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Marketing Mix

Essay by   •  July 6, 2011  •  Case Study  •  1,440 Words (6 Pages)  •  1,184 Views

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Marketing is the sum of business activities that serve to promote the movement of goods and services from producers to consumers or other is users. Additionally marketing studies the circumstances of the consumer, the preferences as well as the attitudes and the use of this knowledge to create or develop goods and services for consumption. Marketing activities includes, planning, pricing, promotion and distribution of products and services to meet the needs of consumers (Kotler, 2002).

Although, the different activities that organizations undertake to market their goods or services are treated separately, some marketers actually combine all these activities into a marketing mix to create a unique marketing activity. The marketing mix consists mainly of four elements Product, Price, Promotion and Place often referred to as 4 p's. Marketing is closely related to the exchange process whereby the needs and wants of consumers are strategically aligned with the goods and services offered for sale by the producer (Bahr, Johnston, 1993, para 1). This paper will highlight the elements of the marketing mix as well as describe each of the four marketing mix in relation to the development of the Kellogg's organization marketing strategy and tactics.

Product:

This marketing mix element can be the benefit or benefits tangible and intangible the buyer obtains in exchange for money. A product or a service is often created to fill a particular need in the marketplace. The product is the combination of all the contacts between the market and the marketer, through which goods are sought and purchased. At various points in the life cycle of a product, various marketing strategies become important. In early stages, advertising is essential to create product knowledge, while in later stages when the majority of potential consumers would have already bought the product, lower prices may be necessary to enhance further sales (Bahr, Johnston, 1993, p. 419).

Price:

Price is a significant element of the marketing mix. The cost of placing a product on the market represents the base price, for if price falls below the cost, the producer will ultimately incur a loss. Most organizations tend to keep the prices of products within a price range in order to meet the means of the consumers but at the same time to make a profit. It is difficult for price setter to estimate demand, because it is elusive and changes quite often Price setters must also take into consideration the cost of substitutes that consumers may prefer to their own product. When determining the price of a product or service factors such as wholesale price, retail, and discount price must be taken into consideration.

Promotion:

Promotion is a vital element of the marketing mix. Almost every aspect of aspect of marketing is a form of communication and in every marketing plan promotion is a key component. Advertising, personal selling and sales promotion all constitute promotion activity which communicates value and availability to the consumers. An organization can use various promotion strategies to promote a favorable image of its product or service to existing or potential customers (Kotler, 2002).

Place:

The place refers to the actual place a customer acquires a product, whether it is a store, via the telephone or the internet. In the marketing mix theory, place means the availability of goods or service in the right amount and at the right location when customers need them. The channels of distribution are the route that the products take from the producer to the consumer (Perrault, Cannnon, McCarth, 2009). In the distribution process the product could stop en route to such intermediaries as wholesalers, agents and retailers. Likewise a producer can distribute to the product directly to the consumer as is the case in the Avon organization.

Further to the discussion of the marketing mix it is evident that for a seller to provide satisfaction to a buyer, all the elements in the marketing mix must work together in a system. Successful marketers recognize that decision based on product, price, promotion and place is an important tool for the success of the organization. Each of the 4p's is important to the marketing mix activities of the organization. Because the need for an organized, well-balanced and integrated marketing strategy cannot be overemphasized, marketers must monitor their activities.

Application of Marketing Mix at Lowe's

The phenomena of the marketing mix along with its various elements can be best exemplified through real life examples. A number of businesses are currently using the marketing mix methods to achieve sales goals, and one such company to use this method is Lowe's

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