Element of the marketing mix - Coursework Example

Element of the marketing mix Introduction The concept of marketing mix entails “availing the products desired by the customers into the market, when the customers require them, through making the customers aware of the existence of the products that will satisfy their needs, at a price that the customers are able and ready to pay for the product” (Bowman & Gatignon 2010:17). This being the case therefore, marketing has four crucial elements that define its success. Codita (2011:27) states that; “the creation of a product that a particular group of people want, forms the product element”. This is followed by pricing the product at a value that the target group will feel matches the product value, and finally going out there and letting the people know that the product it is already available for them (Baker, 1991:12). The purpose of this discussion is to analyze the elements of marketing mix in details. Discussion Bowman & Gatignon (2010: 23) and (Kandampully (2007:54) claims that the most important aspect of marketing is that; the four marketing mix elements must work together in harmony, and any chance that one of the elements fail to fit well into the system, spells disaster for the whole business of marketing. However, in contrast, (Kandampully, 2007:54) argues that the four elements of the marketing mix namely product, place, price and promotion are distinct concepts. Nevertheless, he concedes they need to work together in sync. Therefore, for the whole marketing process to be successful, meaning that no element of the marketing mix is important than the others (Kotler & Armstrong, 2011:37). The marketing mix elements are discussed in details below. Product Product is the element of marketing mix that seeks to answer the question; what does the customer want? Codita (2011:33) further suggest that the ability to respond to this question is through determining the actual needs of the target customer group, and then come up with the right product or service that is able to satisfy such needs. There is a need to determine the correct features that such a product will have, which may range from the color, packaging, branding, size and also the right amount of every components that will comprise the finished product, “to make the product both appealing and distinctive” (Marcousé et al, 2008:441). It is also at this point that the need to consider the value of the product arises, since there is a need to evaluate whether the product defined may entail certain features that are costly, thus likely to push the price of the product high, while the targeted customer may not necessarily use those features (Kotler & Armstrong, 2011:62). The consideration of product features helps to narrow down the essential requirements of a product. Marcousé et al, (2008:441) and Stimpson, (2005:16) believes that, it is not only the product use that is important, but also how it is presented. In contrast, Codita believes it is important to consider how and where the product will be used, “since the context and the setting where the targeted customer will make use of the products, serves to determine many other features” (Codita, 2011:37). Such features include the name that will be given to the product, the branding that will be done, and the specific features and elements of the product that will differentiate it from the competing products that are already in the market, seeking to serve the same needs (Stimpson, 2004:26). After defining the necessities of the right product, the discussion will now consider the next element, which is place. Place This is the next element of the marketing mix, which is concerned with the “specific place where the targeted customers will be able to access the product that has already been formulated, so they can put it into use to satisfy their needs” (Baker, 1991:47). The owner of the product has to define “how to get the product to the place where customers can be persuaded to buy” (Marcousé et, al 2008:442). The placement of the already formulated product has to be in specific location or different locations. In this case, the owner of the product has to determine whether the customers are able to access the product directly from the owner’s premises, whether they seek for such commodities in the stores, shops or online through the internet (Stimpson, 2005:16). Further, Marcousé et, al (2008:442) believes that, it is also essential to consider the location and place that offers more flexibility and convenience for the customers, so that they can access the product at any time they need it. In contrast, (Stimpson, 2005:17) argues that determining the convenient place for the customers to access the product is not enough, since the owner of the product must also think of the right distribution channels that move the product from the immediate location, to the location convenient for the customers to access it. In this respect, the owner of the product can hire the services of a sales force, a distribution company or submit the product on the relevant online platforms, if the product is to be accessed through the internet (Kandampully, 2007:14). Finally, the owner of the product should consider the channels applied by the competitors, and learn from their limitations or adapt the most efficient channel that will effectively compete with the competitor products (Baker, 1991:29). Having discussed the place element of the marketing mix, the discussion now moves to focus on price. Price Price element of the marketing mix is concerned with determining the actual value of the product offered to the customers and prospective users. Bowman & Gatignon (2010:39) claims that, while determining the value that the customers will derive from the product, the focus point is the use to which the product is put and the level of