Making Marketing Mix Decisions
This section focuses on how to use decision forms to make marketing mix decisions. Visit the sections Production, Pricing, Advertising and Repositioning strategies to learn more about the purpose of these decisions.
Figure 49 shows the marketing mix decision form. Click on a brand name at the top of this page to display the detailed marketing mix decisions of this particular brand.
Production
The production plan must be entered in units. To help you make this decision, the form indicates how many units were sold in the previous period and how many units are held in inventory at the beginning of the period. Note that if you had modified the base project of the brand, these units will not be available.
Price
The price entered in this form is the recommended retail price or list price, i.e. the price paid by customers, except for consumers shopping in channels which practice a discount. The price must be given in dollars. The form indicates the price that was set in the previous period.
Advertising
The advertising media and research budgets must be entered in thousands of dollars. The form indicates what the total advertising budget of the brand was in the previous period.
You must also indicate how you want to allocate these budgets across consumer segments. The percentages entered in the cells must sum to 100%, otherwise you will not be allowed to close the form and save your decisions.
Perceptual objectives allow you to reposition the brand, i.e. to change consumers’ perceptions of the brand. Read section VI.5 to learn more on repositioning brands through advertising.
If your intent is just to raise awareness, simply select . Otherwise, you may specify your objectives in term of or . Objectives can be set on one or two dimensions. Select the dimensions on which you want to communicate in the and choice boxes. Finally, enter the desired level on each dimension in the and choice boxes. If you wish to focus on a single dimension, pick in the box.
Remember that when a company uses advertising to communicate in an exaggerated way about the circular aspects of its products, it is considered by the market as greenwashing. If a company frames an advertising message very far from the real position of the brand physical attribute (in case of semantic scales) or of the circular dimension (in case of MDS), then communication will fail and there will be no repositioning. If greenwashing is really exaggerated, there could even be a greenwashing backlash, i.e. a regression of the current position further away from the ideal point that was entered (see section II.7. on “Eco-score, Government actions and Greenwashing”).