Qualification Certificate in Business Management
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Table of Contents
Overview of Marketing
Definitions of Marketing Mix
The Importance of Marketing Mix
Marketing Mix Elements
Company’s application of Marketing Mix
Strengths and Weakness of Marketing mix elements of Pizza Hut – Sri Lanka
“Marketing mix is the set of tools that the firm uses to pursue its marketing objectives in the target market” (Kotler, 2000). This report executes the concept of Marketing and how certain marketing elements constitute the Marketing Mix.
The report starts with an overview of marketing, continues to the definitions of marketing mix following its importance. Then proceeds to the elements of the marketing mix which are product, price, place and promotion also referred as McCarthy’s four Ps. The analysis relates the application of these classifications of marketing mix to an existing brand, Pizza Hut – Sri Lanka highlighting the brand’s marketing strengths and weaknesses which leads to recommendations. The report concludes with the author’s perspective on marketing mix.
2.0 Overview of Marketing
Marketing is the process by which an organisation generates value for its chosen customers satisfying their needs. The organisation sustains these values by revising the marketing strategies periodically as outlined by Silk (2006, p.3).
Kolter and Levy (1969, p.10) identify marketing as a task that encourages buyer’s interest for an organisation’s production. This involves product expansion, pricing, distribution and communication. In progressing businesses attention continuous on changing needs of consumers and innovation of new products. With product advancement results services enhancement to meet customer needs.
3.0 Definitions of Marketing Mix
Marketing Mix is defined as a set of controllable marketing tools an organisation utilises to achieve the desired goals in the target market (Kolter, 2000). It is also known as “any and all elements that may potentially satisfy the consumer and over which the firm has some level of control” (Brown et al., 1991). The blending of the marketing elements that is product, place, promotion and price result in marketing strategies, the term marketing mix is used to describe these elements. Hence, the development of marketing strategies refers to the advancement of the marketing mix (Low and Tan, 1995). (Borden, 1984) endorsed his associate Professor James Culliton’s idea of referring to marketing executives as “mixer of ingredients” and he further elaborates the creativity of these mixers as marketing mix and also notes how these elements are blended differently to survive, compete and to gain profits in businesses. Thus, are the various views about marketing mix and its functionalities.
4.0 The Importance of Marketing Mix
Marketing mix is a conceptual framework that points out the key decisions marketing managers make to customise the organisation’s production to match customer needs (Palmer, 2012). It is evident that marketing tools are used to nurture long-term strategies and short-term marketing solutions. As described by (Low and Tan, 1995) there are two major benefits of the marketing mix concept. First, it is an important component that enables to understand the marketing manager’s role in a greater scale, as a process of “trading off the benefits of one’s competitive strengths in marketing mix against the benefits of others”. Second, it reveals another aspect of the marketing manager’s job. All managers are expected to allocate the available resources among various requirements, in turn the marketing manager will allocate these available resources among numerous competitive instruments of the marketing mix. This act will support the marketing philosophy in the organisation.
Likewise, there are analysis examining the shortcomings of the four Ps identified as: lack of personification and the framework’s internal orientation (Constantinides, 2006). New paradigm to marketing also shares a different idea which not only involves the four P’s but also the aspect of how through relationship building and networking reflects the concept of relationship marketing enhancing the connection between the organisation and its customers (Grönroos, 1997). In the western marketing mix concept customers tend to equate marketing with client amusement experiences such as dining and wining than on tangible goods (Low and Tan, 1995). Though the advances of marketing concepts can pose challenges to McCarthy’s four Ps. McCarthy’s core concept is quiet robust. (Yudelson, 1999)
5.0 Marketing Mix Elements
McCarthy’s classification of marketing elements is known as the four Ps: product, price, place and promotion. According to (Kolter, 2000) marketing mix decisions must influence trade channels and consumers. In the short run an organisation can change attributes such as price, work force and advertising cost but only in the long run it can perform product advancement and revise the mode of distribution.
Palmer (2012, p.22) demonstrates products are the tool by which the organisation satisfy consumers’ needs. It can also be referred to as anything, whether tangible or intangible. Services are known as intangible products. The controllable factors of the product mix are: quality, design features, durability, packaging, range varieties, warranties, after-sales services and brand imaging. Businesses use various combinations of these elements. For example, one organisation may choose to invest in producing quality and durable products whereas another organisation may produce low quality products assuring effective after-sales service which would not be creating worse implications. The brand is the name or symbol that distinguishes an organisation’s products from its competitors’ products. It also adds fame to the organisation itself. The range of products offered by an organisation varies according to the in the marketing environment.
With the advancement of technology product is also redefined as “all the benefits through time that the user obtains from the exchange” (Yudelson, 1999 cited in Dominici, 2009, p.19).
Pricing is a critical element of the marketing mix for most organisations according to Palmer (2012, p.22). He explains that it defines the profitability of a business opposed, to the other mix elements which are essentially expenditure oriented. The achievement of sales volume target depends on the selling price of a product being high or low. If the selling price is low the sales target is achieved with no profit incurred. In general, marketers set prices for individual products based on cost involved in production, competitors’ prices and what customers intend to pay. Government regulatory agencies also influence the pricing strategies. Likewise, pricing decisions are made for pricing different products of the same brand. For instance, pricing the core product lower than the other product in order to generate more sales and high profits. Launch a new product as prestige product, lower the price gradually as fame of place increases.
Yudelson (1999 cited in Dominici, 2009, p.19) redefines price as “everything given by the acquirer in terms of money, time and effort given to obtain the product”
Decision related to place contains two areas of decisions. Palmer’s (2012, pp.23) explanation follows as: Organisations involve in production of good and services in place convenient to operation but customers prefer to buy where purchase process or the consumption is easiest. Thus, place decision involves shaping how convenience an organisation intends to facilitate its customers to access it goods and services. First, this determines deciding which intermediaries to use to transfer product from the manufacturer to the end consumer, also referred to as identifying the channel of distribution. Intermediaries can be road-side shops, online retailer or agents. Second, place decision determines deciding how to physically move and handle the product when it is transported from the manufacturers to the intermediaries then to the end consumers. This is referred to as logistics or distribution management.
Price is “everything that is done and necessary to smooth the process of exchange” redefined by Yudelson (1999 cited in Dominici, 2009, p.19).
Promotion communicates the benefits of a product or service to its target market. Promotional modes are advertising, personal selling, public relations, sales promotions, sponsorships and direct marketing. Similar to the