...The purpose of marketing is to facilitate satisfying exchange relationships between buyer and seller. Price is the value that is exchanged for products in a marketing transaction. Pricing is one of the four components of the marketing mix. The other three aspects are product, promotion, and distribution. Price is the only revenue generating element among the four elements of the marketing mix, the rest being cost centers. A well chosen price should do three things: achieve the financial goals of the firm (e.g.: profitability), fit the realities of the marketplace (will customers buy at that price?), and support a product's positioning and be consistent with the other variables in the marketing mix. That is, price is influenced by the type of distribution channel used, the type of promotions used, and the quality of the product Buyer’s interest in price stems from their expectations about the usefulness of a product or the satisfaction they may derive from it. Because buyers have limited resources, they must allocate these resources so that they can obtain the most desired products. Buyers must decide whether the utility gained in an exchange is worth the buying power sacrificed. Pricing represent one of the basic elements of the marketing mix, and it is one of the most difficult elements for which to develop a plan. Developing a product may be a lengthy process. It takes time to plan promotion and to communicate benefits. Distribution usually requires a long term commitment...
Words: 734 - Pages: 3
...Marketing Mix Paper Roger Briseno University of Phoenix MKT 421 Mark Vitale February 7, 2012 Marketing Mix When a market tries to reach its customers and establish a marketing mix, it is vital that they combine marketing strategy in the factor to target potential markets. Importantly, for any businesses or organizations to be successful, they would need to attract customers with new products or services that customers would love. According to Business Know-How, “The key is developing a marketing strategy that forms a solid foundation for your promotional efforts. Implementing promotional activities such as advertising, direct mail or even networking and one-to-one sales efforts without a marketing strategy is like buying curtains for a house you are building before you have an architectural plan.” By implementing the four P’s of marketing, such as, product, price, place, and promotions will enable a formal marketing mix to take place for an organization or business in selling its services and products to the public more effectively. The organization which I am familiar with working in the hospitality food of a restaurants provide our guests New Orleans style food in the heart of Florida delighting many peoples’ fulfillment of Cajun without traveling to New Orleans for the taste. Within this paper I will describe the elements of the marketing mix corresponding with the four P’s. Furthermore, I will describe how each one of the four elements of the marketing mix...
Words: 1076 - Pages: 5
...Marketing Mix Paper Alyce Shelton MKT/421 December 5, 2011 Instructor: Susan Craver Marketing Mix Paper The key to business success is smart marketing. Today’s mega-businesses consistently seek to develop unique products, use multiple combinations of marketing techniques, and reach new consumer targets. Verizon Wireless currently operates the world’s largest wireless cell phone network, with customers in over 150 countries. The company has clearly demonstrated good use of the marketing mix, and will be used as an example of how the elements of this mix can benefit an organization. Marketing Mix Defined The marketing mix can be defined as the classification phrase to describe organizational choices for development of effective marketing strategies. The term was introduced in 1953 by Neil Borden, former president of the American Marketing Association (AMA). In 1960, Jerome McCarthy added specific elements to further define the marketing mix, known as the 4 P’s: product, price, place, and promotion (Investopedia, 2011). Product Although it is generally thought of the tangible, physical entity that is bought or sold, a product can also be broken down into three levels: 1. The actual product as just described 2. The core product, which is the benefit of the physical product that makes it of value to the buyer 3. The augmented product, which is the added value to the product. An example of this would be a warranty. (Marketing Teacher, 2000-2011) ...
Words: 1684 - Pages: 7
...Explain the role of promotion within the marketing mix for a selected product or service. In Shakeaway, they currently have campaign to promote their Christmas winter products to be able to make these products successful they use the marketing mix along with the promotional mix which supports the marketing mix when marketing and promoting the product. The marketing mix is ideas to consider when Shakeaway is marketing their new winter milkshakes, the promotional mix is how Shakeaway communicates with different target audience and is one of the key element within the marketing mix. Marketing Mix: The marketing mix is made up of seven Ps, these known as, Product, Price, Place, Promotion, Packaging, People and Processes. Each element of the marketing mix is used in Shakeaway to help market the new winter milkshake they are currently campaign this Christmas. Product: The first part of the marketing mix Shakeaway needs to consider is the Product. Shakeaway has six new product that is added on their menus for limited edition for Christmas. When Shakeaway produce these products to sell it was important they considered, product development, product management, product features, packaging, branding and after sale service. Shakeaway uses product development to continue the launch of competitions worldwide to create new flavours for their customers, along with trying random and strange combinations of their imaginations to see if they blend well which is what Shakeaway new Christmas...
