Impact of marketing mix elements on customer satisfaction

Contents
Chapter 1: Introduction .............................................................................................................. 3
1.1 Background of research ............................................................................................... 3
1.2 Rationale of research ................................................................................................... 3
1.3 Research aim ............................................................................................................... 4
1.4 Research objective....................................................................................................... 4
1.5 Research question ........................................................................................................ 4
Chapter 2: Literature review ...................................................................................................... 5
2.1 Introduction ................................................................................................................. 5
2.2 Main body of Literature review ....................................................................................... 5
2.2.1 Marketing mix ...................................................................................................... 5
2.2.2 Customer satisfaction ........................................................................................... 8
2.2.3 Marketing mix and customer satisfaction ............................................................ 8
2.2.4 Conceptual framework ....................................................................................... 10
2.3 Conclusion................................................................................................................. 10
Chapter 3: Research methodology ........................................................................................... 11
3.1 Research philosophy ................................................................................................. 11
3.2 Research Design ........................................................................................................ 11
3.3 Research approach..................................................................................................... 11
3.4 Data collection method.............................................................................................. 11
3.5 Sample size and sampling technique ......................................................................... 12
Chapter 4: Data analysis .......................................................................................................... 13
4.1 Data analysis tool and techniques ............................................................................. 13
4.2 Reliability and validity .............................................................................................. 13
4.3 Ethical consideration ................................................................................................. 13
4.4 Limitation .................................................................................................................. 13
4.5 Timetable and Research Planning ............................................................................. 14
References ................................................................................................................................ 15
Chapter 1: Introduction

1.1 Background of research

To become market leaders and do well in this era of globalization, an organisation must catch
up with the changes in the business world. To catch up with the competition of this global
market, companies use different business tools. Marketing mix is one of them. Marketing mix
is a process which deals with four core areas of marketing (Product, price, place, and
promotion) (Kotler and Armstrong). In order to satisfy the customers a marketing manager
controls these four variables. Customers are satisfied when the company can provide them
quality product at an affordable price in a convenient manner. Different promotion strategies
are required to make the customers know about the product. According to Kotler, marketing
mix is a process of blending 4p’s to get positive response from the customers for the product.
We can describe marketing mix as a pillar of an organisation. Customer loyalty and retention
can be increased if the manager can control the marketing mix elements effectively. This will
directly affect the financial performance of the firm (Kotler and Armstrong).

The task of a marketing manager is to analyse, plan and implement different marketing
programs to create a better position in the market. Marketing programs are designed to
predict the future events and plan according to those events (Kotler and Armstrong).
Organisation must try to use marketing mix variables (using quality control method,
providing the customers product at an affordable price, distributing products through different
outlets, promoting the product) to gain a share in the target market (Kotler and Armstrong).
In this competitive market timely and effective marketing policies are prerequisite for firm’s
success. Marketing mix element’s effective use can make a big difference in respect of
gaining market share. Product decision, pricing decision, distribution decision and promotion
decision are vital for the organisations effective and profitable running. Marketers are the
ones who try to control this element for firm’s wellbeing. Customers are the main variable for
an organisation. And marketing mix elements deal with satisfying the customers. In this
research we will look on how the marketing mix elements affect customer satisfaction and
loyalty.

1.2 Rationale of research

The primary purpose of doing this research is to find out the impact of marketing mix on
customer satisfaction. This research may be helpful in getting a clear view of marketing mix
process and determining its impact on customer satisfaction. In this era of globalisation
marketing managers must control marketing mix elements to satisfy the customers.

1.3 Research aim

The aim of this research is to investigate the impact of marketing mix on customer
satisfaction.

1.4 Research objective

a) To determine the importance of marketing mix in business.
b) To identify the impact of marketing mix on customer satisfaction.
c) To identify customers attitude towards different marketing mix elements.
d) To inspect managers role in controlling marketing mix elements.
e) Find effective ways of using marketing mix elements.

