Marketing Mix - Research Paper Example

? Marketing Mix Introduction Marketing mix is a general concept used to explain the different kinds of choices that firms have to formulate in the entire process of bringing about a product or service to a given market. As highlighted by Ehmke et.al (2005), marketing a business organization or a firm is all about how an organization or a firm positions itself in order to satisfy its marketing needs. Consequently, there are four significant elements of the marketing mix in as far as marketing a business organization’s products and services are concerned. These elements, also known as the four Ps of marketing include product, price, place and promotion. The marketing mix is therefore a combination of promotion, product place and pricing strategies intended to generate equally satisfying exchanges within a target market (Ehmke et.al (2005). This particular paper therefore intends to provide a description of the various elements of the marketing mix. In addition, it will describe how each of the four elements affects the development of Kellogg’s marketing strategy and tactics as an organization, and lastly how each element is implemented. According to Ehmke et.al (2005) business organizations have to design a successful mix of the product, price, place and promotion. Product refers to the goods or services offered by the business organization or firm to its customers. Other than the physical product itself, there exist also a number of elements associated with the product, which attracts customers. Other attributes of a product include features, brand name, warranties, options, services and quality. A business organization’s products appearance, support and function sum up what an organization’s customer is essentially buying. Successful business organization managers pay keen attention to the needs their product package addresses for their prospective customers as it is the right products that satisfy the needs of their prospective customers (Ehmke et.al, 2005). On the other hand, price refers to how much a business organization charges its products or services. Out of all the elements of the marketing mix, price is the only one that gives rise to sales revenue since all the other elements are costs. The price of a product or service is thus a significant determinant of the sales value made. According to Ehmke et.al (2005), determining the price of a product or service is often a tricky as well as a frightening exercise for a number of business organizations. Pricing has to take into account a number of internal as well external factors such as actual costs, prices of competing products or services, expected profit margins, as well as the likely legal restrictions. However, in theory, prices are determined by discovering what the customers perceive is the value of the product or service on sale. Researching customers’ (consumers) opinions regarding pricing is therefore important as this points out how they value, what they are looking for in a product or service as well as what they intend to pay (Ehmke et.al, 2005).Product price ought therefore to be right, as consumers need to purchase in large amounts to produce healthy profits. Place refers to the channels of distribution that a business organization employs in order to get its products or services to its customers. Ensuring the product or service is at the right place and at the right time involves the channels or system of distribution. The choice of the channel of distribution by an organization depends on various circumstances. For instance, a number of organizations sell their products or services to wholesalers who thereafter sell it to retailers. Other organizations, on the other hand, prefer selling directly to retailers or consumers (Ehmke et.al, 2005). Promotion refers to how a business organization informs prospective customers about the availability of products, its prices and its place. The purpose of promotion is to ensure prospective customers or target group are aware of the existence or availability of a product or service through promotion (Ehmke et.al, 2005). As a result, providing them with information that makes them make a decision on whether to buy a product or service. Through promotion they are able to understand what a business organization’s products are, what they can use the product for and why there is the need the products or services. Successful promotion enables a firm or business organization to spread its costs over a larger output. Therefore, to be effective, an organization’s promotional efforts ought to contain a clear message targeting a specific group reached via a suitable channel (Ehmke et.al, 2005). Kellogg, a manufacturer of cereals and convenience foods within the food processing industry forms a significant example of a company that has employed the four elements of the marketing mix, and which have influenced the development of its marketing strategy and tactics. The marketing mixe of Kellogg Company demonstrates how vastly various approaches can succeed. All the elements of the marketing mix are normally incorporated into strategic positioning in order to assist it achieve its marketing goals (Dahlen et.al, 2009). Product as a core element of the marketing mix has had a significant effect on the marketing strategy and tactics of Kellogg as a company within the food processing industry, as it provides the practical requirements sought after by customers. Because of this element of marketing, marketing managers at Kellogg have often been forced to develop products into brands that create a