Marekting MixEssay Preview: Marekting MixReport this essayMarketing MixThe marketing mix is “the controllable variables the company puts together to satisfy the target market” (Perreault and McCarthy, 2004). The target market is the group of customers the company wants to attract or appeal to with the service or product. The marketing mix includes four elements called the four Ps of marketing: product, place, price and promotion. These four elements work together to produce a profit. Changing any one of the four will affect the results of the other three. The marketer uses the marketing mix to develop the marketing strategy; thus, determining the marketing mix is an important first step in the process. “It takes proper coordination, planning and use of each of these elements to reach the consumers in ones target market”. (Lake, 2006).
ProductThe first element in the four Ps is product. Product is the “good or service for the targets needs” (Perreault, 2004). In marketing, product is not simply the physical item or service. Product refers to the features, benefits, quality, accessories, installation, instructions, warranty, packaging and branding as well as the physical good service or product lines. These variables can affect the end product and be a means to create differentiation if necessary. If a customer has the choice between two similar products, the marketer can offer qualities such as a better warranty, return policy or maintenance service to persuade the customer to purchase the product or service.
PlaceIn determining placement, the market will need to analyze not on location of the customer but also how to get the product or service to the customer. Globalization and technology have changed the face of marketing. One major shift has been the use of the internet for advertising and shopping. Consumers from around the world now have access to products that were formerly not available. When referring to place, issues such as middlemen, shipping and storage will also be addressed where before primarily the issue was transportation of the product.
PricePrice is the amount of money charged for an item or service. For this element in the marketing mix, the marketer must develop a pricing strategy. Some examples of issues to consider are cost for production, competition and how much the customer is willing to pay. The business offering the product or service can not afford to sell the item for less than it is produced for. The competition may be able to provide the same product to the customer at a lower price. At the same time, the consumer is not going to pay more than he or she feels the product is worth. Sometimes the roles of each issue are reversed. In the case of a new product or technology, customers are willing to pay a higher price to acquire the item if the item increases their worth or the worth of their own product. Three pricing strategies can be used once the customer base has been identified. Competitive pricing will be selling the product at the lowest price when compared to the competitors. Cost plus profit pricing is determining price based on a calculation of how much the company needs to show in profits in addition to the cost of production. Value pricing is basing the cost on how much value the company, as the producer, delivers to the customer.
PromotionThe final element in the marketing mix is promotion. “Telling the target market or others in the channel of distribution about the right product” (Perreault and McCarthy, 2002). This element deals with attracting new customers and retaining current customers. The primary purpose is to affect customer behavior in order to make the sale. Three forms of promotion include advertisement, public relations and sales. Advertisement can be achieved in through many forms such as television and radio commercials, internet pop-ups, billboards or newspaper advertisements. Determining where the target audience and frequency is a key part of advertisement. According to the AMA, an individual must be exposed to a message seven times before the individual becomes aware of the message. These two aspects can be determined through the use of the Reach percentage which, in turn, gives gross rating point (GRP). Reach is “the number of different persons or households exposed to a particular advertising media vehicle or a media schedule during a specified period of time. It is also called cumulative audience, cumulative reach, net audience, net reach, net unduplicated audience, or unduplicated audience. Reach is often presented as a percentage of the total number of persons in a specified audience or target market” (AMA, 2007). The GRP is “A measure of the total amount of the advertising exposures produced by a specific media vehicle or a media schedule during a specific period of time. It is expressed in terms of the rating of a specific media vehicle (if only one is being used) or the sum of all the ratings of the vehicles included in a media schedule. It includes any audience duplication and is equal to the reach of a media schedule multiplied by the average frequency of the schedule” (AMA, 2007). Public relations play a role by developing relationship with customers. Many times companies will host events where the public can attend and receive free products or participation. Promotion from sales events will draw in customers on the basis of receiving a product or service at temporary lower than regular price. Some examples can be in the form of coupons and discounts.
Time Warner CableTimer Warner Cable is a good example of how a company uses all the elements to create a successful marketing mix. TWC offers not only cable television product, but also, high speed data and phone service. These products all revolve around technology. With the rapid changes brought about through advances in technology caused the cable industry to require expanded offerings. Initially, cable companies could offer television broadcasting access. However, new technologies such as the internet presented additional opportunities. Recent changes in the consumer desire to have all inclusive services and the introduction of a digital phone signaling, Time Warner is now able to provide these services through existing
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Comcast Network and TWC.
A good example of our relationship with AOL and how our customers would react to AOL.
The network and AOL also have many common customers. These include our customers in large part, including: the AT&T franchisee , including T-Mobile and Verizon , as well as AT&T’s mobile subsidiaries, Sprint (S) and T-Mobile, and Bell (C) for their Verizon FiOS+ customers and AT&T’s cable and satellite customers. These customers also have a significant stake in the future of the AT&T brand.
, including , as well as for their Verizon FiOS+ customers and AT&T’s cable and satellite customers. These customers also have a significant stake in the future of the AT&T brand. While AT&T may be a small consumer in many cases with a large user base, the company has a clear path to being viewed as a major player and a force in the cable industry.
Another way that we address AT&T’s concerns about AOL is to create a new consumer business model to allow the company to move forward while improving the quality of its Internet backbone, the one that connects cable subscribers to their cable customers.
In addition, AOL has a significant product overlap that aligns with our customer’s needs and desires. All these components result in more customer-centered and business oriented business operations that can result in enhanced digital customer experience in our core markets and lower fees charged by our core competitors.
Comcast and Comcast also have a strong relationship with the media companies that they own, so we see these relationships as strong in today’s consumer and professional environment. •
We have been happy with the results of our efforts. If we see a better and more differentiated future from the industry-wide approach that we had in 2013 and in 2012, we will continue to pursue new and innovative ways in the consumer electronics and video technology space that we believe will further increase our market share and increase the opportunities for our business.
We believe that the success of the new digital subscriber service and the expanded service of the video and broadband options will result in consumers who work in our telecommunications industry becoming more connected to the technology that enables them to work and play video games on their computers and smartphones.
The success of our customer and online entertainment businesses is both good and exciting indeed.
As the mobile and video business continues to increase, it is clear that consumers will not get the same experience as consumers with older, smaller, and younger devices.
In this context, we strongly believe that Microsoft, Google, Facebook, and other major smartphone providers, along with content delivery companies such as Google Drive, Amazon, iTunes, Netflix, and iTunes Store, will become better positioned to support and sustain the growing digital