1.5 Research question

a) How do different marketing mix elements affect customer satisfaction?
b) How do marketing mix elements linked with customer satisfaction?
c) Can competitive advantage be obtained in this global market place by controlling
different marketing mix elements effectively?
Chapter 2: Literature review

2.1 Introduction
Companies use different marketing strategies to gain share in their target market. To create
and implement those strategies marketing mix is a common tool. Organisations main
objective is gain profit by satisfying their customers (Goldman). By blending the marketing
mix elements, marketing managers can satisfy the customers. Marketing managers must have
a complete understanding of their target market before blending the marketing mix elements.
Marketing mix elements consist of four elements (Product, price, place, promotion).
Marketers control these elements to satisfy the customers (Kotler and Armstrong). Today’s
global market is ever changing. So, controlling these elements is not so easy. Organizations
must take marketing decision by purely concentrating on 4 P’s of marketing mix in order to
get positive response from the customers and gain share of their target market (Kotler and
Armstrong).

Nowadays, satisfying and retaining the customers is the main objective of the organisations.
Organizations are willing to take different strategies to retain their existing customers than
attracting new customers (Cannon). Different marketing plan taken by the organisations are
solely concentrated on satisfying the existing customers. As customer satisfaction is an
abstract concept, we cannot measure is directly. We can measure customer satisfaction by
customer retention rate and customer loyalty. Customer satisfaction can vary if the industry
has number of substitutes (Pearson).

2.2 Main body of Literature review

2.2.1 Marketing mix

Marketing mix is a set of actions that company take to gain share in the market by satisfying
their customers (Lamb) . Marketing mix consists of four p’s – product, price, place,
promotion. These four elements of marketing mix affect each other (Shapiro). If the elements
can be controlled properly by the marketers, the company can be profitable. But if they are
handled without any care, company can incur big losses and customer retention rate will
decline. Understanding of the marketing mix element is a big issue. Marketers should have a
proper understanding of the 4 p’s to control them (Kotler).
2.2.1.1 Product:

In general product means any physical object. But here product means physical product
plus services. Because along with the manufacturing and merchandising firms different
service oriented firms are existent in the business world (Timpe). How the product will be
offered to the customers is under direct control of the marketer. For example: products
colour, flavour are specified by the firm (Pearson). Products quality, design, features,
packaging, customer service and any subsequent after-sales service are considered by the
firm at the time of developing a product (Kotler and Armstrong). Increasing product
range and product line will be helpful in increasing customer satisfaction. Moreover,
increasing product line may attract new customers (Shapiro).

2.2.1.2 Price:

Among all the elements of marketing mix, pricing is the most important one as turnover
generation for the organisation is associated with pricing. Pricing support other three
elements. It is not easy to set the price of the product (Lamb). Supply and demand
situation of the product or services must reflect on the price of the product. Decrease of
sale can occur if the firm set the price to high. On the other hand if the firm set the price
too low, financial losses can occur (Lamb). While setting price marketers must consider
few aspects like, competition, cost of production, target group, willingness of the
customer to pay for the product etc. If there are too many substitutes in the market,
marketers have to give extra effort in setting price. Because customers will switch to the
substitute if the price is not set properly. Price of the product should be set according to
the target group’s earning ability (Shapiro). According to the time and circumstances, an
organisation must adjust its pricing policy. For the global firm’s pricing policy must vary
for different countries. Consumer’s opinion about pricing should also be considered while
setting price. Customer oriented pricing policy satisfies customer’s and increases brand
loyalty (Pearson).
2.2.1.3 Place: place refers to providing customers goods or services in a convenient way. To
provide the customers goods, marketers use different distribution strategies like selective
distribution, exclusive distribution, intense distribution and franchising. Marketers use
different distribution methods for different circumstances (Pearson). For low priced or
impulse purchase products intensive distribution method, for highly priced goods
exclusive distribution method, for products like computer, television, household
appliances selective distribution method. Either direct or indirect distribution channel can
be used to distribute the product. If the firm is able and willing to distribute their product
on their own, they use direct distribution channel (Shapiro). If the firm don’t have the
expertise to distribute the product on their own, they use indirect distribution channel.
Firm’s producing large quantity of products can sell the product to the wholesaler then the
wholesaler can distribute the product to the customers through retailer. Customer
satisfaction depends largely on how the firm distributes its products and which channel
the firm is using to distribute them (Shapiro).

