Marketing mix

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Assessment 2: Marketing Mix

  1. What is Marketing Mix? Describe each of the four elements in a sentence for each one.

Marketing mix refers to variables that can be controlled by an organization in order to influence the response of the buyer. The four element that a company can control are product, price, place and promotion. The product means the products and services the organization offers. The price refers to the amount that the customer pays to purchase the products or services. Place means the distribution of the products and services at a place the customers can easily access. Promotion refers to the process through which an organization informs, persuades and influences the customer to make purchasing choices in regards to its products and services.

  1. In your own words, explain three different pricing strategies that might be used for a new product launch

The first strategy that can be used in pricing a new product launch is the cost-based pricing where the price of the new product settled on by adding some profit on the cost used in producing the product. Secondly, a new product can be given a price using a customer-based pricing where the price is determined by what a company believes their target customers are prepared to give. Finally a company can use the competitor pricing approach where the price of a product is determined by the prices offered by their competitors.

  1. Describe three types of advertising media and explain one advantage of choosing each one as a media channel

Print media – also referred to as press media. Advertisements are printed in newspapers, magazines, and other print publications like phone directories, bus and railway tickets, and reports among others. The overarching advantage of using print media is that it is cheaper than other media and they have a long life.

Outdoor Media – these include advertising on banners, signboards, billboards, handbills, station posters, neon signs among others. One advantage with outdoor media is its broad reach and it is available all the time during the advertising period.

Internet – This involved placing adverts on the internet; social media, websites, and web banners among others. Its advantage is that one can measure the impact of the advert for instance through tracking traffic and the number of online sales made.

  1. Explain how the level of customer service will impact upon marketing outcomes

The level of customer service can lead to increase or decrease of sales. Good customer service leads to customer satisfaction and loyalty, it makes current customers come back for more purchases. It also attracts new customers. On the other hand, bad customer service leads to loss of sales and profits. Good customer service can reduce marketing costs and maximize income since the good service is a selling tool. Again, the organization minimizes the time and cost used in handling complains. Poor customer service can cause an organization to lose their current customers due to dissatisfaction. Again, a company can also loose potential customers. Additionally bad customer service leads to loss of reputation which does not only turn away customers, it also turns away employees who could assume that they will be treated the same way the customer are treated.

  1. Describe what segmentation is, and list 5 dimensions, or ways of segmenting your target market

Segmentation refers to the marketing process of identifying and subdividing a big market into segments that have similar demand characteristics, wants and needs. This process helps a firm to come up a marketing mix that satisfies the needs and expectations of the customer.

Five ways of segmenting the target market include;

  • Demographic

  • Geographic

  • Psychographic

  • Behaviour

  • By products or services offered

  1. Why is it important to set objectives at the beginning of a marketing plan?

Setting objectives at the beginning of a marketing plan provides a target to aim to. This means that all the marketing efforts and actions takes are geared towards achieving the objective. In addition, it gives a firm direction. Furthermore, evaluation of the success of failure of plan is based on the objectives set.

  1. What is product positioning and why is it important?

Product positioning refers to the marketing technique used by firms to present their product or service to different target customers in the best way possible based on the communication channel, the competition and customer needs. Product positioning is important because it impacts on the customer’s decision to purchase or not to purchase based on the way the product or service is presented to him.

  1. Why is it important to ensure that marketing mix decisions meet an organization’s objectives?

Marketing mix decisions should meet an organization’s objectives because a marketing plan is supposed to help the organization to achieve its objectives. When a marketing mix decisions do not align with the objectives of the objectives of the organization, the organization does not meet its objectives.

  1. List 4 methods of gathering information you might use to monitor the performance of marketing mix

  • Using the sales personnel

  • Feedback on company website

  • Customer surveys

  • Internal evaluation by colleagues

  1. Give an example of an organization or product you are familiar with, who adjusted a component of their marketing mix in response to evaluation. Briefly describe what change or adjustment.

Coca Cola changed the product component of their marketing mix after evaluation. Although the company still retains its original Coke drink, it has added another coke drinks that did not contain added sugars and zero calories like of diet Coke, Coke Zero and Caffeine Free Diet coke among others. This is because of the shift of their audience towards being conscious of their diet and living healthy. The company realised that it was losing customers who were weight conscious and introduced coke drinks that suited these customers.