October 18, 2010
University of Phoenix
Marketing mixture is required for an organization to plan and implement all new marketing strategies and tactics. There are four important elements in planning a marketing mixture: product, price, place, and promotion. Each of these elements are vital in developing, and implementing the plan. In this paper, one can see how Bank of America implemented a plan to increase new customer accounts.
Elements of Marketing Mix
Marketing mix is the position of controllable, strategic marketing tools that the organization uses to produce a reaction it wants within a target market (Perreault, Cannon, & McCarthy, 2009, p. 51). Marketing mix consist of the “four Ps”: product, price, place, and promotion (Perreault et al, 2010, p. 51).
Product is the goods or services that the organization is offering to the consumer. For example, Dell will allow the consumer to custom build a computer on their website. Dell then builds the custom computer according to the choices the consumer has made. Next, the computer will be tested and shipped to the consumer. Multiple pieces of hardware went into this computer, and it comes with a one-year manufacture warranty. The warranty is equally a part of the custom computer as the computer itself.
Price is the cost in which the consumer is willing to pay for the product. For example, a car dealership has a suggested retail price. However, very rarely do they sell a car at that specific price. Most consumers will negotiate a lower price to suit his or her needs, wants, and desires. This would include “offering discounts, trade-in allowances, and credit terms” (Perreault et al, 2010, p. 51). In doing this, the dealership is altering the price of the automobile to the competitive circumstances and then the consumer chooses whether to purchase a vehicle from that particular dealership. Place “includes company...