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 43 shows the marketing mix decision form. Click on a product name at the top of this page to display the detailed marketing mix decisions of this particular product.
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.
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.
The advertising budget must be entered in thousands of dollars. The form indicates what the advertising budget of the product was in the previous period.
You must also set two communication objectives: 60% of the budget will be allocated to the first objective, and 40% to the second. You will choose between Awareness, Interest, Action and Engagement.
Finally, you must indicate how you want to allocate this budget 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 product, i.e. to change consumers’ perceptions of the product. Read section VI.5 to learn more on repositioning products 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.
Figure 43 – Marketing mix decision screen