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P3.
Compare the ways in which different
organizations apply the marketing mix to the marketing planning process to achieve business objectives.
-> Marketing mix refers to the set of
marketing tools that the firm combines and utilises to elicit the response it intends from the target market. It includes everything a firm does to help in selling a product and solidifying the product’s brand. It mainly consists of 4 major Ps but it can also be extended to 7. They are: Price, Product, Promotion, Place, People, Process, Physical environment.
Product It refers to anything that can be offered to the market for utility. Otherwise, an organization can sell their services. There are different levels of product and services. They include the core product which can mean any core benefit or service, the tangible product which refers to packaging, features etc and finally the augmented product that includes installation, after sales service etc.
BCG Matrix The BCG matrix is a portfolio management framework that businesses use to categorize their products according to their growth potential and relative market share. This framework classifies the business unit into 4 categories according to their profitability and growth:
Cash cows These are products with high market share in an already matured market. It lacks scopes for innovation and hence is a part of slow growing industries. They produce more cash than they consume and require minimal funding comparatively. So the ROI is very high and it is typically used to finance other potentially growing products. Vaseline petroleum jelly is a cash cow that has no scope for innovation but continues to generate revenue due to its refined formula. Similarly, Meril’s petroleum jelly is also their cash cow.
Dogs Dogs don’t generate much cash due to their low market share and low growth potential. Sometimes they break even and sometimes they can even reduce a company’s cashflow. So it is not worth investing in and should axed if possible. Vaseline deodorants for men are examples of dogs as they generate very little revenue and see little to no growth. Meril fresh gel toothpaste possesses low market share and revenue generation is very low. So, it falls under the dog criteria.
Stars Stars are the products with high market growth and high market share. They are the top selling products in their categories and generate the most cash. So they should be invested in more. They also consume a lot of assets in the process but it is compensated with their high growth. Over time when the market matures, the stars eventually become cash cows and fund other units in progress. For Vaseline, Vaseline intensive care woman moisturizer is their star product. For Meril their Revive product lineup, that includes Revive powder and lotion, is their star product
Question mark These are products that have a high growth rate but don’t really hold a large market share. They typically grow fast but also consume large amount of resources. So they need to be frequently analysed to see if they can be maintained. With the right tactics, they can go on to become stars and eventually cash cows when the market matures. On the contrary, they can also become dogs with a few wrong moves. So their future is uncertain and depend on proper strategies. For instance, Vaseline Healthy White remains a question mark for the brand. For Meril, their splash soap has low market share but seems to generate decent revenue. So, it is still a question mark for them.
Price It refers to the amount charged for a product or service. It is only marketing mix tool that generates revenue. It heavily influences consumer choices. The commonly used pricing strategies are
Customer-value based pricing: The price is set
in accordance with the perceived value of a product by the customer. Services benefit mostly follow this strategy. Meril mainly opts for this.
Cost-based pricing: Firstly the total cost of
production, distribution and all other relevant bodies is calculated. Then the price is set by applying a small markup percentage for a fair return. Competition based pricing: The prices are set to rival companies in a competitive market. The prices, costs and strategies are adjusted after careful understanding of companies in the same field. Vaseline opts for this strategy more often than not.
Market-Skimming pricing: Producers set the
highest possible price that a very specific audience are willing to pay. They are targeted towards the people that really want a product. Over time the prices are lowered to attract the subsequent set of people.
Market-Penetration pricing: The prices are
set relatively low initially to get a hold of larger market share. It is intended to break through the market and is there only for a limited time. The companies hope to keep old customers when the price rises after some time.
Place Marketing channel refers to the set of inter- dependant organizations that aim to move products from production to consumption. It can be either direct or indirect. Vaseline and Meril for example distribute their products mainly through departmental stores. Meril also is partnered with e-commerce website shajgoj and delivers to doorsteps through them.
Promotion mix It is combination of marketing methods used to achieve a specific marketing goal. It intends to communicate to its customers their offerings and benefit and in turn build customer value. Promotion mix includes things like advertisement, sales promotion, direct marketing and public relation. Vaseline has opted for different methods of promotion from TVs to radios and newspaper to create awareness among consumers. They’ve even relied on digital marketing through social media for promotional campaigns. However, their focal focus has been on trade promotion to create brand equity. They have multiple trade discounts throughout the year. Meril on the other can’t match the promotion budget of vaseline. So, considering their budget, they emphasize more on electric and print media.
Effectiveness of marketing mix
After proper implementation of marketing mix, one can analyze different measures to gauge the effectiveness of it. With proper utilisation, market shares and sales should see an increase. Repeat purchases signify customer loyalty and good reviews suggest customer satisfaction. Online metrics can also be useful in determining if the marketing scheme is working. High click to conversation rates indicate successful online marketing as more people are taking action after clicks on a display online. Web metrics like engagement on social media can also paint a decent picture of the results.
Integrated Marketing Communications
It is the process of unifying a brand’s messaging to ensure consistency across all media. All the channels must be cohesive and need to deliver a clear and compelling message about the organization and its products. Failure to do so will result in doubts from the target audience
