Premium Essay

Marketing Mix Elements of Retail Petrol Outlets

In: Business and Management

Submitted By bae85
Words 1773
Pages 8
MARKETING MIX ELEMENTS OF RETAIL PETROL OUTLETS

Australian retail petrol outlets all essentially provide the same products to the customer whether the service stations are privately owned and operated or managed under agreements with the supplying oil companies such as BP, Shell, Caltex, Mobil etc. The difference is in their ability to position themselves in the market as having an understanding of their target markets needs, wants and desires and delivering on these to create customer satisfaction and ultimately maximising their return. A useful tool to ensure successfully positioning of their offer is the use of the four marketing mix elements. The four marketing mix elements, collectively known as the four P’s include Product, Price, Promotion and Place. This report provides an overview of each element and how they are applied to retail petrol outlets; sending an overall message to the consumer about quality, cost, performance and the product’s position compared with a competing brand.

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 good is a tangible product that we can see, touch, smell, hear, taste or possess. Intangible products, such as services, ideas, people and places, are products we can not always see, touch, taste, smell or possess.

A product has three distinct layers; the core product, consisting of the benefits that the product provides for consumers (or business customers), the actual product which 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’ such as warranty, credit purchase facilities, delivery, installation and after-sales service. (Solomon, et...

Similar Documents

Premium Essay

Retail Petroleum Industry Report

...Report Introduction The following report will examine the 4 elements of the marketing mix and their relevance and importance within the retail petroleum industry. The marketing mix elements are often referred to as the 4 p’s of marketing and are product, price, promotion and place (Solomon, et al. 2011, p. 21). These 4 elements are the building blocks of an effective marketing strategy and are useful in gaining an understanding of marketing in the retail petroleum industry. This report will deal with each of these elements individually and discuss how the macro and micro environments of the retail petroleum industry in Australia affect the way marketers approach these 4 elements. Reference will be made to texts, industry reports, and an internet news article. These references will help to provide a complete understanding of the implications of the marketing mix on this industry. Product A product is ‘a tangible good, service or idea that satisfies consumer or business customer needs through the exchange process’ (Solomon, et al. 2011, p. 11). Products can be referred to as having three levels. These levels are the actual, the core and the augmented product (Solomon, et al. 2011, p. 22). An actual product is the tangible good or service that delivers the desired benefit to a customer. In the retail petroleum industry we have a number of actual products that are offered to customers. Firstly, there is petrol and diesel, as well as related products including LPG,......

Words: 1664 - Pages: 7

Premium Essay

Marketing Mix on Petrol Outlets

...SLMB100 Marketing Concepts Assignment 1 Marketing Mix Report INTRODUCTION Organisations today operate in a dynamic and uncertain economy within a greater competitive environment. To remain profitable, organisations must implement a marketing orientation strategy whereby all business decisions are centered on delivering customer satisfaction. This strategy emphasizes the importance of understanding the identified key audience, their needs, wants and desires to effectively create and position an offer of value to both the customer and the organisation. A useful tool to aid marketers in successfully positioning their offer is the Marketing Mix, more commonly referred to as the 4P’s – Product, Price, Promotion and Place. By adjusting these four elements, organisations are able to satisfy customer needs in their chosen target market/s whilst maximising their return. This model can be used for new offers entering the market, analysing existing offers or optimizing growth in a target market/s. This report provides an overview of each element of the Marketing Mix and how they are applied to retail petrol outlets. THE MARKETING MIX PRODUCT A product is defined as a good or service that offers a value to customers by satisfying their needs or wants. Products can be tangible, that is physically touched, or intangible such as services. A product consists of three layers. The inner core is the benefits it delivers to customers, the middle layer the actual physical......

Words: 1931 - Pages: 8

Premium Essay

Marketing

...INTRODUCTION This essay reviews the role of the 4 elements of the marketing mix, and the role they each play in the retail petrol environment. The 4 elements of the marketing mix are product, price, place and promotion and collectively they are referred to as the 4 P’s. The 4 P’s are very much the foundation of marketing in in this essay I will define each of the 4 P’s and discuss their roles within the marketing mix of the petrol retail environment. This essay will then conclude with a review of the 4P’s, their relevance within the marketing mix and their overall significance within the retail petrol environment. PRODUCT Product can be defined as what is exchanged in a sale with the customer, whether that is a good, service, idea people or places. Within the retail petrol environment there are countless products, the majority of which are non-durable goods such as the core product of the outlet, fuel, and all the convenience products such as the food, drinks and entertainment products (magazines etc). Many retail petrol outlets have become stores within a store, where there is the main store that sells the petrol and convenience products, and a second store that is a fast food outlet. These stores within a store add to the appeal of outlet, customers understand that they have a greater choice and subsequently a greater chance that their needs can be satisfied. Jerath and Zhang commented that “the introduction of new products through stores within a store can bring new...

