Marketing mix free essay sample

The marketing mix for a product is a major factor in influencing whether a business can sell it profitably. The marketing mix is made up of seven interrelated decisions ? the 7Ps. The four key ones are product, price, promotion (including advertising and packaging) and place (where and how a product will be sold to consumers). The other 3Ps largely relate to marketing services – people, process and physical evidence. Consumers require the right product. This might be an existing product, an adaptation of an existing product or a newly developed one. The right price is important too. If set too low, then consumers may lose confidence in the product’s quality; if too high, then many will be unable to afford it. Promotion must be effective – telling consumers about the product’s availability and convincing them that ‘your brand’ is the one to choose. Packaging is often used to reinforce this image. We will write a custom essay sample on Marketing mix or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Place refers to how the product is distributed to the consumer. If it is not available at the right time in the right place, then even the best product in the world will not be bought in the quantities expected. Selling services successfully requires people who can interact positively with customers and create the correct impression to encourage them to return. This is particularly relevant in the hotel and restaurant industry. The processes that a business has in place to satisfy customers’ wants reliably and consistently form an important part of marketing services. For example, banks replacing an out-of-date debit card without the customer having to ask for one. Physical evidence means allowing customers to see for themselves the quality of the service being provided. This will reduce the element of risk in buying a service as opposed to a tangible product. For example, a clean and well-presented reception area in a hotel would raise appropriate expectations in the mind of the customer. Not all of the 7Ps have the same degree of significance in every case. It is vital that these elements fit together into a coherent and integrated plan. An appropriate marketing mix will ensure that these marketing decisions are interrelated. They must be carefully coordinated to make sure that customers are not confused by conflicting messages being given about the good or service being sold. These are all examples of poorly integrated marketing decisions. The marketing strategies – shown in bold – lack integration with the rest of the marketing mix and are therefore inappropriate. If the messages consumers receive about a product are confused or lacking in focus, they may fail to recognize the true identity or ‘personality’ of the product. Consumers are likely to reject products where the marketing mix has not communicated a clear and unambiguous message, resulting in fewer long term sales. Marketing Mix free essay sample As the most popular electronics company among consumers in the world, Samsung owns a good reputation. Moreover, Samsung occupies more than 20% of total export in South Korea (Samsungish, 2010). Currently, the innovation and high quality of Samsung’s products are recognized by the whole world (SAMSUNG, 2010a). 1. 2 Theory 1. 2. 1 Market Segmentation Market segmentation means that businesses divide their markets into a few sections with similar features, so that they can target different groups of consumers and produce merchandise or service for them. Market segmentation is classified into four methods which are geography, demography, psychology and behaviors (Hall et al, 2008). Marketing mix Marketing mix is defined as â€Å"those elements of a firm’s marketing strategy which are designed to meet the needs of its customers†. There are four factors which are called 4Ps, and they are product, price, promotion, and place (Hall et al, 2008:75). Aims The objective of this report is to analyze the differences of the market segmentation and marketing mix of LG and SAMSUNG. We will write a custom essay sample on Marketing Mix or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Findings LG LG, a well-known brand around the world, is to sell TVs to rural areas in China (Articlesbase, 2010). Home appliances such as TVs, washing machines, and refrigerators are LG electronics’ major products (LG Electronics, 2010). In addition, LG is adept in using advertisements to attract shoppers (Pakistan amp; Gulf Economist, 2005). SAMSUNG Similarly, Samsung sells its products in the world. It not only sells to cities but also rural areas. In order to privilege consumers, Samsung holds promotional events to attract shoppers. However, Samsung has some products which LG does not produce, such as PC peripherals, print solutions, and memory cards (SAMSUNG, 2010b). Discussion Market segmentation LG An obvious way of segmenting market is geography. LG Electronics sells its merchandise spread all over the world, especially well-known countries, for example, LG digital television in China. Yucheng Zheng (2010), the CEO of LG Electronics (China) Co. , Ltd. , reported that LG launched a project to promote digital television in rural area in China. LG targets at the rural market and provides digital TVs and home applicants for rural consumers. The emphasis of rural segment is â€Å"price competitiveness†. LG is going to reduce the price of its products so that it can develop well (Articlesbase, 2010). SAMSUNG Samsung focuses on rural area as well, for example, the Samsung color TV in rural area and urban area of China. This segment involves â€Å"mass market, low- and medium-end units to rural customers or high-end products to urban customers† (EssayForStudent, n. d). To deal with an extensive product line, a mass market capacitates Samsung to satisfy consumer needs. Because Samsung enters China market late, it faces challenges to be succeeded in mass market. Furthermore, the rural market, which is approximately 80% of the whole market, is aimed by Samsung via the â€Å"low-end units†. However, because of the previous businesses of â€Å"low-cost, low-end color TVs†, Samsung had to exploit a new â€Å"high-end TVs† in urban market. With the remarkable improvement of peoples living standard, the quantity of high-end TVs in urban market in China is increasing though the segment is not big (EssayForStudent, n. d). Marketing Mix LG Product LG pays attention to upper and upper middle classes and provides products for those consumers. High quality and good service of LG products are so progressive that products are output to developed countries (Pakistan amp; Gulf Economist, 2005). LG Electronics (2010) in China shows that the products include TV audio video, mobile phones, home appliances, IT products, and air conditioning (LG Electronics, 2010). Price The pricing strategy of LG is â€Å"cost plus fixed mark up†. Following the pricing policy, LG’s formula is â€Å"import cost + reasonable gross profit†. The formula is used to cover the market cost and make profits in any market including China (Pakistan amp; Gulf Economist, 2005). An LG’s cell phone called Lollipop cost RMB 2,000 in 2009, when it first appeared in China. Promotion One effective way of promotion is advertisement. As a famous brand, LG advertises its products to get promoted (Pakistan amp; Gulf Economist, 2005). LG is accustomed to inviting famous stars to advertise its merchandise. For instance, Kim Tae-Hee, a famous actress, advertised for LG mobile phone and camera. Her advertisements attract young shoppers in China to buy relative merchandise. Place LG’s merchandise is sold throughout the world, especially developed regions. There are numbers of LG retailers in big cities including Guangzhou, Shanghai and Beijing. In addition, LG sells its products in home appliance interlink retail enterprises such as Suning and Gome in China. SAMSUNG Product As same as LG, Samsung also provides mobile devices, TV audio video and home appliances for Chinese shoppers. However, there are some products that LG lacks, such as camera camcorder, PC peripherals, print solutions, and memory cards (SAMSUNG, 2010b). Moreover, â€Å"focusing on the future of wireless communications, Samsung launched futuristic products such as the mobile hone watch, the PDA-phone, the digital camera cum mobile phone, the MP3 mobile phone and its latest model of 3G mobile phone† (123HelpMe, 2010). Price The price of Samsung products is similar with LG. For example, Samsung F480 Mobile Phone, which has â€Å"223 MB Memory, 5 Mega-Pixel Camera with 4 X Digital Zoom†, cost RMB 993-RMB 2,325. Another example, â€Å"Samsung UA40C7000 40 3 D LED TV, which is 40 Screen, Full HD, High Definition, Widescreen, HDMI, Internet, and 1920 x 1080 pixels†, cost RMB 9,320- RMB 15,656 (MyShopping, n. d. ). Promotion Samsung constantly holds sales promotional events. For example, recently, there is an event called â€Å"Samsung Smart TV Promotion† in HongKong. Customers can get a â€Å"FREE Samsung 1TB external Hard Drive and 3D Starter Gift Pack upon purchasing eligible model of 3D LEDTV and 3D LCD TV† from 16th October to 30th November (SAMSUNG, 2010c). The promotion is able to help Samsung expand its sales. Place Samsung sells its products by retailers and home appliance interlinks retail enterprises Suning and Gome as well as LG. Nevertheless, Samsung not only sells products in cities, but also in countryside. Samsung in China took part in a policy named â€Å"home appliances to rural areas† in 2009. This policy was to add profits to the masses that lived in rural areas. Samsung was one of the companies that help rural people improve their living standard. Conclusion In short, the report involves the background of the two competitive companies, theory of market segmentation and marketing mix and comparison between the two companies. Via discussing market segmentation and marketing mix of LG and Samsung, the superiorities of the two companies are obvious to be found. The general strength of Samsung is better than LG, so LG has to be enhanced. Recommendation According to the analyses above, LG is recommended to improve its promotional events so that there will be more consumers to purchase its merchandise. Furthermore, LG is supposed to expand the range of its products to different fields. However, Samsung should classify its segmentation more clearly. As a result, if the two companies reduce the price, the demand of their electronic products will increase. Read more: http://www. ukessays. com/essays/marketing/marketing-mix-of-lg-and-samsung-marketing-essay. php#ixzz2OTcQ9YYp Marketing Mix free essay sample The purpose of this paper is to describe the elements of the marketing mix which is product, place, price and promotion. In addition, selecting the organization whom I work for which is DirecTv and describe how each one of the four elements of the marketing mix impacts the development of DirecTv’s marketing strategy and tactics. This paper will also be describing how each element is implemented. The concept or term of â€Å"marketing mix† became popular after Neil H. Borden published his article in 1964, The Concept of the Market Mix. He later began teaching this term in the late 1940’s. The ingredients in Borden’s marketing mix included product planning, pricing, branding, distribution channels, personal selling, advertising, promotions, packaging, display, servicing, physical handling, and fact finding and analysis. Not long after E. Jerome McCarthy grouped these ingredients into four categories that today are known as the four P’s of Marketing. We will write a custom essay sample on Marketing Mix or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page These marketing decisions generally fall into the following four categories. The first P is product and this term refers to tangible, physical product as well as services. Some examples of the product decisions to be made are brand name, functionality, styling, quality, packaging, and so forth. The second P is Price which includes pricing strategy, suggested retail price, volume discounts wholesale pricing, cash and early payment discounts, seasonal pricing, and so forth. The third P is Place or distribution which is about getting the products to the customer. Some examples include distribution channels, market coverage, specific channel members, inventory management, warehousing, distribution centers, order processing, and so forth. The fourth P is Promotion which 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. Some examples are promotional strategy, advertising, sales promotions, public relations publicity, marketing communication budget and so forth (NetMBA, 2008). TiVo is a brand of digital video recorder that offers numerous functions