2.2.1.4 Promotion:

Promotion is concerned with letting people know about your product or services. It is the
marketer’s responsibility to let people know about the features, price and other important
things about the product. Marketers rely on different methods to promote their product.
Direct advertising, word of mouth, public relations, point of sale display, internet
marketing, personal selling, direct mail, sales promotion etc. are some of the techniques
of promoting a product or services (MacRury). In advertising the marketer pay directly to
promote their product through television, radio, newspaper, magazine, billboard etc. It is
the most effective form of promotion (MacRury). In word of mouth the marketer doesn’t
have to promote their product paying money. Here the customers promote the product for
the marketer without being paid for it. If the customer is satisfied with the product or
services, they refer the product to their near and dear ones (Goldman). Personal selling is
one to one selling of the product. This is useful if the marketer want to give the customer
full knowledge about the product. Nowadays internet marketing is one of the most
powerful ways of promoting a product (Goldman). Because of the emergence of the
internet people can know the new product and services just clicking their mouse. So,
marketers can promote their product very easily through this medium (Goldman).
 2.2.2 Customer satisfaction
Customer satisfaction is a popular term in the business. The more customers are satisfied with
the product or services of the firm, the more the firm flourish. It is an abstract concept. The
fulfilment of customer’s expectation from the product and services of the firm is referred to
as customer satisfaction (Hanan and Karp). Customer retention rate is a good gouge of
customer satisfaction. In this competitive business world most of the firms give a great
importance to this concept. Profitability of the firm goes in line with customer satisfaction
(Hanan and Karp). If the customers are satisfied, profit will go up and vice versa. Satisfied
customers are more likely to visit the firm again. Word of mouth marketing increases with the
increase of customer satisfaction (Hanan and Karp). To satisfy the customer’s marketers must
consider some facts like understanding the customer, making it easy for the customer to reach
the customer, providing customers with necessary information about the product, making
value for the customer (Gerson). Customer satisfaction is important for the business because
of some reasons. To identify whether the customer is willing to buy the product again or not
customer satisfaction is a good indicator. Customer satisfaction is a key differentiator in this
competitive market. New customers can look at that differentiator and start buying the
product of the firm (Hanan and Karp). Customer satisfaction increases customer lifetime
value (Gerson). Customer retention rate increases with customer satisfaction. It is more useful
for the firm’s to retain customers than accruing new ones. Promotion costs are far less for the
old customers than new ones (Hanan and Karp). Consistency is a big issue in customer
satisfaction. Marketers must be consistent with what they are doing to satisfy the customers.
Products quality must be maintained, promotion activities should be done on consistent basis,
and increase in the price of the product must be consistent with the increase in the income of
the customers (Gerson). Product’s quality should be up to the mark and the product must
create value for the customer. Promotion activities more likely to be effective when they are
used on consistent basis. Price of the product will satisfy the customers only if they think that
the price is reasonable (Gerson).

2.2.3 Marketing mix and customer satisfaction

Four p’s of customer satisfaction work together to satisfy the customers. Satisfaction of
consumer’s wants is preconditions to company’s success. Full satisfaction of customer’s
wants is a great challenge for the marketers (Hanan and Karp). Customers will repeat buying
product from the same firm if they get highest level of satisfaction and new customers will be
attracted because of word of mouth. Market share growth is higher for the firms who have
satisfied customers. Increasing brand loyalty is the main goal of marketing. Different
marketing strategies are taken to gain customer loyalty. Marketing mix element is the best
combination to deal with customer satisfaction (Hanan and Karp).

