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Marketing Mix - product, place prices and promotion

MARKETING RESEARCH

Write a paper in which you

Describe the elements of the marketing mix
? product,
? place,
? price, and
? promotion
(no definitions, identify in below)

Select and specifically identify an organization and the industry in which it exists. Use real life examples to assure you understand course materials.

Describe:
? How each one of the four elements of the marketing mix affects the development of the organization's marketing strategy and tactics.
? How each element is implemented?

Justify the importance of marketing research and competitive intelligence and analysis in the development that organization is marketing strategy and tactics. Use course materials from the chapters below.

? Ebook COLLECTION: Marketing, Chapter 8
? EBOOK COLLECTION: Marketing: An Introduction, Chapter 4
? EBOOK COLLECTION: Marketing: An Introduction, Chapter 5
? EBOOK COLLECTION: Marketing: An Introduction, Chapter 6

Solution Preview

Introduction

All companies, whether with local or international operation, needs marketing mix to sustain their operations. Discussions were made to make this business concept clear.

The materials below were culled from various sources online. I made it sure that sources of these materials were properly cited. This write up is intended as your guide.
Marketing decisions generally fall into the following four controllable categories:

? Product
? Price
? Place (distribution)
? Promotion

These four P's are the parameters that the marketing manager can control, subject to the internal and external constraints of the marketing environment. The goal is to make decisions that center the four P's on the customers in the target market in order to create perceived value and generate a positive response.

Product Decisions

The term "product" refers to tangible, physical products as well as services. Here are some examples of the product decisions to be made:

? Brand name
? Functionality
? Styling
? Quality
? Safety
? Packaging
? Repairs and Support
? Warranty
? Accessories and services

Price Decisions

Some examples of pricing decisions to be made include:

? Pricing strategy (skim, penetration, etc.)
? Suggested retail price
? Volume discounts and wholesale pricing
? Cash and early payment discounts
? Seasonal pricing
? Bundling
? Price flexibility
? Price discrimination

Distribution (Place) Decisions

Distribution is about getting the products to the customer. Some examples of distribution decisions include:

? Distribution channels
? Market coverage (inclusive, selective, or exclusive distribution)
? Specific channel members
? Inventory management
? Warehousing
? Distribution centers
? Order processing
? Transportation
? Reverse logistics

Promotion Decisions

In the context of the marketing mix, promotion represents the various aspects of marketing communication, that is, the communication of information about the product with the goal of generating a positive customer response. Marketing communication decisions include:

? Promotional strategy (push, pull, etc.)
? Advertising
? Personal selling & sales force
? Sales promotions
? Public relations & publicity
? Marketing communications budget

Reference:
NetMBA, The 4 P's. http://www.netmba.com/marketing/mix/

The 5th P of Marketing

Some marketing theorists have added a 5th P of marketing to the elements of the marketing mix: People
When referred to as an element in the marketing mix, this 5th P refers to how your level of service and the expertise and skills of the people who work for you can be used to set you apart from your competitors.

Reference:About.Com, http://homebusiness.about.com/od/homebusinessglossar1/g/marketing-mix.htm

Benefits of the marketing mix

There are many benefits of the marketing mix, and reasons why they should be used.
In many cases, it provides a valuable framework for allocating financial and human resources, nearly every company has to allocate a certain amount of its precious resources towards its marketing efforts, and they need to be used in the most effective way.

Also, a well blended marketing plan helps with goal achievement, which will constitute the company's tactical-tool-kit for establishing strong positioning in the target markets.

It can also promote customer satisfaction, by delivering a special customer benefit tied together with each element of the 4 marketing P's/marketing mix. For example the "Price" could be fixed in such a way that imposes minimum cost to the customers, and "Promotion" activities may be designed in a way to properly and completely "communicate the message" of the company to targeted consumers in the correct markets.

There are more and more examples from the benefits of the marketing mix which could be touched on, but those listed above are a few of the main benefits and objectives from constructing a well planned marketing mix, and can provide valuable information to marketers and for new projects.

Reference:
Prof. Dennis Chowdry, Four Marketing P's, http://4marketingps.blogspot.com/2009/09/benefits-of-marketing-mix.html, 06/09/2009

Companies utilizing Marketing Mix

Online researches resulted to five companies utilizing marketing mix to develop their marketing strategies and tactics. These discussions also looked closely on how each element of the marketing mix is implemented.

These companies are Kellogs, Manchester United, Johnson & Johnson, PepsiCo, and an Insurance company.

Kellogg's

For example, a company like Kellogg's is constantly developing new breakfast cereals - the product element is the new product itself, getting the price right involves examining customer perceptions and rival products as well as costs of manufacture, promotion involves engaging in a range of promotional activities e.g. competitions, product tasting etc, and place involves using the best possible channels of distribution such as leading supermarket chains. The product is the central point on which marketing energy must focus. Finding out how to make the product, setting up the production line, providing the finance and manufacturing the product are not the responsibility of the marketing function. However, it is concerned with what the product means to the customer. Marketing therefore plays a key role in determining such aspects as:

? the appearance of the product - in line with the requirements of the market
? the function of the product - products must address the needs of customers as identified through market research.

The marketing mix of Manchester United

What are the main elements of the marketing mix of Manchester United? First of all the product includes providing an excellent football team that plays and wins in an exciting way. However, there are other ingredients of the product including merchandising such as the sale of shirts, and a range of memorabilia. The product also relates to television rights, and Manchester United's own television channel. In one respect the place is Old Trafford where home games are played, but Manchester United also plays at a range of other venues. And, of course its products are sold across the globe, through the club's website and a range of other sales media.

Manchester United markets itself as a global brand. The club also engages in a range of joint promotional activities, for example with the mobile phone company Vodafone. Manchester United books, shirts, programmes, keyrings and many other items are sold and promoted through its website. The club has positioned itself at the upmarket premier end of the market and, as a result, it tends to charge premium prices as evidenced by the high cost of a season ticket to watch home league games.

Reference:
The Times 100, http://www.thetimes100.co.uk/theory/theory--marketing-mix-(price-place-promotion-product)--243.php#ixzz1QFqIBD6M

Johnson and Johnson Marketing Mix

The roots for the Johnson & Johnson Company run deep. The company began in1886. It incorporated one year later. By 1896 it had released its first major product of note - a sterilizing technique for catgut sutures.

The firm branched out in 1919, with the establishment of an affiliate in Canada, and in Britain in 1924. Next came a public launch and a listing on the New York Stock Exchange in 1944.

Over the years Johnson & Johnson has grown substantially in part due to strategic acquisitions ranging from large ones such as Neutrogena in 1994 and DePuy in 1998, to many smaller ones. From 1989 to 1999, the company made 45 such acquisitions of companies and product lines. Today the firm can boast of revenues exceeding $61,897 million during the ...

Solution Summary

This solution describes the elements of the marketing mix. Real life examples of companies utilizing the marketing mix were highlighted.

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