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Marketing Management Individual Assignment 20%

1.Explain concept of Marketing Mix

A marketing mix refers to a framework that uses the four Ps of product, price, placement, and
promotion.The marketing mix refers to the set of actions, or tactics, that a company uses to
promote its brand or product in the market. The 4Ps make up a typical marketing mix - Price,
Product, Promotion and Place. However, nowadays, the marketing mix increasingly includes
several other Ps like Packaging, Positioning, People and even Politics as vital mix elements.

Marketing mix is the policy adopted by the manufacturers to get success in the field of
marketing. Those days, when goods were matched with the market, have gone. The modem
market concept emphasizes the importance of the consumer’s preference. Manufacturers take
various policies to get success in the market and the marketing mix is one of the important
policies.

In marketing planning, we make use of marketing information to assess the situations. Therefore,
a manufacturer first analyses the nature of the consumer’s needs and then plans his product to
give satisfaction to the consumers. All the marketing effort focuses attention around the
consumer’s need.

The management therefore is concerned with the markets and market behaviors to identify the
target groups of consumers through market information. Then the management plans to meet the
consumer’s needs and to face the competitors. All these programmes involve a number of
functions, which are to be planned carefully; and planning’s need analysis of the market to take a
decision-prediction and forecasting, to the future needs of the public.

What are the 4Ps of marketing?

Price: refers to the value that is put for a product. It depends on costs of production, segment
targeted, ability of the market to pay, supply - demand and a host of other direct and indirect
factors. There can be several types of pricing strategies, each tied in with an overall business
plan. Pricing can also be used a demarcation, to differentiate and enhance the image of a product.

Product: refers to the item actually being sold. The product must deliver a minimum level of
performance; otherwise even the best work on the other elements of the marketing mix won't do
any good.

Place: refers to the point of sale. In every industry, catching the eye of the consumer and making
it easy for her to buy it is the main aim of a good distribution or 'place' strategy. Retailers pay a
premium for the right location. In fact, the mantra of a successful retail business is 'location,
location, location'.

Promotion: this refers to all the activities undertaken to make the product or service known to the
user and trade. This can include advertising, word of mouth, press reports, incentives,
commissions and awards to the trade. It can also include consumer schemes, direct marketing,
contests and prizes.

2.List and discuss briefly promotion strategies a given company can use. what are the
advantages and disadvantage of different types of promotional mix.
1.Pull Promotion Strategy
The Pull Promotional Strategies is about creating a strong brand name and identity that will
attract customers. It generally involves heavy branding efforts such as extensive advertising, PR
activities, product placement, and other marketing tactics. The goal of this strategy is to create a
need for the product in the minds of consumers, thereby increasing demand.

2. Push Promotion Strategy

The Push Promotion Strategy is about forcefully pushing the product out into the market.
It usually involves a heavy focus on sales team efforts, discounts, rebates, and other
incentives that encourage customers to buy the product. The goal of this strategy is to
increase sales by creating awareness and providing added value for existing customers.

3. Sales Promotion Strategy

The Sales Promotion Strategy is focused on directly making the product available to the
customer. This involves direct mail, coupons, loyalty programs, and other promotions that
make it easier for customers to purchase your product or service. The goal of this strategy
is to increase customer loyalty and usage by offering incentives and discounts.

4. Retail Promotion Strategy

The Retail Promotion Strategy focuses on increasing product visibility in stores. This
involves strategies such as merchandising, display solutions, special offers, and more that
make customers aware of the product when they are shopping for it. The goal of this
strategy is to increase store traffic and sales by making the product more accessible.

5. E-commerce Promotion Strategy

The Ecommerce Promotion Strategy is all about getting your product in front of online
customers. This involves strategies such as SEO, social media marketing, display
advertising, and more that make customers aware of the product when they are browsing
for it. The goal of this strategy is to increase website traffic and sales by making the
product more visible on the web

Advantages of Promotion Mix

Build Awareness
Promotion mix is an important tool available with organization for create wide awareness
about its products in market. All news about new product launching, innovative
techniques, offers and other inside detail of organization are provided through the
promotional tool. It serves as a communication medium for information flow in-between
customers and company.

Reaches Mass Audience

It enables corporation in reaching out to more and more numbers of people. Various
promotional tools like advertising, sales promotion and direct marketing facilitate in
grabbing the attention of mass audience with less efforts. People are also interested in
knowing about brand using attractive promotional messages for connecting with public in
market.
Higher Sales Growth
Promotion mix has an efficient role in enhancing the overall sales of business
organization. Companies incur heavy expenditure on advertising and promotional
activities with the aim to raise their sales level. With the use of distinct promotion tools,
organization come in contact with large peoples and induce them for taking buying
decision for brand products.