Words: 282 - Pages: 2

Premium Essay

Management

...make up the elements of marketing mix. The numerous competitors that Caltex compete for market share are BP, Coles Express, Mobil, Shell Woolworths and United Petroleum in the retail environment, Product A product can be a physical object, services, persons, places organisations and ideas. The nature of a product can be tangible for instance a vehicle, and non tangible, a service. A product has the capability to satisfy a consumer’s wants and needs.2 (MAANZ Glossary) There are three distinct layers that make up a product with the first being the “core” product which is the intangible benefit or service received by the purchaser from using the product, The next layer is the actual product which is the product itself or the service being rendered. The actual product unique features supplies the core product benefit. The combination of the actual product and its other features of value the product has to offer is the augmented product layer. “A product is everything beneficial that a customer receives in an exchange”.3 (Solomon, et al. 2011, p.183). By determining the main product the retail petrol outlets sell, petrol, we can further classify petrol as a non-durable product as it provides a benefit over a short period. The frequency the consumer purchases petrol could also be in the category of convenience products. 4 (Solomon, et al. 2011, p. 186). The actual product is the physical product being petrol which includes unleaded petrol, E10 unleaded petrol and LPG......

Words: 1952 - Pages: 8

Premium Essay

The 4 Elements of Marketing Mix

...Introduction Australian retail petrol stations are operating through a network of different major oil company such as BP, Shell, Caltex, Mobil etc. Some are privately owned and operated; some are agents operating the service stations under an agreement with the oil companies; many are owned by those companies. They all provide essentially the same products to customers; the difference lies in their locations, value added service and their marketing programmes. The fuel price levels vary between service station operators due to “the location, quality or the price policies of the operators. Australian’s oil industry has some unique characteristics and very competitive local environment. Therefore, in many cases petrol suppliers use the lens to focus the elements of marketing mix so that the consumers receives an overall message about quality, cost, performance and the product’s position compared with competing brand. 2. Elements of Marketing Mix Marketing mix is the term used to describe the combination of the four inputs: the product, the price structure, the promotional activities, and the distribution system that the firm uses to pursue the sought level of sales in the target market. 2.1 Product The product aspects of marketing deal with the specifications of the actual goods or services, and how it relates to the end-user's needs and wants. The scope of a product generally includes supporting elements such as warranties, guarantees,and support. The product mix......

Words: 1490 - Pages: 6

Premium Essay

Marketing Mix

...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......

Words: 1607 - Pages: 7

Premium Essay

Marketing Concept

...MINOR ASSIGNMENT Task: 1500 word report Contribution: Individual Marks: 20% of unit total Deadline: Week 5 – Friday 28 December 2012 Task Description: Report Write a 1500 word report describing the 4 marketing mix elements and discuss how these are applied to retail petrol outlets. Purpose The assignment is designed to: * encourage you to think about how the marketing mix tools are used in the marketing process, * help you critically evaluate how marketing decisions can affect you as a consumer, * help you develop skill in conducting research online and using citations effectively. Assignment format The report must include: * Swinburne cover sheet – available under Other Materials on Blackboard * Title Page which must show title, unit code & name, student name & ID number, tutor name, word count & date It must be written in a professional manner and have been spell-checked and proof-read. Suggested report structure is: * Introduction - approximately 100 words on the focus of the report * Marketing Mix – approximately 300 words on each of the marketing mix elements * Conclusion – about 150 words summarising the key points of the report * References – 4-5 references including text book, appropriate business websites. Extra marks will be awarded for use of articles from academic journals which can be accessed via the Swinburne Library website. Do make use of appropriate headings – this helps organise your thinking as......

