...THE APPLICATION OF THE MARKETING MIX AND EXTENDED MARKETING MIX FOR SERVICES IN A BUSINESS ORGANIZATION OF YOUR CHOICE The marketing mix refers to variables that a marketing manager can control to influence a brand’s sales or market share (Ellis, 2006). The marketer E. Jerome McCarthy proposed the four Ps classification in 1960, which has since been used by marketers throughout the world (Wikipedia, 2014). These variables are summarized as: product, price, promotion, and place (distribution). The 4P’s are also known as product marketing mix because their application is traditionally for marketing of products. Robert F. Lauterborn proposed a four Cs classification in 1990 which is a more consumer-oriented version of the four Ps (Wikipedia, 2014). They are: consumer, cost, communication and convenience. In this discussion we concentrate on McCarthy’s 4P’s. The extended marketing mix is, as the name suggests, an extension of the marketing mix which was traditionally for products (Bhasin, 2014). As services came more into the picture it was seen that the 4p’s could not justify the marketing mix. Bhasin further reports that the extended marketing mix was brought forward by adding the following 3 elements: Process, Physical evidence and People to make the 7P’s. These 3 more elements were necessary to explain the marketing of services. Therefore this extended marketing mix is also known as the service marketing mix. The marketing mix and extended marketing mix can be illustrated as...
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...Marketing mix Kotler defined that marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering, and exchanging products and services of value freely with others. (Kotler, 2002) McCarthy’s Four Ps A marketing expert named E. Jerome McCarthy created the Marketing Four Ps in the 1960s. This classification has been used throughout the world. Business schools teach this concept in basic marketing classes. The marketing four Ps are also the foundation of the idea of marketing mix. Product A product is an item that is built or produced to satisfy the needs of a certain group of people. The product can be intangible or tangible as it can be in the form of services or goods. Price The price of the product is basically the amount that a customer pays for to enjoy it. Price is a very important component of the marketing mix definition. It is also a very important component of a marketing plan as it determines your firm’s profit and survival. Adjusting the price of the product has a big impact on the entire marketing strategy as well as greatly affecting the sales and demand of the product. Place Placement or distribution is a very important part of the product mix definition. You have to position and distribute the product in a place that is accessible to potential buyers. This comes with a deep understanding of your target market. Understand them inside out and you will discover the most efficient positioning...
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...“Principles of Marketing” was a part of my programme this year. I haven’t studied marketing before, but I had an idea of its general concept. It is well known how everything around us and in our lives is affected by marketing. It was useful and interesting to get closer and understand this discipline better. My expectations were met: the information given us during lectures and practice on seminars in teamwork was very fruitful and informative. I became aspired by this subject, and I wanted to know more about it. The process of learning was performed in such way, that students were willing to interact and learn with fun. From the beginning it was anxious, it was not clear what was expected from me, the assessments seemed to be impossible to do. But with every lesson the level of confidence with subject was rising. My first assignment was a test, which supposed to be taken online. It was a high motivator to study and read the textbook. The test covered all the topics, which were taken in semester one, and it was challenging. Unfortunately I have got low grade in it, and I strived to remedy on my next exams. In one of the assignments we were supposed to work in groups. That was our first experience of teamwork. The theoretical knowledge that I gained previously has been applied in this task. We created our fictional product for E-Portfolio. It was a perfume “PHY”. In this assignment we worked on 4P’s of marketing mix: we introduced the product. Perfume industry was chosen due...
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...to what is to follow. It tells readers what to expect by addressing Who, What, When, Where, Why and How? The Introduction outlines the main issues on which you intend to focus and others you just intend to mention. In this way it sets your parameters. It defines any terms or concepts that you need and acknowledges possible issues raised by the question and explains your approach. It could include a comment upon the importance of the topic. It may act as an overview in summarising the issues to show an understanding of the exact question and present the method of research or experiment. It is often about 10% of the length of the essay. An example of a basic Introduction for ‘ Discuss the relevance of the marketing mix for a tourism organisation’ might be: The purpose of this essay is to… (repeat the essay task in your own words, i.e....
