Achieving Business Profitability - Assignment Example

For a new product like toothpaste in this case, all the 4 P’s of marketing, that is product, price, promotion and place have to be considered. A modification of the traditional producer, Producers, Wholesalers, and Retailers which most consumer products like toothpaste use. The producer appoints sales agents who go to the field and sell directly to the customers. As they do so, they are marketing the new product to the people since the product does not have many existing customers. This can also be aided by using internet facilities where the product information is stipulated. It is also important that effective communication on the website be enabled so that there is constant feedback and response to the customer's questions.

Direct selling is important because there is a lot of competition from the existing market leaders, e.g. Unilever. The customers may also not trust the new product if, for example, it is just lying in the retailer's store. Direct selling enables the agent to explain and convince the customer. This will secure the trust of the customers and cause market penetration of the toothpaste.

In a bid to attract and retain customers to their brands, companies use marketing to use all or a fraction of the marketing mix. They include advertising, personal selling, promotional selling, direct marketing and public relations. There is a multiplicity of factors to consider before deciding on the strategy. Generally, to decide a communication mix for Barclays Bank and Levis jeans, the following should be considered: The type of product market involved the readiness of the consumer to buy and the stage the product is in the product life cycle.

Since Levi's jeans are a consumer product, the concentration should be on advertising and advertising. Adverts raise the reputation and class of the brand which is important for fashion products. Mainly many shoppers are ready to buy clothes during nearing festive seasons and month ends for the employed. Sales promotion and personal selling during these times will help in closing sales. Levi's jeans are in the maturity stage towards decline. Advertising, personal selling and promotions are critical to stemming demand.

Barclays Bank offers business products, commanding the business market. Advertising here will raise reputation but more importantly, personal selling e.g. by using agents since products like loans are rather risky. Considering buyer readiness, Barclays needs to boost customer knowledge by advertising and personal selling and convince the customers by personal and direct selling. Barclay’s products are in the maturity stage. This stage requires continued advertising, personal selling and promotions.

A variety of factors affect the marketing function of a company. Some of these factors are controllable while others are uncontrollable. The marketing environment is classified as internal and external. This answer analyses the environment of Colgate toothpaste in Africa.

Internal factors: Colgate Palmolive is an established multinational with strong financial muscle. They can also sustain high production if demand justifies them. They can mount long ‘forceful’ advertising campaigns on many media platforms available.

External factors: Consumers are the most important part of the marketing environment. Colgate should only produce if Africans in the long run will consume their products. The marketing strategy should be set and be made flexible to consider their response. The competitors also affect, if they are so much more effort should be put in, e.g. advertising. The economic environment in Africa calls for Colgate-Palmolive to price its products more affordable. The demographics factor in Africa places Colgate in a huge population. Marketing activities which reach very many people like advertising are proffered. Other environmental factors considered are legal regulations, technology, infrastructure and culture.

A marketing mix entails how a business or an organization uses the product, price, place and promotion to carry out the marketing activities to reach the product to the consumer. This mix may differ from product to product or industry to industry. This is because the mix should be that which is consistent, creates competitive advantage and meets and is customer-oriented (Baker & Hart, 2012).

For a service like a hotel, the place may be seen to be more important. The hotel should be situated at a place where e.g. there are tourists. This convenience is mainly the selling point. People will choose a hotel which is close to where they want to wake up to. The product is also important since in this industry, the consumers may look out for prestige, comfort and class associated with the hotel.

On the other hand, for a product like shampoo, promotion in the mix may receive more weight. For many users of shampoo, their choice was mainly influenced by simple tastes and preferences. Promotion may go a long way to influence demand than a place. The products and prices in this industry are usually very similar. Therefore the product cannot be manipulated to cause a substantial change in demand like in the hotel business.