The Importance Of Marketing Mix Marketing Essay

Selling as defined by Kotler and Armstrong ( 2006, p.5 ) is “ the procedure by which companies create value for clients and construct strong client relationships in order to capture value from clients in return ” . It is safe to presume from this definition that marketing involves a bipartisan relationship. That is, selling is non based entirely on having from the clients, or entirely on giving to the clients. Rather the organisation gives and receives, even as the consumer gives and receives. There are five phases and many elements of the selling procedure. Kotler and Armstrong ( 2006, p.5 ) place these phases as:

The elements of the selling mix as proposed by McCarthy ( 1964 ) are merchandise, monetary value, publicity and topographic point. These are known as the four ( 4 ) P ‘s of selling. Though this theoretical account is widely known and accepted, other authors have proposed one, and so three extra P ‘s which are to be considered in the selling domain ( Booms and Bitner, 1981, cited in Goi, 2011 ) . This extended selling mix was posited as Booms and Bitner believed that the 4 P ‘s which antecedently existed related chiefly to touchable merchandises ( for illustration, autos, soap pulverization or computing machines ) . The extra three, ‘people ‘ , ‘process ‘ and ‘physical grounds ‘ catered to serve related merchandises ( for illustration, reding services, or watching a film ) . Later on, other authors added progressively more P ‘s to the selling mix, as they uncovered extra aspects of selling. Some of these are ‘personnel, physical assets and processs ‘ ( Lovelock, 1996 ) ; ‘personalisation ‘ ( Goldsmith, 1999 ) ; and ‘partnerships ‘ ( Reppel, 2003 ) .

‘Marketing mix ‘ harmonizing to Kotler and Armstrong ( 2006, p. 50 ) , is “ the set of governable tactical selling tools that the house blends to bring forth the response it wants in the mark market. ” Each component of the selling mix has to interact and interrelate optimally with the others to maintain the organisation at a satisfactory degree of profitableness in its mark market. Each component depends on the other elements to be effectual. Consequently, selling directors need to be cognizant of marketing tendencies, and even seek to present new tendencies to stay feasible and maintain their competitory advantage.

For a selling mix to be effectual, the company should accomplish its selling aims, run into its clients ‘ demands, create competitory advantage and be consistent and balanced in its merchandise offerings and service. A peculiar selling mix can hold highly different consequences for different markets around the universe. The elements of the mix should non draw against each other ; for illustration, holding the client wage high monetary values for low quality goods will non gain the company in the long term. Likewise, low quality, price reduction priced merchandises will non easy happen distribution in an up-scale luxury market. The selling mix for each concern and industry will change ; and the selling mix for single companies will besides change over clip. For most concerns nevertheless, one or two elements of the mix will be seen as comparatively more of import than the others.

Harmonizing to Armstrong and Kotler ( 2006, p.47 ) “ Companies know that they can non productively function all consumers in a given market – at least non all consumers in the same manner ” Customers are varied and have different demands, and as such, companies must section the market and design schemes to congratulate each section in order to increase profitableness. Segmenting a market is done by puting clients into some distinguishable groups of purchasers based on geographic country ; demographic, psychographic, and behavioral features. Having segmented the market, companies can so plan the most suited selling mix to use.

Let us analyze the four P ‘s separately, and so see how each of these will impact companies and their clients. Product involves the goods and services combination the company will offer. Kotler ( 1969 ) defines it as “ anything that can be offered to a market for attending, acquisition, or usage ” , or something that can fulfill a demand or desire. Merchandises can be split into two wide classs: goods – physical merchandises that you can touch and experience, for illustration, nutrient and vesture ; and services – merchandises that are non-physical, such as watching a movie or holding a hair-cut. These goods and services may be offered based on assortment, quality, design, characteristics, packaging, and trade name name. “ The Marketing Mix ( The 4 P ‘s of Selling ) ” ( on line article, retrieved May 21, 2011 ) advises the consumer and the company of some determinations to do when sing a merchandise offering. These include “ trade name name, functionality, quality, safety, packaging, fixs and support, accoutrements and services. ”

The component of merchandise as portion of the selling mix is highly of import. Consumers in a market will non normally purchase sub-standard merchandises. Kotler ( 1969 ) states that clients will take a merchandise based on what they perceive the value of it to be. As such, a client is satisfied merely when the existent value of the merchandise is equal to or supplant the value the client had perceived of it ab initio. Let us now take a expression at each of the elements of the merchandise facet of the selling mix.