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...Marketing mix-the case of Aesop Serial number MEB1499 Student ID 26779595 Class PMD Table of contents Executive Summary 3 1.0 Background 4 2.0 Marketing Mix 4 2.1 Marketing mix theory 4 3.0 Aesop-a case study 5 3.1 Product in marketing mix 5 3.2 Price in marketing mix 6 3.3 Strengths and weaknesses in marketing mix 7 4.0 Conclusion and recommendations 8 Reference list 9 Executive Summary The purpose of this report is to evaluate how marketing mix elements are used in Aesop’s promotional strategy; how effective Aesop has been in the promotional strategy; and it provides some necessary recommendations. In this report, two marketing mix elements product and price are analyzed. By analyzing Aesop’s strategies of product and price, it is easy to identify the strengths and weaknesses of the company. The findings indicate that Aesop has made great progress in high-quality products and product orientation. What is more, price policy which based on the cost of production is reasonable. However, the capacity of the market still needs further expansion. This report gives some advice on expanding the market, and it will ensure that Aesop develops better in the future. 1.0 Background Aesop was founded by Dennis Paphitis in 1987 in Melbourne. The name originates from Aesop’s Fables. It is an organic herbal cosmetics company. Aesop devotes itself to natural skin care, body care and hair care, and it aims at providing the finest quality...
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...Marketing mix The Marketing mix is generally accepted as the use and specification of the "four P's" describing the strategic position of a product in the marketplace. One version of the marketing mix originated in 1948 when James Culliton said that a marketing decision should be a result of something similar to a recipe. This version was used in 1953 when Neil Borden, in his American Marketing Association presidential address, took the recipe idea one step further and coined the term "Marketing-Mix". A prominent marketer, E. Jerome McCarthy, proposed a 4 P classification in 1960, which has seen wide use. The four Ps concept is explained in most marketing textbooks and classes. Definition A"Marketing Mix" is the set of controllable, tactical marketing tools that work together to achieve company's objectives, they are: product, price, promotion and place: o Product - A tangible object or an intangible service that is mass produced or manufactured on a large scale with a specific volume of units. Intangible products are often service based like the tourism industry & the hotel industry. Typical examples of a mass produced tangible object are the motor car and the disposable razor. A less obvious but ubiquitous mass produced service is a computer operating system. o Price – The price is the amount a customer pays for the product. It is determined by a number of factors including market share, competition, material costs, product identity and the customer's...
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...Marketing LaTroya c. Boyd MKT/421 4/30/14 Dr. Michael Rico WHAT IS MARKETING? I consider marketing to be a form of art. The goal is to persuade the audience and lead each individual into the direction of being convinced. Whether it is a product sold in the market or an idea of a business and the creator is looking for an investor, marketing builds the connection that should ultimately lead into trust. According to “Basic Marketing A Marketing Strategy Planning Approach” marketing is defined as more than just buying and selling. It is stated that “marketing is the performance of activities that seek to accomplish an organizations objectives by anticipating customer or client needs and directing a flow of need-satisfying goods and services from producer to consumer or client.” In other words, the mission of any business is to keep track of what customers are most interested in order to maintain a successful business. It takes strategic planning and for all involved in the company to use good communication skills and learn to coordinate with the rest of the so that everyone is on the same page. To promote goods or services the marketing strategy should be organized. Un-organization is the recipe for failure. Personally I believe marketing is quite a few things. Marketing is art. It is a process of convincing people and promotion. Other sources will sum marketing up and describe it as a management process where goods and services are moved from a mere idea to the consumer...
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...changed the way the art industry operates. A critical analysis and comparison of the e-marketing mix strategies of Etsy and DeviantART was also made. The research draws attention to the shift from an industry with a high barrier to entry which used traditional forms of discovering, exhibiting and selling artworks, for example, art galleries, to an industry with a lower barrier to entry, changed by online platforms that allowed a greater number of artists and artworks to enter the market and created new ways in which both artists could sell their works and buyers could buy those works. The analysis of the e-marketing mix strategies of Etsy and DeviantArt found that Etsy and DeviantART catered to their consumers’ needs by the development of a marketplace and social networking platform, respectively. The analysis of their pricing strategies found that Etsy and DeviantART both utilized elements of fixed pricing and personalized pricing, but only Etsy using dynamic segmented pricing. The distribution strategies of Etsy and DeviantART did not include the use of intermediaries and products were sold directly to the consumers through websites and mobile technology. The communication strategies of Etsy and DeviantART were strong with a focus on the building of communities through owned, paid and earned media. It was found that neither Etsy nor DeviantART had a more superior e-marketing mix strategy, as they both had strengths and weaknesses in different areas. It was...
