Write a 1500 word report describing the 4 marketing mix elements and discuss how these are applied to retail petrol outlets.
This report has been compiled in order to describe the four most common elements of the marketing mix which are described by Elliot, Rundle-Thiele and Waller (2010 p.18-21) in the following few sentences. * Product – “A good, service or idea offered to the market for exchange.” (p.18) * Price – “The amount of money a business demands in exchange for its offerings.” (p.20) * Promotion – “The marketing activities that make potential customers, partners and society aware of and attracted to the business’s offerings.” (p.20) * Place (Distribution) – “The means of making the offering available to the customer at the right time and place” (p.21) In conjunction with these descriptions, all four marketing mix elements will be analysed and shown how they can be applied to retail petrol outlets and the products which are made available to customers.
The Marketing Mix
Elliot et. al describe the marketing mix as “the different elements that marketers need to consider.” (2010 p. 18) When using the marketing mix to market retail petrol outlets such as Caltex Woolworths or Coles Express, marketers need to consider the Product, Price, Promotion and Distribution (Place) of not only petrol, but many other consumer and specialty products which retail petrol outlets offer.
It can be seen in retail petrol stations that other than the expected fuels like unleaded and diesel which are generally relatively low in terms of their profit margin, “some oil firms claim that supermarkets sell petrol at a loss in order to attract customers.” (The Economist, 1996 p.58) Other products are required in order to boost profits for the retail petrol chains’ owner. These other products are mostly the convenience type and can range from the daily newspaper and chewing gum, to a bottle of orange juice or a loaf of bread. There are three categories of convenience products outlined by Elliot et al. which are all found in retail petrol outlets and include staple products, impulse products and emergency products. (2010 p. 207) * Staple products – These are considered to be everyday grocery products like bread and milk, purchased regularly by consumers and therefore aren’t heavily promoted * Impulse products – These are considered to be only purchased when seen, like confectionary or magazines which are eye catching and are usually found around the cash register. * Emergency products – These are considered to be those products which are only purchased when really needed, like a raincoat or an umbrella.
Although there are a lot of products sold by retail petrol outlets like Caltex Woolworths and Coles Express, the obvious product centred on all retail petrol outlets is the fuel supplied to consumers. The varieties of fuels which can be purchased can include: * E10 – 10% Ethanol.
* E85 – 85% Ethanol.
* E95 – 95% Ethanol.
* Unleaded – Standard fuel.
* Hi Octane – Offered for high performance vehicles.
* LPG – Alternative to liquid fuel, a Gas product.
* Diesel – More efficient lower sulphur producing by product. There is a vast selection of fuels for consumers to choose from and although the blends of fuels stay similar, the names and descriptions of these fuels tend to change from outlet to outlet. For example, when you drive into a Caltex Woolworths you are confronted with the choice of “Caltex Vortex 95 or 98,” both are hi octane blends offered to a prospective purchaser. (Woolworths fuels, Website.) Price
When dealing with topic of pricing in retail petrol stores, the outcome of the price has to be both beneficial to the seller, and seen as a good deal to the buyer, otherwise no trades will take place. As stated previously, petrol itself tends to have a lower margin for profit which means the strategic pricing of other products...
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