MARKETING MIX, MARKETING ENVIRONMENT, FACTORS AFFECTING MARKETING ENVIRONMENT AND WHAT MARKET DO –BY INSTRUCTOR ASAKPA, P. E.
MARKETING MIX: This can be defined as the combination of variables offered to the market at a particular time. The variables are : Products, Price, Promotion and Place. The concept of marketing mix was popularized by Neil Burdan and Mc Carthy in 1976. The term is the combination of policies, procedures, processes, programmes, strategies, techniques and methods adopted from period to period by and organisation in it marketing programmes and activities which will help to achieve the best mission.
THE 4PS [MARKETING MIX] : The 4ps which are also known as marketing mix are:
PRODUCT: This is anything that can be offered to the market to satisfy human want. Products can be tangible or intangible. It also involves others components such as product brand name, packaging, quality, size, texture land colour. It can be goods[ tangible items] or services that is [intangible items].
PRICE: This is the amount or anything that is used to facilitate exchange. And all the four P’S, Price is the most sensitive one because customers respond more to the price strategy than other three P’S.
PRICING POLICIES AND STRATEGIES:
A] Discount: This involves the offer of reductions from a base price.
B] Cash discount: It means reduction/deduction accruing to budget for making payments
Within a specific period.
C] Quantity discount: It connotes discount reduction/discount made to encourage customers to buy in large quantity or bulk.
D] Trade discount: It refers to reduction given to the customers in payment for the marketing functions he/she is expected to discharge.
3. PLACE: This is concerned with putting the right quantity of products in the right location at the distribution.
4. PROMOTION: This is the method a business firm adopt to inform the prospective consumers about its product. It is also a way of creating awareness about the new product made by a business. This method is adopted so as to increase the sales of goods and services.
FORMS OF PROMOTION STRATEGIES:
PUBLICITY: This is described as a method of informing the public or consumer of a company’s product or service with a view to generate interest and create favourable public opinion through extensive commendatory notices in press or on air.
SALES PROMOTION: This is a technique used to motivate consumer to buy through mass selling efforts. According to American Marketing Association[AMA], sales promotion refers to those marketing activities other than personal selling, advertising and publicity that stimulate consumer purchasing and dealer effectiveness such as displays, shows and exposition, demonstrations and various non-recurrent selling efforts not in ordinary routine.
ADVERTISEMENT: This is a paid for service. It involves the use of mass media such as newspapers, television, radio, magazines etc.
PUBLIC RELATIONS: This deals with how a company relates to its various customers.
MARKETING ENVIRONMENT: This relates with the forces that affect the company’s ability to develop and maintain successful transactions and relationships with its target customers. It is classified into the following:
MICRO ENVIRONMENT: This relates to the internal environment of the business. It consist of the organisation influences, objectives and resources and it is made up of an organizations’ immediate customers, competitors, clients, consumers. They can also be regarded as the stakeholders, shareholders, staff, staff relations and families of an organization.
MACRO ENVIRONMENT: This relates to the external environment of the business. It is a set broad influence such as culture, demographic , economic, political, legal, technology, social environment.
FACTORS AFFECTING MARKETING MACRO ENVIRONMENT: The factors are as follow-
SOCIO-CULTURAL FACTOR: This connotes that people and their socio-cultural customs and belief have an effect on consumer marketing decisions or customers buying behaviour.
TECHNOLOGY FACTOR: This shows how the technology inventions, technical equipment and skills affect the way an economy’s resources are converted to output.
ECONOMIC FACTOR: This consists of all factors such as salary levels, credit trends and pricing patterns that affect consumer spending habits and purchasing power.
POLITICAL AND LEGAL FACTORS: These include all laws, government agencies and lobbying groups that affect or restrict individuals or organizations. Some products are regulated by both state and federal laws.
ECOLOGICAL FACTOR: According to Kotler 1980, ecological forces cover trends in the supply and cost of natural resources and energy problems. The trends which ecological factors cover include shortage of raw materials, increase cost of energy, increased level of pollution and government intervention in natural resources management.
DEMOGRAPHIC FACTOR: This refers to the statistical study of human population and its distribution characteristics and how it affect production decision of what to produce, where to produce, when to produce and how to produce and for whom to produce.
WHAT MARKET DO: A market is an individual or organisations who are intended to buy a particular product to obtain benefits that will satisfy a specific need and who have the resources[ time, money] to engage in such a transaction. Market performs the following activities.
MOBILIZATION OF WORK FORCE: This connotes recruitment of competent workforce who are capable enough to discharge their roles and responsibilities effectively and efficiently.
UTILIZATION OF FEED BACK: To utilize means to make use of something. Utilization of feed back means to make right use of information which had been gathered either by the staff of an organisation to channel the resources of the organisation for the manufacturing and production of products that is needed by the market people.
PRODUCTION OF QUALITY GOODS AND SERVICES: It connotes excellence, reliability, durability and relative absence of defects. Business organization through right mobilization of productive and efficient work force to collect right information and utilisation of feed back with a view of converting this for the production of quality goods and services.
MANAGEMENT DISTRIBUTION NETWORK: To manage is to coordinate, supervise, plan, direct and communicate. A distribution network means the channel through which goods and services produced by a business organization get across to the target markets. The distribution network are in this form—
< from manufacturer—-wholesaler—retailer—consumer.
< from manufacturer—wholesaler—consumer.
ADVERTISEMENT AND PROMOTION: This connotes the channels of communicating the benefits and potentials of an organization’s products over the rival competing products. Advertisement is a paid for message or idea through a mass medium to heterogeneous audiences audience. The channels are radio, television, magazines, newspapers etc. Promotion means to make known the availability of product to the end users.