NVC Chapter 6: Developing Your Marketing Mix

The motivations each segment has for buying your product or service.

The ‘five Ps’ that define your marketing strategy: Product/service, Price, Promotion/communication, People (service) and Place (distribution channels etc.).

The route your product or service takes to get to market – who you sell through.

‘Pushing’ sales of your product or service by offering incentives to distributors.

The demand of customers for your product or service that ‘pulls’ it through your channels of distribution.

The person or organization consuming or using a product.

This takes the total cost of producing a product or delivering a service and divides it by the predicted number of units to be sold to arrive at the average cost, to which a target mark-up is then added.

The cost of producing one additional unit (e.g. the costs of materials or components and piecework labour).

How demand reacts to changes in price.

Contribution per unit divided by sales price, or total contribution divided by turnover, expressed as a decimal fraction, but often converted to a percentage.