Elements of Marketing Mix - Coursework Example

 Elements of marketing mix Introduction Marketing involves a range of activities. Initially, an organization decides on the target customers that it wants to serve (Gillespie, 2007). Once the decision is made, the next step is to place the product in the market by putting proper product, price, distribution and promotional efforts. These factors are then amalgamated in an appropriate proportion in order to attain marketing goals. Such combination of product, price, distribution and promotional efforts is referred to as ‘Marketing Mix’. According to Kotler and Armstrong (2013), ‘Marketing Mix’ comprises a set of controllable variables, which can be utilized by a firm so as to influence purchasing behaviour of a potential buyer. The phrase, controllable variable, mentioned above refers to the 4 Ps (product, price, place and promotion). Each and every firm endeavours to set up such a mix of the 4 Ps, that they can achieve the highest level of customer satisfaction, alongside achieving objectives set by the organization (Baker and Hart, 2008). Therefore, the mix is prepared keeping in mind the needs and requirements of potential target customers. The mix typically varies from organization to organization, depending upon resources available to them as well as their organizational objectives (Adcock, Halborg and Ross, 2001; Baker, 1991). The following sections will involve an in-depth analysis of the four elements of marketing mix. The final section will be the conclusion, which will explain the element that is more important. Elements of marketing mix Product Product basically refers to the goods and services delivered by an organization. They are basically purchased because they satisfy single or multiple needs of individuals. Customers pay not for the tangible product, but for benefits that are associated with it. To put it simply, products can be referred to as a package of benefits, that marketer offers to its customers for a predefined price. For example, while buying a pair of shoes, an individual is actually paying for the comfort that shoes will provide. While buying a lipstick, a consumer mainly pays for the beauty, which is associated with applying such cosmetics. Products can also come in the form of services that are provided to consumers, such as, air travel, telecommunication and so on and so forth. Aside from physical products, there are certain elements that customers may be attracted to; for example, the way it is packaged. Other attributes of a product that influences purchasing decision of customers include quality, services, features, warranties and brand name. Thus, an organization needs to think as to what they are offering as a package of goods and services. This is precisely because the product that they design has to fit needs of the target market. Customer research is a crucial factor in building an effective marketing mix. An exhaustive knowledge about the target market as well as competitors will enable an organization to design and henceforth, offer a product that will appeal to customers and give the organization a competitive advantage (Brassington and Pettitt, 2006; Stimpson, 2004a). Price Price is the amount charged by the seller for any particular product or service. It is arguably the second most important factor in the marketing mix. Determining price of a product can be very difficult at times. Various factors such as, demand for a product, associated cost, ability of consumers to pay, price of similar products charged by competitors and government regulations, have to be kept in mind, while pricing a product. Many business owners have a perception that their product should be inexpensively priced in order for them to be able to beat competition in the market (Marcouse, Surridge and Gillespie, 2011). That is why they tend to start their business by developing an impression of bargain pricing. However, this may convey a wrong information in the market as consumers may perceive the products and services offered by such businesses to be of low quality. The pricing should be done in such a way that it reflects suitable positioning of the product in the market and that it should cover costs incurred to produce the item, thereby generating a handsome profit margin. The businesses should neither be greedy nor should they be timid. This is particularly because being greedy and pricing high would place the business out of the market; whereas, being timid and pricing too low will stall growth of the business. As a manager, one can adopt alternative pricing strategies, involving complex calculation method as well as intuitive judgements. The selection of the appropriate pricing strategy will depend on the product that is being offered, demand for the product, competitive environment as well as other products being offered by the company. The alternative pricing strategies include cost plus strategy, value based, competitive pricing, going rate, skimming, discount, loss-leader and psychological strategy (Stimpson, 2004b). Place Goods are basically produced in order to be sold to the customers. A marketing manager has to adopt appropriate strategies in order to make those goods available to consumers at a place, where it would be convenient for them to purchase. Place