Customers are satisfied when they are provided with products not having harmful ingredients.
Marketers should not hide anything about the product from the customer. Quality of the
product should be maintained (Kotler). Product must have high quality features and pure to
satisfy customers expectations. Along with the quality quantity of the product must be
maintained. Cleanliness is another way of satisfying customers (Kotler). Marketers can also
look for other features of the product to satisfy the customer’s wants. Customer survey is a
popular way to identify customers wants.

Whether customers are getting what they are expecting from the product are paying or not is
a big concern in respect of customer satisfaction. Customers are paying for the product and
they want the full value from it. If the marketers fail to deliver that, customers become
dissatisfied (Pearson). Consistent and affordable price is what customers are expecting from
the firm. If the firm is able to provide the customer that they become satisfied. Good price
setting is consistent with customer satisfaction. While setting price marketers must be
conscious about the fact that customers are not solely interested to cheaper price but they are
more concerned with the value of the product equal to their expectation (Shapiro).

Different distribution method and distribution channels are very important for customer
satisfaction and retention (Krafft). Distribution system should be standard and where direct
distribution is possible marketers should use them. Uncomfortable distribution system causes
customer dissatisfaction. Firms having more distribution outlets are more likely to satisfy the
customers than firms having fewer outlets (Krafft). Distribution system must be easy and
comfortable for the customer to satisfy them.

Consumer oriented marketing strategies are precondition to customer satisfaction. Frequent

promotion campaigns is one the features of customer satisfaction (Pearson). Features of the
product or services should be disseminated to the customers through promotion campaigns. If
the customers are able to know about the product easily, they will be satisfied. Marketers
must not conceal anything from the customers. Priority should be given to customer
satisfaction than profit. Customer satisfaction will eventually bring profit (Shapiro). If the
existing customers become satisfied with the product or services of the firm, they will
promote the product on the own and new customers will be attracted.
 2.2.4 Conceptual framework

2.3 Conclusion
In this research we investigated marketing mix elements impact on customer satisfaction.
After the research we found that there is a strong impact of marketing mix elements on
customer satisfaction. Each element of marketing mix is very dominant in affecting customer
satisfaction (Hanan and Karp). The result of the study is supported by many marketing
specialists. Marketers need to have a closer look on the customers’ needs to shape the
marketing mix elements in a better way to satisfy the customers (Hanan and Karp). Wide
promotion, appropriate position, quality product and competitive price are the requirement
for customer satisfaction. According to Philip kotler to peruse marketing objectives,
marketing mix elements are the major marketing tool for a company. Firms can run surveys
to know about the customer satisfaction condition of the firm. They must understand what
customer wants to satisfy them (Kotler and Armstrong). If they can understand the customers
want, they can shape the marketing mix elements according to that. A firm having good
marketing mix strategies are likely to satisfy their customers better than the firm’s having
mediocre marketing mix strategies (Hanan and Karp). There is also relation between
customer satisfaction and brand loyalty. Satisfied customers are more likely to be retained by
the firm. And this increase in the brand loyalty will certainly increase the profit of the firm
(Hanan and Karp).
Chapter 3: Research methodology
A proper and relevant methodology is important for the preparation of an effective research
paper. In this chapter will we will discuss methodology used in this research, research
philosophy, approach and strategy of the research, sample size and technique and research
planning.

3.1 Research philosophy

Positivism and Interpretivism are two research philosophies regarding the arrangement of
data. In positivism a phenomenon’s reality is described form from objective point of view.
Here no direct involvement is needed to observe or describe the phenomenon.

On the contrary, in interpretivism subjective interpretation and intervention is needed to

observe and describe the reality of the phenomenon. For field experiments, surveys and case
studied positivism is more effective and appropriate. In this research we used positivism
philosophy.

