Marketing Mix Paper
Essay Preview: Marketing Mix Paper
Report this essay
Marketing decisions generally fall into four categories; product, price, place and promotion. These categories together, are known as the marketing mix, or the 4 Ps of marketing. Subject to the internal and external constraints of the marketing society, the marketing mix gives marketing managers controllable parameters to make decisions that are centered on customers in the target market. The ultimate goal of the marketing mix is to create value and generate a positive response for any organzition.
Elements of the Marketing Mix
Wikipedia, The Free Encyclopedia (2006), describes the marking mix approach to marketing as a model of crafting and implementing marketing strategies and stresses a blending of various factors in such a way that both organizational and consumer (target markets) objectives are attained. When blending these factors, or elements, marketers must understand the wants and needs of the customer and use those elements when formulating the appropriate marketing strategies and plans that will satisfy them.
Neil Borden, the developer of the marketing mix model, suggests that you need two sets of information in order to develop a marketing mix; a list of important elements that go into the mix, and a list of forces that influence these decision variables (Wikipedia, 2006). The most common variables that are used in formulating this mix are product, price, place and promotion. These variables, viewed from the perspective of the marketer, are sometimes referred to as marketing management because it describes the elements in which marketers have to work with.
Product Decisions
“Historically, the thinking was: a good product will sell itself. However there are no bad products anymore in todays highly competitive markets” (Value Based Management.net, (2006). Keeping that in mind, organizations have changed their strategy on creating products and services. In order for a product or service to sell, the organization must define the controllable variables in a way that strives toward meeting the wants and needs of the customer. These variables include; functionality, quality, appearance, packaging, brand, service, support and warranty of the product or service (Value Based Management.net, (2006).
Price Decisions
Deciding on a pricing strategy and identifying the total cost to the use is a part of the price element (Webber, 2005). The pricing decision is where an organization decides on how much a customer is willing to pay for their product. This is when we see competition between businesses. At this stage, organizations make decisions pertaining to the list price, discounts, financing, leasing options and allowances for their products and services.
Place (Distribution) Decisions
Is our product available at the right place, at the right time and in the right quantities? These are questions that organizations ask themselves as they make decisions about the distribution of their products or services. “Some of the revolutions in business have come about by changing place” (Value Based Management.net, (2006). Factors that play in to making this decisions rely on locations, logistics, channel members, channel motivation, market coverage, service levels, internet and mobile coverages.
Promotion Decisions
“While the other three Ps have lost much of there meaning in todays markets, Promotion has become the most important P to focus on” (Value Based Management.net, (2006). Why is this P so important? Promotion includes everything involved in marketing products or services. Decisions on the choice of target groups, and informing and educating customers about the products and services the organization provides, is all covered under this important element of the marketing mix. Advertising, public relations, message, direct sales, sales promotions, media, budget and communication are all part of the decision making process under the promotion element of this mix.
Microsoft and Its Many Industries
“At Microsoft, success comes from our passion for creating value–value for customers, shareholders, and partners; value for our employees and the communities around the world where we do business” (Gates, 2006). Microsoft, the industry leader in software development and sales, became a registered trademark on November 26, 1976. Microsofts best selling products have been the Windows operating system and the Office suite. They have also had a hand in other markets, such as MSNBC cable television network, Microsoft multimedia encyclopedia, as well as the MSN internet portal, computer hardware, home entertainment products and gaming consoles. As of 2006, Microsoft employs over 71,000 employees and has produced fourth quarter revenues over $44 billion.
Microsoft is considered a very diverse company due to the number of businesses that it deals with. For instance, Microsoft is a large corporation that serves the needs of many small businesses, and large businesses. They also serve the needs for not only personal home use, but they have also been involved in industries such as computer hardware, software, publishing, research and development, television and video games.
According to the article, Our Commitment to Our Customers – The Business of Microsoft, the company explains their core business units, as well as their intention to deliver creative solutions to their customers. The Microsoft website states (2005):
“At Microsoft, were motivated and inspired every day by how our customers use our software to find creative solutions to business problems, develop breakthrough ideas, and stay connected to whats most important to them.
We run our business in much the same way, and believe our seven core business units offer the greatest potential to serve our customers in the coming decade. They include:
Windows Client, including the Microsoft® Windows® XP desktop operating system, Windows 2000, and Windows Embedded operating system.
Information Worker, including Microsoft Office, Microsoft Publisher, Microsoft Visio®, Microsoft Project, and other stand-alone desktop applications.
Microsoft Business Solutions, encompassing Great Plains and Navision business process applications, and bCentral™ business services.
Server and Tools, including the Microsoft Windows Server System™ integrated server software, software developer tools, and MSDN®.
Mobile and Embedded Devices, featuring mobile devices including the Windows Powered Pocket PC, the Mobile