MKT421 Wk 2 Marketing Mix
MKT421 Wk 2 Marketing Mix
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Date Created: 11/12/15
Marketing Mix Marketing mix consists of Product Place Promotion and Price commonly known as 4P s Every company should understand how to use these 4P s to create a product and then attract customers into buying it repeatedly so that they turn into loyal customers Basic strategy should be to provide customers with what they want in a pleasant way and at competitive prices Excellent customer service is also necessary to compliment other functions If a customer is made to feel that he is special and company treats him like family then he will definitely become a loyal customer A good and balanced marketing mix will create a firstclass environment that will enhance the effectiveness of each function individually as well as collectively It will also have a constructive affect on customers and they will respond positively Marketing Mix Product Product is the first P in the marketing mix Traditionally it was thought that one just needed to create the product and it will sell by itself It may have been possible many years back when there were very limited options for each product Now the world has changed and competition has become extreme The laws that allow the customer to return the goods if they are unsatisfied have also played a role in changing the rules of the game Product includes functionality style and design It also refers to its packaging style and after sales services If a product has good features it Will make the job of marketers easier On the other hand if the competitor is offering a similar product at reasonable cost and quality then it Will become necessary to differentiate our product from our competitors products This can be done in many ways design can be changed packaging can be made attractive or by offering special after sales services Products have a Wide variety and can range from simple household items to complete houses and automobiles A service such as a beauty salon can also be termed as product as it satisfies the need of the customers Products are based on information about customer s needs and wants and thus their making requires solid customer information Marketing Mix Place Second P in the marketing mix stands for Place Place can also be termed as distribution It is important that the company chose an adequate distribution channel through Which it can reach its customers easily There are many distribution channels and any of those can be used depending on the type of product and the target market Some of the distribution setups include retail stores supplying to Wholesalers and setting up an online store Companies can also contact shopping malls grocery stores or departmental stores to sell their products Brie y they must choose a channel that fulfills the company s requirements in an effective and efficient manner Marketing Mix Price The third P in the marketing mix stands for Price It is the decision of price at which a company plans to sell its products Pricing is not as simple as adding all the costs and profit many factors must be considered before the pricing decision These factors include competitor pricing market trends and utility value of one s product Percentage of wholesalers and retailers should also be kept in mind when deciding the price of the product Price setting must consider the kind of competition in the target market and the cost of the whole marketing mix Perreault Cannon amp McCarthy 2009 p38 Everyone knows what the price is and what its importance for a business is If a company sets the price too high it will go beyond the customer s purchasing power and he will not be able to purchase it This will result in financial loss to the company On the other hand if the price is too low it will not balance the expenses and the company will face loss The objective should be to set the prices at a level that will attract the customer into a satisfying purchase This price will also cover the expenses and give the company a healthy profit Quality of the product market competition and customer demand should also be kept in mind when deciding prices Marketing Mix Promotion Final P in the marketing mix is the promotion Promotion is concerned with telling the target market or others in the channel of distribution about the right products Perreault Cannon amp McCarthy 2009 p 37 Prime intention behind promotion is attracting the customer into buying the product Public relations advertisements and sales promotion offers are some of the tools used in Promotion Advertisements can further be divided into print and electronic advertisements Public relations is mainly persondependent job and relies entirely on how the PR manager deals with customers and others stakeholders Gift coupons discount offers and similar tactics are used in sales promotion Microsoft and the Marketing Mix Microsoft was established on April 4 1975 got its trademark registered on November 26 1976 and today it is the biggest name in software industry Its most successful products include Microsoft Office and Microsoft Windows Microsoft not only deals in software but has also taken active interest in cable television computer hardware and gaming consoles It has an internet portal multimedia encyclopedia and offers home entertainment products as well In year 2006 Microsoft earned