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...of the extended marketing mix & its usage in different context Second assignment issued by Fatima Bagherian Daniel Pisch Business E2020 (evening) 12.11.2015 1 Contents Foreword…………………………………………………………...............3 Methodology………………………………………………………………….4 Referencing..………………………………………………………………5-6 Task 1 - question 1.……………….……………………………………….7 Question 2………….……………….…………………………………….....8 Question 3…………………………………………………………………….9 Question 4…………………………………………………………………..10 Question 5…………………………………………………………………..11 Task 2 – question 1………………………………………………....12-13 Question 2…………………………………………………………………..14 Question 3…………………………………………………………………..15 2 Foreword This assignment has been commissioned by Fatima Bagherian. In order to do this assignment student must study the Unit 4 marketing principles. The goal of this assignment is that the student is able to: Explain how products are developed to sustain competitive advantage Explain how distribution is arranged to provide customer convenience Explain how prices are set to reflect an organization’s objectives and market conditions Illustrate how promotional activity is integrated to achieve marketing objectives Analyse the additional elements of the extended marketing mix Plan marketing mixes for two different segments in consumer markets Illustrate differences in marketing products and services to businesses rather than consumers Show how and why international marketing differs from domestic...
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...Xiaomi Vs Apple Introduction Xiaomi Inc. (Chinese: 小米科技; pinyin: Xiǎomĭ Kējì, literally "Xiaomi Tech", or "Foxtail millet tech")is a privately owned Chinese electronics company headquartered in Beijing, China. It is the world's 3rd largest smartphone distributor that designs, develops, and sells smartphones, mobile apps, and consumer electronics.[4] Since the release of its first smartphone in August 2011, Xiaomi has gained market share in mainland China and expanded into developing a wider range of consumer electronics. The company's founder and CEO is Lei Jun, China's 23rd richest man according to Forbes. The company has over 3,000 employees, mainly in mainland China, Malaysia, Singapore, and is expanding to other countries such as India, and Indonesia. As per the new research by IDC, Xiaomi is now the third largest smartphone maker in the world followed by Lenovo and LG at fourth and fifth place respectively. Samsung remains at the first place despite declining shipment volume, followed by Apple Inc. at second place. Apple Inc. is an American multinational corporation headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, online services, and personal computers. Its best-known hardware products are the Mac line of computers, the iPod media player, the iPhone smartphone, and the iPad tablet computer. Its online services include iCloud, iTunes Store, and App Store. Apple's consumer software includes the OS...
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...EMOTIV SYSTEMS Case Analysis Which platform should Emotiv pursue – console or PC? Focus only on the US market and assume that US has 110 million households. If Emotiv manages to convince one of the console makers in time for a fall 2008 debut, what marketing mix decisions (specifically, pricing and channel) are appropriate? How about if EPOC is only PC enabled? Emotiv has currently many options, but as per the current situation the best platform for Emotiv’s EPOC launch would be the PC market. Presently this system was being used for Professional uses like presentation of the Emotiv products. Launching this product in the PC market would also be beneficial for Emotiv as it would be able to charge higher price for it’s product. As PC users are hard-core gamers and they do not mind spending much on new products, they would definitely try the product once it is launched in the market. Moreover, Emotiv does not have to share their margins with the PC Game publishers, so Emotiv will earn a higher margin. Console manufacturers are currently not giving any proper confirmation for the integration of EPOC into their consoles. Wii has refused plainly. With Sony they are facing problems due to internal politics of the Hardware and Software divisions and Microsoft wants to follow second to market approach. Console manufacturers are also charging huge margins for the every EPOC headset sold. PC is the best platform for EPOC product launch and it will also be able to skim the...
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...bad for the environment. c. With sales of over $35 billion annually, it has to clout to pressure manufacturers. d. Customers have complained about the use of excessive packaging. e. Having a large advertising budget. 2. To a channel manager, the elements of the marketing mix do all of the following except: a. They can inhibit the performance of the marketing channel. b. They can enhance the performance of the marketing channel. c. They are tools for securing channel member cooperation. d. They are viewed as resources for the channel manager. e. They do not affect the performance of other channel members. 3. The channel manager’s efforts to manage the marketing channels effectively should focus on: a. Creating synergy among the four components of the marketing mix. b. Motivating channel managers. c. Understanding advertising and promotions that attract customers. d. Developing the firm’s marketing objectives. e. Using good communication skills with channel members. 4. For the channel manager, the most powerful element of the marketing mix for gaining channel member cooperation is: a. Product. b. Price. c. Promotion. d. Logistics. e. It varies. 5. Product decisions __________ channel management decisions. a. affect b. are dependent upon c. are independent of d. are made before e. are made after 6. Which of the following is a false statement about when a manufacturer is...
