Debra Thompson MKT421 University of Phoenix January 16, 2011
Marketing is a mix of planning, executing, pricing, promotion, and distribution of services or goods. Marketing is about connecting the product or service to the customers, and the needs of a society. The goal of marketing is to accomplish the objectives of a corporation by selling the product or service successfully. Through customer satisfaction, marketing creates loyalty from the customers. Marketing has a mix of four elements, product, place, price, and promotion. In the paper the subject to describe is each element of the marketing mix and how this mix affect’s the development of Target Corporation’s strategy and tactics. Product
The first element of the marketing mix is product. Products come in different forms. Consumer products are categorized as convenience goods. Convenience goods are products that shoppers will spend little time buying. It is essential that these products be readily available and the brand name well-known. Shopping goods are products that consumers put a bit of time and effort into purchasing. An example of a shopping good is a new car or big electronic items. Specialty goods are items that would interest a smaller group of consumers such as a drilling machine. In addition, these products are part of the industrial goods category broken down into smaller sub-groups. The last product, tangible goods, is an important one to consider. Tangible goods are services or products used together or sold separately. (Perner, 2008). An organizations product line refers to products that are similar. For example, IBM carries lap-top computers in addition to desktop computers and printers. The computer line and the printer line are one product line. An organization’s product mix is the combination of different product lines. An example of different product lines would be the Johnson and Johnson Company. They hold a mixture of baby products and adult products that range in product lines. Products are represented in different ways. For example, Target carries the Gilligan O’Malley brand made by Victoria Secret. The GOM brand is considered a lower quality of the original brand and is sold at a lower price in Target stores. Another example of products differentiating from each other is with different levels of service. Certain car companies offer better warranties than others so are considered a “superior” quality car. Products are either new or existing. Corporations rely on bringing new products into their business to keep up with growing trends. Target for example, brings in new product lines from well-known designers. Target also brought in “Great Value” products to compete with Costco and Sam’s Club. Competition, pricing and having a good product mix keep Target one of the top retailers in the world.
Place The next part of the marketing mix is place. Place refers to the means by which the consumer buys the product. Most goods purchased by the consumer are purchased from a retailer. The retailer purchases the goods from a distributor or wholesaler. The distributor or wholesaler, purchases the goods from the manufacture. The distribution chain can be bypassed if the industry sells the product directly to the consumer. For example, the 3M Company may sell some of their office products directly to businesses for use instead of going through a middle distributor. A security system manufacture may sell the product directly to security providers....