The Marketing Process and the Four Major Components of the Marketing Mix - Coursework Example

Executive Summary Marketing is the business discipline responsible for attracting s by delivering a message about a product in order to persuade customer to make a purchasing decision. The job description of the marketer involves creating a marketing program or plan to achieve the company’s desired goals (Kotler, 2002). This marketing program involves decisions consisting of four elements known as the marketing mix. The marketing mix consists of a set of marketing tools that can utilized by a firm to implement its marketing strategy based on the desires of the target market. There are four variables that composed the marketing mix that are referred too as the 4Ps which are product, price, promotion and place. This paper discusses different aspects of the marketing mix in order to learn how to prepare an effective marketing program for a company. Each of these elements is analyzed in order to determine their importance and how to use the variable in order to optimize the marketing strategy of the company. The report offers various real life examples of how the marketing mix has been applied by business firms in order to formulate effective marketing strategies. The perspectives of the company as well as the customer views are analyzed to find common grounds that can be used by a firm to achieve its goals. A marketing program must consider the perspectives different stakeholders in order to minimize risks and provide businesses a marketing platform that can help improve a company’s sales and public image. Content of paper Companies operating in the competitive business environment of the 21st century realize that in order to compete they must be able to reach the customer by implementing a marketing strategy that is aligned their expectations. Each of the 4Ps of the marketing mix are tools that allow executives to identify the business decision that will allow a firm to reach its objectives. Product is the first P of the marketing mix. Product is not limited to tangible items and also includes the service industry. The product is the thing the company produces, thus the company success depends on it. There are different tasks and qualities associated with the marketing of product. Product design, quality and features are three variables that give a product its functionality and allow marketers to position it within the marketplace. High quality for example can use by the marketing people to develop a branding strategy that adds value to the product of the firm. Companies such as Starbucks Cafe which offers high quality hot drinks products have been very effective creating a public image that allows them to charge a premium price that increases profitability. Customer service and warranty policies are two other variables that are essential to provide assurance and achieve customer satisfaction. Warranty policies such as the lifetime guarantee Craftsman product offers are a way to attract and retain customer. Such attributes can be the focus of an effective advertising campaign to build customer loyalty. Price is the second variable of the marketing mix. A product’s price is a determining factor that controls the behavior of the demand for a product or service, the lower the price the higher the demand is (Varian, 2003). It also determines the target market of the product. A higher price places a product in the high end luxury market where gross profits are excellent, but high volume sales are not feasibly. Lower priced items make the low end marketplace. In this marketplace there higher number of customer which increases competition for the many players involved. Technological devices such as scanners are used in the sales points of stores to determine a products price. Information systems play a key role in the ability of a company to transmit price information for internal and external purposes. Companies can offer price discounts to customers to boost sales. The world’s #1 retailer, Wal-Mart, gain its popularity and power by utilizing a cost-cutting business model that allowed the firm to provide lower prices that its competitors. In fiscal year ending January 31, 2008 Wal-Mart generated $374.5 billion in global revenues (Walmart, 2008). A way for a company to increase its sales is by offering credit terms such as payment plans or company credit cards. A company that chooses the lower end market is able to increase the amount of distributors that carry its products at the retail level. The marketing efforts of such a company involve the creation of a message for the general masses. In order for a company to communicate with its potential customers promotions are used in the marketing process. Walgreens one of top pharmacy retail chains in America utilizes shoppers as an in-store mechanism to provide sales promotions to its customers. Advertising campaigns are created to promote the qualities and attributes of a company’s product. Advertising includes the utilization of various channels such as written press, radio, television, and online. Online advertising has become the fastest growing segment in the industry because it allows marketers to reach a large pool of customers in a short period of time at very low prices. A company corporate website serves the dual purpose of promoting the business as well as serving as a customer service function. A product can be promoted though direct or indirect marketing. Indirect marketing involves a promotion for a product that reaches the customer through an intermediary. For example Ford Corporation could showcase its new car model in the release of Hollywood films. Another aspect of promotions is public relations. The role of public relations is to enhance the reputation of a company (Crystal, 2008). Logos and slogans are two ways to create a brand identity in the promotion efforts of a firm. Promotion represents a large portion of a company overall marketing budget. A company public image allows the company to relate to the customer communities values. Business strategies such as corporate responsibility can be utilized to strengthen a firm’s public image. The final element of the marketing mix is place. Placement decisions involve the channels of distribution that serve the purpose of getting the product out to its target customer population (Quickmba, 2008). The site or location plays a vital role in the ability of a company to reach a population. The best locations are those that enable a firm to reach the maximum amount of customer traffic. Establishing a business in the mall increase the amount of traffic a store receives which increases overall sales total. The rental cost for these types of hot location are high, thus a company has to closely monitor the month to month results to ensure the store’s sales exceed its breakeven point. The locations infrastructure, convenience and accessibility are key elements that attract customer to a store. Place involves choosing the distribution channels that will be used to sell a product. Along with a physical presence companies in today’s digital economy need an online store to sell and market its products. Ecommerce has become a critical distribution channel that in 2007 generated over $100 billion in sales (Plunkett Research, 2008). There are firms such as EBay and Amazon.com whose sole distribution channel is the internet; these firms are referred to as virtual companies. The supply chain of a company involves logistic decisions that must be coordinated based on the locations of the suppliers and vendors of the company. The amount of foreign marketplaces a company penetrates affects the marketing program of a company. A centralized marketing strategy utilizes the same marketing message for all international locations. Conclusion The product mix of a company determines the composition of its marketing program. The four elements of the marketing mix: product, price, promotion, and place are interconnected. Product establishes the foundation for a marketing strategy. A marketing plan is prepared based on the product’s characteristics and attributes. Quality is an important attribute of a product. Poor quality diminishes the chance of achieving long-term customer retention. The features and attributes of a product should be highlighted in its marketing campaigns. There is an inverse correlation between a product quality and its price. Price is a marketing variable that is instrumental to establishing the target market selection. Higher prices allow for greater profit margins, while low price strategies achieve greater volume sales. The promotional efforts of a firm allow a company to send a message to potential customers to generate sales. Promoting a company’s image can be used to build a branding strategy. Advertising campaigns are used to attract new customers. They are delivered through various channels such written press and television. The internet represents the hottest marketing channel of the 21st century. As we approach the year 2009 the newest marketing channel that is being introduced to the masses right now as G3 networks continue to proliferate worldwide is mobile advertising. Place is the marketing mix variable that determines actual distribution channel that the firm utilizes to connect the customers to the product. A firm may choose to sell its product directly through its own outlets or utilize the facilities of other retailers as final sales points. Ecommerce has become an important distribution channel that should be utilized by all business operation in the fast changing business environment company are facing today. References Crystal,G. (2008). What is Public Relations? Available from [Accessed 4 November 2008]. Kotler, P. (2002). Marketing Management (11th ed.). New Jersey: Prentice Hall. Plunkett Research (2008). Internet & Ecommerce Industry. Available from [Accessed 3 November 2008]. Quickmba.com (2008). Marketing Mix (4Ps of Marketing). Available from [Accessed 3 November 2008]. Walmart.com (2008), Wal-Mart Fact Sheet. Available from [Accessed 4 November 2008]. Varian, H. (2003). Intermediate Economics: A Modern Approach (6th ed.). New York: W.W. Norton & Company. Read More