The quality of a merchandise is normally what the purchaser first buttockss. Functionality may besides be considered in the merchandise ‘s quality. Take for illustration a householder shopping for a dining set. The client is traveling to look into that the tabular array and chairs are hardy ; that the stuffs from which the set was made are of a high quality, and possibly even that the merchandise meets certain national or international criterions. If the stuff seems deficient, and the set is non every bit hardy as the client believes it should be, so the sale of that company ‘s merchandise may be lost.

The quality of the merchandise that a company distributes besides depends on the market for which the merchandise is intended. An upscale market may travel to greater lengths to guarantee a high quality dining set, or other merchandise, than possibly a center or working category market. This construct is closely linked to pricing every bit good. An upscale, luxury market will pay for the benefit of holding a high quality merchandise. The working category may non be able to pay every bit much, which may ensue in a difference in the quality of the merchandises that the company sends out.

Kotler ( 1969 ) identified five degrees to a merchandise. These are:

Core merchandise. This represents the cardinal demand of the consumer. It is the sensed benefit of the merchandise or service. Continuing on the earlier illustration of the dining set, the nucleus merchandise or the benefit in this instance would be to sit at a tabular array and eat a repast in one ‘s ain place.

Generic Product. The generic, or basic merchandise is a version of the merchandise which contains merely the basic features perfectly necessary for it to work. So, in the instance of the dining set, the basic merchandise would be a tabular array ( an object holding a broad plane surface firmly attached to four legs ) and a chair ( or every bit many as the housewife may necessitate ) .

Expected Merchandise represents the features or properties of the merchandise that the consumer usually expects or agrees to when taking a merchandise. For illustration, the housewife expects that the chairs of the dining set will be comfy when they are seated upon, and that the tabular array will be at an acceptable tallness for easiness of eating when seated.

Augmented Product. At this degree, the merchandise is expanded to include other properties, other characteristics, and other benefits that allow the merchandise to stand out above its rivals. For illustration, a dining set with cushioned seats, and intricate attractive carvings and designs at strategic topographic points on the set will function to pull a possible purchaser.

Potential Product includes all the add-ons and transmutations that a merchandise may undergo in the hereafter. It represents how the merchandise may germinate overtime. For illustration, a dining set may later germinate into a infinite salvaging device, where all the parts can be folded and stored if necessary.

It is imperative that the manufacturer of goods and services understands the importance of quality to the consumer, so that the consumer can be benefitted, even as the company seeks to keep its profitableness. Customer research will besides turn out to be rather a utile undertaking for the company to set about, so as to guarantee client satisfaction and avoid dearly-won errors. The company will necessitate to understand the demands of its consumers in the mark market, so as to supply the best merchandise at the most low-cost cost. Again, pricing is an of import factor, because if the concluding merchandise is non perceived by the client to be ‘worth it ‘ so the purchaser will predate the merchandise, which, in the instance of certain time-bound goods, could botch, doing the manufacturer/marketer to lose a batch of money. This point underscores the interrelation of the elements of the elements of the selling ( and merchandise ) mix.

