May 30, 2011
According to the text-book Marketing an Introduction “Guided by marketing strategy, the company designs an integrated marketing mix made up of factors under its control—product, price, place, and promotion to find the best marketing strategy and mix” (Armstrong & Kotler, 2009, p. 47). In order to understand the marketing mix one must describe the elements of the marketing mix, how each element is implemented, and describe how each one of the four elements of the marketing mix affects the development of a company such as Pepsi –Cola Company’s marketing strategy and tactics. The marketing mix is probably the best-known marketing term.
The Four P’s
According to Mind Tools (2011), "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” (Understanding the Tool, para. 2). The best way to describe the marketing mix is by the four Ps. The first P (product) is not simply what a company is offering to sell the customer. The product According to Marketing Teacher (2011), has three levels “the core product, the actual product, and finally the augmented product” (Marketing Mix, para. 4). The core product is the benefit of the product for example the core product of a laptop would be convenience. The actual product is the tangible, physical product and the augmented product are things like the warranty and customer service. The second P (place) is not always the actual building a product is sold. The place also can be the channel how a product is shipped to the customer, for example a product can be sold direct to the customer or through a wholesaler. The third P (price) is just that the price of a product. According to Learn Marketing.net, “Pricing is one of the most important elements of the marketing mix” (Pricing Strategies, para. 1).. If a product is prices to high can mean loss of sales and pricing a product to low could mean loss of profit therefore pricing has to reflect supply and demand. The fourth P (promotion) includes all of the tools available to the marketer for marketing communication. Promotion consists of seven elements, which work together and are integrated to form a consistent campaign.
Pepsi and the Implementation of the Four P’s
According to Pepsi Company (2010), Part of Pepsi Cola’s mission statement “is to be the world's premier consumer products company focused on convenient foods and beverages” (Company, para. 1). For Pepsi-Cola to make their mission statement a reality they must take full advantage of the marketing mix. When looking at how Pepsi-Cola uses the first P (product) in the marketing mix one can see that they use product variation, product differentiation, product innovation, and product elimination. The second P (place) they use the distribution channel of direct sales, indirect sales, and E-Commerce. The third P (price) they use cost recovery pricing, penetration pricing, and price skimming. The fourth P (promotion) Pepsi-Cola uses a mixture of individual communication, mass communication, brand management, and corporate identity
Pepsi –Cola Company’s Marketing Strategy and Tactics
Pepsi-Cola has become one of the best-known products in the world. Pepsi-Cola continues to innovate, creating new products, new flavors and new packages in different shapes and sizes in order to meet the growing demand for convenience and healthier choices. Pepsi is always on the lookout for ways to ensure their consumers get the products they want, when they want them and where they want. According to Pepsi Company (2010), “Pepsi products can be found in nearly 200 countries around the globe” (Brands, para. 1) The five...