a fourthquarter revenue of more than 44 billion with 71000 employees Microsoft caters not only computer users but also offers its products and services to almost everyone in form of gaming consoles home entertainment systems cable TV services and so on Microsoft website 2005 states At Microsoft we39re motivated and inspired every day by how our customers use our software to find creative solutions to business problems develop breakthrough ideas and stay connected to what39s most important to them We run our business in much the same way and believe our seven core business units offer the greatest potential to serve our customers in the coming decade They include 0 Windows Client including the Microsoft Windows XP desktop operating system Windows 2000 and Windows Embedded operating system 0 Information Worker including Microsoft Office Microsoft Publisher Microsoft Visio Microsoft Project and other standalone desktop applications 0 Microsoft Business Solutions encompassing Great Plains and Navision business process applications and bCentralTM business services 0 Server and Tools including the Microsoft Windows Server SystemTM integrated server software software developer tools and MSDN Mobile and Embedded Devices featuring mobile devices including the Windows Powered Pocket PC the Mobile Explorer micro browser and the Windows Powered Smartphone software platform 0 MSN including the MSN network MSN Internet Access MSNTV MSN Hotmail and other Webbased services 0 Home and Entertainment including Microsoft Xbox consumer hardware and software online games and our TV platform We are committed long term to the mission of helping our customers realize their full potential Just as we constantly update and improve our products we want to continually evolve our company to be in the best position to accelerate new technologies as they emerge and to better serve our customers Microsoft Corporation 2005 It is clear from all the businesses listed above that Microsoft is catering to a wide array of customers worldwide Microsoft s marketing strategy is built quotTo compensate for lessfrequent product launches and a focus on integrated solutions rather than specific products Microsoft now organizes its marketing efforts around annual quotgotomarketquot GTM campaignsquot DeGroot 2005 All the products that Microsoft has launched over the years were directed by two factors company s marketing calendar and launched updates for that specific product However this strategy has its downsides as well Product updates by Microsoft have stretched over the years and this has kept it from expanding its product or service lines further quotGTMs address the lack of new product releases on which to hang marketing campaigns by identifying a strategic issue facing Microsoft and constructing a framework for addressing it with broadreach advertising sales tools for partners and the Microsoft field sales force and customer and partner incentivesquot DeGroot 2005 An advertising campaign can be designed to spread awareness among customers This campaign can focus the complexities involved in the making of current products and may explain why Microsoft has not responded to certain available opportunities Microsoft s efforts in this process the obstacles it faced and how it overcame those can be written in CDs These CDs can also generate revenue for Microsoft when students order them to learn about certain issues Conclusion Marketing mix comprise of 4Ps namely Product Price Place and Promotion Effective marketing is vital for a company s success that is Why marketing mix should be designed and executed With extreme care and balance If all the 4Ps are balanced and complement each other the company will most certainly benefit Every company needs before launching a product to consider how they Will create the product and how Will they distribute it Similarly the decisions about pricing and promotion are also to be decided earlier than later Marketing mix is a critical part and must be designed With great care because a large part of total project budget is consumed by the marketing mix First the product must be a good one Second its pricing should be according to market standards customer demands and business expenses As a rule of thumb its price should not exceed the value it delivers The distribution channel should be effective and the product should be easily available to customers Marketing budget should be set aside so that it does not use more than the decided amount People should be made aware of the product and its availability through a planned and targeted campaign The campaign should also encourage people to buy the product Companies can be big or small but basic rules of business as well as marketing remain the same and each company regardless of its financial strength should carefully follow the basic guidelines to get the desired results Reference DeGroot P 2005 Going to Market Microsoft Style Directions on Microsoft Retrieved June 16 2010 from httpwwwdirectionsonmicrosoftcomsampleDOMISupdate200502feb020 Sgtmmshtm Microsoft Corporation 2005 Our Commitment to Our Customers Retrieved June 16 2010 from httpWWWmicrosoftcomaboutcompanyinformationourbusinessesbusinessasp Perrault WD Cannon JP amp McCarthy E Jr 2009 Basic marketingA global manageria approach 17th ed New York McGraw Hill
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