Paper Example on Marketing Mix: Product, Price, Place & Consumers' Behavior

Introduction

The marketing mix is defined as the amalgamation of factors that can be manipulated by a company to control consumers’ purchasing behavior of its products (Ikechi, Chinenye & Chiyem, 2017). In general, marketing mix is a primary business model that is centered around the product, which is the good or the service offered; a price which is the amount of money paid by customers in purchasing good and services; a place which entails the actions that are used in making the product to be availed to the consumers and promotion which entails the actions that communicate the product properties and benefits as well as persuading the customers to purchase the products. Different firms may use these marketing tools to advance their marketing goals in the targeted niche.

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Importance of Strategic Marketing Mix

A strategic marketing mix is essential for any firm. First, this strategy allows the company to create a clean mix. According to Ikechi, Chinenye & Chiyem (2017), a good marketing mix should have all its components compatible with each other. For instance, the product should be compatible with the placement of the product and the promotion to be compatible with the product. Ikechi, Chinenye &Chiyem (2017) note that compatibility is essential because all the components are intrinsically linked to each other. When there is a linkage in all the P’s, the marketing mix forms a strong chain of the bond. But, Teller & Floh (2018) state that when all the components form strong bonds, it guides the company in even making the chain longer. It, therefore, means that if the firm desires to make a decision, it would be imperative to look at the bigger picture, and all the components must be taken into account to create a clean marketing mix for the product.

Secondly, the marketing mix is very important in the development of a new product. According to Ikechi, Chinenye & Chiyem (2017), in certain instances, when designing a new product, ideas about a related product may come up. For such a product, the price, placement, and promotion need to be different from the existing product. The replica product can be classified as a new product; therefore, when developing a marketing mix, the company will be able to form better ideas on the new product development for better marketing.

Thirdly, the strategic marketing mix enables the firm or company to increase its product portfolio. According to Blut, Teller & Floh (2018), it is very important to make some changes to a product whenever the firm desires to increase the product line and length. Ikechi, Chinenye & Chiyem (2017) note that to alter product depth, changes are made in the marketing mix itself, which includes product pricing and possible promotions. As a result of this alteration in the marketing mix and its features, the company will eventually end up with an expanded product portfolio.

Fourth, a mixed marketing strategy can be used as a guide to improve business. Ikechi, Chinenye & Chiyem (2017), argue that in any business, there is the need to understand that physical evidence is very essential. For instance, when customers can access the physical offices of any business, their confidence level increases and in return, the business gets more customers. Moreover, the evidence should be exhibited in all the marketing mix components such as people and processes. When all these are optimized, the company is likely to improve the overall working conditions. Besides, this strategy can be an important guide in conducting a gap analysis to improve businesses.

Fifth, the strategic marketing mix is very helpful in differentiation. In every business, it is critical to understand how competitors are performing (Fayvishenko, 2018). To do this, they can analyze the marketing mix of their competitors to differentiate themselves from them. For instance, if the competitor has poor pricing, through the analysis, the business can come up with better pricing to compete favorably. In some cases, it can be the promotion that is not being done right by the competitors; in this case, the company can ensure that it develops better promotional strategies that will expand its market. Moreover, if from the analysis the company realizes that its competitor does not have the right processes, people, or placement, it can use the marketing mix to organize their structures by having the right people, efficient processes, and better placement to seize the market.

Lastly, the marketing mix strategy helps the business to be dynamic. According to Blut, Teller, and Floh (2018), companies must not only prepare for better times but also tough times like now when the pandemic has ravaged many businesses. In this case, the company should be able to respond amicably to the economic recession or bad sales. This is where the dynamism comes in handy to ensure that the company stands. Dynamism can be achieved when the company understands its products, processes, people, promotions, pricing, and placement so that it can be better placed to respond with agility.

The Concept of Positioning

According to Iyer et al. (2019), the market position is the ability to influence the perception of the consumers about a product relative to its competitors. The concept of positioning is to establish the image of a brand or product such that consumers perceive it in a certain way; for example, by making a product look very innovative or luxurious. Positioning can influence customers’ emotions and make them feel attached to the product (Iyer et al., 2019). The authors highlight several positioning strategies.

First, there is a positioning that is pegged on the product (Iyer et al., 2019). In this case, the company can relate or associate their product with certain qualities and benefits to entice customers. Secondly, the company can use the product price, whereby they develop a very competitive price compared to other companies. Moreover, others may choose to associate their brands with high quality or specific use that makes it superior to other products in the market. Lastly, positioning can also be pegged on the competitors, such as the company brands itself, to make consumers believe that their product is better than the products of their competitors.

According to Fayvishenko (2018), effective marketing positioning can be achieved by determining the company’s uniqueness. This is done by comparing and contrasting the differences to identify opportunities. Moreover, Fayvishenko (2018) opines that the company can identify the current market position to determine how the new positioning will be beneficial. Besides conducting competitor positioning analysis gives the actual conditions of the marketplace and the influence of every competitor. Lastly, the company must, therefore, develop a positioning strategy to conquer the market.

Effects of Implementation of the Strategic Marketing Plan

Strategic marketing enables a company to achieve standardization. This is possible because the company will compare and contrast its marketing stricter to one of its competitors. According to Blut, Teller & Floh (2018), standardizing marketing activities has a positive impact on the performance of the company. Moreover, a strategic marketing plan will also enhance market adaptation. In this case, the company has to adjust its marketing structures to be able to meet customer requirements; when this is achieved, the company’s performance will improve. Also, as firms adapt to the new market atmosphere, there is a higher possibility of becoming consistent in meeting the customers’ expectations.

References

Blut, M., Teller, C., & Floh, A. (2018). Testing retail marketing-mix effects on patronage: A meta-analysis. Journal of Retailing, 94(2), 113-135.

Fayvishenko, D. (2018). Formation of brand positioning strategy. Baltic Journal of Economic Studies, 4(2), 245-248.

Ikechi, A., Chinenye, E. P., & Chiyem, O. (2017). Marketing Mix Concept: Blending the Variables to Suit Contemporary Marketers. International Academic Journal of Management and Marketing, 9(1), 55-65.

Iyer, P., Davari, A., Zolfagharian, M., & Paswan, A. (2019). Market orientation, positioning strategy, and brand performance. Industrial Marketing Management, 81, 16-29.