The Marketing Mix
4Ps was created in the 1960’s by E. Jerome McCarthy, used across the world as the foundation of the marketing mix, these are described as:
Product - Relates to the product that’s created to satisfy the ‘needs and desire’ for the target market.
Price - Price of the product is set for the customer to purchase the product. It also determines profit.
Place - The business ensures the product is available and accessible to the target market.
Promotion - This is activities that communicate to the target market of the product, and convinces them to purchase.
This leads to the 7Ps. A marketing model that modifies the 4Ps. It’s mainly used in the service industry. These are:
People - The business, through research will find out if there are enough people in the target market that are in demand of the product.
Process - The business ensures processes and systems are in place for the execution of the service.
Physical evidence -
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Evidence will need to be provided to make sure the service was delivered. It’s also a good indication of how the product and the business are perceived. Waitrose will ensure correct marketing orientation in place.
Surveys are carried out to determine expectation. This helps achieve value/desired quality to the customer, and gain customer satisfaction. The retention of the customer will be the customer profitability. Activities come with additional costs but will lead to larger profits and positivity. Waitrose developed their own brand of products at a lesser price, keeping inline quality Waitrose is known for. This ensures their products have competitive advantage. They will make sure they have a good relationship with all parties including customers, suppliers, and distributors, to achieve customer satisfaction, this is relationship marketing. Service and product marketing is where the business offers either products/services or both. Some products come with services such as grocery home delivery. Many of Waitrose products don’t require services. But offers services for products that are faulty. With Waitrose cafe they provide a service for hot food and drink to the
customer. Marketing is split between B2B and B2C. B2B (Business-to-business), focuses on the relationship and communications with other businesss, it has a smaller target market, and the process is longer than B2C. Waitrose B2B work with supermarkets, food shops, distributors. They use marketing activities to generate leads to convert to sales. With technology B2B internet marketing links businesses with suppliers, distributors and manufacturers. B2C (Business-to-consumer), focuses on potential customers and converts into buyers. B2C tends to be product driven and have a larger target market. They have a single buying process for shorter sales cycle. Internet links the business directly to the customer, this makes it easier for B2C. Waitrose started international marketing activities providing own brand products to the international market through third party retailers. They have to comply with the same laws in the country they will be selling products and surveying ‘needs and desires’ of the customers. If a success the business may think about globalisation approach. Segmentation is a contributing factor for Waitrose’s. Benefits are positioning themselves and the right product in front of target customers, having a complete overview of marketing activities in the market, by understanding customers response to the product, Waitrose can perfect their marketing mix and product. Main types of are: Geographical - Could be UK regions, as some regions may have different ‘needs and desires’. Demographical - Number of different groups such as ‘needs and desires of people aged 18-25 may have different ‘needs and wants’ over people aged 50-60. Psychological - Look at various groups within the geographical and/or demographical groups. This could be lifestyle, values, etc. Behavioural - Group customers in to buying behaviour, such as knowledge and attitude of the product.
Companies realize what people need and they take it as sources to produce commodities. However, companies which have famous brands try to get people’s attention by developing their products. Because there are several options available of commodities, people might be in a dilemma to choose what product they looking for. In fact, that dilemma is not real, it is just what people want. That is what Steve McKevitt claims in his article “Everything Now”. When people go shopping there are limitless choices of one product made by different companies, all choices of this product basically do the same thing, but what makes them different is the brand’s name. Companies with brands are trying to get their consumers by presenting their commodities in ways which let people feel impressed, and that are some things they need to buy. This is what Anne Norton discussed in her article “The Signs of Shopping”. People are often deceived by some famous brands, which they will buy as useless commodities to feel they are distinctive.
The management at Tesco’s seem to place an emphasis on customer needs through the ‘Tesco Values’ philosophy, expressed as two values “no one tries harder for customers; treat people how we like to be treated”(Tescoplc, 2013)3. Tesco’s maintain that this represents listening to customers and using all the tools at their disposal, such as, Clubcard data, Frontline contact with employees, focus groups and research trackers to gather information (Loyalty square, 2013). Subsequently, this communication allows the company to act i...
The marketing mix refers to the set of actions, or tactics, that a company uses to promote its brand of products in the market. Price, Product, Promotion and Place, are known as the 4Ps that make up a typical marketing mix. As marketing evolves, there are additional Ps that can also be included in the marketing mix, however, focusing on the 4 core Ps of the marketing mix, price, place, promotion and Product, taking an in-depth look at the aspects of Victoria’s Secret in general and in terms of the selected product. All the elements of the marketing mix influence each other. They contribute to the business plan for a company and if managed correctly, can give it a great success. In order to successfully master marketing mix, it needs understanding,
The major components of the 4Ps approach are product, price, place, and promotion. That means that the first step in the marketing plan is a product.
Loyalty Card Proposal by Waitrose In an industry where the players are generally ranked by their size, Waitrose has established itself as a leader - not on the basis of mass but of quality. Other supermarket giants have gone for volume; Waitrose has targeted quality and choice. The products they offer are of high quality and this is reflected in the prices which tend to be higher than other supermarkets such as Tesco's. The variety on the shelves reflects the demanding tastes of the Waitrose shopper who the company promotes itself to, and includes a huge choice of wines, But there are keenly priced essentials, too, for the budget-watching household. The Loyalty Card concept
Every company wants to understand why people decide to buy its products or others. Firstly, we have to understand why people buy certain kind of product. People buy products because they need them. A need is activated and felt when there is a sufficient discrepancy between a desired or preferred state of being and the actual state. (Engle£¬Blackwell and Miniard. 1995. p407 ) For example, when you feel hungry, what you needs is some food. It is very important for marketer to understand the needs of consumers. All the consumers may have the same needs, but the ways which they satisfy what they need are different. Here is a example, Chinese people would choose rice when they feel hungry, whilst British people may choose bread to satisfy their needs.
Price: Price is a factor which is very carefully needed to be set. It must be a value for money offer for customers to buy. It cannot be set higher than this, people may not buy and if it is set lower, than you will have to face the losses. At the same time there are many issues based on which a company determines the price and that is not limited just to the cost of manufacturing it. These other factors include the perceived value of the product in the customer's mind, the market share of the business, competition and even local tax regulations and distribution and logistic costs. Then there are issues such as seasonal fluctuations that also need to be
In order to sell a product, a company must transform a product and turn its use value into an exchange value. The company needs to make their product seem more valuable than it is actually
Product. businesses find out the wants and needs of customers. They attempt to make service or product that
Marketing and Sales are the activities that provide the means for the buyer to purchase (e.g. advertising, sales force operations, selection and management of distribution channels, etc.).
Desire- the Company has to influence the customers to want to try the products or services.
Mission- to provide values to the lives of customers, to make the lives of partners worthy, concern about environment and community
Every firm has great focused on the customer requirement what they want and how to satisfy them. The major reason of 3PL moves towards 4PL is value added services. The 3PL services mostly focus on logistics service or in-bound service. The services need to be increase and add some value for every 3PL firms when they have plan to move towards 4PL. value added service must be ensure the solution supply chain process for all partner and customers which also support return
goods or services and also for the owner of the business to raise profitability. Profitability
1 b: the process or technique of promoting, selling, and distributing a product or service