This assignment involves the description of the ôFour Psö of marketing (marketing mix). Additionally, this assignment explains how each element of the marketing mix is applied by an organization in the conduct of the organizationÆs marketing strategy.
Marketing mix is addressed within the context of the ôFour Psö of marketing ù (a) product strategy, (b) pricing strategy, (c) place (distribution) strategy, and (d) promotion strategy. The character and purpose of the elements of the marketing mix are as follows (Ferrell & Hartline, 2004/2005):
1. Product Strategy. A product is defined as anything offered for exchange to another party, including physical objects, services, places, organizations, and ideas. Consumers typically recognize five distinctive product characteristics ù quality-level, features, styling, brand name, and packaging. Depending upon the type of product involved ù physical, service, and so forth, not all of these characteristics will be applicable in each instance. Another factor involved in the development of product strategy is the product life cycle. Four stages of the product life cycle are recognized by most marketing analysts ù introduction, growth, maturity, and decline.
2. Pricing Strategy. Pricing strategy is the overall task of defining the price range and price movement through the time period required (a) to support the organizational revenue and profit objectives (or alternative objectives in the case of some not-for-profit organizations) and (b) to support product positioning decisions. Pricing tactics, on the other hand, involve the setting the specific price levels, together with the conditions for altering the specific prices, for specific products. The initial step which must be taken by a marketing organization in the development of a pricing strategy is the establishing of pricing objectives. Pricing objectives may be categorized as follows:
1. Profit-maximization pric...