Marketing Basics of Marketing Mix - Assignment Example

MARKETING BASICS Marketing can be defined as a process of exchange of values; an individual gets something of value (product) in exchange for some value (money). These are the activities concerning buying and selling goods and services (Kotler, and Keller, 2009). Marketing Mix comprises four important aspects that are product, price, place, and promotion. The basic concept is to make the most appropriate product that has to be available at the right place at the right prices with the most suitable promotion.

These elements are called variables because they differ from product to product. Each marketing manager can use these variables in a distinctive manner as per his desire or market requirement (Kotler, 2003). For example, if Pepsi’s marketing mix is considered its product is a drink that is aimed at the thirst needs of humans, its pricing is quite affordable which varies with the variety of SKUs (stock keeping units). Its place strategy is based on the vast distribution network that is aimed at making Pepsi available in every other store, shop, and majority of restaurants.

The promotional strategy that Pepsi uses consists of a variety of promotional tools such as advertising, public relations, sponsorships, personal selling, and sales promotion. The marketing environment is the environment in which any organization operates. There are variable forces inside and outside the organization that affects an organization’s performance. These factors can either be close to the organization which is referred to as micro-environment factors or can be larger societal factors referred to as macro-environment factors.

Micro-environment includes an organization’s customers, competitors, distributors, and suppliers where as the macro-environment factors include political, legal, social, and technological forces that affect an organization's external operating environment.BCG matrix tends to categorize different products either in a portfolio or product line in terms of their market share and growth. There are four classifications in the BCG matrix namely stars, cash cows, dogs, and question marks. Stars are the ones that have a high share and high growth such as Android or YouTube.

Secondly, Cash cows are the ones that have a high share but lo growth such as Google. Thirdly dogs are the ones with low share and low growth such as Orkut or Diet Coke. Lastly, Question marks are those that enjoy high growth but have a low share such as Google Play. Above are some of the basic marketing concepts that provide the foundation for marketing principles.