Creating Value Through the Marketing Mix

Question 1

There are numerous definitions of marketing; nevertheless, mostly, they focus upon the satisfaction and orientation on customers’ needs. Marketing refers to business strategic activities that toil towards a superior goal of brand and business development. In addition, marketing is a process that includes individuals’ getting what they require socially through creation and trading items, as well as a value, with others. The idea of marketing is based on past clients’ requirements, distinguishing proof and fulfillment; it likewise investigates anticipating requirements for the right item, in the ideal spot, at the opportune time and at the right cost (Creating Value through Marketing Mix, n.d.). There is a realistic and recent definition of marketing that incorporates the business’ ability to match the needs as well as considers the aspect of marketing economically and socially. Marketing is referred to as a process where the society, to contribute to its consumption needs, develops a distributive scheme composed of members who work together economically or socially to create a flow or transitions that revolve around separation of market and end up in exchanging and consumption.

Marketing mix involves the creation of a distinctive blend of the product correctly, sold at the right price, in the right place, using the most preferred promotion methods. A marketing mix comprises of the four Ps such as the product, price, place, as well as promotion. The 4Ps develop an optimistic response from its target market when used together. Also, there exist additional Ps that a company employs to be more competitive. These include the people, processes, and physical facts.

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Question 2

The importance of balancing the market mix is based on the fact that every business has distinctive market mix comprising of the 6Ps. The marketers use the marketing mix to assist in marketing strategy implementation. The method generates an optimal response by blending variables in the target market optimally. It is worth noting that principles in the marketing mix are a controllable variable, thus they are frequently adjusted to meet the dynamics of the marketing environment as well as the ever changing target group needs. Any business uses the 6P’s continually to evaluate its activities.

The first P is the product that covers the blending of goods and services offered by a firm or business. Product refers to things that are offered to satisfy a need or a want. A Product possesses characteristics such as the quality, diversity, design, and attribute, services, guarantee / warranty, packaging returns and brand names. A product can be an object or a service referring to a single or a group of items or a group of goods and services.

The second P is the place that covers ways in which the consumer accesses products or services (Creating Value through Marketing Mix, n.d.). Place refers to the method employed to get a product or service through a range of distribution channels to the end user. This is where the customer buys the products. A Place may include the supply channels, coverage, transportation, location of the outlet as well as the logistics.

The third P is the pricing that refers to the course of action of price setting of a product or service that have the greatest impact on profitability. In marketing, developing an efficient pricing plan is a significant element since pricing creates sales revenue unlike any other part of the marketing mix that produces sales volume and costs. Price addresses aspects like the approach to use in pricing the product, whether there will be offering of discounts and extended periods of payments, as well as the set credit terms.

The fourth P is the promotion that refers to the communication with the customers. Moreover, promotion is a method used in spreading the word about the product or service to customers, the public and stakeholders, at large. It is an element in marketing mix used by a business in advertising, recommendation, public dealings, as well as personal selling.

The fifth P is the people that are basically the business ambassadors. Additionally, they are pipelines for passing products and services to the final customers. An efficient pipeline gives better outcomes in relation to people the knowledge the experience the skills communication skills, attitude, and teamwork.

Finally, the sixth P is the process referred to everyday activities in the business. A process is a developed procedure that ensures the customer has positive experience purchasing the products or services. The primary concern of the process is planning, implementing, developing and documenting the system and procedures to ensure achievement of the central marketing objectives.

Question 3

There are quite a few factors that influenced the position of new Aldi store. The foremost aspect is the number of populace visiting the region as well as the demographics of the area (Creating Value through Marketing Mix, n.d.). Population for Aldi is a significant factor since it sets the demand. The composition of the population is indicative of purchasing behavior and assists in estimating population growth for easier identification of cost-effective locations for goods and services. Aldi can use the demographic information as a source of consumer information as well as identifying areas profitable in terms of particular goods and services. Besides, demographic data can assist Aldi in performing production analysis. The production analysis decides potential customers’ probability to purchase merchandise and services and changing of the area and composition of the populace. The demographic information can be used in creating advertising methods of marketing to diverse populace portions. Finally, the demographic segmentation aids Aldi in performing strategic planning of the new stores by tackling the market growth or decline, locating new markets, as well as determining the new products or services likely to be successful among certain population (Creating Value through Marketing Mix, n.d.).

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The second factor is the position of the store. Aldi concentrates on town center edge areas with good perceivability from the main road and no firm rivalry yet. Positioning alludes to the business’ chosen position to perform its marketing and business goal. By setting the business, Aldi completes its target to accomplish business objectives, for example, sales volume increment, brand distinguishment or ad. Another variable that may influence Aldi is the availability of the store and connections to public transport. Aldi considers the cost of transport being a barrier to accessing services. Moreover, accessibility assists people in getting essential services at a reasonable cost, time and at ease. The number of parking spaces available also affects the location of Aldi new stores. The quality for parking is of great significance when evaluating a particular site. Fewer parking spaces discourage the customers from visiting the stores. However, many parking spaces may be perceived as unpopular stores. Traffic flow is a further site characteristic, which includes the number of pedestrians and automobiles that surpass by the site. Aldi uses traffic count to measure attractiveness of the site.

Question 4

Aldi has identified an exceptional position within a competitive market place by recognizing that it cannot appeal to all buyers in the marketplace in the same way (Creating Value through Marketing Mix, n.d.). This approach is determined by the fact that customers’ needs are numerous and varied. Additionally, there are many competitors that focus on connected consumers. Finally, Aldi has identified market segments, selected one of them and developed a marketing program and products tailored for each segment. To concentrate on the target market, Aldi has taken three noteworthy steps.

The primary step was market segmentation that dealt with isolating the business sector into groups of purchasers with different needs characteristics. Market segmentation made it possible for Aldi to satisfy customer’s needs. Aldi’s market segment was measurable, had distribution channels and communication accessibility and was different in market mix response. Moreover, the segment was durable as well as promising to be profitable. Aldi market segmentation was based on geographical aspects (regional variables such as concentration of customers), customer type (factors such as the magnitude of the business), and buyers behavior (variables such as suppliers loyalty).

The second step was market targeting that evaluated market section attractiveness as well as the selected market section to penetrate. By targeting a certain market, Aldi was able to attract new businesses as well as achieve the success. It was made easier through promotion, pricing and distribution of products in cost effective ways. Targeting in Aldi market provided a focus to all Aldi's marketing activities. Aldi employed concentrated targeting that focused on a particular marketplace. Aldi business concentrated on understanding the needs of a particular market and targeting its marketing efforts towards it.

The third step was market positioning that set the competitive positioning for a product as well as created a specified marketing mix. Aldi positioning involved understanding contending products and the advantage that target market sought. It also required Aldi to identify a differential advantage that was to convey the expected gain to the market efficiently besides the competition.

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