far advanced than the regular VCR or DVD player. The TiVo recorder has the ability to pause and replay live TV as well as an array of flexible ecording services that is personalized for the consumers. The adoption of TiVo when it was first released was facilitated by the belief that consumers who owned a TiVo black box and subscribed to the TiVo service can take control of what programs to watch and when to watch them. The device attracted consumers who were tired of missing their favorite shows because they were too busy to watch them. TiVo also ena bled people to fast-forward over irreverent advertising. TV watchers can â€Å"pause† a live show to conveniently handle interruptions too. As shown above, the services that TiVo provides allow the consumer to be in control and makes TV viewing â€Å"a lot more enjoyable. † (Global Advertising Strategies, 2008) Television satellite provider DirecTV and TiVo have extended their current non-exclusive partnership to include the development of a new, high definition DirecTV digital video recorder (DVR). The two companies also extended their mutual intellectual property agreements. Financial terms were not disclosed. The deal is expected to bring TiVos broadband and search capabilities to a wider audience. DirectTV currently has more than 17 million subscribers, while, as of July, TiVo had 3. 8 million. In 2005, DirecTV said it would stop marketing TiVo and instead offer a DVR made by NDS, a division of News Corp. With the launch of High Definition, HD receivers along with the DVR features DirecTv are booming with orders for high definition. The packaging of these receivers for DirecTv started in black and the products were made from different companies like RCA, Phillips, Sony, Hughes and so forth. Since the taking of name of DirecTv, the product has since changed now the LEDs illuminate in blue a flashy pizzazz to the product. The casing went from a flat black to silver and back to a glossy black which gives it a bling-bling look you can’t resist. Striving for continuing growth in the US, DIRECTV has been targeting various ethnic communities in the US by expanding its programming lineup over the years. After the success of the initial offering of several Spanish-language channels, the company developed and implemented its WorldDirectc program to provide high-quality, in-language programming to various ethnicities in the United States. By the end of 2005, the company was able to offer its viewers Spanish, South Asian, Marketing Mix free essay sample Coffee is not just selling products, but it is a label. It is a label and a brand that consumers believe in. Starbucks decided to be personal with their customers. Understanding the consumers thoughts became a main goal for the marketing team. The marketing team understands that people want to belong and people want to feel they are being or doing something better than the quote on quote â€Å"others†. To relay these feelings to the customers Starbuck’s Coffee base the appeal on the environment that it provides for the customer. Starbuck’s Coffee expects customers to arrive at a given store, relax at a table, talk, read, listen to music, study and drink coffee. Starbucks also prides it’s self on diversity. Jim Donald, President and CEO of the Starbucks Corporation states, â€Å"When we embrace diversity, we succeed† (www. starbucks. com). Creating The Environment To create this type of environment Starbuck’s Coffee marketing team has placed conversation topics on the sides of each cup to spice up any meeting that one may have. We will write a custom essay sample on Marketing Mix or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Starbuck’s Coffee also allows all customers to have access to the internet which always can prolong a stay. Starbuck’s Coffee guarantee’s the average customer that is visiting a store; quick service with the surety to leave with the strong smell of a coffee house. They are so committed to having their stores feel and smell like a coffee house that they even prohibit their employees from wearing perfume and cologne because it takes away the aroma of the coffee. In addition, Starbuck’s Coffee makes sure that they are environmentally friendly so that it also adds to their image that they are promoting. Kembell, 2002). PLACE Typically their stores are in high traffic locations where people will just encounter the store without having to search. Starbucks is placed in high-visibility locations. These locations are geared with the average building size of 1,500 square feet. This includes office building, shopping malls, grocery stores, and retail centers. These are the type of area’s people love to be in and Starbucks location is an added topping for both retailers and customer’s alike. Starbucks has built relationships and formed agreements with several companies who they see have additional avenues to meeting customers. These companies include but are not limited to Kraft Foods Inc, PepsiCo Inc, and Dreyers Grand Ice Cream. These agreements were made to reach more Starbuck’s Coffee consumers where ever they are. Distribution Starbucks does not limit the company to a physical location. Starbucks distributes there products via mail orders and online web-sites. Both of these avenues are used for the convenience of its customers. Again independent of the customers, anywhere any place when needed Starbucks is ready and available. Promotion Starbuck uses non-traditional forms of advertising. They use local print ads and imagery in movies to advertise. It is all about the label. It is the women on the cup says more than words. You see the label, and you sense the coffee. Price The products/label of Starbucks Coffee has been marketed so well that price is not a matter. People who come to Starbuck’s Coffee are buying the experience. The experience in many ways is priceless. The effects The marketing strategy for products that the marketing team used was branding the full experience. With the use of custom coffee beans, CD’s, coffee cups, signature chocolate, and an out of this world eco-friendly lay out; Starbucks has maintained a brand consumers believe in. The marketing strategy for place that the marketing team used was connecting with other companies to partner up and build relationships and formed agreements with several companies who they see have additional avenues to meeting customers.