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Solution
Developing the Marketing Mix
Once the company has decided on its overall competitive marketing strategy, it is ready to
begin planning the details of the marketing mix. The marketing mix is the set of controllable marketing variables that the firm blends to produce the response it wants in the target market. The marketing mix consists of everything that the firm can do to influence the demand for its product.
These variables are often referred to as the “four Ps.”
1). Product stands for the “goods-and-service” combination the company offers to the target
market.
2). Price stands for the amount of money customers have to pay to obtain the product.
3). Place stands for company activities that make the product available to target consumers.
4). Promotion stands for activities that communicate the merits of the product and persuade
target consumers to buy it.
An effective marketing program blends all of the marketing mix elements into a coordinated program designed to achieve the company’s marketing objectives by delivering value to consumers.
MGT 301 Assignment 1 solution -
Habib Oil Mills as a new variant products introduced in the market where Shan Foods and other recipe and ready-to-cook foods marketers are there.
To introduce their new range in the masala industry they need to create a result oriented marketing strategy with a mix of price, product, promotions, and distribution at the right place.
HOM should consider how to position the product, how to exploit the brand, how to exploit the company's resources and how to configure the product mix so that each product complements the other. The marketer must also consider product development strategies
The marketing mix is always associated with these above mentioned P’s described with justification below:
Product: the main thing to concentrate will be for HOM is the Product, it is vital to try to create a unique set of characteristics for any product describing Unique Selling Proposition (USP)
The main features of the product is design, characteristics, quality, features and branding, with the answer of these questions:
1. Who is the product aimed at?
2. What benefit will customers expect?
Quality: What features will you add that may increase the benefit offered to your target market? Will the organization use a discriminatory pricing policy for offering these additional benefits?
Branding: One of the most important decisions a marketing manager can make is about branding. The value of brands in today’s environment is phenomenal. Brands have the power of instant sales, they convey a message of confidence, quality and reliability to their target market.
• Be durable and attractive in its appearance to match the price and the brand image.
• Able to stimulate new needs or unidentified desires
• Satisfy identified customer needs or wants
Price: Low- price product always catch the first sight attention of the customers, this strategy able to create a lot more new customers and divert customers attention, so the Product should be always customer-driven using USP in pricing.
This is the main differential advantage will the product offer over their competitors.Price value must be taken into account.
• Be of the right quality to allow higher price points
• Be low cost in production and delivering to a customer to ensure better profit margins.
Advertisement, sales promotions, and internet sales: Distribute the product Refers to providing the product at a place which is convenient for consumers to access, like now a days buy online product is the most convenient way to see your product. Customers instead of wasting time are ready to buy a branded producing while sitting at home with door-step delivery convenience.
Placement/Distribution: This relates to how do the firm plan to position the product within the market?
HOM must weigh competitive pressures when they are considering the positioning elements of their marketing plans. Effective positioning conveys to consumers why this company's product or service should be preferred over other competitive options based on what the company knows about the target audience's needs. Effective marketing plans clearly identify how the company's products or services are different from competitors' offerings and in what ways. Marketers must stand out from the crowd in ways that hold value for their target markets.
The final challenge in effective product positioning is conveying the differentiating, value-added aspects of your product or service to your target audience through the communication channels you have selected
To introduce their new range in the masala industry they need to create a result oriented marketing strategy with a mix of price, product, promotions, and distribution at the right place.
HOM should consider how to position the product, how to exploit the brand, how to exploit the company's resources and how to configure the product mix so that each product complements the other. The marketer must also consider product development strategies
The marketing mix is always associated with these above mentioned P’s described with justification below:
Product: the main thing to concentrate will be for HOM is the Product, it is vital to try to create a unique set of characteristics for any product describing Unique Selling Proposition (USP)
The main features of the product is design, characteristics, quality, features and branding, with the answer of these questions:
1. Who is the product aimed at?
2. What benefit will customers expect?
Quality: What features will you add that may increase the benefit offered to your target market? Will the organization use a discriminatory pricing policy for offering these additional benefits?
Branding: One of the most important decisions a marketing manager can make is about branding. The value of brands in today’s environment is phenomenal. Brands have the power of instant sales, they convey a message of confidence, quality and reliability to their target market.
• Be durable and attractive in its appearance to match the price and the brand image.
• Able to stimulate new needs or unidentified desires
• Satisfy identified customer needs or wants
Price: Low- price product always catch the first sight attention of the customers, this strategy able to create a lot more new customers and divert customers attention, so the Product should be always customer-driven using USP in pricing.
This is the main differential advantage will the product offer over their competitors.Price value must be taken into account.
• Be of the right quality to allow higher price points
• Be low cost in production and delivering to a customer to ensure better profit margins.
Advertisement, sales promotions, and internet sales: Distribute the product Refers to providing the product at a place which is convenient for consumers to access, like now a days buy online product is the most convenient way to see your product. Customers instead of wasting time are ready to buy a branded producing while sitting at home with door-step delivery convenience.
Placement/Distribution: This relates to how do the firm plan to position the product within the market?
HOM must weigh competitive pressures when they are considering the positioning elements of their marketing plans. Effective positioning conveys to consumers why this company's product or service should be preferred over other competitive options based on what the company knows about the target audience's needs. Effective marketing plans clearly identify how the company's products or services are different from competitors' offerings and in what ways. Marketers must stand out from the crowd in ways that hold value for their target markets.
The final challenge in effective product positioning is conveying the differentiating, value-added aspects of your product or service to your target audience through the communication channels you have selected
Product/Service
- What does the customer want from the product/service? What needs does it satisfy?
- What features does it have to meet these needs?
- Are there any features you've missed out?
- Are you including costly features that the customer won't actually use?
- How and where will the customer use it?
- What does it look like? How will customers experience it?
- What size(s), color(s), and so on, should it be?
- What is it to be called?
- How is it branded?
- How is it differentiated versus your competitors?
- What is the most it can cost to provide, and still be sold sufficiently profitably? (See also Price, below).
Place
- Where do buyers look for your product or service?
- If they look in a store, what kind? A specialist boutique or in a supermarket, or both? Or online? Or direct, via a catalogue?
- How can you access the right distribution channels?
- Do you need to use a sales force? Or attend trade fairs? Or make online submissions? Or send samples to catalogue companies?
- What do you competitors do, and how can you learn from that and/or differentiate?
Price
- What is the value of the product or service to the buyer?
- Are there established price points for products or services in this area?
- Is the customer price sensitive? Will a small decrease in price gain you extra market share? Or will a small increase be indiscernible, and so gain you extra profit margin?
- What discounts should be offered to trade customers, or to other specific segments of your market?
- How will your price compare with your competitors?
Promotion
- Where and when can you get across your marketing messages to your target market?
- Will you reach your audience by advertising in the press, or on TV, or radio, or on billboards? By using direct marketing mailshot? Through PR? On the Internet?
- When is the best time to promote? Is there seasonality in the market? Are there any wider environmental issues that suggest or dictate the timing of your market launch, or the timing of subsequent promotions?
- How do your competitors do their promotions? And how does that influence your choice of promotional activity?
The 4Ps of marketing is just one of many lists that have been developed over the years. And, whilst the questions we have listed above are key, they are just a subset of the detailed probing that may be required to optimize your marketing mix.
Amongst the other models that have been developed over the years is Boom and Bitner's 7Ps, sometimes called the extended marketing mix, which include the first 4Ps, plus people, processes and physical layout decisions.