Student’s Last Name 2
13th May, 2016
1. The marketing mix is a strategy consisting of four elements that help in ensuring that a marketer does their best to introduce a product to the market. The most commonly used model of a marketing mix is the 4Ps, consisting of product, promotion, price and place.
Promotion: These are the summative efforts aimed at creating awareness among the prospective market of the presence of a new product in the market.
Price: Is the monetary value attached to the said product.
Product: This is the actual good/ service that the customer may need to satisfy their demand for it.
Place: This is the choice or area within which the product is sold at the right price as dictated by various factors.
2. Three product-pricing strategies are:
i. Pricing based on cost of production where the overall price includes after sales profits to cover for initial costs of production.
ii. Penetration price is adjusted according to economies of scale so that the more is sold, the easier to get more customers later on.
iii. Price scheming allows for a company to price their products highly so that they can get a section of the market segment that associates itself with a certain comfort or luxury.
3. Radio, television and print media are types of advertising media. Radio and television as advertising media use airwaves to transmit advertisements, while print media utilizes paper and ink. Radio and television have the advantage of reaching more people in an instantaneous thus timely manner. Print media, on the other hand, is cheaper and more convenient since it has an almost fanatic following.
4. The level of customer service impacts greatly on the capacity of a business to keep loyal customers. As such, a good customer service ensures that the customer can, not only attract potential customers, but also bring in new ones. The higher the number of customers, the more likely it is for marketing campaigns to become successful. Customer service that is poor may mean losing customer, thereby losing out on profits. The biggest result would be losing employees, and the status that was earned by the business. This too may mean that brand positioning is affected if at all the brand associated with the business was or is well positioned in the market.
5. Segmentation of markets is the setting of markets into portions that share near-similar characteristics and attending to each one of them as per their wants and/ or needs. This is a great way of meeting customers’ needs while keeping production costs low since the strategy to segment markets only responds to customers’ specific needs according to each and every segment. There are different dimensions to market segmentation that explain how businesses can go about segmenting markets. Demographic, geographic, psychographic, user preferences and competition are among them.
i. Demographic: This segmentation mainly looks into markets according to the age and how this influences consumption. For instance, a market may be divided into and classified as the young generation, or the older generation. When considering the younger generation, ways of reaching them may include use of social media since they are the likelier segment to source for many things from social media.
ii. Geographic: This dimension looks into the general preferences of people in a location, then matches them with what they would like in a product, effectively making it easier to sell.
iii. Psychographic: this is the most detailed dimension of market segmentation since it takes a look at diverse characteristics of a population other than location or population. It may look at attitudes or profession. Other noted instances include consideration of sex or religious beliefs, depending on what a business chooses to focus on. In all, the consideration is made and used effectively to shape the segment and determine how to deal with it.
iv. Usage related: this segmentation depends upon how the product is made. The quality of the product is highly likely to make people prefer it over others. This means that a number of customers are likely to form a particular market segment due to their preference of the quality of the product. Other attributes of the product may also attract customers to buy the product, hence making the business have a specific market segment.
v. Influence from competitors: A business may also create products from what they perceive of their competition. For instance, when a business x needs to gain a market held by another company, say y, then it will have to come up with a product whose attribute may make it sell more units than those of their competitors.
6. While it is important to set goals at the beginning of a marketing plan to enable one track their stages in progress, it also provides a very clear focus on how finances are used. Without objectives and goals, one may use more financial resources than they had initially planned, making the exercise a rather expensive affair.
7. Product positioning encompasses the use of customer needs to map out a strategy on how to communicate the properties associated with a certain product that is to be introduced to a specific market segment. The importance of product positioning is to find a means of fashioning messages when advertising such that they are received well by customers and a consequent effort is made by them to purchase the said products.
8. It is important to ensure that marketing mix decisions meet an organization’s objectives since they are part and parcel of its general strategy. Therefore, the marketing mix is actually tailored around objectives that will make the advertising of the products very successful.
9. The four main ways of gathering information to monitor the performance of marketing mix are: return on investment (ROI), return on marketing investment, marketing performance measurement and marketing performance management.
10. MacDonald’s is an example of a company that changed its product after evaluating its marketing mix. Initially, the business operated from the premises that its products would mainly be accepted on the basis of being supplied in large quantities, and at lower prices than their fair competitors. However, when attempting to enter the markets in other countries like India and some Islamic states, MacDonald’s chose to adopt a vegetable-based menu among other changes as considered in the product part of the marketing mix (“FT Reporters” 1). This was for religious as well as cultural reasons. If anything, India is known to have people with various cultural and religious beliefs that may have presented a challenge to MacDonald’s initial modus operandi.
FT Reporters. MacDonald’s And Its Challenges Worldwide: A Market-by-Market Look. Food and Beverage. 2015. Web.