P. 1
Key Management Models (Books).pdf

Key Management Models (Books).pdf

|Views: 1,803|Likes:
Published by Trya Agung Pahlevi
Key Management Models (Books).pdf
Key Management Models (Books).pdf

More info:

Categories:Types, School Work
Published by: Trya Agung Pahlevi on Jan 07, 2013
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less

08/05/2013

pdf

text

original

The marketing mix133

– Product. Do you actually produce what your customers want?
Possible decisions and activities include new product
development, modification of existing products, and elimination
of products that are no longer attractive or that are unprofitable.
There is also a variety of activities closely linked to the product
that can be considered, such as branding, packaging, guarantees
and the handling of complaints.

– Place(distribution). Are your products available in the right
quantities, in the right place, at the right time? And can you
achieve this whilst keeping inventory, transport and storage costs
as low as possible? Analyse and compare the various distribution
possibilities, after which the most appropriate option can be
selected. Again, there is a number of activities related to the
place variable, such as selecting and motivating intermediaries,
controlling inventory and managing transport and storage as
efficiently as possible.

– Promotion. How can you best inform/educate groups of
customers about your organization and its products? Different
types of promotional activities may be necessary depending on
whether the organization wishes to launch a new product, to
increase awareness with regard to special features of an existing
one, or to retain interest in a product that has been available in
the same form for a long time. Decisions must therefore be
taken as to the most effective way of delivering the desired
message to the target group.

Promotion

Price

Product

Place

Product/brand
positioning

Target market
selection

Competitive
advantage

Competitive
forces

Regulatory
forces

Societal
forces

Political
forces

Economic
forces

Technological
forces

Marketing
mix

Marketing
environment

Marketing
strategy

Customer
satisfaction

– Price. How much are your customers willing to pay? The value
obtained in an exchange is critical to consumers, in addition to
which price is often used as a competitive tool, not only in price
wars but also for image enhancement. Pricing decisions are thus
highly sensitive.

3.Check – monitoring and control on an ongoing basis are essential to
ascertain the effectiveness of the chosen mix and also how well it is
being executed.

The final analysis

One of the problems with the ‘Four Ps’ is that they have a tendency to
keep increasing in number, prompting the question ‘Where does market-
ing stop?’. Of all the candidates, the ‘people’ factor is undoubtedly the
most widely accepted fifth ‘P’. After all, people manipulate the marketing
mix as marketers; they make products/services available to marketplace
as intermediaries; they create the need for marketing as consumers/
buyers; they play an important role when it comes to service levels,
recruitment, training, retention, etc.
It is tempting to view the marketing mix variables as controllable, but
remember that there are limits – price changes may be restricted by econ-
omic conditions or government regulations; changes in design and
promotion are expensive and cannot be effected overnight; people are
expensive to hire and train, etc. Do not forget to keep an eye on what is
happening in the outside world, as some events may have a greater
impact than you think.
At the end of the day, successful marketing has a lot to do with gut feel-
ing and acting on hunches. While the marketing mix is a useful aid when it
comes to analysing and ordering the multitude of things to be considered,
it is, and remains, a tool. In other words, if you really believe in something,
go for it – have the courage of your own convictions! There are plenty of
success stories (Honda in the USA) to prove that gambling can pay off.

134Key management models

The big idea

An eminent psychologist, Maslow was fascinated by the question of what
motivates people. His observations led him to conclude that, as a species,
human beings constantly strive to fulfil a variety of needs. Basic needs,
such as food, warmth and shelter come first (physical needs), followed by
more complex emotional needs in the middle (social needs). Finally, there
are more abstract needs, such as ‘self-actualization’ (personal needs):

1.physiological needs

2.certainty

3.social acceptance

4.appreciation

5.self-actualization.

No sooner are the desires at one level met, people turn their attention to
those at the next level. It, therefore, follows that our priorities change
along with developments in the standard of living: in developed countries,
food is now much more than simply fuel, and work is much more than
just a way of earning money to survive. However, not all individuals ulti-
mately reach the top of the pyramid, hence the form chosen: the higher
the level, the fewer people will attain it.

When to use it

Traditionally viewed as a tool to help understand consumer motivation,
Maslow’s pyramid is referred to in many marketing works. Recently, how-
ever, the growing difficulty and expense involved in recruiting and

135

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->