Monday, July 27th, 2009
“Empirical evidence shows that there is a positive relationship between having a market orientation and having good business performance”
- Must match customer’s needs
- Must match corporate resources
- Must be consistent (e.g. price reinforces product quality and location of stores)
- Should beat competitors -> highest benefits to consumers or lower costs than competitors (see B-C framework); i.e. the marketing mix should provide a competitive advantages.
Limitations
- over simplistic
- services marketing (people often are the service itself -> it is important to consider the processes involved in delivering the service to the customer)
- consider also long-term relationships as part of your overall success strategy
Overcoming the limitations
- 4 + 3P= 7P’s -> include: people, processes and physical evidence
Tags: 4 + 3 p's, 4p's, 7p's, effective marketing mix
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Saturday, July 18th, 2009
Once that the market has been segmented and the company has decided which target market to focus, it has to define the marketing mix with which to approach them. The marketing mix, or 4 P’s involves decisions regarding: the product (or service), price, promotion and place (distribution). The mix of this four variables should satisfy the needs of the target market while at the same time, allow the company to make a profit and beat competitors.
Marketing mix decisions:
- Product (use, manufacturing, brand name, quality, packaging, new product development, innovation, technological changes, use patterns, features and attributes, design, etc)
- Price (price list, discounts, payment terms, financing options, price match with segment chosen, manufacturing and selling expenses, % margins through supply chain, etc)
- Promotion (advertising, budget, media, ROI, promotional channels, pesonal selling, sales promotions, public relations, direct marketing, online promotion, etc)
- Place = distribution (location, inventories, wholesalers, distribution channels, logistics, methods of transports, permits, warehousing, order fullfilment, supply chain margins, etc)
Tags: 4p's, distribution, marketing mix, place, price, product
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