Words: 283 - Pages: 2

Premium Essay

Rural Retail

...rural retail — Presentation Transcript * 1. • RURAL RETAILING 1 * 2. RURAL RETAILING By R.SATHVEENA - 72060 RURAL RETAILING 2 * 3. INTRODUCTION • The world’ s econom ce ic ntre is s hifting away from the e tablis d, we s he althy econom s of Europe J apan, and North ie , Am ricaandtow e ardstheAs iaPacific • India is one of the fas s -g te t rowing larg e econom s in the w ie orld. Ove the las 15 r t years India has chang d m e uch fas r te thanm any predicte . d RURAL RETAILING 3 * 4. • Overall, competition and structural changes within the economy have raised the bar in terms of what consumers have come to expect. • Retailing is the largest private sector industry . Retail is the sale of merchandise in small quantities to the ultimate consumer. RURAL RETAILING 4 * 5. The Indian Consumer Is Rapidly Transforming Outlook– From Traditional to Modernized Traditional RURAL RETAILING 5 * 6. • From Functional to Lifestyle RURAL RETAILING 6 * 7. DEFINITION • Retailing can be defined as the set of activities that markets products or services to final consumers for their own personal or house hold use. This is done by organizing the availability of goods and then supplying them to consumer on a relatively small scale. RURAL RETAILING 7 * 8. • The mix of variables including price, location, communications, merchandise, physical attributes, services and personnel form the retail mix and these components form the over all strategic marketing components of......

Words: 1305 - Pages: 6

Premium Essay

Marketing

...sold to over 200 counties, while major competitors only sell in several countries, putting Coca Cola ahead of all competition. Coca Cola is a obvious and easily recognized by all. The popularity of Coca Cola has grown very recognizable company. It is known worldwide and its branding is constantly earned by Coca Cola surpasses all other beverage companies and these funds would over the years, is still growing to this day, and will continue into the future. The finances prove vital in the future of Coca Cola as it allows for the promotion of many other products. Many aspects of Coca Cola prove to be superior to that of competitors, ranging from promotional techniques to corporate structure. Some of these aspects include, positioning, market mix strategy, and implementation plan. These aspects place Coca Cola superior to competitors, instigating Coca Coal to aspire higher goals and missions. It is our mission at Coca Cola to refresh and completely satisfy the world and it is our vision to make a bottle of Coca Cola available within arms’ reach of every person all around the globe. BBRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR!!! ACKNOWLEDGEMENT I would like to express my heartiest gratitude to Mr. Agha Ali Gohar CCBPL Pvt. Ltd Multan for given me an opportunity to associate myself to the world’s largest soft drink Co. Carry out my project titled RED survey. I would like to thank...

Words: 1400 - Pages: 6

Premium Essay

Driving Inclusive Growth

...Driving Inclusive Growth through Experiential   Marketing: A Retail Perspective   Mainak Kanjilal, Final Year Student, PGDIM, NITIE   Utsav Ghosh, Final Year Student, PGDIM, NITIE   Dr. Ranjan Chaudhuri, Assistant Professor (Marketing Area), NITIE         Study   based   approach   coupled   with   primary   research   has   been   done   to   arrive   at   the   conclusions.   An   analysis   of   the   different   prevalent  formats  has  been  done      and  based  on   the  findings  a  framework  has  been  proposed  for   the  business  of  retail  in  rural  India.   Literature  review:-­‐   Considerable  amount  of  research  has  gone  into   defining   the   key   influencers   of   experiential   retail   and   mechanisms   for   consumer   engagement  for  business  development.  Verhoef   et   al.   (2009)   recognize   the   importance   of   past   customer   experiences,   store   environments,   service   interfaces,   and   store   brands   on   future   experiences.     Research   on   converting   a   disinterested   consumer   into   sales   shows   that   involved   customers   likely   focus   on   key  ......

Words: 4200 - Pages: 17

Premium Essay

Integrated Marketing Communication of Stihl Holding Ag & Co. Kg

...Integrated Marketing Communication of Stihl Holding AG & CO. KG Integrated Marketing Communications (IMC) represent a concept in which all the elements of marketing mix are coordinated with the marketing strategy in order to reinforce what each is saying and to prevent customer confusion from conflicting messages (Winer & Dhar, 2011, p. 281). The elements of the marketing mix that are affected by the IMC are: Advertising, Direct marketing, Sales promotions, Publicity/Public relations, and Miscellaneous communication activities. This paper will make an overview of the Integrated Marketing Communication made by Stihl Holding AG & CO. KG, a company that is number one selling brand of handheld outdoor power equipment for: Forestry, Landscape maintenance and Construction industry . The company has more than 12.000 employees around the world, and their products are sold exclusively by specialist dealers that also provide servicing. The Stihl sales organization consists of 32 Stihl-owned sales and marketing companies and approximately 40,000 specialist dealers in more than 160 countries in the World (Annual report, 2011, p. 54). Stihl Holding AG & CO. KG, IMC Elements In order to analyse Stihl's IMC, first the target market of the company must be determined. According to the company's Annual report from 2011, the target markets of the company are: "Anyone that works in forestry or agriculture, in landscape maintenance or construction - or anyone who expects the......

