(1) According to Lars Perner in the Introduction to Marketing website online, the marketing mix is the combination of product offerings used to reach a target market. The marketing mix includes the products offered, the price, the promotions used to communicate with the target audience, and the manner of distribution often known as place. The place refers to the mechanism for making the product available to a target audience. The marketing mix elements are controllable factors that can be used to achieve the organization's objectives which often involve differentiating the product and properly positioning the product or service so that it is readily available and priced correctly to attract the target audience.
(2) Perner suggests that an advantage of marketing a value and a premium brand in the same product line is name recognition for the value brand. A disadvantage of doing so involves the possibility that consumer will switch from the premium brand at the premium price for the value brand at a lower selling price and presumably a lower profit margin especially of the differences between the value and the premium brands are either not easily detected or are minimized in the seller's promotional activities. Another disadvantage involves damaging the image of the premium brand by associating to closely with the value priced product.
(3) Perner suggests that there are a number of ways a company can differentiate itself from its competitors. For example, a company can create a unique product or one that is well made and highly durable or reliable. Another way to differentiate is based on price. Customers are usually price sensitive; so many companies try to position at least one of their product offerings in the value product category. A third way to differentiate a product is through good marketing. A well-conceived and well-received marketing campaign can potentially generate a large increase in sales. Another way to d...