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...the Thai Chamber of Commerce 2012 Thesis title Name Degree Major title Thesis adviser Graduate Year Factors and Customers Satisfaction of Budget Hotel Customers in China Yang Yu Master of Business Administration International Business Assistant Professor Dr. Arisara Seyanont 2012 ABSTRACT The purpose of this research was to study the customer perception toward marketing mix (7P’s), customer satisfaction and customer loyalty of budget hotel in China. The researcher distributed 450 questionnaires during the month of September to October to the customers who stayed at budget hotel in China. There were 400 questionnaires completed and usable. Collected data from questionnaires processed by computer program in terms of frequency, mean, standard deviation and regression. Results showed that customer perception toward product/service and promotion had a positive impact on custom satisfaction, and customer satisfaction had a positive impact on customer loyalty. The budget hotel operators can use the result to determine their target market, make a good marketing mix plan to make the customer satisfaction and loyalty. iv ACKNOWLEDGEMENTS I would like to express my gratitude to all those who helped me during the writing of this thesis. My deepest gratitude goes first and foremost to my thesis advisor Assistant...
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...Emotiv should pursue the PC platform to launch in the beginning, due to: * Highly involved customer segment of teen and adult hard-core gamers being technophiles who are early adopters, can appreciate complexity of brain control interface games, serving as good incubators for the newly launched technology, and habitually investing in upgrading their P.C.s and gadgets, are less price sensitive, thereby justifying the higher retail price of 399$ and favouring their added expense for EmoKey software package for enhanced backward compatibility, ensuring a better t gaming experience for them. * Emotiv saves on royalty fees of 3-5% in exchange for software kit development costs and installation driver development costs, leading to higher contribution and fewer losses in year 1 and in year 2. * It is also worth investing in the out of box experience by Demiurge, since it would give the user a feel for the capabilities of the newly introduced technology of thought controlled interactivity, thereby shrinking the learning curve of new users and facilitating adoption. * Winning preference with game developers: with high margin incentives and no royalty fees, the PC gaming market is in itself attractive to game developers. With Microsoft windows OS. being a widely accepted system, it simplifies design and programming, facilitating game developers to develop blockbuster games around this technology and encourage sales of EPOC. * Launching in the p.c. market would build...
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...Table of Content INTRODUCTION 3 MARKETING CONCEPT AND APPLICATION 3 PRINCIPLES OF MARKETING 4 ROLE OF MARKETING 9 Strategic Marketing Planning 10 The Planning Overview 11 Broad Objectives 12 Strategic Marketing Plan 12 Potential Barriers 13 The Planning Cycle 14 Role of The Marketing Mix 14 Product 15 Price 15 Place 16 Promotion 16 Methods of promotion are varied, and include: 17 PROMOTION MIX 18 CONCLUSION 22 REFERENCES 24 Marketing: Principles Of Marketing Introduction Mаrkеting сonсеntrаtеѕ primаrily on thе сonѕumеrѕ. Аftеr dеtеrmining, thе сonѕumеr'ѕ nееdѕ аnd wаntѕ for а produсt, thе mаrkеting dеpаrtmеnt or firm muѕt thеn сrеаtе а mаrkеting ѕtrаtеgy thаt will еduсаtе thе сonѕumеr of а pаrtiсulаr produсt. Thеn thе mаrkеting proсеѕѕ bесomеѕ аn ongoing сyсlе. Mаrkеting inсludеѕ plаnning, orgаnizing, dirесting, аnd сontrolling thе dесiѕion-mаking rеgаrding produсt linеѕ, priсing, promotion, аnd ѕеrviсing. Thе mаrkеting dеpаrtmеnt or mаrkеting firm hаѕ to ассount for numеrouѕ fасtorѕ whеn lаunсhing а nеw produсt or produсt linе. Ѕomе of thе fасtorѕ for thе mаrkеting tеаm to сonѕidеr would bе who iѕ uѕing thе produсt? Whаt iѕ thе bеѕt wаy to diѕtributе thе produсt? Whеrе to diѕtributе thе produсt аnd Whаt iѕ thе сoѕt of thiѕ produсt? Mаrkеting doеѕ not ѕtop onсе thе produсt iѕ on thе mаrkеt, thеn it moѕt сonѕidеrеd how to mаintаin а high lеvеl of dеmаnd for itѕ produсt аnd thеn how to kееp thiѕ produсt up to dаtе or whеn iѕ it thе right timе to dеvеlop...
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