Marketing Mix
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Marketing Mix
December 19, 2005
Marketing Mix
In developing a marketing strategy, the four ps of marketing must be addressed. These are product, price, placement, and promotion. These all work together to help reach maximum potential in a marketing strategy.
Product is anything that is marketable. This can be a service, physical item or an idea. It is important to define what the product is, in order to define the target market. Without a definite product, no other part of the marketing strategy can be implemented.
Price does play an important part in the marketing mix, but it should not rule the business. Price should be in line with a customers perception of value. Price must also match the quality of the product being offered. Knowing what the break even point is also is important. Without this information, the price may not be enough to cover the costs of selling the product.
Placement and distribution is the third element of the marketing mix. This includes the physical placement such as location, inventory, transport, and coverage. It also covers the channels used to market the product. Channels can change over time as businesses grow and evolve.
Promotion is the final element of the marketing mix. Promotion includes the communication of information about the product. The goal is to create a positive customer response. Marketing communication includes advertising, promotions, public relations, publicity, sales force or team, and promotional strategy.
With marketing for Dairy Barn Stores Incorporated, many factors have changed over the years. Products and services are basically convenience and dairy items. These include milk products, soda, chips, coffee, and beer. Dairy barn also has items that are easily transported and easily stored in the small areas that the locations offer.
Pricing in Dairy Barn has a wide variety of issues. Currently, due to a deal the company has made with the producers of our private label orange juice, we are able to sell the half gallon juice at a current price of $1.88. This is a savings of over $1, over our old price. The deal is that the stores can only receive the juice once a week, and the main office location receives a large bulk quantity and must distribute it evenly to ensure each location receives enough. The goal for pricing ideas such as this is to bring in new customers who will purchase other items that are moderately to higher priced.
Pricing in the stores is also universal for most items, although several stores do have special cigarette pricing in hopes of creating more sales in those areas. One area in particular has several stores that are within several miles of an Indian Reservation. Competition with the tax free smoke shops on the reservation gave the company an incentive to lower pricing to generate more sales.
Placement and distribution was discussed earlier, as inventory control is an issue the main office has a stake in. Individual locations are allowed to order most items as needed, and place them in visible location if available. The stores are small, and are drive-thrus and this makes placement hard for customer accessibility. We do not have a warehouse, but most stores have outdoor sheds and walk in freezers for storing merchandise. This allows stores to buy in for sales and keep enough on hand to have sufficient inventory to carry over for at least a week past the sale. This allows for stores to purchase inventory at a lower price, and not have to spend more after the sale.
Order processing is a fairy simple process. Within each store the customer pulls up, orders the items they need, and the merchandise is totaled and brought out to the car. The goal is to get the customers in