Page 2: The role of the marketing function
The marketing mix
To meet the needs of its customers, every organisation seeks a distinctive marketing mix. This is often referred to as the 4Ps. It involves focusing on:
- product – the specific features and benefits of the product
- place – where and how the product is sold
- price – setting the right price in each market
- promotion – using the most suitable form of promotion to reach customers.
For example, the marketing mix for Red Bull Energy Drink is based around:
- a distinctive product - the taste of the product is unlike any other, it also has a functional effect in comparison to other soft drinks
- it is easy to obtain as it is sold in a variety of places – including retail outlets and food and drink establishments
- Red Bull uses a premium pricing strategy. The product is priced above that of competitors’ products. Consumers will pay a premium for Red Bull due to the quality of the product and the product’s benefits. This is reflected in the fact that it is the world’s best-selling energy drink.
However, perhaps the most interesting element of Red Bull’s marketing mix is its approach to promotion. Red Bull embraces innovation within its promotional activities and as such is able to create a lasting impression on consumers. The concept behind its promotional activity is to give people ‘Wiiings’. This translates as pushing the boundaries of what is possible and nurturing people's talent so they can achieve their goals and dreams.
The aim of the promotion element of the marketing mix is to grow the business and increase market share. Businesses develop a promotional strategy in order to encourage customers to purchase their products. Many base their approach on AIDA principles. AIDA is an acronym that is shorthand for the stages in a sales process.