1. Prepare a Marketing mix for a company.
The company which I will be taking to explain the marketing mix is BMW.
Introduction to BMW:
BMW (Bavarian Motor works) is the world known manufacturers of cars and motor bikes around the world. BMW also owns the Mini brand and is the multinational company of Rolls-Royce Motor Cars. They are the most successful high performance division in the automobile industry in the present time. The company was founded in 1916 by German, Frank Josef Popp and its headquarters is situated in Munich, Germany. Very first BMW used to design engines for aircraft than after it started making motorbikes than they finally became the versatile designer of the cars around the world. And later BMW started designing the racing cars for the racing championships.
The research of marketing mix has started in 1976 to help companies in achieving their marketing goals. Most of the marketing companies will not be successful in achieving their goals. To achieve a goal of the company, marketing mix plays a major role which can be determined as the input for the development of the company. If BMW follows a particular model of marketing mix with the sequence order then achieving the marketing goal of the company will be very easy and accurate. The into intelligence discovery helped most of the companies that deigning of market structure and marketing mix will not always help real clients of the company but often in few cases hypothetical clients will also make use of this marketing mix conditions.
For influencing the market conditions, market mix are used. Such that the individuals and segments of the market can increase the profits of it with the nature of approach they follow using marketing mix. To make the market mix unitises possible, segments of the markets, products used; cultures need to be understood such that the successive and simultaneous actions can be established using market mix conditions which will help in inflections the purchasing decision of users and consumers.
Before discussing in detail about the market mix lets discuss briefly about the market structures which may result in understanding the marketing mix easily.
Markets of automation, food markets, mass consumption, financial market, sports and social institutions market, information technology, communication market, perishable goods market, mass media market, direct sales market, industrial commodities market, agribusiness market, health market, pharmaceutical market, oil market, chemical market, paints market, education market, service market, commerce and distributions market, mining market, timber market, apparel market, passenger transportation market, professional services market, e market, entertainment market, hotel management market, credit card market, real estate market, construction and engineering market, bike, motorbike, scooter and moped market, sporting goods market.
The natural structure of market mix:
Market mix objectives will determine the simultaneous and successive actions which will be helpful in taking decisions of consumers and users.
For defining market mix the critical mass minimum steps need to be understandable which will help in producing the purchasing products. The objectives can be accomplished with the minimum cost which will determine the actions to influence the mind of the consumers. The purchase decision will be helpful in understanding the market mix. Commercial actions will plan the marketing mix decisions. Consumer's mind can be influenced by variable by discovering mankind itself.
What one institution promoting sales seeks is to meet a prospect's unfulfilled need. This requires a “profound democratic sense”, unless one is willing to betray the client, in which case, this betrayal is paid for with market share.
The logic of market can be hypothesized based on invention, discovery and simulation using these marketing mix. The task of marketing man discovery will begin with the synthetic skills to understand the process of sales. The marketing invention risk will determining the discovery phases of marketing mix. The market segments will determine the partial behaviour of markets.
The market structure understanding will help to analyze the marketing mix:
To do so we would like to begin by introducing the concept of “variable” managed in markets. Philip Kotler described them without giving them a logical sense. However, he did manager to perceive the essence of the marketing mix. The variables are as follows:
Logical relationship can be deeply analyzed based on the marketing mix components of the company which we have taken (BMW). Let's discuss briefly about all the marketing mix components of BMW.
Bringing products closer to the client is considered as Distribution. Distribution can be virtual and physical. Product can be brought closer to the client for accessing that product to the client is the actual goal of distribution.
There are two different components of distribution. They are:
- The negotiation of the brand can be sustained and the freedom of commercialization is based on the brand attributes.
- The need, the efficient of distribution and the closing sales of the satisfaction better needs of the client.
Attributes and benefits of product and services of the company will be informed to the client using the communication component. There are two different forms of communication. Communication has an expensive aspect which is called as advertising using the communication component. The attention of the client can be drawn using advertising element. A relationship can be aroused based on the intended relationship of the interest which is to be aroused to purchase the rational incentives and which can be stimulated based on the impulse purchased by the company.
In different cases the targets can be advertised based on the left hemisphere prospect that can be aimed to whilst of the right hemisphere to be aimed. For m of promotion can be taken from the communication area based on the pleasure purpose of each area. A product can be experienced based on the path of promotion such that the integration of belonging can be done from the client even without being purchase the product. For promoting the product an interest should be shown such that the product can be highly dealer based on the contents and incentives of the products.
For satisfying the needs of every client, product and services plays an important role. Products and services are the elements which place an important role in generating two different types of relationships with the prospect which can be a link one or the functional prospect.
The use value of the products can be referred based on the relationship of the functions. The usefulness of the product is called as ‘use value'. The benefits will be useful for bearing the relationship with the measuring aspects of objects and subjects. The use value of the product is the fundamental which will be helpful in decision making process to purchase the final stage of product.
