Tip Top Accessories - Elements of the Extended Marketing Mix - Essay Example

? Marketing Principle SECTION Identify and analyze the individual elements of the extended marketing mix. Extended marketing mix is considered to be different combination of different marketing activities that are undertaken by a firm in order to meet the need of the market it is planning to cater. The marketing mix consists of four elements, each of which has its own separate importance. These elements are: Product Price Place Promotion Getting the combination of these elements helps an organization to meet its marketing objective and the need and demands of its targeted market. There has been an extension in this marketing mix adding more elements to it. 3 Ps have been added to this traditional marketing mix. These Ps are: Physical Layout: Initially the physical appearance of the production unit prepared in the factories were not given much significance but now as the customers purchase a product from the retail store their expectation with the presentation of the product has increased. Provision of Customer Service: In the heart of the modern service industry lays customer service. The firms that serve their customers will succeed in gaining their loyalty. The firms need to give their best shot whether it be listening to the customers queries on phones or interacting with them face to face. “Have a nice day” approach works better than the “I don’t care” attitude of the firm’s employees that come in contact with the customers. Processes: There are a lot of processes related to customer services that make the marketing effective for any organization. These processes may include handling the complaints received by the customers, identifying the needs and requirements of the customers and the processes related to handling of the orders. Now the extended marketing mix involves Place, price, product, promotion, physical layout, processes and Provision of customer service. 1.1 In the relation of the "product" elements of the marketing mix, say how "Tip Top Accessories" product can be developed to sustain competitive advantage. The firm must try to position its product quite effectively among its target market. It must first understand the demand and then accordingly set the price of its product. Product differentiation is another aspect that must be kept in mind in order to fix the price of the product. Making the product attractive helps firm gaining more customers. Tip Top Accessories must develop effective promotional strategies in order to communicate their objective to the customers. (Marketing theory, 2013). 1.2 Explain how appropriate distribution policies can provide convenience for Tip Top Accessories’ customers. The distribution policies of Tip Top Accessories should directly be associated with its marketing mix. The firm can exhibit its objectives through different activities. Several activities related to distribution such as in-store demonstration of a product, distributing samples and other can be a source of delivering the objective of the firm to its consumers and it is also convenient for the customers to judge the product based on its different features. It is also useful for the firm to arrange giveaways and sell products at a low price for at the initial stage of the launch of a product it can be quite effective strategy for a firm (CHANNELS OF DISTRIBUTION, 2013). 1.3 Explain how prices for "tip Top Accessories" product should be set to achieve the organization’s profit and growth objectives, bearing in mind market conditions.  The price strategy of Tip Top Accessories must be related to its strength. Low price and product differentiation can be the critical elements in maximizing the profit of Tip Top accessories. Tip Top pricing must be based on the level of differentiation it is providing in its products. The higher the differentiation the higher the price set by the firm. Customers are willing to pay higher price for the product whose features are different from those of others. There are often times when the sales revenue of the firm is less than its cost. Controlling the cost of production can help firms to minimize the loss and it eventually maximizes the profit of the firm. Tip Top Accessories can adopt the strategies of minimizing the cost of production by adding innovation and creativity in their work without compromising on the quality of the product. This would help Tip Top Accessories in gaining greater profit (Way, 2013). 1.4 Show how a range of promotional activities could work together to achieve marketing objectives. Marketing and promotional activities play a critical role in the success of a firm. It is a process through which a business attracts new consumers that help it to generate more sale. Tip Top Accessories must understand that no matter how successful the product of a firm is, there is always the need of conducting promotional activities. Therefore it is essential for Tip Top Accessories to conduct promotional activities and communicate its message in order to achieve its marketing objective (Strategy, 2013). 1.5 what other marketing mix (extended) elements (not covered in 1.1 - 1.4 above) could be important for "Tip Top Accessories" in the future. Tip top accessories must first position the product effectively in the mind of its consumer and they must struggle to make the product more attractive for their specific market segment that they are planning to cater. They must try making the correct blend of the price, promotion and product in order to make their marketing strategies effective. Each element of the marketing mix is important for the firm as it help the firm to attract more and more customers and gain their loyalty. The elements of marketing mix communicate the correct image of the product to the customers through its promotional activities, positioning and its product layout. (The marketing mix, 2013) SECTION 2 2.1. Outlining a marketing mix plan for 2 different consumer market segment and The products being offered by Tip Top Accessories are for two separate market segments i.e. for the youth and for adults. The marketing mix plans for both the target market is separate. The prices of products for youth are comparatively lower than the price of the products for adults. The promotional activities for both the marketing segments are different too. The appearance of product also differ for both segments as bright colors are used for the products designed for the youth, whereas dim colors are used for the products present in the adults category. 2.2. Giving examples of how the marketing of products and services to organizations is different from marketing to consumers.  The concept of marketing is different for consumers as well as for the organizations. For an organization marketing is a source for reaching its consumers and communicating its message to them. To organizations marketing is a complex function as they have to work really hard for designing strategies that would help them in gaining profits. For customers marketing is a way through which it can judge a product and its features. 2.3 You should then present an outline marketing strategy for "Tip Top Accessories" if management decides to begin operating in an international market. Say why the company may have chosen the market and whether and why you think the marketing mix should change significantly from the one used in the UK. You may use examples of products or promotional activity from other companies operating internationally to illustrate your idea. The marketing strategies used by Tip Top Accessories for catering international market will be different than that its uses in domestic market. It must design the product keeping in mind the international taste of the consumers. The product of Tip Top Accessories must not be restricted or showcase the customs of a single place but its feature must appease the needs of international consumers as well. The price of the product must be set by comparing it with the price of the same commodity in international market. The promotional strategies of Tip Top Accessories will also be different, as they may consider taking a personality with international fame in their advertisement in order to capture the interest of international audience. Doing business in international market is not a piece of cake and therefore the features of the product offered by Tip Top Accessories must be different and superior to the features of similar commodities being sold in international market. References CHANNELS OF DISTRIBUTION (2013), [Online], Available: http://www.consumerpsychologist.com/distribution.html [13 December 2013]. Marketing theory (2013), [Online], Available: http://businesscasestudies.co.uk/business-theory/marketing/marketing-mix-price-place-promotion-product.html#axzz2nMR7ZAVn [13 December 2013]. Strategy (2013), [Online], Available: http://www.cim.co.uk/marketingplanningtool/tech/tech6.asp [13 December 2013]. The marketing mix (2013), [Online], Available: http://www.bbc.co.uk/schools/gcsebitesize/business/marketing/marketingmixrev1.shtml [13 December 2013]. Way, J. (2013) What Steps Do Companies Take to Maximize Profit or Minimize Loss?, [Online], Available: http://smallbusiness.chron.com/steps-companies-maximize-profit-minimize-loss-41526.html [13 December 2013]. Read More