Question

What do you need to consider when evaluating the implications of altering one or more components of the marketing mix in relation to market factors and consumer response? take iPhone for example.

Answer 1

The customers' elasticity of perception is the factor that needs to be taken into consideration while evaluating the possible implications of alterating one or more components of marketing mix. In other words, it is the consumers' belief about a component and his / her range of tolerance and flexibility to a change in the component, before his /her perception of the product changes.

The example of iPhone is appropriate to describe this phenomenon. For example, a die hard Apple lover has a higher elasticity as compared to someone who sees the iPhone as just another good product. The former person who can pay any price or wait for any length of time for a newly launched iPhone. His perception about the product is never going to change, even if Apple comes up with the weirdest ad campaign ( Change of one component of Marketing mix) or it makes some product changes that are new, peculiar and unknown to the person ( change of another component). In both cases, the person would like the iPhone as before, and neither his /her decision to buy nor his /her perception about the product would change. For second type of person, a weird ad or a peculiar design is good enough for him /her to stay away from the iPhone and look for competing product.