October 16, 2013
The Marketing Mix
Marketing mix is a general phrase used to describe the different kinds of choices organizations have to make in the whole process of bringing a product or service to market. The marketing mix helps companies define the marketing elements for successfully positioning your market offer. The term "marketing mix" became popularized after Neil H. Borden published his 1964 article, The Concept of the Marketing Mix. Borden began using the term in his teaching in the late 1940's after James Culliton had described the marketing manager as a "mixer of ingredients". The ingredients in Borden's ...view middle of the document...
A product is described as an item that satisfies what a consumer demands.
Products are tangible goods or an intangible service. Tangible products are those that have an independent physical existence. Every product is subject to a life-cycle including a growth phase followed by a maturity phase and finally an eventual period of decline as sales falls. Companies must do careful research on how long the life cycle of the product they are marketing is likely to be and focus their attention on different challenges that arise as the product move. Some examples of the product decisions that will need to be made: What will be the name or brand name of the product? How will the product be used, or its functionality? What level of quality and craftsmanship are consumers willing to pay for? How will the new product get packaged? Today’s consumers are more informed than ever before, repair and tech support is very important to consumers. What accessories and services are available to the consumer? Lastly, does this product have a safe track record or considerable proven testing prior to being made available to the public?
Price is described as the amount a customer pays for the product. The price is very important as it determines the company's profit and hence, survival. Adjusting the price has a profound impact on the marketing strategy sales and depending on the price elasticity of the product, often it will affect the demand and sales as well. The company should set a price that complements the other elements of the marketing mix. When setting a price, the company must be aware of the customer perceived value for the product. The 'reference value' (where the consumer refers to the prices of competing products) and the 'differential value' (the consumer's view of this product's attributes versus the attributes of other products) must be taken into account. Are there established price points for products or services in this area is a major deciding factor for products. Example is the initial introduction of the Apples Ipod and later its introduction the Iphone. Since these products were the first of its kind help apple to define pricing. Other considerations loyalty program discounts, volume discounts and wholesale pricing.
Distribution refers to providing the product at a place which is convenient for consumers to access. Various strategies such as intensive distribution, selective distribution, exclusive distribution and Distribution are about getting the products to the customer. Factors to consider when addressing distribution: What are the distribution channels, market coverage (inclusive, selective, or exclusive distribution)? What do you competitors do, and how can you learn from that and/or differentiate? Where do buyers look for your product or service? If they look in a store, what kind would it be?
Promotion is described as the various methods of communication that an organization may...