2. How can the internet play a role in new product development?
1. How does an organization's strategy impact its marketing mix?
The marketing mix approach to marketing is one model of creating and implementing marketing strategies. It stresses the "mixing" of various decision factors in such a way that both organizational and consumer objectives are attained.
The most common variables used in constructing a marketing mix are price, promotion, product and distribution (also called placement).
Product: Defines the characteristics of your product or service that meets the needs of your customers.
Price: Decide on a pricing strategy - do not let it just happen! It means deciding the price which consumer has to pay including discount structure.
Promotion: This includes all the weapons in the marketing armoury - advertising, selling, sales promotions, Public Relations, etc.
Place (or route of distribution): Some of the revolutions in marketing have come about by changing this P. Think of telephone insurance and the Internet! A bit of lateral thinking here might reap rewards for your business. (Kotler, 1998)
When constructing the mix, marketers must always be thinking of whom their target markets are. They must understand the wants and needs of the customer then construct marketing strategies and plans that will satisfy these wants. The mix must also meet or exceed the objectives of the organization.
When building a marketing program to fit the needs of his firm, the marketing manager has to weigh the behavioral forces and then juggle marketing elements in his mix with a keen eye on the resources with which he has to work. A separate marketing mix is usually crafted for each product offering or for each market segment, depending on the organizational structure of the firm.
Marketing Mix is the most important part of a successful business. Moreover the marketing mix must be reviewed continuously by the organization. It is a dynamic concept.
Marketing mix is crafted as per the strategy of the organization and of that product. Strategic planning defines objectives and evaluates both the internal and external state of affairs to devise strategy, execute the strategy, assess the advancement, and fine-tune as necessary to stay on track. Based on the information from the environmental scan, the organization should match its strengths to the opportunities identified, while dealing with its weaknesses and external threats. The company seeks to foster a competitive advantage over its competitors to earn superior profits. A competitive advantage can be based on cost or differentiation. Michael Porter identified three industry-independent generic strategies from which the firm can choose?cost leadership, differentiation, and focus.
Thus Marketing Mix has to be decided as per the strategy the organization is pursing. Suppose its pursuing cost leadership then the Marketing mix has to be devised accordingly. It has to develop policies aimed at becoming and remaining the lowest cost producer in the industry. There will be construction of ...
This discusses the organization's strategy impact on its marketing mix and role of the internet play in new product development.