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Retail Petroleum Industry Report

In: Business and Management

Submitted By scondell
Words 1664
Pages 7
Minor Assignment

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, oil and kerosene. These products account for about 65% of the revenue for automotive fuel retailers (IBIS, 2012, Chapter 6). Secondly, there are the retail sales of other convenience items such as car parts, confectionary, takeaway foods, milk, cigarettes and batteries. These account for around 25% of total revenue (IBIS, 2012, Chapter 6). More actual products within this…...

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