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 activities that make the product available to target consumers” (Perreault et al, 2010, p. 51). For example, chain restaurants that are independently owned, and operated by investors rather than by the organization. The chain restaurant organization chooses to allow these investors to run independently owned locations and they support them 100 percent. The chain restaurant trusts that the independent owners will run his or her restaurant just like any other chain restaurant that the organization may own. Promotions “means activities that communicate the merits of the product and persuade target customers to buy it” (Perreault et al, 2010, p. 52). These actions are the organization’s way of offering discounts, rebates and lower rates to entice the consumer to buy a product from a specific organization. For example, when applying for a car loan, dealerships will offer additional incentives if the consumer finances with the manufacturing bank, if he or she qualifies rather than the consumer bringing his or her own financing with them. Some incentives are a lower interest rate or a zero percent interest for the term of the loan.
Four Elements affect Organization’s Marketing
The four elements affect the marketing strategy and tactics for Bank of America in its desire to bring additional accounts to the organization. The product could be any of the following: eBanking, personal checking, personal savings or CDs, business checking, business savings, car loans, home loans, lines of credit, credit cards, online services, investments, and military banking. The place would be at every banking center nationwide. The price would include what Bank of America is willing to pay for all the advertisement on television, billboards, online, and signs within the banking centers. Promotion will be the biggest incentive to bring more customers to Bank of America. The promotion offers seen have been to apply for a Bank of America Credit Card either secured or unsecured...