The characteristics of a merchandise are every bit of import as the quality of the merchandise. The characteristics ( identified under ‘augmented merchandise ‘ in the degrees of a merchandise ) set the merchandise apart from others. It is easy for companies to bring forth a basic or generic merchandise. It is the characteristics of the merchandise that will pull the consumer. For illustration, in the instance of a cellular phone, the yearss of it merely merely being an instrument which allows for doing and having calls, particularly when people are on the spell, are about over. Cell phone makers are invariably seeking ways to surpass each other in the characteristics that assorted phones offer. There are cell phones with Bluetooth engineering, telecastings, wirelesss, picture and still camera capablenesss and the list goes on. There is a cell phone to suit every type of market, it would look. There are besides cell phones with larger size buttons for the aged. No 1 is left out of the cell phone market. The characteristics are many and varied, and every consumer can happen something to fulfill him.

Branding is another facet of the merchandise, which forms portion of the selling mix. Branding is identified as a “ name, term, mark, symbol, or design or a combination of these, intended to place the goods and services of one marketer or group of Sellerss and to distinguish them from those of the rivals. ” ( American Marketing Association, 2011 ) Simply put, trade names are a agencies of distinguishing a company ‘s merchandises from those of its rivals. There are many facets of branding which can give profitableness for the company, but merely if the company is able to utilize them to their advantage.

“ Brand equity ” refers to the value of a trade name. It is based on the extent to which the trade name has high trade name trueness, which means that clients return once more and once more to buy the trade name, even if there are other merchandise lines or other merchandises in a individual line. For illustration, Grace Foods in Jamaica is synonymous with high quality merchandises. Customers will buy different nutrients in the line, because they have come to cognize and swear the value and quality of the Grace Brand. This sort of quality in the Foods line may pull consumers ( albeit a different mark market ) to their Remittance services. Brand equity besides refers to the name consciousness, perceived quality and strong merchandise associations. Brand equity besides includes other assets like patents, hallmarks and channel relationships.

“ Brand image ” has to make with the set of beliefs that clients hold about a peculiar trade name. It is of import that a company strives to develop good since a negative trade name image can be really hard to agitate off. Taking the illustration of Grace Foods once more, it can be seen where the merchandise line has a positive trade name image. Because Grace has ‘made its name ‘ , trade name trueness is high and consumers may non readily seek another merchandise line, even though they may hold heard that that merchandise is of a higher quality than Grace ‘s quality.

“ Brand extension ” refers to the usage of a successful trade name name to establish a new or modified merchandise in a new market. ‘Grace Blends ‘ is perchance the newest

Trade names and merchandises

Trade names are seldom developed in isolation. They usually fall within a concern ‘ merchandise line or merchandise group.

A merchandise line is a group of trade names that are closely related in footings of their maps and the benefits they provide. A good illustration would be the scope of desktop and laptop computing machines manufactured by Dell.

Monetary value is the sum of money the consumer will hold to pass on a peculiar merchandise. Pricing is serious concern as this will find whether the merchandise travel off storage or stay a dead round on shelves. Prosecuting a low cost scheme may at best bound the concern growing. Decisions to take into history when sing pricing are net income borders and possible response of consumers and rivals, list monetary value, price reductions, funding, and other options. Same merchandise may be different monetary values depending on the market they are functioning.

Topographic point is where the company is located and what it does to guarantee its merchandises are available and easy accessible to the consumer. It is frequently referred to as the distribution channel which may include a physical shop every bit good as practical on the Internet. This may be accomplished through partnerships, amalgamations, acquisitions.

Promotions are activities the company does to guarantee its offerings are known to consumers. These activities will pass on the merchandise offerings, monetary value, topographic point, and other information that will carry the consumer. This can be achieved through advertisement, gross revenues publicities, personal merchandising to call a few. Kotler, Armstrong says “ an effectual selling plan blends all of the selling mix elements into a co-ordinated plan designed to accomplish the company ‘s selling aims by presenting value to consumers ” ( pg 51 ) .

Many organisations are losing market portion because of a gulf between themselves, their client value position and their clients. This can merely be arrested by an injection of schemes that will link the points between the major pillars of the selling mix, the company and its clients. Critically examine the relationship between the company, its selling mix and its clients. Your reply should, from a conceptual degree, explicate how you think the elements of the selling mix should interrelate in order to guarantee profitableness for the company. Social duty