AMOCO Marketing Mix Strategies

A product is defined as anything offered for exchange to another person including physical objects, services, places, organizations, and ideas. Consumers typically recognize five distinctive product characteristicsquality level, features, styling, brand name, and packaging. Depending upon the type of product involvedphysical, service, and so forth, not all of these characteristics will be applicable in each instance. Brand name, and, as unlikely as it may seem, packaging are the most significant in the marketing of gasoline products. Oil companies, including AMOCO, attempt to make consumers believe that the gasoline products marketed by them are characterized by special levels of quality and by special features. In actuality, however, quality levels and features related to gasoline products in the United States are, essentially, aspects of the packaging process. What is important in this context is for an oil company's gasoline products to keep abreast of the

1 2level of technology applicable to product development in the industry. To stay abreast of industry technology, AMOCO conducts a balanced program of short, medium, and long range research (AMOCO celebrates . . ., 1989). Emphasis in this re

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harges. In actual practice, however, price levels are either identical, or nearly so, at the outlets of all major competing oil companies in the same geographic area. PLACE STRATEGIES A marketing channel is composed of the set of organiza tions which is required to move a product from its manufacturer to the end user. It is advantageous to marketers to have as short channels of distribution as is feasible. Conventional wisdom in the oil industry holds that a successful firm must have "deep pockets and wellheadtogas tank integration" (Norman, Ticer, & Glasgall, 1985, pp. 2425). AMOCO follows this strategy (AMOCO outlines . . ., 1989). Marketing channels also provide a means of transmitting information between manufacturers and end users, and a means of transmitting payment from end users to manufacturers. These purposes are incorporated into AMOCO's place strategies (AMOCO outlines . . ., 1989). 4 The physical distribution of products is accomplished through channels of distribution. Significant decisions related to the physical distribution of products are con cerned with: (1) the size of inventories which will be maintained; (2) the locations of the inventories which are maintained; and (3) the mea
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Some common words found in the essay are:
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Approximate Word count = 1301
Approximate Pages = 5 (250 words per page)

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