Words: 1078 - Pages: 5
...The Marketing Mix Abstract The marketing mix also known as the four P’s of marketing is generally used by marketers as means to assist with implementing effective marketing strategies. When used efficiently and effectively to generate the optimum response within a target market, businesses are typically successful. The four P’s can be adjusted as needed by marketers to meet the changes and demands of consumers. These four elements consist of product, price, place and promotion. The product is the merchandise or service that is offered to consumers. The aspect of a product includes functionality, appearance, quality (value), service, support and warranty. Pricing involves the list price as well as discounts, financing, leasing and other options. Placement (place) in marketing consists of distribution channels, locations, logistics, and service levels including support. Promotion involves how consumers or a particular target market is informed and/or educated about a product or service. This would include advertising, public relations, sales, and media. According to Goi, the concept of the four P’s has been criticized in numerous studies. However, in spite of its insufficiencies, these four elements remain fundamental to the marketing mix (2009, p. 3). The Marketing Mix Marketing has been around for many years. It includes planning and implementing the proper marketing plan for an organization. For many, marketing only involves selling and advertising. However marketing...
Words: 2379 - Pages: 10
...The Marketing Mix University of Phoenix MKT 421 9/20/09 The marketing mix is one of the most important elements of an effective marketing campaign. Its elements are the basic components of a marketing plan. Also known as the Four P's, the marketing mix elements are price, place, product, and promotion. The marketing mix concept is simple; each of the four elements plays an important part in the success of the marketing plan. Similar to a good recipe, too much of one ingredient and not enough of another could spoil the meal. The same theory applies to the marketing mix; alterations are normal in every successful marketing mix and determine the success or failure of a product or service. The price is what the consumer will pay for the good or service from a vendor. Within the pricing concept are pricing strategies that determine how much the good or service will cost. The most used pricing strategies are premium pricing, penetration pricing and economy pricing. Each of these pricing strategies reaches a different level of consumer and allows a company to maximize the sales potential of a product or service. Premium pricing is most often used when a large competitive advantage exists. The alternative is a good or service that is not comparable in quality, therefore a company that offers this product will have a premium price. Examples of premium priced goods and services are Mercedes Benz cars, flying first class and buying a diamond ring from Tiffany’s. Penetration...
Words: 1301 - Pages: 6
...Broadly speaking, in order to maximise profits, different firms use distinct tools to perform strategy and decisions, such as SWOT analysis, PESTEL analysis and marketing mix analysis. In terms of the marketing mix, as an important concept in the subject of business studies, it refers to “a balance between the four main elements of marketing [is] needed to carry out the marketing strategy. It consists of the ‘4ps’: product, price, promotion and place” (Marcousé and Surridge et al., 2011:141). Firms can build an effective marketing strategy by using the marketing mix as a tool, and it is possible that business will fail if the marketing mix is not correct. The aim of the essay is to analyse elements of the marketing mix. Initially, it will discuss four elements, which are the product, price, place and promotion respectively. Then, it will evaluate the most vital component in the marketing mix, which is the product. The first component of the marketing mix is the product. “A product is a good or service produced by a business or organization, and made available to the public for consumption” (Ashwin and Merrills et al., 2008). Each product has a different feature, which could be the unique selling points of them. Roams and Cota (2008:152) attempt to define this term is, “A unique selling point (USP) is a short statement that explains why a customer should buy from you instead of your competitorsin". For example, Apple Corporation has a unique and independent operation...
Words: 1850 - Pages: 8
...SEGi UNIVERSITY COLLEGE FACULTY OF BUSINESS AND ACCOUNTING UNIVERSITY OF SUNDERLAND UGB-112: PRINCIPLES OF MARKETING INDIVIDUAL ASSIGNEMENT TITLE OF THE ASSIGNEMENT: THE CUSTOMER- MARKETING EXPERIENCE OF SERVICE PRODUCT COURSE NAME: BA (HONS) BUSINESS MANAGEMENT INTAKE: 14th FEBRUARY 2011 SEMESTER: 2 Level 1(SEPTEMBER TO JANARY 2012) MODULE LEADER’S NAME: JOEL ARNOTT LECTURER NAME: PATRICK HAN NAME: OUMOUL KHAIRY BARRY STUDENT NUMBER: 109115296/1 Table of content: 1-INTRODUCTION………………………………………………………. 2-DECISION MAKING PROCESS……………………………………… 2-1 BUYER BEHAVIOUR…………………………………………….. 2-2 CHARACTERISTICS OF BUYER BEHAVIOR…………… 3-MARKETING MIX………………………………………………………… 4-CONCLUSION……………………………………………………………… 5-REFERENCES……………………………………………………………… 1)_ Introduction Needs and wants are two concepts, which are permanently used, in human life but they are still confused about it. It’s in this case marketers tried to define it to make it more useful to people. So in the next line we will define needs and wants accordingly to the marketing concept. * Needs: according to kottler and Armstrong, the most basic concept underlying marketing is that of human needs. Human needs are states of felt deprivation. They include basic physical needs for food, clothing, warmth, and safety; social needs for belonging and affection;...
