Marketing Mix Paper University of Phoenix MKT/421 July 11, 2010 The marketing mix plays an important part in marketing. The purpose of the marketing mix is to use a combination of tools to satisfy customers and obtain company goals. Often the marketing mix is referred as the four P’s: product, price, place, and promotion. The elements are adjusted until a right combination is found that serves the needs of the product’s customers while generating optimum income” (Marketing Mix, 2010, p. 1). By using the four P’s, most businesses have the ability to connect with consumers within the targeted market.
The ability to create a successful marketing mix often has good results. However using the wrong mix can lead to failed marketing strategies which can result in the business dissolving. The key is not to get stuck on one mix, the combination of elements often has better results than just using one. This research paper will review all elements of the marketing mix and how each one plays an important role that organizations must acknowledge in order to be successful. Product “The term product refers to tangible, physical products as well as services” (NetMBA, 2010, p. 1).
Tangibles are often referred to things that the customer can see, feel, taste and smell. In the beginning phase of the marketing mix, most corporations must first determine what the product will be before they can continue. After the product is determined, the question that arises is whether or not there is a need for such a product. Introducing a new product can be tough in today’s economy, consumers are only buying products that they need not want. Organizations must highlight key points on why consumers will need this new product and the benefits of purchasing it.
Price “Price is the amount which is paid by the customer to buy the product and service” (Sooper Tutorials, 2010, p. 1). This element of the marketing mix also plays an important role. Determining the price of a new product can determine whether or not the product will sell. The initial price must be set to be competitive but at the same time the ability to make a reasonable profit. Setting the price can be challenging since this is a new product and there is no history of data to compare it to. There is a process that most businesses must take in order to set a price.
By calculating your costs, comparing products and prices to other similar products will determine a pricing. Once the product is released, close monitoring of sales is required incase the adjusting of the price is needed. Place Another important element of the marketing mix is place, which is also known as distribution. This system serves as a way to distribute the product to the target customers. In order to be successful location is very important because corporations have to make sure that the product will be available at the right place and the right time.
Marketing a product in the wrong place can lead to bad results. For example, marketing a new suntan lotion in Seattle might not be the place to focus on. Seattle which has many months that rain does not have a need for a new suntan lotion. A place like southern California where the sun is always out might make a better place to market the product. The proper placing of a product along with the right time will ensure the product has the best chance of becoming a success. Thus, place is a key element in the marketing mix that some people tend to not focus on.
Promotion The last element of the marketing mix is promotion. Just because promotion is the last element of the marketing mix does not mean it’s not important. Failing to address the promotion element can be detrimental to a products success. “Promotion represents the various aspects of marketing communication, that is, the communication of information about the product with the goal of generating a positive customer response” (NetMBA, 2010, p. 1). With any new product, promotion can lead to large costs in proportion to the product price.
Corporations should perform a break even analysis when making promotion decisions. It’s very important to know the value of the customer to see if it’s worth trying to acquire new ones. Without promotion customers would never know that the product even exists leading to poor results. AT&T AT&T is well known for telephone service for over one hundred years. However within the last decade, AT&T now offers internet, cell phone, and television. With the need of land lines decreasing, AT&T has teamed up with apple to offer one of the best marketed cell phone called the iphone.
The marketing of the new iphone 4 has lead to be one of the best cell phones on the market today. AT&T does not only conduct business with the United States but globally. The ability to market a product world wide has come with great success. AT&T products For many years the only product that AT&T offered was home phone service. However with the invention of the cell phone and internet that has changed drastically. Not only is AT&T the leader in the country in home phone service but they are second to providing cell phone service.
With many people now turning to cell phones, the focus on the company is now turning to wireless. Within the last four years the federal communications commission allowed AT&T to offer television service. With AT&T traditionally only offering phone service, the ability to offer television came with many challenges. The upgrading of the network was needed to offer a new product that the company never sold before. With the partnership with apple and offering one of the hottest cell phones on the market today, AT&T proves that is a leader in telecommunications around the world.
AT&T Prices With AT&T being the only telephone service provider for many years, they had the ability to set the price with consumers because they had no other options. However with many other phone companies in the market now, AT&T has been forced to lower prices to compete with competitors. The invention of DSL for internet users was costly at the beginning. AT&T was one of the first telephone companies to offer DSL service for a hefty price. With many other companies now offering DSL it has forced AT&T to lower its prices. AT&T Places
AT&T offers service in many places around the world and especially through out the United States. The one major problem AT&T faces today is to offer DSL and cell phone coverage in the rural areas. Often these locations are very far from the central office to offer DSL and mountains often block cell phone coverage. However in most metro areas, AT&T is a leader in telecommunications. AT&T now offers wifi in some major cities. Wifi is a signal that is transmitted wireless in a certain area so that consumers have the ability to connect to the internet. AT&T Promotions
The one thing that AT&T does well is promotions. All over the internet, commercials and many sporting events, AT&T makes a strong presence. With the history of being one of the first telephone companies in the world, AT&T has proven it’s a great leader in telecommunications and offers great products. Conclusion In any product that is offered, the marketing mix plays a vital role. Ignoring one element of the mix can lead to bad results and the end of a product. As in AT&T’s case, they definitely concentrate on all elements of the marketing mix thus leading them to the largest provider in the United States.
Corporations that follow the market mix can lead to great success and generating great revenue that every corporation wants. Reference: Marketing Mix. (2010). BusinessDictionary. com. Retrieved from BusinessDictionary. com website: http://www. businessdictionary. com/definition/marketing-mix. html NetMBA. (2010). The Marketing Mix. Retrieved from http://www. netmba. com/marketing/mix/ Sooper Tutorials. (2010). Marketing Mix. Retrieved from http://www. soopertutorials. com/business/marketing/1897-marketing-mix. html