Marketing Mix 1 Running head: MARKETING MIX
Marketing Mix Michael Gallegos University of Phoenix Mike Flores MKT/421: Marketing June 17, 2008
Marketing Mix 2 Marketing Mix Product, price, placement, and promotion p romotion are known as the 4 P’s P’s in marketing. These four elements, in turn, make-up what is known as the “marketing mix.” Neil Borden, a Harvard professor, first coined the term “marketing mix” in an article in the Harvard Business Review. Mr. Mr. Borden used the term to describe the various essentials that were needed to come together to produce what would be an effective marketing plan. The successful manipulation of these elements will serve to produce the greatest nu mber of sales. In this paper the author will describe the various elements, and give an example of the use of these elements. Marketing What is marketing? Marketing can be defined as the expectation, supervision, and the satisfaction of demand through the process of exchange (Kermally, 2003). In the business of selling, buyers need to be sought out, needs are to be identified, products are to be designed, and products are promoted and priced. The Marketing Mix The purpose of the marketing mix is the sectioning of a business into pieces that can be rearranged and tweaked dependant dep endant on the needs of the customer. Knowing what a customer wants allows a company to identify opportunities. These opportunities in turn will expose an y shortcomings or advantages. With this information the company can now match what is feasible and what is not. Moreover, the organization can now focus on a specific segment of the market (Scott, 2005). The geographic factor, such as what countries or regions a company wants to market is another consideration. That along with the demographics: population size, traits, and family size are other factors that need to be addressed (Kermally, (Kermally, 2003). Product
Marketing Mix 3 The word product can be defined as “the end result of the manufacturing process, to be offered to the marketplace to satisfy a need or want” (Investorwords, n.d.). Now most would think of a product as tangible thing like a computer or a calculator. A product could also be intangible such as a service. The services provided by consultants, lawyers, and doctors would be examples of things that are intangible. There are various questions that one needs n eeds to ask when research is done don e for a product. The basic is: What does the product do and what is it offering a potential customer? The presenting of the product, which includes design and packaging, has to be addressed. There is also the value of the product and how a company can augment it. The add-ons such as warranties and accessories are also part of the make-up of the product. Price Price can be defined as amount of money that is being charged cha rged for something of value. In determining the price of a product, the company has to take various factors into consideration. Obviously the cost to produce an item is the first and foremost. There are also competitors’ pricing, discounts that may be offered, and what the return on investment would be. There must be great care taken in the pricing of a product. Even though the cost to produce the product is a big consideration, in pricing an item, the marketing point of view has to be kept (Kermally, 2003). If a product is perceived is perceived as as being too expensive for the target customer, then the item will not sell. Place The Place part of the Marketing Mix deals with the where and how ho w much questions. A company must determine where it wants to make the product available, and how much of the product will be needed to satisfy the customers’ needs.
Marketing Mix 4 There are other aspects of the equation e quation to address also. A company has to decide if it is selling direct to the customer, or if it will use distributors to sell its product. The stores that the company will sell its product are to be taken into account. The company may decide to sell online rather than through a store. A company must also consider the warehousing and logistical side to placing their product in a particular p articular area. The bottom line is that a company must c hoose the best avenue for their product or service to reach the intended customer. Promotion The promotion of a product can be defined as “an activity, activity, such as a sale or advertising campaign, designed to increase visibility v isibility or sales of a product” (Investorwords, n.d.). With With the visibility; interest, desire, and action will take place. If the public kn ows about the product, it will ultimately desire it and finally go out and buy bu y it. The types of promotion such as television or radio ads are to be considered. The way the product is advertised is also important. A current, edgy commercial may not be the best way to promote Depends. A company also has to decide if it will hire sales people, and the budget it is willing to allocate for promotion. It is also good to keep in mind of how the changing of one part of the Marketing Mix will affect another. another. If a company decides to make a product available at a different location or area, then the pricing will most likely be affected. Intel Intel was founded in 1968 by Bob Noyce and Gordon Moore. By 1992 the company had become the largest semiconductor supplier in the world (Intel Press Room, n.d.). Intel for 17 years had enjoyed enjo yed an overwhelming share of India’s computer market. With With the introduction of competitors though, Intel has seen its market share decrease. At an all-time high
Marketing Mix 5 of 93% in 2002, as of 2006 that percentage had h ad fallen to 80%. Intel has taken steps to rectify the situation (Mody, 2007). Intel’s Products Intel has made it a point po int to develop products specifically for the Indian market. Since the climate in India is hot and dusty, the company has developed a PC that functions in these conditions and can run on a car battery for eight hours. The PC also has a built in remote management system that curtails the cost to send a mechanic to the rural areas (Mody, 2007). Intel and Price In this part of the mix Intel is still the leader, but with mixed results. Competitors’ products are cheaper, and this has been the cause of some of the decline in sales for Intel. On the other hand, as more Indians become more affluent price in the future will not be as muc h of a detriment. This is helped by the strong brand image (Mod y, 2007). Intel and Place The placement of computers is not an easy task. The Indian market is fragmented, and that forces companies to go through channel ch annel partners to make inroads in the market. Intel uses more than 3,000 partners to make their computers available to more cities than their competitors. The company works with the different dealers in conducting various training sessions. This reduces the cost of staff training for the dealers (Mody, 2007). The company also has tie-ups with various companies such as: LG, Zenith, and Lenovo. This allows Intel to reach a larger market, since those companies develop their own brand value and they receive support from Intel for marketing and sales programs (Mody, (Mody, 2007). Intel and Promotion
Marketing Mix 6 In 2006 Intel launched a five-year campaign known as the ‘World ‘World Ahead Program’. This initiative is geared toward an increase in digital literacy, research, and development. The company also works closely with the gove rnment in the lowering of healthcare costs and the improvement of education. Intel plans on donating 10,000 PCs to various agencies and to help train one million teachers. The company also works with companies in setting up networks for community centers and public kiosks. This is done with the background knowledge that all of these PCs will contain the Intel microprocessor inside of them. The potential to p roduce millions of customers will be there (Mody, (Mody, 2007). Intel does do the regular television ads, along with displays in various locations. The company is also looking into viral marketing, as well as tie-ins with cyber cafes (Mody, 2007). Conclusion As has been demonstrated there is considerable thought to what a company needs to do to put together a workable marketing plan. The four P’s (and the elements that go into them) have to be adequately addressed if a company is to have a successful and profitable product. As Intel shows a company must be able to flexible when dealing with the various business obstacles that occur occ ur..
Marketing Mix 7 References Intel. (n.d.). Intel (n.d.). Intel press room. Retrieved June 14, 2008, from: http://www.intel.com/pressroom/index.htm Investorwords.com. (n.d.). Retrieved June 13, 2008, from http://www.investorwords.com/3897.html Kermally, Kermally, S. (November, 2003). Gurus on marketing. London: Thorogood. Mody, S. (January, 2007). Intel-the inside story. Siliconindia. 9 (11). pp. 28-29. Retrieved June 14, 2008, from EBSCOhost database.
