A product is an object or a service that is mass produced or manufactured on a large scale with a specific volume of units (Australian Business Case Studies, 2008). This piece of the market mix also encompasses how the product is packaged, the overall performance of the product/service, and the design and structure of the product. Pricing:
The price is the cost that a buyer pays for a particular item. Pricing is determined by a number of factors including market share, competition, material costs, product identity and the customer's perceived value of the product (Wikipedia, 2008). Pricing will vary due to demographics. Additionally, the product’s price will also be influenced by the competitive forces around the company. The price point will also be conceived by considering the choices that it could be: luxurious, inexpensive, or something in between. Place:
Place represents the location where a product can be purchased (Australian Business Case Studies, 2008). It can consist of any physical or virtual store. Placement is how and where the potential customers can purchase the product/services. Place also consists of the points of distribution. Promotion:
Promotion signifies all the interactions that a marketer may implement in the market. Promotion consists of four distinct elements - advertising, public relations, word of mouth and point of sale (Australian Business Case Studies, 2008). Truell (2008) states that “Advertising covers any communication that is paid for, from television and cinema commercials, radio and Internet adverts through print media and billboards. Public relations are where the communication is not directly paid for and includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events. Word of mouth is any apparently informal communication about the product by ordinary individuals, satisfied customers or people specifically engaged to create word of mouth momentum. Sales often play an important role in word of mouth and Public Relations.” Formation, growth, and advertising are usually the biggest cost in a company’s financial plan. Market analysis will take place. The company will decide how and where advertising takes will place as well as what the costs and rewards of the chosen advertising media will be. The firm needs to minimize expenses, maximize promotions of the applied idea, and not defer from the idea; but make it clearly defined. Market research has many measurements that give ideas as to what works in a demographic area because they remain centered on visual parts of the advertisement. One company that stands out in implementing a strategic marketing mix is Toyota Motor Corporation. Toyota created a marketing idea a few years ago; they wanted a car made, but built around the underground world of hip hop that was marketed in unusual ways. This multimillion dollar campaign was put together sell its new product line,...