Marketing Mix
The marketing mix is often considered as the center of a marketing strategy. It is defined by Kotler and Armstrong (2010:84) as ‘the set of controllable, tactical marketing tools that the firm blends to produce the response it wants in the target market.’ These tools are; Product, Price, Place and Promotion, which are commonly known as the ‘4 Ps.’ A combination of these four components offers the ability to create a successful marketing mix that will produce the desired results. This essay will first introduce each of the ‘4 Ps.’ Next, it will explain how the 4Ps integrate with each other to provide an effective marketing mix with specific examples. Then, it will analyse how other factors might influence on the marketing mix. Lastly, it will explore the importance of the marketing mix in ensuring success and increased profitability for companies. For the context of this essay, Tesco’s Fresh and Easy and Gucci will be used as references.
The first ‘P’ in the marketing mix is Product. For every business, the first stage is the type of product it offers and it can be in the form of goods or services. With advancement in computer technology, new products are consistently being designed and produced. This creates a very competitive environment where firms operate in. It is therefore necessary that the product satisfy the ever-changing customer needs or wants by creating values. There are broadly two sorts of values. First being the functional value, which is what the product does for its customers. The second being emotional value. This refers to creating a emotional bond with its customers which is crucial for a business when it comes to customer loyalty. Barnes (2006:5) supported this point by saying that ‘chiming with customer feelings makes value soar as brands are built and competitive advantage being fortified.’ All these lead to the theory of product differentiation, where companies are focused to differentiate their products from competitors to create a unique
The first ‘P’ in the marketing mix is Product. For every business, the first stage is the type of product it offers and it can be in the form of goods or services. With advancement in computer technology, new products are consistently being designed and produced. This creates a very competitive environment where firms operate in. It is therefore necessary that the product satisfy the ever-changing customer needs or wants by creating values. There are broadly two sorts of values. First being the functional value, which is what the product does for its customers. The second being emotional value. This refers to creating a emotional bond with its customers which is crucial for a business when it comes to customer loyalty. Barnes (2006:5) supported this point by saying that ‘chiming with customer feelings makes value soar as brands are built and competitive advantage being fortified.’ All these lead to the theory of product differentiation, where companies are focused to differentiate their products from competitors to create a unique
References: Kotler, P. and Armstrong, G. (2010) Principles of Marketing, New Jersey, Pearson Education Barnes, S Stimpson, P. (2004) ‘The price decision’, Business Review, vol. 11 number 2, November 2004, pp.8-10 Stimpson, P Stimpson, P. (2005) ‘Promotion’, Business Review, vol. 11 number 3, February 2005, pp.4-6 Brassington, F Gitman, L. & McDaniel, C. (2008) The Future of Business, 4th edition, Mason, Cengage Learning Bruce, M Marcouse, I., Surridge, M., and Gillespie, A. (2008) Business Studies for A Level, 3rd edition, Italy, Hodder Education Pierceall, K (2009) Expansion of Fresh & Easy hub planned, [online], Kay, W (2009) Tesco admits: We got it wrong in US, [online], Available: http://business.timesonline.co.uk/tol/business/industry_sectors/retailing/article5780338.ece [26 March 2010] Baker, M Baker, M. & Hart, S. (2008) The marketing book, 6th edition, Oxford, Elsevier Ltd Barnes, S Brassington, F. & Pettitt,S. (2006) Principles of marketing, 4th edition, Essex, Pearson Education Limited Bruce, M Kotler, P. and Armstrong, G. (2010) Principles of Marketing, New Jersey, Pearson Education Marcouse, I., Surridge, M., and Gillespie, A Pierceall, K (2009) Expansion of Fresh & Easy hub planned, [online], Available:http://www.pe.com/business/local/stories/PE_Biz_S_march03.3a14dda.html [26 March 2010] Rigby, E (2010) Tough times for Tesco’s American Dream, [online], Available:http://www.ft.com/cms/s/0/bfa51888-c4e5-11df-9134-00144feab49a.html#axzz157EdT4Rc [26 March 2010] Stimpson, P Stimpson, P. (2005) ‘Promotion’, Business Review, vol. 11 number 3, February 2005, pp.4-6 Stimpson, P Wrenn, B., Stevens, R., and Loudon, D. (2007) Marketing Research Text and Cases, 2nd edition, New York, Haworth Press