Marketing Mix and Retail Petrol Outlets
The Four P’s
This report aims to address four elements that collectively create the marketing mix. These marketing tools will then be analysed and how these marketing elements are applied to retail petrol outlets within Australian will be discussed. The Marketing Mix elements collectively are made up of the four P’s; Product, Price, Place and Promotion. Marketing as often defined, utilises these four tools; putting the right product in the right place, at the right price, at the right time. Marketing in simple terms is creating a product that a particular group of people want, putting it on sale in some place that the same people visit regularly, and pricing it at a level which matches the value they feel they get out of it; and doing it all at a time that consumers want to buy. The strategy emphasises the organisations ability to understand and satisfy customer’s in a position that will be profitable to the organisation and valuable to the customer. This report provides an overview of each individual element used in the four P’s strategy and how they are applied to retail petrol outlets.
Marketers use a combination of marketing tactics from the marketing mix to develop marketing strategies. The marketing mix is a set of controlled variables that formulate the strategic position of a product or service in the market place. The primary goal of marketing is to optimise the marketing mix, offering the best possible combination of the four P's to maximise the effectiveness of marketing efforts. Product
The term product refers to tangible physical products as well as intangible Services (www.netmba.com). Product is the mix of all the features, advantages, and benefits that you offer to your target market. It may include certain characteristics such as quality, packaging, after sales support, customer services etc. As per Solomon (2011) a product is whatever is offered for sale in the exchange, whether that be a good, service, idea, place or person. In marketing the design, packaging, physical features and associated services with a product, are all important elements to its success (Solomon et al., 2011). Within a retail Petrol outlet, they all essentially provide the same non-durable consumer product to their customers although it’s the branding and marketing of the product that may differentiate between organisations. BP in particular markets their petrol and diesel as being superior, therefore being better and kinder on the environment (www.bp.com).
A product essentially has three levels, core, actual and augmented. The core product in a retail petrol environment is all the benefits the product will provide for the consumer. Whether that be environmentally friendly fuel, auto gas, unleaded, leaded or diesel. It is the ability to provide benefits not just a product (Solomon et al, 2011, page 183) The actual product is the physical good or delivered service that provides the desired benefit (Solomon et al, 2001, page 184). Incorporating the unique features of the product; brand, packaging, appearance and ability. Therefore biofuel/diesel, Petrol (unleaded/leaded), Autogas, Ethanol and Hybrid fuels are all examples of actual products offered by various retail petrol outlets throughout Australia. The Augmented product incorporates the actual product plus other features such as reward points, fuel cards, 24 hour service, Eftpos and credit card facilities, Atm availability and pay at the pumps facilities that most major petrol outlets offer throughout Australia.
A products price is defined as ‘the value that customers give up or exchange in order to obtain a desired product’ (Solomon et al. 2011, p. 221). It is the exchange of money, goods, services, promises, favours, votes or anything that could be seen as favourable to the retailer/seller. For retail petrol outlets the products are common throughout the oil...
Please join StudyMode to read the full document