Words: 1843 - Pages: 8

Premium Essay

Shell

...1 CHAPTER #1: INDUSTRY ANALYSIS 2 1.1: INTRODUCTION........................................................................................3 1.2: HISTORY/ BACKGROUND......................................................................3 1.3: MAJOR PLAYERS......................................................................................4 1.4: PEST ANALYSIS.........................................................................................5 1.4.1: POLITICAL FACTOR.............................................................................6 1.4.2: ECONOMIC FACTOR.............................................................................6 1.4.3: SOCIO-CULTURE FACTOR..................................................................7 1.4.4: TECHNOLOGICAL FACTOR................................................................7 1.5: PORTER’S FIVE FORCES MODEL.........................................................9 1.5.1: THREATS...................................................................................................10 1.5.2: POWER OF BUYERS................................................................................10 1.5.3: POWER OF SUPPLIERS..........................................................................10 1.5.4: THREATS OF SUBSTITUTE...................................................................10 1.5.5: COMPETITIVE RIVALRY......................................................................11 1.6: STRATEGIC GROUP MAP..................

Words: 10567 - Pages: 43

Premium Essay

Tesco Macro Environmental Factors

...Macro Environmental effects on TESCO Marketing Decision Making As macro environmental factors always effect the development and planning of every business, same as Tesco also has or will have some influences of macro environmental factors towards its marketing decision-making. Socio Culture Environmental Factors Demographic Changes Demographics are the study of the measurable aspects of population structure and profiles, including factors such as age, size, race, occupation and location. As the birth rate fluctuates, and as life expectancy increase, the breakdown of the population changes, creating challenges and opportunities for marketers. Tesco use the demographic changes as opportunity and set its marketing strategy by the running the different kinds of store depending on the population size, location etc. Tesco use ethnic groups as a tool for good opportunities. Tesco divided its stores across the UK into five formats, these stores differentiating with the size of store and product being sold in these stores, TESCO EXTRA is largest store, generally located out the town a wide area. All Tesco products range available here. Free Car Parking also provided here. In 1997 first Tesco Extra was opened. TESCO SUPERSTORES are considered as supermarkets with standard large size. These stores have the stock of grocery and a lot of small non food small items. These store called the superstore for connivance but this word does not use in the shops. Generally these stores open......

Words: 2153 - Pages: 9

Premium Essay

Crossword Bookstore

...PROJECT CONTENTS * Abstract…………………………………………………………………………………….3 * Methodology…………………………………………………………………………….4 * Company Overview…………………………………………………………………..5 * Retail Institution……………………………………………………………………….6 * Crossword Customers……………………………………………………………….7 * Store location and Site Evaluation…………………………………………….9 * Crossword - Organization and Management……………………………12 * Classification from Retailer’s point of view……………………………..14 * Positioning of the Retail store…………………………………………………16 * Location * Merchandise Assortment Planning * Merchandise Pricing at Crossword * Communication via promotions * Competitive Objectives & Its Competitors………………………………22 * What Lies Ahead & Challenges……………………………………………….23 * The CD with the report contains- 1) Interview in a video format of the CEO of CROSSWORD. 2) Video of the store layout of two locations in Pune namely Kalyani nagar & S.B.Road. 3)......

Words: 3984 - Pages: 16

Premium Essay

Marketing Issues

...Buying a computer in the post, petrol at a supermarket, mortgages over the phone and phones themselves from vending machines are just some innovations in distribution which create competitive advantage as customers are offered newer, faster, cheaper, safer and easier ways of buying products and services. Without distribution even the best product or service fails. Author Jean-Jacques Lambin believes a marketer has two roles: (1) to organise exchange through distribution and (2) to organise communication. Physical distribution, or Place, must integrate with the other 'P's in the marketing mix. For example, the design of product packaging must fit onto a pallet, into a truck and onto a shelf; prices are often determined by distribution channels; and the image of the channel must fit in with the supplier's required 'positioning'. You can see how Coca Cola further integrate the timing of distribution and promotion in the Hall Of Fame later. In fact, they see distribution as one of their "core competencies". Distribution is important because: Firstly, it affects sales - if it's not available it can't be sold. Most customers won't wait. Secondly, distribution affects profits and competitiveness since it can contribute up to 50 percent of the final selling price of some goods. This affects cost competitiveness as well as profits since margins are squeezed by distribution costs. Thirdly, delivery is seen as part of the product influencing customer satisfaction.......

Words: 2483 - Pages: 10