Words: 2834 - Pages: 12
...Marketing Mix Marcos Moreno Marketing Mix Organization's success follows a marketing plan, process and strategies to achieve maximum product awareness and make their product or service in the top of any industry to achieve revenues needed to make an organization reach maximum profits. The industry the organization is part of plays an important role too, because depending on the market saturation or not, makes the organization creates a larger plan causing to spend more than in other industries adding additional costs to the final product or service. The marketing mix describes the combination of the four inputs which constitute the core of an organization’s marketing system (Stanton, William J.) Organizations use the elements of the marketing mix (product, place, price, and promotion) to outline the marketing plan, goals, and strategy to follow. The marketing mix is the instrument to reach the marketing goals. The marketing mix are interrelated, because of the decisions taken in one area usually affects the other. The product mix is the actual article or substance, is the first element. The product must satisfy consumer needs. It includes the physical product, services, branding, packaging, planning and developing the right products, modification and innovations. The price is the actual amount the organization sells their final product or services which affects the volume of sales. It includes pricing objectives and policies, price fixation, discount policy, concession...
Words: 994 - Pages: 4
...Elements of Marketing Mix MKT/421 Elements of the Marketing Mix Today’s high performance organizations are placing a high emphasis on marketing as a key to organizational success. The planning phase of the marketing management process is extremely important to effective marketing operations. Marketing planning involves setting objectives, evaluating opportunities, creating marketing strategies, preparing marketing plans, and developing marketing programs. Developing a market strategy consists of identifying a target market for a product or service, followed by building a marketing mix to reach the target group as creating marketing strategy is a key element in the process of market planning. The marketing mix and its elements make up the basic tactical components of a marketing plan. The elements of the marketing mix are known as the Four P’s including some products marketed at a price with some promotion to tell customers about the product and a way to reach the potential customers (Perreault, 2011). The idea that the customer is also an element of the marketing mix is a common misconception. The customer is in fact the target of the marketing mix. “The basic reason to focus on some specific target customers is so that you can develop a marketing mix that satisfies those customers’ specific needs better than they are satisfied by the competitors in the industry” (Perreault, 2011). Elements of Product The product element of the marketing mix refers to...
Words: 1447 - Pages: 6
...Marketing Mix Paper Piña MKT/421 June 6, 2011 Carlyn Carmichael Marketing Mix Paper To achieve the marketing objectives the strategy must include different elements – that is the different parts of the marketing mix. In this reading, the elements of the marketing mix which is product, place, price, and promotion will be defined and explained. McDonald’s will be used in this reading to describe how each one of the four elements of the marketing mix affects the development, marketing strategy and tactics. Marketing is having a great product, being sold at the right price at the right place while utilizing the appropriate promotion. Sounds simple but a lot of hard work goes into these simple steps. A company has to go to great lengths to find what the customer likes, where they shop, and what they consider a good value. This is where the marketing mix comes in. The marketing mix was intended to recommend that you have a well-adjusted mix of marketing activities within your marketing plan. Reviewing these steps can help through the plans and avoid faults. The marketing mix as identified by McCarthy consists of the 4 Ps; product, price, promotion and place; and is a good way in outlining the marketing mix. Product – this element defines the characteristics of your product or service that will meet your customers’ needs. Price – this portion refers to the price of the product or service, including the strategy that is used. It is important to test numerous pricing...
