The marketing mix refers to the combination of elements within a companies marketing strategy, these are designed to give the customer what they want and in the long term are designed to maximise profits. The marketing mix is based around the idea of the 4 P's:
Product-The product is the centre of the marketing mix and the other three P's are based around it. Consumers purchase goods and services for a variety of individual reasons and a company must be aware of all of these when selling a product (that is why they conduct market research).
Price-Is a key factor in the selling of a product, and is usually the one that is open to the most change based on different pricing strategies, for example, competitor based, penetration or skimming. The three main factors affecting the amount charged for a product or service, are; the cost of production, customer demand and competition.
Place-This refers to the chosen outlets for a product or service, for a product to be very successful it must be easy to access, Mobile phones are very easy to access nowadays, they are sold in
supermarkets, specialised outlets (either by network or brand) and all major department stores.
Promotion-This involves providing information to the customer over a variety of media platforms, using radio, television and print advertising as well as using other promotional tools such as "money off deals" and "free giveaways".
The stages of marketing
1. Market and product research:
* Finding out what your customers want
* Technical research
2. Product launch
* Test market
3. Product promotion
* Publicity and P.R
* Sales promotion
4. Sales and distribution
* Managing the sales force
* Type and amount of sales outlets
* Local, national or international sales?
* Transportation of goods
5. Monitoring and analysing the sales
* Meeting customer satisfaction?
* Does the product need modifying or replacing?
* Is a profit being made?
* Is customer service satisfactory?
* Have the sales targets been met?
* Is the promotion and distribution policy effective?
If a company gets to section 5 of the marketing cycle and a substantial amount of the goals haven't been met then they will have to consider re-launching the product or taking it out of the market completely and placing it in a different market or changing it to meet the needs of the current market.
Product life cycle- Mobile phones
When mobile phones where first introduced they were low quality technology (bad reception, poor reliability and had a short battery life), high priced (around £100 for a basic model) and consumers had to be persuaded to buy mobile telephones, as they were not yet established as a necessity. When products are first released, companies can expect high promotion fee's as the public are probably not yet familiar with the product.
Also when mobile phones were first released they were bulky and hard to use, as product design and development are a key figure in success, Nokia had to design phones that were smaller and simpler for consumers to use. As people had paid a lot for earlier, more primitive products they were obviously not going to pay the same high prices for later products so Nokia had to develop phones that could be sold for less and would last longer, this is where companies can expect to pay high production costs.
When Mobile phones were first introduced they were not such a popular item and there weren't as many competing companies in the market. So Nokia and a few other companies (Sony and Panasonic) could charge higher prices then they would in the highly competitive market that they are in today, as there aren't so many...