December 17, 2012
One of the traditionally used marketing tools by the firms to achieve its marketing objectives is the “Marketing Mix.” For growth and survival of an organization the marketing mix plays a vital role. A proper and carefully evaluated mix of these elements enables the marketer in achieving a consensus between the expectations of the target customers and the organizational objectives.
Elements of Marketing Mix
The 4Ps known as the marketing mix elements are the product, place, price, and promotion. Product is something that can be presented to a marketplace for awareness, acquirement, consumption, or use that may satisfy a need or want. It consists of ideas, persons, services, physical objects, and organizations. It relates to the entirety of “goods and services” that the target market is offered by a company (Kotler & Armstrong, 2011).
The most important choices to be decided by the marketer with regard to the element of the product are:
• Product satisfaction for customer wants and needs
• Product features to satisfy those wants and needs
• Product use by customer way of using and place
• Product appearance
• Product experience from customer use
• Product name
• Product branding
• Differentiation from competitors
Place relates to the gathering of actions or the way through which services and goods get to the customer or user. Through the provider from the manufacturer, it is generally called the “Intermediary” or the “Distribution channel.” It includes the logistics, transportation, inventory, locations, assortments, coverage, and channels.
The price element comprises key choices that have a bigger impact on the achievement of the marketing program. The marketer has to come to a decision on:
• Where the customer has to look for the product – this helps in deciding the place to sell – online or offline. If offline, what kind of store will they look in – a specialist store, a supermarket or any other?
• The type of distribution channels to be used. The channel can be direct channel – the firm itself taking the product direct to the customer through their sales force or indirect channel – taking the product to the customers through intermediaries.
• The type of intermediaries – wholesalers, retailers, agents, distributors
• The intermediary channels to be used – avoiding conflict between the companies involved in the channels
• How to differentiate from the competitors? (Kotler & Armstrong, 2011).
If the product is made available at more number of places, it becomes easier for the consumers to buy it and hence it is better for the business. Price refers to the total cost for a service or product, or the total value that customer’s trade for the advantages of using or having the service or product. Price is what the product cost the consumers (Kotler & Armstrong, 2011).
The considerations that the marketer has to make while deciding upon the price factor are:
• The value that the buyer will get upon buying the product or service • Knowledge about the price points for the specific product that exists in the market • The sensitivity of the price to the customer – the result of the decline in value on the profit margin and market share. • The price reduction offered to customers, retailers, and wholesalers • Competitors price comparison
Promotion refers to the actions that correspond to the qualities of the product and influence buying to target consumers (Kotler & Armstrong, 2011). The communications takes the form of advertising, public relations, point of sale, and word of mouth. The main concern with the element of the promotion is: • The communication to the target market of the marketing messages • The selection of the element promotion – as an ad...