established prices for similar or substitute products within the area. This requires that the “business must set the right price” (Marcousé et al, 2008:441). The necessity of making such consideration is that; despite the product being able to meet the specific needs of the customers in the manner they would like, the prices of the competing similar or substitute products might influence the customers to go for the competing products. This can occur if there is a great price disparity either above or below the standard competing prices, such that the price is too high making the product unaffordable to the customers, or too low making them perceive the product as inferior (Stimpson, 2004:9). Therefore, the pricing aspect should be applied such that it is either slightly lower than the average price to sway the customers towards the product and earn an extra market share, or slightly above, such that it is indiscernible, to give the product a higher profit margin (Stimpson, 2004:8). Further considerations such as the discounts that should be given to the customers need to be evaluated, so that the product will still remain competitive, even on the face of the existing competing and substitute products in the market. Baker (1991:24) and Codita (2011:17) argue that discount considerations serve to ensure that the product can be perceived as superior by offering a higher marked price than the average price levels of the competing substitute products in the market, and then offering a discount on every product purchase, to “bring the price of the product at the same level as the average market prices offered in the area” (Kotler & Armstrong, 2011:59). Having completed the evaluation of price as an element of marketing mix, the discussion now proceeds to the final element, which is promotion. Promotion This is the element of marketing mix that deals with where and when the message regarding the existence of a product that satisfies the existing needs of the customers is spread (Stimpson, 2005:5). This element entails consideration of the right medium that should be applied to advertise the product, such as through the word of mouth, mass media channels such as radio, TV, and billboards, or through the use of print media such as the newspapers (Stimpson, 2005:6). Further, for the products that are accessed online, the use of the internet to advertise the product is also considered at this stage (Stimpson, 2005:4). Marketing managers must determine the right way to create the right image for the product” (Marcousé et al, 2008:442). The determination of the right channel of advertising the product should be based on the accessibility of the selected medium by the target customer group, and the best time that such customers are able to access the medium. Kotler & Armstrong (2011:69) and Bowman & Gatignon (2010:46) believe that consideration of the seasonality of the product is also essential, so that its promotion can be done at the time when its demand is high in the market. How the competitors promote their products and the efficiency of the medium that they use needs consideration, so that the owner of the product can learn from them (Baker, 1991:32). Then, the advertising message is then formulated, offering relevant information regarding the other elements of the marketing mix, such as the price of the product, its unique features and how and where it can be accessed (Kotler & Armstrong, 2011:44). Additional Service Ps Kandampully (2007:21) believes that there should be three more additional elements of the marketing mix, namely people, packaging and positioning. Packaging requires that every visible element of the product should satisfy the customer. Positioning refers to the placement of the product as superior in the market through quality, features and advertisement, such that the product is always in the minds and hearts of the customers (Bowman & Gatignon, 2010:47). Finally, people as a marketing mix element requires that the owner of the product should be driven by thinking about people and their needs, as opposed to profits from the product (Codita, 2011: 15). Conclusion Marketing mix comprises of the four major elements namely product, place, price and promotion. Product refers to the commodity to satisfy customer needs, place refers to the location they will access the commodity, price refers to the value of the commodity, while promotion refers to letting customers know the product exists. However, there are three more elements that are associated with services, thus together with the four elements of the product they form 7Ps of marketing mix. The additional three elements are people, packaging and positioning. All the marketing mix elements should work together in sync, to deliver business success. Thus, none of the elements of the marketing mix is more superior to the others. References Baker, M. (1991) Marketing, An Introductory Text, 5th Edition, London: Macmillan Education Ltd. Bowman, D., & Gatignon, H. (2010). Market response and marketing mix models: Trends and research opportunities. Boston: now. Codita, R. (2011). Contingency factors of marketing-mix standardization: German consumer goods companies in Central and Eastern Europe. Wiesbaden: Gabler. Kandampully, J. (2007). Services management: The new paradigm in hospitality. Upper Saddle River, N.J: Pearson Prentice Hall. Kotler, P. and Armstrong, G. (2011) Principles of Marketing, 14th edition, New Jersey: Pearson Education. Marcouse, I., Surridge, M. & Gillespie A. (2008). Business Studies for A Level, 3rd Edition, London: Hodder Education. Stimpson, P. (2004) The product decision. Business Review, 11(1) pp.24-26. Stimpson, P. (2004) The price decision. Business Review, 11(2) pp.8-10. Stimpson, P. (2005) Promotion. Business Review, 11 (3) pp.4-6. Stimpson, P. (2005) Place. Business Review, 11 (4) pp.16-18. Read More