Marketing mix Essay Example

  • Category:
    Marketing
  • Document type:
    Essay
  • Level:
    Undergraduate
  • Page:
    2
  • Words:
    1167

Marketing Mix 7

Business Marketing

Introduction

The various elements of the 4Ps can be affected by both macro and micro environmental factors. That is to imply, the decision by a marketer to adopt certain element of the marketing mix is determined by these factors. The marketer therefore ought to put appropriate measures in place to ensure that the use of the marketing mix is successful. In this report, factors influencing marketing mix are discussed widely.

Promotion

  • Budget constraint: the reality about promotion is that is determined by the financial ability of the business. Small and medium enterprises may struggle in financing good promotional activities because of the meager financial resources they have (Wise & Sirohi 2005, pp. 10). Therefore, availability of finances serves a great influence on the kind of promotion activities to be selected.

  • Stage in the product life cycle: when products are still in the first phase of the product life cycle, comprehensive promotion is quite critical. Therefore, a business may be forced to pump more cash into promotional activities as opposed to products in the growth stage

  • Product type: the nature of the product determines the kind of promotional activities to be used. For instance when selling luxury cars, the kind of promotion is much different from consumer products like bread. Luxury cars may require professional selling in order to appeal to the target customers.

  • Characteristics of target market: the unique features of the consumers within the preferred segment can play a key role in influencing the promotional activities to be adopted. For instance, when reaching remote consumers who do not have access to TV, other convenient approaches like direct marketing and selling and publicity can be used.

  • Regulations: every sector may have certain guidelines and rules that may have an impact on promotional activities. For instance, medical practitioners have a lot of restrictions when it comes to engaging in promotional activities for their services and goods.

  • Media availability: there are rare cases where the preferred media is not available. This is especially in the developing nations. For such a situation, it will be more prudent to opt for a substitute channel.

The price charged on a commodity can be influenced by so many factors. This is very critical especially in competitive markets where consumers are keen on receiving true value for their money. The marketer must put all the necessary measures in place to ensure that indeed the price is competitive enough to stimulate demand. The following are some of the factors:

  • Competitor’s price: the price being charged by competitors for the same products will bear great influence when a marketer wants to set their prices. The marketer is concerned because rational consumers will definitely choose lower prices since they maximize their utility. Therefore, the price being charged by competitors may guide the market in either increasing or lowering his prices especially in a competitive market.

  • Value addition done: the more value is added into the product, the higher price the product is expected to be charged. Value addition is viewed as a differentiation strategy and therefore in so doing, the overall price is expected to increase.

  • Consumers’ psychological meter: marketers are always concerned about the perception that is likely to be formed in the mind of the consumer after seeing the price. For instance in psychological pricing, marketers realized that when selling a product at $ 99.50 and another one $ 100, consumers feel like the product selling at $ 99.50 is very cheap. Therefore, in most supermarkets the commodities that are supposed to be sold at $ 100 are being sold at $ 99.50.

  • Product popularity: goods which have been in the market for quite some time and have gained full acceptance by the consumers can be priced highly and still be able to sell. Marketers dealing with new products may be forced to price their commodities lower than expected in order to stimulate demand.

  • Regulations: there are times when the state may set price floors and ceilings for various commodities. Such incidences occur whenever the state is compelled to protect either the consumer or the producer against what is considered as unfair pricing (Chai 2009, p. 14).

It is the concern of the marketer to ensure that the product is transported to a place where it can be easily accessed by the target customer. Therefore, the marketer will put in place different strategies to ensure that indeed the product has been distributed appropriately. Even in doing so, the following factors seem to have an influence on distribution strategies:

  • Infrastructure: infrastructural development influences the ease and cost of distributing products. When distributing products in an area where there are well-developed road networks or railway lines, it is easier to ensure the products are transported the nearest place to the consumer.

  • Nature of the product: the characteristic of the product determines the ease of transportation. For instance, when dealing in the sale of heavy trucks, it is impossible to imagine having many distribution channels. In such case, it is important to limit the number of distribution channels (Kotler 2001, p. 137). At the same time, delivery may only be made on request by the customer.

  • Regulatory issues: there are some commodities whose distribution is limited to specific persons. For instance, distribution and sale of weapons in many countries is controlled by the state and therefore specific agencies ought to be involved in their distribution in order to ensure safety.

  • Size of the market: there are products that are sold on the local market while others are sold even to international markets (Kotler 2001, p. 171). The choice of distribution channels will definitely depend upon the size of the market.

The Product

Product is one of the main elements of the marketing mix. The quality of the product will affect other elements of the marketing mix in different ways. Producers will always do whatever is within their reach to ensure that the products are of superior quality. This is the best selling point for all point. In attaining this, the following are some of the factors that could influence the product:

  • Availability of raw materials: quality products are as a result of good raw materials. Quite often, the availability of such raw materials can be a huge hurdle. Some may require importing from far-off countries which may be very costly to be sustained.

  • Availability of skilled workforce: in order to produce high quality products, the contribution of workers cannot be ignored. Firms need skilled and highly talented workforce to produce quality products.

References

Chai, L.G 2009, A Review of Marketing Mix: 4Ps or More? International Journal of Marketing Studies, Vol. 1, Issue no. 1, pp. 1-15.

Elisante, G 2005, Managing the Expanded Marketing Mix: A Critical Perspective Approach, (From 4Ps to 7Ps), The African Journal of Finance and Management, pp. 1-28.

Kotler, P 2001, Kotler on Marketing, Free Press, London, pp. 121-180.

Wise, R. & Sirohi, N 2005, Finding the best marketing mix, Journal of Business Strategy, Vol. 26, Issue 6, pp. 10-11.