Question

Brief discussion please

1) List, explain, and give examples for five of the main uncontrollable variables that a marketing manager must address in the external environment.

2) Define Marketing Mix.

3) List, explain (in detail), and provide examples for each component of the Marketing Mix. Is the customer part of the Marketing Mix?

4) We have discussed whether marketing efforts add cost to a product. Discuss this from various view points and give specific examples.

5) What is the difference between a Brand Name and a Trademark?

Answer 1

1 The uncontrollable variable that a marketing manager needs to address in the external environment include politics, culture, economy, technology and competition. The government refers to the regulations and rules that govern the operations of the Company and which the Company cannot bend. Culture refers to the traditions, customs and beliefs of the customers that the business should observe when conducting its operations. The economy relates to the financial performance of the market, an aspect which the business cannot influence. Technology refers to the application of new tools and techniques of production such as the use of computerized accounting tools. All business has to adopt new technologies for survival purposes. Competition refers to businesses providing similar products and services. For example, Oracle and Sage provide similar services and this requires these Companies to compete for the available market through various strategies

2   The marketing mix refers to the set of actions, or tactics, that a company uses to promote its brand or product in the market. The 4Ps make up a typical marketing mix - Price, Product, Promotion and Place. However, nowadays, the marketing mix increasingly includes several other Ps like Packaging, Positioning, People and even Politics as vital mix elements.

3 Price: refers to the value that is placed on a product. It depends on costs of production, segment targeted, ability of the market to pay, supply - demand and a host of other direct and indirect factors. There can be several types of pricing strategies, each tied in with an overall business plan. Pricing can also be used a demarcation, to differentiate and enhance the image of a product

Example: Sales promotions are often a short time price based offering such as a percentage reduction or a two in one type offer. These are meant to generate interest in the product or make use of a special occasion or event. Used wisely, this can be a useful method of increasing sales but the company must avoid the temptation to offer these special prices too often. In this scenario, buyers will put off purchasing the product till the next sales promotion of price reduction.

Product: refers to the item actually being sold. The product must deliver a minimum level of performance; otherwise, even the best work on the other elements of the marketing mix will not do any good

Example: Starbucks has managed to create an extremely strong brand over the years. A constant focus on marketing, brand development and the product has enabled the company to become the largest coffee shop chain in the world. The company takes customer feedback very seriously and makes it a point to meet and exceed customer demands in keeping with core brand values

Place: refers to the point of sale. In every industry, catching the eye of the consumer and making it easy for her to buy it is the main aim of a good distribution or 'place' strategy. Retailers pay a premium for the right location. In fact, the mantra of a successful retail business is 'location, location, location'.

Example: Place could be the intermediaries, stores, both physical and online, distributors, wholesalers and retailers.

Promotion: this refers to all the activities undertaken to make the product or service known to the user and trade. This can include advertising, word of mouth, press reports, incentives, commissions and awards to the trade. It can also include consumer schemes, direct marketing, contests and prizes.

Example: Promotions designed to create a short-term increase in sales. Examples of sales promotion include money off coupons, discount codes and "flash sales". Firms place daily messages on social media such as Facebook and Twitter to keep customers interested in their organization. They may even run promotions, flash sales and discounts just for their social media readers.

4    In my view, marketing cost does add to the cost of a product.

I will explain two views to explain this. One is from the production point and other from company's overall financials.

1. Considering the cost of production of for example a car. It will include raw material, labor, factory overheads and other production related expenses but you will not find marketing cost in BOM. But marketing of that car is important to communicate to the people that company has this product that is available in market / showrooms with specific features. Until such communication goes out, people will not know that product sale will be adversely effected. Hence marketing is integral part same as any other cost of production is.

2. Marketing cost, though not directly related to the product is important and adds to the structural cost of the company. Company would not have incurred this cost if product was not available in the market.

The above two points clearly says that marketing efforts add cost to the product.

5   A trademark is a mark that legally represents something, usually a business, by their goods or services. A brand name, however, is the name that a business chooses for one of their products. A brand identifies a specific product or name of a company