basically refers to channels of distribution, which are used by marketing managers in order to distribute their products to their consumers. The type of product manufactured by a company will have a certain degree of influence on the way the company plans to distribute it. For example, if an individual owns a retail store or offers service to local community, then he/she is at the end of the distribution chain and thus, will be supplying directly to the consumer. Nonetheless, businesses that assemble or create a product have two alternative options of either selling directly to the consumer or to vendors. As far as direct sales in concerned, a marketing manager must decide whether or not supplying directly would be an appropriate idea for the product. A particular advantage of this form of marketing is that the supplier will be able to establish a direct contact by meeting customers in person. With help of this contact, the supplier may be able to detect changes that occur in the market and thereafter, adapt to those changes. This form of marketing is a good place to start, in case where supply of a particular product is limited or seasonal. On the other hand, selling products through an intermediary may provide an organization with wider distribution grid than it would get from selling directly. Moreover, it also reduces storage space that is necessary for storing the inventory (Stimpson, 2005b). Promotion If a product is manufactured according to needs of the consumers, is appropriately priced in order to suit the purchasing power of consumers and thereafter, is made available to the market, yet the consumers are not made aware about its attributes, price and availability, then marketing of the product may not be successful. This suggests that promotion is an important constituent of marketing mix, which persuades and influences a consumer’s buying choice for a particular product. Promotion is conducted by means of personal selling, publicity, sales promotion as well as advertising. The underlying idea behind promoting a product is to provide extensive information regarding availability, attributes and utilities of a product to prospective clients. By doing so, the marketing manager of an organization is able to stimulate the interest of a potential customer for a particular product, so that they can compare attributes of the products with similar ones offered by other companies and henceforth, make an informed decision regarding buying or not buying the product. The abundance of electronic and print media has boosted the process of promotion immensely. In order to be effective, promotional efforts should enclose a clear message, which is targeted towards a specific audience base through an appropriate channel. The target audience are potential buyers who use or influence purchase of a particular product. That is precisely the reason why a marketing manager should clearly focus on market research efforts on identifying the potential customer base. The message to be conveyed via the promotion should be consistent with the company’s overall marketing image, should draw attention of the target audience and lastly, should extract the desired response regarding whether to purchase the product or just to form an opinion. The promotional message is conveyed through key channels such as, radio, television, print and electronic media (Stimpson, 2005a). Conclusion Having conducted this study, it can be said that the important element in a marketing mix will largely depend upon various factors such as, industry type, company as well as products. Nonetheless, to provide a generalized perception, I would say that product is by and large the most crucial element of the marketing mix. This is precisely because it is the single most powerful competing element, which is at the disposal of a marketing manager. It is basically the heart of the entire marketing mix. If a product is not of good quality, is not sound or attractive and if it does not satisfy needs and demand of customers, then not even proper pricing or sales promotion or appropriate channel selection would fetch any rewards for the company, in terms of grabbing attention of the target market. Thus, ensuring the quality, utility and durability of goods and services to be offered or being offered is very important from the marketing perspective. Reference List Adcock, D., Halborg, A. L. and Ross, C., 2001. Marketing Principles and Practice. 4th edn. Essex: Pearson Education Limited. Baker, M. and Hart, S., 2008. The marketing book. 6th edn. Oxford: Elsevier Ltd. Baker, M., 1991. Marketing, An Introductory Text. 5th edn. London: Macmillan Education Ltd. Brassington, F. and Pettitt, S., 2006. Principles of Marketing. 4th edn. Essex: Pearson Education Limited. Gillespie, A., 2007. What is marketing? Business Review, 14(1). Kotler, P. and Armstrong, G., 2013. Principles of Marketing. New Jersey: Pearson Education. Marcouse, I., Surridge, M. and Gillespie, A., 2011. Business Studies for A Level. 3rd edn. London: Hodder Education. Stimpson, P. 2004b. The price decision. Business Review, 11(2), pp. 8-10. Stimpson, P. 2005a. Promotion. Business Review, 11(3), pp. 4-6. Stimpson, P. 2005b. Place. Business Review, 11(4), pp. 16-18. Stimpson, P., 2004a. The product decision. Business Review, 11(1). Read More