3.2 Research Design

For conducting a research paper both quantitative and qualitative research strategy can be
used. Quantitative approach in more useful in preparing research paper in case of deductive
research approach. Where large size of sample is required quantitative approach is more
appropriate. In this research we used quantitative research approach to design the research
paper.

3.3 Research approach

Two types of research approaches are used, inductive and deductive research approach. In
case of inductive research approach available information of the field is analysed to formulate
new theories or hypothesis. On the contrary deductive research approach is used to justify
established theories and hypothesis by analysing data. In this research paper we analysed
impact of marketing mix elements on brand awareness. It is an established theory. So,
deductive research approach is used here.

3.4 Data collection method

For preparing the research paper both primary and secondary information is used. Primary
information for the research will be collected from different surveys run on the customers.
Questionnaire survey is the best way of collecting primary information for the research. One
to one interview is another way of collecting primary information. Two types interviews are
most popular, structured and unstructured. Structured interviews are more effective than
unstructured interview. In structured interview, questions are predetermined. So it is easy for
the interviewer to conduct the interview. Several online surveys can be run to collect the data.
Collecting information from the whole population may not be possible. So, for analysis
purpose effective sampling techniques can be used.

For secondary data different journal, book, articles and several other past researches are
useful. When collecting secondary data, source’s reliability and un-biasedness should be
considered. In this research paper mainly secondary data is used.

3.5 Sample size and sampling technique

Small number of people is surveyed for the research. As the time span for the research is
small, surveying large number of respondent is difficult. 100 customers of different classes
will be surveyed for the research. For data collection from the population random sampling
technique will be used. Random sampling is free from biases and each and every person of
the population has the equal chance of being selected.
Chapter 4: Data analysis

4.1 Data analysis tool and techniques

Different statistical and computer related tool and techniques will be used to analyse
marketing mix elements effect on customer satisfaction. For general analysis of data mean,
median and mode and other descriptive statistics will be used. To analyse the effect of
marketing mix on customer satisfaction regression and ANOVA analysis is used. Regression
analysis will be done to show how customer satisfaction is affected by different element of
marketing mix.

4.2 Reliability and validity

Secondary data of this research is less reliable than the primary data. Primary data of the
research is collected by the surveyor personally. On the other hand, secondary data for the
research is taken from different book, journals, articles and websites. So, the primary data is
more reliable. For this research secondary data is chosen very carefully from the sources.

4.3 Ethical consideration

How the research topic is clarified and formulated, how our research finding is reported in a
moral and responsible way relates to research ethics. Respondents are affected by the
appropriateness of the work of the research. Quantitative research has less ethical
consideration than qualitative research. In this research most the information used is
quantitative data. So here the ethical consideration is less. Misinterpretation of the survey
responses form customers and different firms for making bias or manipulated analysis is
strictly prohibited. The surveyor will clarify the objective of the questions and the research
paper to the respondent. If the respondent wants to keep their identity anonymous, the
surveyor should do according to his (respondent’s) wish. Based on the customer responses of
the survey question, the research paper will be prepared.

4.4 Limitation
Sample size of the survey will be small. A sample of 100 customers will be used in this
research and that sample will represent the whole population. The bigger the sample size, the
practical the analysis is. Furthermore the research will be conducted according to the
responses of the customers. So, if the customers provide biased and false information, the
findings of the research paper will be negatively affected.
 4.5 Timetable and Research Planning

Task to be Executed Week 1 Week 2-4 Week 5-8 Week 9-11 Week 12

Questionnaire
Development and
Outline of the Thesis

Survey conduct

Data Mining and

Filtering

Introduction Chapter

Literature Reviews

Research
Methodology

Data Analysis

First Draft
Submission

Second Draft
Submission

Proof Reading and

Checking of Error

Final Submission
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