Posts: 323
Threads: 241
Joined: Oct 2012
Check online MGT602 Entrepreneurship Assignment No 2 Solutions Due Date July 18, 2014.
Assignment # 02
TOPIC: “THE MARKETING MIX”
International business is becoming increasingly important to more and more entrepreneurs and to their country’s economy. It offers many growth perspectives. A famous fast food chain “Zest” is operating in USA, UK Pakistan, India, Japan, and Saudi Arabia. The management of “Zest” is focusing on cost reduction. As it is
expanding fast in different countries so its management and controlling costs are increasing. One of the intrapreneur, Mr. Fred, came up with the idea of standardizing the marketing program (standardized product and communication strategy). He believes that the worldwide market place has now become homogenized and
consumer’s need and wants and expectations are almost similar as they are dealing in the fast-food industry. He also highlighted the benefits of using a standardized marketing program in all countries of operation. Economies of scale, lower planning and control leading to lower marketing and advertising costs, a consistent international brand and company image and simplification of coordination of marketing activities and decisions are few of the benefits highlighted by Mr.Fred. The management is inclined by the idea proposed by Mr. Fred but they believe that the cultural, religious and social values of the countries in which “Zest” is operating are different. They fear that it might causes some problems using standardized marketing efforts.
Requirement:
1. What could be the possible problems/ issue that “Zest” would face if it will use the standardized marketing and advertising program?
2. Give your suggestions to the management of “Zest” on how to how to use standardized marketing program more effectively in the given circumstances to get maximum benefit from it. Also give one example of a company using standardized product or communication program.
Posts: 323
Threads: 241
Joined: Oct 2012
The marketing mix is the set of controllable, tactical marketing tools that a company uses to produce a desired response from its target market. It consists of everything that a company can do to influence demand for its product. It is also a tool to help marketing planning and execution.
The four Ps of marketing: product, price, place and promotion
The marketing mix can be divided into four groups of variables commonly known as the four Ps:
Product: The goods and/or services offered by a company to its customers.
Price: The amount of money paid by customers to purchase the product.
Place (or distribution): The activities that make the product available to consumers.
Promotion: The activities that communicate the product’s features and benefits and persuade customers to purchase the product.
Marketing tools
Each of the four Ps has its own tools to contribute to the marketing mix:
Product: variety, quality, design, features, brand name, packaging, services
Price: list price, discounts, allowance, payment period, credit terms
Place: channels, coverage, assortments, locations, inventory, transportation, logistics
Promotion: advertising, personal selling, sales promotion, public relations
Marketing strategy
An effective marketing strategy combines the 4 Ps of the marketing mix. It is designed to meet the company’s marketing objectives by providing its customers with value. The 4 Ps of the marketing mix are related, and combine to establish the product’s position within its target markets.
Weaknesses of the marketing mix
The four Ps of the marketing mix have a number of weaknesses in that they omit or underemphasize some important marketing activities. For example, services are not explicitly mentioned, although they can be categorized as products (that is, service products). As well, other important marketing activities (such as packaging) are not specifically addressed but are placed within one of the four P groups.
Another key problem is that the four Ps focus on the seller’s view of the market. The buyer’s view should be marketing’s main concern.
