Student name

Fleur Geerdink

Class/cohort

1B

Unit

Assignment

P6

Submission

Hand-in Date

30-11-2015

Assessor

Ms de Jong and Ms Talens

2015 - 2018

The marketing mix

The marketing mix consists the four Ps. The four Ps are product, price, place and
promotion. Businesses use this marketing mix for developing marketing plans. All the
elements of the marketing mix influence each other. A good marketing mix gives a business
great success. The marketing mix needs a lot of understanding, market research and
consultation with several people.

Philips

light

Product
The actual product
Philips Hue is a wireless lighting system with different colours.
This wireless lightning system combines a bright and energyefficient LED light.

The core product

This wireless lightning system is based on your personal lifestyle. It
combines a bright and energy-efficient LED light. The light can change
into 16 million different colours. You can extend your TV
viewing experience with the different light colours and you can
control the light from anywhere, or automate your lights to make it
seem like youre at home when youre not.

The augmented product

The extra value that his product gives is that you can control the
lighting system with the Hue app on your phone and if you have
iPhone, you can ask Siri to turn the lights on or off (Siri is a
program on the iPhone you can control with your voice)

an

Product life cycle

product life cycle of the Philips Hue lighting system

Kolom2

In the introduction stage, a product takes time to find acceptance by purchases and there is
slow growth is sales. Most of the time there are high costs and the output is low. That is
because they dont have that many customers yet.
If the new product gets known by the customer, then the sales grow fast. This is the growth
stage. If the sales are increasing, it is possible for the producers to invest in building a brand
image, product improvements and sales promotions to obtain a dominant market position.
In the decline stage, the sales will not increase anymore. That is because the customers
already have the product or the customers are switching to a different type of product. It is
still possible for the companies to make profit but then they have to switch to a lessexpensive production method. They also can make profit by producing an updated product.
When the product experiences stable sales, the maturity stage follows. This is the longest
period of successful products life. This is also the most competitive time for the product and
the business has to invest in marketing.
The Philips Hue lighting system is still in the end of the introduction stage, they still make a
lot of costs and people are unknown with the lightning system but I think that in the future this
lightning system becomes more popular and that the sales will increase. I think if they are in
the decline stage, Philips will produce a new and better Hue lighting system to make more
profit.

Price
Six step process for deciding the product price
Philips must set up a price for the lightning system and, in deciding the products price, they
have to follow these six-step process

1. Select the price objective

The price has to be a bit high because it is a luxury product and Philips should keep
their image high.

2. Determine demand
The price cant be too high because otherwise they dont sell anything, but the price
also cant be too low because than you dont have any profit

3. Estimate costs
Every business should charge a price that covers their costs for producing,
distributing and selling their products. So the price has to be higher than the
producing price because otherwise you dont make any profit.

4. Analyse competitors costs, price and offers

The competitors are asking for the same product a price between 30, - and 50,- ,
but the competitors dont have the lights that you can control with your voice with the
iPhone so Philips can ask a higher price for their product because they give an extra
value to the product.

5. Select a pricing strategy

The pricing strategy that they use is premium pricing because the light have a very
good reputation. Philips keeps the price of the hue lighting system high to encourage
customers to associate it with high quality

6. Select s final price

I would give the starter pack of the hue lighting system a
because the starter pack consist out of 3 lights and a
This product is more expensive than his
competitors but that is because it is a high quality
product and it has a few extra functions from your
mobile device.

price of 150, controller.

Place
Most customers will buy this product by a retail store like Media Markt or they will buy it
online by Philips.com. To get the product by the retailer Philips have to sell and distribute his
products to a wholesaler who will sell it to the retailers. There are two types of distribution
methods. The first method is the indirect distribution. This is the term that we use when a
business sells its product to a wholesaler, who then will sell the product to the retailer. Direct
distribution is where the business sells and distributes direct to the customer.
Philips use the indirect distribution. They can lose some control over the pricing of the
product but they can reach more customers because their product is spread across multiple
store so more people encounter this product.

Promotion
With the P of promotion, we use a promotional mix. This is a mix of elements to suit the
promotional objectives of an organisation. The promotional mix consists:

Advertising
Personal selling
Public relations
Sales promotion

Advertising
Advertising is a paid promotion by media. You can advertise with
many methods. These methods helps you to sell your products to
the customer. Philips use a lot of excitement in their commercials.
Everyone in the commercial is happy and everyone loves the product.
They let you see what for excitement things you can do with the Hue
lightning system.

Different media
Philips uses especially mass media, such as television, social media and
magazines. Philips use this because you can reach many people at the same time. For
example, more than a million people have watched the Hue lightning system commercial. Are
these people are now familiar with this product.

Personal selling
This is when the seller tries to sell a product to customer. They can do that face to face but
also with a presentation or it can be over the phone. Personal selling may reach a small
number of people, but it is generally more effective.

Public relations
For instance, there are press events of the Philips Hue lighting system. At this event are
people that are interested in the product such as bloggers. Bloggers are seeing this product
and they are writing about it on their blog, other people are reading this and they will consider
buying them product because the blogger is very excited about the product.

Sales promotion
Sales promotion relates to marketing activities such as coupons and free samples. These
activities are providing a short-term growth because the coupons are time-related. There is
just a short time of growth.

AIDA model
Another method instead of promotional mix is AIDA; a model that describes promotion as a
four-step process.

AIDA model for Philips

capture ATTENTION
most of the users are in the United States, followed by Germany,
UK, Netherlands, Canada, and France

create INTEREST
making advertisements on tv, social media, news paper and
magazines

generate DESIRE
the audience wants this product because they want something
new

call to ACTION
in the advertisment is listed where you can get the product

Conclusion
The marketing mix is very important because without it you will have no success with your
product. The different elements have to be cohesion coherent because otherwise, your
marketing mix is not correct and then it does not work.

Verwijzingen
Geerdink, F. (2015). Notes. Groningen: Noorderpoort.
John Bevan, H. C.-S. (2010). BTEC national Business book 1 level 3. England: A Pearson
Company.
Muilwijk, E. (2015). AIDA-model. Opgehaald van intemarketing.nl:
http://www.intemarketing.nl/marketing/modellen/aida-model
Philips. (2015). Philips Hue white and color ambiance starter kit A19. Opgehaald van
2.meethue: http://www2.meethue.com/nl-nl/productdetail/philips-hue-white-and-colorambiance-starter-kit-a19