The Methods Used by New Firms to Make Strategic Marketing Decisions
THE MARKETING MIX IS AN OLD TOOL. NEW TENDENCIES AND THEORIES WORK BETTER NOWADAYS
Many firms use a variety of methods to make strategic marketing decisions in order to grow, compete, be first-positioned or just high-positioned, or to maintain themselves in the market. But there is one method, which is very applied by companies to make relevant decisions. It is usually called the marketing mix of the four P’s. A variety of testimonies and opinions to show that the four P’s, according to my opinion, must not be used anymore will be explained in the marketing theories that have been proposed and created through the times
First of all, The marketing mix of the four P’s is a method proposed by Jerome McCarthy in 1960 that consists on segmenting the marketing into four very important variables or factors that, if the companies know how to manage them rightly and pay as much attention as necessary to them, can make them develop and perform very well against the competitors. Those concepts are: Product, that is the goods and services the company offers; Price, which is how much you charge for your product; Place, refers to distribution channels used to get to the customers; and Promotion, that refers to advertising, i.e., how you let people know what you have got.
This picture above, taken from the book “Marketing Management, Millennium Edition (Kotler, 2002; p. 10)”, clearly shows the marketing mix of the four Ps, including into each P some other factors and variables that have to deal with them. It is also possible to call those factors as submixes of the Ps. To make something else clear, as it is seen in the central part of the picture, there is an oval that contains the concept of “target market”, which refers to the group of customers the company decides to aim its marketing strategies to in order to attract and conserve as many clients as possible. The target market is very important, as you should know how your market behaves, especially all the stuff
Many firms use a variety of methods to make strategic marketing decisions in order to grow, compete, be first-positioned or just high-positioned, or to maintain themselves in the market. But there is one method, which is very applied by companies to make relevant decisions. It is usually called the marketing mix of the four P’s. A variety of testimonies and opinions to show that the four P’s, according to my opinion, must not be used anymore will be explained in the marketing theories that have been proposed and created through the times
First of all, The marketing mix of the four P’s is a method proposed by Jerome McCarthy in 1960 that consists on segmenting the marketing into four very important variables or factors that, if the companies know how to manage them rightly and pay as much attention as necessary to them, can make them develop and perform very well against the competitors. Those concepts are: Product, that is the goods and services the company offers; Price, which is how much you charge for your product; Place, refers to distribution channels used to get to the customers; and Promotion, that refers to advertising, i.e., how you let people know what you have got.
This picture above, taken from the book “Marketing Management, Millennium Edition (Kotler, 2002; p. 10)”, clearly shows the marketing mix of the four Ps, including into each P some other factors and variables that have to deal with them. It is also possible to call those factors as submixes of the Ps. To make something else clear, as it is seen in the central part of the picture, there is an oval that contains the concept of “target market”, which refers to the group of customers the company decides to aim its marketing strategies to in order to attract and conserve as many clients as possible. The target market is very important, as you should know how your market behaves, especially all the stuff
References: 1. BNTIX, (March, 2011). 7-Ps – Extended Marketing Mix – Booms and Bitner. Updated from http://bntix.cafelancer.com/2011-03-29/7-ps-extended-marketing-mix-booms-bitner.html 2 5. Páramo, Morales D. (2004). Marketing, su esencia conceptual. Marketing, desde el modelo de las 4 P 'S (pp. 54-64). Colombia. 7. (N.N). (February, 2012). Marketing mix. Wikipedia. Updated from http://en.wikipedia.org/wiki/Marketing_mix 8 9. (N.N.)(February, 2012). Wikipedia. Relationship Marketing. Updated from http://en.wikipedia.org/wiki/Relationship_marketing 10 11. Gronroos, C. (1994). Journal of Marketing Management. (p. 347-360). Quo Vadis, Marketing? Toward a relationship marketing paradigm.