unique position in the minds of customers. Brand superiority at Kellogg has enabled it attain high sales level (Dahlen et.al, 2009). Kellogg is constantly developing new breakfast cereals, for example. Kellogg Corn Flakes is, for instance, a brand that is synonymous with the breakfast market in addition to having a well-recognized, readily known brand name (Dahlen et.al, 2009). The positioning of this particular product is enhanced by the use of the cockerel that has a symbolic association with the morning. The unique logotype as well as the constant typefaces use helps its projects to top the quality image. This rich associative imagery of its products has enabled Kellogg to get bigger in terms of products and geographical areas. Additionally, it has offered Kellogg relevance within the food processing industry over a long period, as business organization. In general, the role of brand name, typeface, packaging and logotype has supported the desired strategic expectation of Kellogg product brands (Dahlen et.al, 2009).Therefore, as a business company, Kellogg is mainly concerned with what its products mean to its customers. In terms of its products, marketing plays a significant role in establishing aspects such as products appearances in line with market requirements and the function of the products (addressing customer needs as discovered through research). Price as a major element of the marketing mix has also significantly influenced the development of Kellogg’s marketing strategy and tactics as an organization. According to the Times 100 (1995), getting the appropriate price entails examining the perceptions of customers, rival products, likely legal restriction as well as the costs of production. Pricing therefore takes into account a number of internal and external factors. It is therefore a major strategic issue as it is related to product positioning. Besides, price as an element of the market mix influences the three other elements of the marketing mix (Times 100, 1995). The internal and external factors have had a significant influence on Kellogg as a company as they have affected the company’s pricing decision. For instance, some of their pricing decisions have considered external factors, which have affected their pricing decisions. The company has also been considering some internal factors when setting prices on its products. As highlighted by Dahlen et.al, (2009), the internal factors are generally controllable by the company, and, if necessary, are altered. For instance, the pricing of a product at Kellogg may depend greatly on the productivity of its manufacturing plant, since the marketer is aware that increased productivity can lower the cost of producing a product and therefore, allowing a product’s price to be reduced. In order to establish the right prices for its products, Kellogg conducts research in order to verify whatever is happening in each of the markets the company is serving, since the factors may vary by market. Promotion, on the other hand, entails engaging in a number of promotional activities. Promotion affects an organization in the sense that the way a given brand is positioned determines how customers will perceive the brand in addition to determining how long the brand sticks into their mind (Times 100, 1995).Therefore, the more the impact of promotion is, the more is the demand, and therefore, the price will increase. At Kellogg, the promotion element of the marketing mix encompasses all kinds of marketing communications. One of the methods used is advertising. This is normally conducted on TV, cinema, online, on radio, poster sites and through the press such as newspapers. Other methods of promotion include merchandising and sales promotions. As an element of the marketing mix, place does not only entail the physical distribution point for products, but also entails management of various processes involved in reaching the products to the end consumer (Times 100, 1995). Place has therefore a significant influence on the marketing strategy and tactic of Kellogg in the sense that it determines how it channels its distribution in order to reach as many target groups as possible compared to its rival companies. Kellogg channels of distribution are well spread through various cities making their products easily accessible. Conclusion From the above analysis, it is evident that effective marketing strategies and tactics of a business firm cannot be developed without first analyzing the business environment in which the business firm is operating. The four elements of the marketing mix are of great significance to a business and therefore, ought to work together in an organization’s market mix. Marketing a business, as revealed in Kellogg Company case, is therefore all about positioning an organization in order to satisfy the market’s needs. Marketing managers ought to ensure that messages received from all the elements of the marketing mix are consistent and work together in order to come up with a unified image of the business organization and its products. . References Dahlen, M., Lange, F. & Smith, T. (2009).Marketing Communications: A Brand Narrative Approach. US: John Wiley and Sons Ehmke, C, Fulton, J & Lusk, J. (2005). Marketing is Four P’s: First Steps for New Entrepreneurs. Retrieved on Feb 19, 2012 from http://www.ces.purdue.edu/extmedia/ec/ec-730.pdf The Times 100. (1995). Marketing theory: Marketing mix (Price, Place, Promotion, Product). Retrieved on Feb 19, 2012 from http://businesscasestudies.co.uk/business-theory/marketing/marketing-mix-price-place-promotion-product.html Read More