Words: 1504 - Pages: 7
...Programme: | BTEC L3 Extended Diploma in Business | Unit (No. and Name): | Unit 3 Intro to Marketing Part 2 | Start Date: | 18th December 2014 | Deadline Date: | 16th January 2015 | Marking Tutor: | Danielle Vipond | Internal Verifier (Brief): | Tam Baldwin | Brief Verified (Date): | | Internal Verifier (Assessment) | Tam Baldwin | Targeted Criteria: | P1 | P2 | P3 | P4 | P5 | P6 | P7 | P8 | Achieved: | | | | | | | | | | M1 | M2 | M3 | M4 | M5 | M6 | M7 | M8 | Achieved: | | | | | | | | | | D1 | D2 | D3 | D4 | D5 | D6 | D7 | D8 | Achieved: | | | | | | | | | Plagiarism: Work handed in against this brief must be the learner’s own work. Any content not generated by the learner must be appropriately referenced; otherwise it will be taken to be that of the learner submitting it. Any infringement of the College’s Plagiarism guidelines will result in the Assignment not being marked and Disciplinary proceedings initiated. Scenario: | You work for a large marketing agency that consults for a variety of businesses on the marketing activities that they undertake in order to promote their products and services. Your marketing agency has a varied portfolio of clients and you have been given a range of business tasks to complete to help maintain their business and that of their clients. | Assessment Tasks: | Number | Task | Criteria Targeted | 1. | * Following your attendance at the workshop for P3 you will be given...
Words: 1270 - Pages: 6
...Marketing Mix Of Reliance Communications Marketing Mix Reliance communications 7 P’s of marketing for Reliance Communications Product Reliance mobile always faced the problem of weak network. So to correct the major have invested over Rs 300 crore to upgrade to NGIP (Next Generation IP) network. Product has to sell itself. Now they are launching about more than 1100 network towers to provide more coverage to its customers. Price There are many ways to price a product. The pricing policy/ strategy vary in various situations. In case of Reliance mobiles they have priced their product at a very low price & they also come up with new plans. Place Another element of Marketing Mix is Place. Place is also known as channel, distribution, or intermediary. It is the mechanism through which goods and/or services are moved from the manufacturer/ service provider to the user or consumer. Reliance Mobiles do not find it very difficult to find the distribution channel because they are the old players and distribute their product in India. Promotion Another one of the 4P’s is promotion. This includes all of the tools available to the marketer for ‘marketing communication’. Reliance has recently started doing heavy promotions. Physical Evidence Physical Evidence is the material part of a service. Strictly speaking there are no physical attributes to a service, so a consumer tends to rely on material cues. As Reliance mobile provide various rental plans. People ...
Words: 7288 - Pages: 30
...INTRODUCTION This report introduces the four elements that constitute the makeup of the overall marketing mix and then applies them to the practical real world workings of the Australian automotive fuel retailing industry – retail petrol outlets. The four elements making up the overall marketing mix include product, price, place and promotion. Collectively they are referred to as the four P’s of marketing as their significance makes them the very foundations and building blocks of marketing. This report affords each individual element its own discussion section opening with the definition of the discussed element before delving deeper into what each element brings to the overall marketing mix and ultimately applying them to the retail petrol industry. MARKETING MIX PRODUCT A product is ‘anything tangible or intangible that satisfies the consumer or business customers’ needs as a result of an exchange process’. A product can be physical goods, services, ideas, people or places. A product has three layers beginning with the core consisting of the benefits that the product provides for consumers (or business customers), the actual product, that is the physical good or the delivered service that supplies the desired benefit and the augmented product which is the ‘actual product plus other supporting features’ (Solomon, et al. 2011, p. 181-185). In the automotive fuel retailing industry, Convey (2011, p. 11) found that ‘retail sales of petrol and diesel, together with related...
Words: 1607 - Pages: 7
...2 Four P’s Marketing Mix on Starbucks The marketing mix plays an important part in marketing. The purposes of the marketing mix are to use a combination of tools to satisfied the customers and obtain company goals. The marketing mix is referred as the four P’s: product, price, place, and promotion. “The elements are adjusted until a right combination is found that serves the needs of the product’s customers while generating optimum income”. (Marketing Mix, 2010, p. 1). By using the four P’s, most businesses have the ability to connect with consumers within the targeted market. The ability to create a successful marketing mix often has good results. However using the wrong mix can lead to failed marketing strategies which can result in the business dissolving. The key is not to get stuck on one mix; the combination of elements often has better results than just using one. This research paper will review all elements of the marketing mix and how each ones plays an important role that organizations must acknowledge in order to be successful. The first P in the mix is the product. The product is used to determine market needs, wants, and desires, to assess internal resources regarding satisfying market needs, wants, and desires with innovation, to develop process for market resource and product testing, and to forecast product life cycle. With this being said, the product would refer to a physical product or service in a company. The product would be used to satisfy a targeted...
Words: 1212 - Pages: 5