The definition of the product can be linked with the product based on the complimentary relation with the client and itself. There are can be functional type complimentary relationship and personal type complimentary relationship. There are can be predominately subjective link which has to be formed with the latter objectives of the product. An individual interest is based on the basis of link within in the product and if there is no perceived link then there is no interest for a particular product.
A product is considered as the tangible and physical entity for many different business companies which can be used for the process of buying and selling. For example if a new car is bought then that can be the new product simply or maybe not a product. For buying a car sometimes the things can be more complex in the car and will not be same as same expected, this specifies the product demand. There are three different levels of a product which will explore the nature of the product.
- The core product
- The actual product
- The augmented product
Let's discuss briefly about all the different levels of product.
The core products:
The core product will not be considered as the tangible or physical product. Core product cannot be touched because the benefit of the product will be considered as the core product which makes the value to the product. Just like for example car can be the convenient benefit such that it will help us to go anywhere and whenever and the another benefit which can be accessed by the car is the speed with which anywhere can be travelled relatively quick.
The actual product:
An actual product can be considered as the physical product or the tangible product. Different people can make use of actual product. For example let's take the same example of car where the car can be test drive then bought and then collected.
This product is considered as the non-physical product part. Augmented product has different values based on which premium can be accessed. For example whenever a car is bought it will come with a sort of warranty, manufacturing offer of the company, customer service and different services of the sales.
The different marketing tool which BMW can be accessed is for the evaluation can be the use of product life cycle and customer service life cycle.
For purchasing, a price is considered as the conditioning element. In general the commodities can be exceptional and the there can be conditional price and it is not determined. Goods and services can be the monetary value along with the conditions of payment which can make the access to the goods in accordance with the income of the purchaser.
The product can be chosen considering the price and product conditions, the basic choice can be the desired choice which shouldn't be accessible and the next one can be the replaced based on product conditions to overcome the price barrier within the operational terms and the final stage can be the action of purchase to reach.
A product can be priced in many different ways. Lets discuss briefly about all the pricing policies and strategies based on different situations.
Premium price specifies to use a high price where there is a uniqueness of product. premium pricing is used where ever competitive advantage exists. High prices can be charged for different luxury things like, cruises of canard, 5 star hotels, concord flights etc.
For gaining the share of the market prices of the products are artificially changed low and when these products starts getting soled then the product price will be increased. Penetration pricing will be made use of Sky TV and France Telecom
This is considered as low price low frills. The product price wil be set to minimum based on the marketing cost and manufacturing products. Especially supermarkets will make use of this pricing scheme based on economy brands like soups, sphagetti etc.
When customer is made to response based on rational and emotional basis of market wants then this pricing scheme is used.
Product line pricing:
Benefits of parts of the product ranging reflect the benefits of the product line pricing. This pricing scheme will be used in different small circumstances of work like car washing which has different price at different places.
Optional product pricing:
Whenever new products will be launched and based on the buying of the products from the customers, then the price of the products will be increased using optional product pricing. The products prices and services of the product will be increased based on the optional ‘extras' like prices of the airlines will be increased based on some extra optional prices like row of seats reservation etc.
Captive product pricing:
A premium price will be charged by the company when the there is complement products with the same pack. When the old stock should be served this product bundle pricing scheme is used. For example videos and CDs can be sold in bundle and approaches.
As the name specifies, promotion pricing will be used to promote the newly launched products. Promotional pricing can be buy one get one free scheme or various different schemes based on the place and products.
Geographical pricing scheme will be used when there will be different pricing for different products based on the evident and variation of the products all over the world just like the value of rarity where price will be increased based on shipping cost.
For external factors pricing this scheme is used. Like the recession period or increasing force of competition companies. Sales and services of the products will be provided based on value products like values meals provided by different food restaurants.
Promotion is one among the important tool which determines the communications of market. As said by marketing mix of H.Borden, ‘promotion mix' will be there for every communication of market just like the mix of cake in which there will all the basic ingredients will be same and if the ingredients of the cake changes then final outcome of the cake will be changes same applies to promotion. Promotion mix integration can be the coherent campaign form. The process of communication can be illustrated by marketing messages. A promotion lies based on the promotion mix. Let's individually know about all components of promotion mix.
- Personal selling
- Promotion of sales
- Public relation
- Direct mail
- Exhibitions and fair trades
For every experience or service elements, people play an important role. For every moment services need to be consumed and produced. The customer service aspects should be altered which will be helpful in meeting the needs of the individuals of the consuming person.
Place is one of the important element of marketing mix. Place can also be known as intermediary, channel. Goods and services can be mechanised based on the services of consumers and users. There are six basic decisions of the channel:
- Which kind of channels will be used direct channels of indirect channels? For example, with the consumer directly or with the wholesaler indirectly
- Multiple channels or single channels
- Multiple channels of cumulative lengths
- Intermediary type
- Each channel level of intermediary
- Intra channel conflicts can be avoided based on the intermediaries i.e. distributors local in fights between them