Page 2: The marketing mix
Marketing is a key business function that enables a company to ensure that its products and services either match or exceed a customer’s needs or expectations. The Chartered Institute of Marketing defines marketing as:
“Marketing is the management process responsible for identifying, anticipating and satisfying consumer requirements profitably.”
A marketing strategy determines what a company is going to produce in terms of products or deliver in terms of services, how much it is going to charge for these products or services, how it will deliver these products or services to the customer, and how it is going to tell its customers about its products and services. This is known as the marketing mix and is often referred to as the 4Ps of marketing. The mix involves creating the right product, sold at the right price, in the right place, using the most suitable methods of promotion. Although the marketing mix will vary from business to business and market sector, its purpose is to assist a business to balance these four key factors to meet the needs of the customer.
Kellogg’s balances the 4Ps by:
• offering a wide range of popular products and regularly introducing exciting new products to the market - Product
• pricing its products to ensure that customers receive the best possible product for their money - Price
• help ensuring its products are available wherever shoppers are, from supermarkets, to the internet or on-the-go, and by understanding shopper behaviours - Place
• delivering engaging and exciting marketing communications – Promotion.
Every business will determine its own balance of the 4Ps to suit the needs of its customers. In addition, a business needs to incorporate other factors into the mix; internal factors such as the amount of finance for marketing, the types of products being sold, as well as external factors such as the market sector and competitors’ products and services.