Marketing Mix

Marketing Mix Paper

MKT 421/ Marketing

Instructor: Ellen Thomas

Sharron Milne

January 29, 2007

Marketing Mix Paper

Introduction

Purpose:

Organizations use elements of the marketing mix like a chef uses the elements of a recipe. If an element of a recipe were used alone, the end product would not taste very good, but if the elements are used in the right proportions, the recipe works. Organizations use the elements of the marketing mix in the same manner. The purpose of this paper is to describe the elements of the marketing mix, product, place, price, and promotion. The paper will use an organization to describe how each of the four elements of the marketing mix affects the development of the organization's marketing strategy. The paper will also describe how the organization implements each of the four elements of the marketing mix.

Motorola and the Marketing Mix

Product:

Organizations need to identify who will be interested in buying their products or services. Once this is done, they need to see if their products or services will satisfy their customers' needs. An organization also needs to examine the packaging design, the materials used, and size. By analyzing the market requirements, an organization will be able to change the product or develop a product in order to match those requirements. In the wireless phone industry there are new products constantly being introduced. In the case of Motorola the product is the cell phone.

Considered by many as an essential part of their lives, the cell phone performs more functions today than it did just a year ago. It serves as a communication device, a source of entertainment, and a safety precaution. Motorola concentrates on attractive design, excellent call quality, ease of use, value added features such as a music player, camera, and video features, and high quality, reliable products. Text, picture, and video messaging are becoming more and more popular and Motorola phones are increasingly being used to capture and share experiences. To remain competitive, the company continually seeks to innovate by building phones that are slim and well designed. It is important that the organization remember that customer needs constantly change and their products should change as the market changes. Products also go through what is known as the product life cycle.

If a company is introducing a brand new product, it is in the introductory stage. The company needs to carefully consider how it will be introduced into the market, how it will be priced, how it will be promoted, and how it will be placed. After being introduced, the company's product might be one of a kind, but after a short time, similar products are being introduced. This is what is called the growth phase. If a company's product is one of many similar products, it has entered the maturity phase. This phase is a dangerous time for many products since it is in this phase that many products are swallowed up by competitors. If a company notices that sales are dropping despite marketing changes, their product may be in the decline phase.

Price:

Price is the one element of the marketing mix that generates revenue; all the others are costs. Customers obviously like a bargain and may be attracted to buy a product even if they had never considered purchasing the product before. Prices could be artificially reduced to attract customers to a new product and to discourage competitors from capturing the market. In the case where a product is in great demand or where there are few competitors, prices could be artificially raised to recoup costs or immediate profit. There is the chance that competitors could enter the market with a realistic price, thus stealing the market. Prices can be raised or lowered depending on the market where the product is sold. For companies like Motorola, price is a key element of the marketing mix.

Price is a critical selling point. Getting the price right is the key to building relationships with customers. According to Motorola's official website, www.motorola.com (2006), "We will build long-term relationships with our customers by demonstrating honesty and integrity." As with other companies, prices charged are linked with product cycle. When a new product is launched, prices are usually quite high. This is the result of extensive product and market research. It usually takes time for a lot of customers to buy a new product and as the product matures and sales increase, prices will usually come down. State of the art products are sold at premium prices, however the costs to the users of Motorola phones are kept down because network providers such as Verizon Wireless subsidize them. Network providers want as many customers as possible to subscribe to their networks; they therefore link with producers like Motorola for the best-designed phones with the latest features.

Place:

According to the website www.quickmba.com (2006), "Place (or placement) decisions are those associated with channels of distribution that serve as the means for getting the product to target customers." The term place deals with various methods of transporting and storing goods and making them available to the customer. Getting the product to the right place and time involves the distribution system. It is this process that moves the goods to the places where they are wanted. Whatever method of distribution a company chooses, they need to consider where their customers live and the cheapest and

...