The Marketing mix is one of the most crucial elements that a company requires to think about when building a brand and to help it become successful. The mix is composed of 4 main P's; Product, Place, Promotion and Price and if used in the correct combination for the specific market, it will ensure the business is aiming for the right target audience and guaranteeing a successful good/service that the public will enjoy. However, as the company we created was a service all 7 P's apply, the rest of them being Physical Evidence, People and Process. This essay will explain certain parts of the marketing mix, specifically place and promotion, and how they affect the ASOS X brand which is the opening of a number of ASOS pop up stores around Britain where the place of the store depends on the most popular style in the area. (Efanny et al.,2018) states that “there have been excellent studies published where marketing efforts are considered to have a positive impact on brand equity.” which shows that if the marketing mix is used to its best potential the buyer's perception of the business name will give value to the company.
One of the most important elements of the marketing mix that will be looked at in regard to the ASOS X brand is Promotion. This is the way that businesses broadcast and advertise their goods or services. This involves Sales promotion, public relations, personal selling/ direct marketing. Sales Promotion are the ‘below the line' schemes and proposals that help increase business. Personal Selling is where a salesperson will demonstrate the product in front of customers giving them an insight to what they could possibly be buying (S,2018). Promotion in the business world is one of the most powerful and influential elements, a company's goal is to entice and captivate the customers attention into buying their product or service and by using this, they can complete that. Usually the end goal of using promotional strategies for a company is to build public recognition, a brands identity is important to its success. (Morimura and Sakagaw,2018) mention that “Previous studies have found that pricing and promotion strategies use different mechanisms to increase retail chain profit”. The AIDA model is a well-known theory used by companies, it shows the mental process a person goes through when they are going to purchase a good or service. AIDA stands for Awareness; consumers knowledge of the brand, Interest; the consumer has a further understanding of the brand due to a belief that it would be beneficial to themselves at the time, Desire; the fascination of the product/service has brought about the customers desire to purchase and finally Action; the action of purchasing and connecting with the company. For example, subscribing to a newsletter (Smart Insights, 2018).
The ASOS X brand caters for 18-24-year olds, this age range is defined in having been brought up with technology and having been exposed to a great amount of online/digital marketing. Mintel (2018 p.2) states that “Generation Z is a huge consumer of influencer content, and marketing departments have had to adapt to ensure they target this demographic effectively” , also statistics from Mintel (2018 p.2) report that “Currently over half of Gen-Zers report finding it difficult to take a break from being online..” this highlights the importance of technology today and the impact it can have on buyer behaviour. Due to this, one promotional tool that would be beneficial to the ASOS X brand would be social media marketing. This method has become one of the main ways to promote and a way ASOS X would complete this successfully is by connecting with admirers of the brand to spread awareness. The customers or general public who regularly access these social media
platforms usually end up committing to the brand and giving their loyalty in return (de Vries, Gensler and Leeflang, 2012). As stated by Kim and Ko (2012 p.1480-1486 2.1), “One third of survey participants posted opinions about products and brand's blog, and 36% thought more positively about companies that have blogs” thus proving that a brand that is more active on social media and online will be more likely to attract consumers. The importance of a good experience while shopping is becoming more and more obvious to companies, with brands creating social media “campaigns that offer an experiential quality that can be easily shared” (Mintel,2017), meaning that consumers are more inclined to post online about the experience they had in the shop, therefore giving more people in an insight to the business and what they can offer.
Place is another major element of the marketing mix that ASOS X would need to think about. This factor relates to the physical place that the product/service will be held, the location of a business or where products are sold can depend on many reasons. One being the channels of distribution, this is the possible journey that a product may take to reach to the consumer. A brand must be fully aware of their target audience and follow what they like and dislike in order to adopt the best method of distribution. Distribution strategies include Intensive distribution, Exclusive distribution, Selective distribution and Franchising (The Marketing Mix,2018). Intensive Marketing means that the products are dispersed in large proportions, in as many potential locations, this type of distribution channel is used for products that are very common in the market so have lots of existing competitors; Exclusive Distribution is when the distributor solely reaches out to the wholesaler or retailer in order for them to purchase and sell the goods; Selective Distribution is the choosing of particular retailers that are best suited to sell the brand (Bhasin,2018). The product must be readily available to probable consumers, so location of the company is an important factor and certain elements will depend on the place such as footfall, transport links and competition. (Strain,2018)
For the ASOS X brand, the pop-up stores are opened in locations depending on the most popular trends in the area. The relevance of location is important to the company, and things that asos would need to take into account is what the customer likes and dislikes. In the proposal, it was suggested that the best place to start the brand was London, Shoreditch. London's status in the fashion world attracts millions of tourists to come and explore the areas and shops(Mintel,2018), therefore the increased footfall in this area would help maximise profits. To figure out the best distribution strategy to use, ASOS X would be required to understand their consumer and what they want. For this type of retail business the best distribution strategy would be selective distribution, this method of distribution is beneficial to a brand that is opening up shops in certain geographic areas (Advergize,2018). Cespedes(1988) mentions “Reasons for the growing prominence of distribution in marketing strategy have been well documented: increased direct selling costs on many industries: the impact on just in time inventory practices on the role of intermediaries ; concentration within many traditionally fragmented industrial distributor channels”
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