Increase Market Share

Companies using effective tools of promotion are able to capture a good share in market.
People gives good response towards brand using robust methods to remain dominant in
market using mass scale promotion. They are more interested to buy products of such
brand that are famous in market and enjoys better goodwill. Advertising leads to build
better reputation of brand over its competitors in market.
Enhance Customer Experience And Satisfaction
Promotion mix enable companies in serving its customer in a better way. It provides a
medium through which customers and company are easily able to interact with one
another. Companies run various promotional campaigns where they give complete details
about their products which clears all confusion in people’s mind. Availability of all
 information leads to right buying decisions by consumer thereby enhancing their
satisfaction level.
Disadvantages of Promotion Mix
Costly
Promotion mix bring heavy expenses for the business organizations. They need to hire a
large number of salesforce and various media houses for doing promotion of their
products and services. Many times these promotional activities do not yield as much
return as their investment amount in the form of expenditures incurred.
Impersonal
Promotional activities are mostly impersonal in nature which are ineffective in clearing
all doubts of people. These activities spread a common message about company and is
not specific to what customer wants to know. Many times various questions of customers
remain unanswered which are not effective in influencing their purchase decisions.

Spoil Brand Image

Companies excessively using promotional methods for stimulating quick sales may spoil
their brand image. When there are huge incentives and discount on brand products,
customer may feel that a product is an of low quality that’s why it is offered at low prices.

Risk Of Losing Control

Another major drawback of doing promotion is that organization may lose its control over
what is circulating about it in market. Promotion tool like public relation is not always
under the company’s control as what other says about a brand and its products is
uncontrollable. Public may also spread negative words about a brand in market.

3.Write Short Note on Pricing strategies.

Pricing strategies are the methods and procedures companies employ to determine the rates they
charge for their goods and services.
Pricing strategies are the methods and procedures companies employ to determine the rates they
charge for their goods and services. Pricing is the amount you charge for your items; pricing
strategy is how you calculate that number.
Pricing strategy can encompass anything from:

The state of the market

Competitors actions
Account segments
Profit margins
Input costs
The financial capability of the average consumer
Amounts spent on manufacturing and distributing products
Variable costs
Types Of Pricing Strategies?
1. Cost-Plus Pricing Strategy
One way to price a product is to add a fixed percentage to the manufacturing costs for each unit.
This pricing technique is known as “cost plus” or “markup pricing.”

As a seller, you would calculate the fixed and variable expenses incurred in making your goods
and then apply the markup percentage to that cost. This approach is popular since it’s simple to
defend and almost always results in a level playing field for all participants.

2. Competitor-Based Pricing Strategy

Competitive pricing is the practice of setting your product or service prices based on the pricing
of your competitors in your market or niche rather than on your company’s costs or desired
profit margins. Sometimes this means just raising your prices, but you also can offer better
terms of payment as an alternative.
3. Value-Based Pricing Strategy
The method of determining your rates, known as value pricing, considers how much your
customers value what you provide and adjusts your prices accordingly. You must employ a
marketing mix to retain sales and deliver more value to your clients in the face of increased
competition or a recession.
Due to the perceived worth of the product or service, buyers flock to this price strategy over the
competition. Customers don’t care how much it costs a corporation to manufacture a product;
what matters is that the client believes they are getting a good deal when they buy it.

4. Loss Leader Pricing Strategy

Loss leader pricing is a marketing strategy where one or more retail goods are chosen and sold
below cost – at a loss to the retailer – to entice customers. Loss leads are items offered at deeply
discounted rates to draw customers into the business.

5. Penetration Pricing Strategy

The penetration pricing strategy aims to draw customers by providing products and services at
lower costs than rivals. This tactic can take attention away from competing firms and lead to
long-term contracts by promoting brand recognition and loyalty. However, in the long run,
brand recognition may lead to higher earnings and help small businesses stand out from the
crowd.

6. Everyday Low Pricing Strategy

Retailers use “everyday low pricing” to maintain perpetually low prices for their items rather
than special promotions or sales.

As a result, the daily low pricing strategy aims to optimize sales by always giving the lowest
prices on the market and anticipating huge sales volumes.

4.Write Short Note on distribution strategies

Distribution strategy involves coming up with an efficient method of disseminating your
company's products or services. The goal of this type of strategy is to maximize revenue while
maintaining loyal customers.Distribution strategy helps to improve the way customers interact
with your business, leading to customer satisfaction and repeat business. It can also help you
streamline your business to make it more efficient. Through a more efficient business and
improved customer satisfaction, this strategy can lead to higher profits.
types of distribution strategies?
Your hospitality business has many distribution strategy types to choose from, including:

Direct distribution strategy

This is the strategy where a customer books a hotel room directly through your hotel website.
This tends to happen with loyal customers who know your hotel well and are returning.

Indirect distribution strategy

This is a long distribution channel with numerous layers. There could be various third parties
between the customer and your hotel. For example, a leisure traveler’s distribution channel may
go through a wholesaler and a tour operator, or through an online travel agency and an affiliate
online travel agency. A business traveler’s channel may include a DHISCO switch, a global
distribution system and a corporate self-booking channel.

Intensive distribution strategy

This strategy is focused on the goals and capabilities of the distribution method. Intensive
distribution involves reaching the maximum number of customers regardless of the size or
layers of the distribution channel.

Exclusive distribution strategy

This method is generally used for high-end brands that focus on brand standards with a small,
specific ideal customer base. This strategy only includes exclusive offerings that are often
region-based, so a hotel may only reach certain customers in specific cities.

Selective distribution strategy

This is a strategy that can vary to fit the brand. The distribution strategy is determined by the
brand and marketing strategy, so a high-end brand will focus on a certain area to fit its
consumer base while a neighborhood brand will pop up in many locations throughout every
city.