Marketing Mix 1

Running head: MARKETING MIX

Marketing Mix

Michael Gallegos

University of Phoenix

Mike Flores

MKT/421: Marketing

June 17, 2008

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Marketing Mix

Product, price, placement, and promotion are known as the 4 P’s in marketing. These four

elements, in turn, make-up what is known as the “marketing mix.” Neil Borden, a Harvard

professor, first coined the term “marketing mix” in an article in the Harvard Business Review.

Mr. Borden used the term to describe the various essentials that were needed to come together to

produce what would be an effective marketing plan. The successful manipulation of these

elements will serve to produce the greatest number of sales. In this paper the author will describe

the various elements, and give an example of the use of these elements.

Marketing

What is marketing? Marketing can be defined as the expectation, supervision, and the

satisfaction of demand through the process of exchange (Kermally, 2003). In the business of

selling, buyers need to be sought out, needs are to be identified, products are to be designed, and

products are promoted and priced.

The Marketing Mix

The purpose of the marketing mix is the sectioning of a business into pieces that can be re-

arranged and tweaked dependant on the needs of the customer. Knowing what a customer wants

allows a company to identify opportunities. These opportunities in turn will expose any

shortcomings or advantages. With this information the company can now match what is feasible

and what is not. Moreover, the organization can now focus on a specific segment of the market

(Scott, 2005). The geographic factor, such as what countries or regions a company wants to

market is another consideration. That along with the demographics: population size, traits, and

family size are other factors that need to be addressed (Kermally, 2003).

Product
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The word product can be defined as “the end result of the manufacturing process, to be

offered to the marketplace to satisfy a need or want” (Investorwords, n.d.). Now most would

think of a product as tangible thing like a computer or a calculator. A product could also be

intangible such as a service. The services provided by consultants, lawyers, and doctors would be

examples of things that are intangible.

There are various questions that one needs to ask when research is done for a product. The

basic is: What does the product do and what is it offering a potential customer? The presenting of

the product, which includes design and packaging, has to be addressed. There is also the value of

the product and how a company can augment it.

The add-ons such as warranties and accessories are also part of the make-up of the product.

Price

Price can be defined as amount of money that is being charged for something of value. In

determining the price of a product, the company has to take various factors into consideration.

Obviously the cost to produce an item is the first and foremost. There are also competitors’

pricing, discounts that may be offered, and what the return on investment would be. There must

be great care taken in the pricing of a product. Even though the cost to produce the product is a

big consideration, in pricing an item, the marketing point of view has to be kept (Kermally,

2003). If a product is perceived as being too expensive for the target customer, then the item will

not sell.

Place

The Place part of the Marketing Mix deals with the where and how much questions. A

company must determine where it wants to make the product available, and how much of the

product will be needed to satisfy the customers’ needs.

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There are other aspects of the equation to address also. A company has to decide if it is selling

direct to the customer, or if it will use distributors to sell its product. The stores that the company

will sell its product are to be taken into account. The company may decide to sell online rather

than through a store. A company must also consider the warehousing and logistical side to

placing their product in a particular area. The bottom line is that a company must choose the best

avenue for their product or service to reach the intended customer.

Promotion

The promotion of a product can be defined as “an activity, such as a sale or advertising

campaign, designed to increase visibility or sales of a product” (Investorwords, n.d.). With the

visibility; interest, desire, and action will take place. If the public knows about the product, it will

ultimately desire it and finally go out and buy it. The types of promotion such as television or

radio ads are to be considered. The way the product is advertised is also important. A current,

edgy commercial may not be the best way to promote Depends.

A company also has to decide if it will hire sales people, and the budget it is willing to

allocate for promotion.

It is also good to keep in mind of how the changing of one part of the Marketing Mix will

affect another. If a company decides to make a product available at a different location or area,

then the pricing will most likely be affected.

Intel

Intel was founded in 1968 by Bob Noyce and Gordon Moore. By 1992 the company had

become the largest semiconductor supplier in the world (Intel Press Room, n.d.).

Intel for 17 years had enjoyed an overwhelming share of India’s computer market. With the

introduction of competitors though, Intel has seen its market share decrease. At an all-time high
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of 93% in 2002, as of 2006 that percentage had fallen to 80%. Intel has taken steps to rectify the

situation (Mody, 2007).

Intel’s Products

Intel has made it a point to develop products specifically for the Indian market. Since the

climate in India is hot and dusty, the company has developed a PC that functions in these

conditions and can run on a car battery for eight hours. The PC also has a built in remote

management system that curtails the cost to send a mechanic to the rural areas (Mody, 2007).

Intel and Price

In this part of the mix Intel is still the leader, but with mixed results. Competitors’ products

are cheaper, and this has been the cause of some of the decline in sales for Intel. On the other

hand, as more Indians become more affluent price in the future will not be as much of a

detriment. This is helped by the strong brand image (Mody, 2007).

Intel and Place

The placement of computers is not an easy task. The Indian market is fragmented, and that

forces companies to go through channel partners to make inroads in the market. Intel uses more

than 3,000 partners to make their computers available to more cities than their competitors. The

company works with the different dealers in conducting various training sessions. This reduces

the cost of staff training for the dealers (Mody, 2007).

The company also has tie-ups with various companies such as: LG, Zenith, and Lenovo. This

allows Intel to reach a larger market, since those companies develop their own brand value and

they receive support from Intel for marketing and sales programs (Mody, 2007).

Intel and Promotion

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In 2006 Intel launched a five-year campaign known as the ‘World Ahead Program’. This

initiative is geared toward an increase in digital literacy, research, and development.

The company also works closely with the government in the lowering of healthcare costs and

the improvement of education. Intel plans on donating 10,000 PCs to various agencies and to

help train one million teachers. The company also works with companies in setting up networks

for community centers and public kiosks. This is done with the background knowledge that all of

these PCs will contain the Intel microprocessor inside of them. The potential to produce millions

of customers will be there (Mody, 2007).

Intel does do the regular television ads, along with displays in various locations. The company

is also looking into viral marketing, as well as tie-ins with cyber cafes (Mody, 2007).

Conclusion

As has been demonstrated there is considerable thought to what a company needs to do to put

together a workable marketing plan. The four P’s (and the elements that go into them) have to be

adequately addressed if a company is to have a successful and profitable product.

As Intel shows a company must be able to flexible when dealing with the various business

obstacles that occur.

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References

Intel. (n.d.). Intel press room. Retrieved June 14, 2008, from:

http://www.intel.com/pressroom/index.htm

Investorwords.com. (n.d.). Retrieved June 13, 2008, from

http://www.investorwords.com/3897.html

Kermally, S. (November, 2003). Gurus on marketing. London: Thorogood.

Mody, S. (January, 2007). Intel-the inside story. Siliconindia. 9 (11). pp. 28-29. Retrieved June

14, 2008, from EBSCOhost database.