales meeting targets?
- Market share: Is the product gaining or losing market share?
- Customer feedback: What do customers say about quality, features and design?
- Product lifecycle: Which stage is the product in and what actions are needed?
Case Study Focus: Apple iPhone
Apple regularly assesses its iPhone product line by tracking sales data, customer satisfaction scores and market share. When they noticed consumers wanted larger screens, they responded by introducing the iPhone Plus models. This product assessment led to increased sales and maintained their premium market position.
Price Assessment
When evaluating pricing strategies, businesses look at:
- Profit margins: Are prices generating sufficient profit?
- Sales volume: How do price changes affect the quantity sold?
- Price elasticity: How sensitive are customers to price changes?
- Competitor pricing: How do prices compare to competitors?
- Customer perception: Do customers see the price as fair value?
£ Price Too High
Signs include declining sales, low conversion rates and customer feedback about value. Action: Consider price reductions or adding value.
✓ Price Optimised
Signs include steady sales, healthy margins and positive customer feedback. Action: Maintain pricing but monitor market changes.
£ Price Too Low
Signs include high demand but low profits, stock shortages and perception of low quality. Action: Consider gradual price increases.
Place Assessment
When reviewing distribution strategies, businesses evaluate:
- Channel performance: Which distribution channels generate the most sales?
- Coverage: Are products available where target customers shop?
- Logistics costs: Are distribution methods cost-effective?
- Delivery times: Are products reaching customers quickly enough?
- Online vs offline balance: Is the mix of physical and digital channels appropriate?
Case Study Focus: ASOS
Online fashion retailer ASOS regularly reviews its 'place' strategy. When they noticed many customers abandoning purchases due to delivery concerns, they introduced next-day delivery, free returns and delivery time slots. This assessment of their distribution led to a 15% increase in conversion rates and improved customer satisfaction scores.
Promotion Assessment
When evaluating promotional activities, businesses analyse:
- Campaign ROI: How much revenue was generated compared to promotional costs?
- Reach and engagement: How many people saw and interacted with the promotion?
- Conversion rates: What percentage of people exposed to promotions made purchases?
- Brand awareness: Has promotion increased recognition of the brand?
- Message effectiveness: Did the target audience understand and respond to the message?
☆ Digital Promotion Metrics
Key measurements for online marketing:
- Click-through rates
- Cost per click/acquisition
- Social media engagement
- Website traffic
- Email open and conversion rates
☆ Traditional Promotion Metrics
Key measurements for offline marketing:
- Sales before/during/after campaign
- Footfall in stores
- Coupon redemption rates
- Brand recall in surveys
- Customer acquisition costs
Integrated Marketing Mix Assessment
While assessing individual elements is important, businesses must also evaluate how well the 4Ps work together as an integrated strategy.
Key questions for integrated assessment:
- Are all elements of the marketing mix aligned with the target market's needs?
- Do the 4Ps complement each other or create contradictions?
- Is the marketing mix consistent with the overall brand positioning?
- Does the marketing mix provide a competitive advantage?
- Is the marketing mix delivering the expected financial returns?
Case Study Focus: Innocent Smoothies
Innocent Smoothies conducts regular integrated marketing mix assessments. They ensure their premium pricing (Price) aligns with their high-quality, natural ingredients (Product), while their playful, ethical marketing (Promotion) reinforces their brand values. Their distribution through supermarkets and their own website (Place) ensures they reach health-conscious consumers. This integrated approach has helped them maintain market leadership despite increasing competition.
Methods for Marketing Mix Assessment
Quantitative Assessment Methods
These involve collecting and analysing numerical data:
- Sales analysis: Tracking sales figures over time and by segment
- Market share tracking: Monitoring changes in market position
- Financial metrics: Calculating ROI, profit margins and cost-effectiveness
- Customer acquisition cost: Measuring how much it costs to gain new customers
- Customer lifetime value: Estimating the total value a customer brings over time
Qualitative Assessment Methods
These involve gathering non-numerical insights:
- Customer feedback: Collecting opinions through surveys and reviews
- Focus groups: In-depth discussions with customer groups
- Social media monitoring: Tracking online conversations about the brand
- Mystery shopping: Evaluating the customer experience firsthand
- Competitor analysis: Comparing marketing strategies with competitors
Responding to Marketing Mix Assessment
After assessing the marketing mix, businesses typically respond in one of these ways:
⊕ Minor Adjustments
Fine-tuning individual elements while keeping the overall strategy intact. Example: Adjusting prices slightly or expanding product range.
↻ Significant Changes
Making major changes to one or more elements. Example: Completely rebranding a product or changing distribution channels.
↺ Complete Overhaul
Redesigning the entire marketing mix. Example: Repositioning the product for a different market segment with new pricing, distribution and promotion.
Exam Preparation: Marketing Mix Assessment
When answering exam questions about marketing mix assessment, remember to:
- Explain why regular review of the marketing mix is important
- Describe specific methods businesses use to assess each element (4Ps)
- Include relevant examples from real businesses
- Discuss how businesses respond to assessment findings
- Evaluate the effectiveness of different assessment techniques
- Consider how external factors might influence marketing mix decisions
Exam Tip
For high marks in questions about marketing mix assessment, don't just describe what businesses do explain why they do it and evaluate how effective different approaches might be in different situations. Use specific business examples to support your points.