Discuss about the Value Creation Through the Marketing Mix.
In the competitive business world, businesses through the top management should embrace policies, plans, and strategies that give them a competitive advantage and make them compete favorably in the business market. For example provision of quality products and services, proper and effective marketing strategies, good customer-business relations among others.
It refers to the strategies, guiding principles that organization employs in order to manage how companies and organization interact with their customer both current and potential ones. They achieve this through gathering relevant information about the customers in order to analyze it so that their needs can be understood and taken care of by the organization. The aim of this approach is to improve company-customer relations and improve company sales (Baker, 2014).
There are different levels of relationships that an organization can create with customers. Firstly, the intentional relationship which occurs as a result of customers using a particular company for a long time due to company’s quality products, prices and even availability of the product and services. Secondly, the behavioral relationship which occurs due to customer favorite brought by a customer-client trust (Fine, 2017 p. 5). Thirdly, dedication relationship which is brought by interests of the customer toward the company like its logo, its association to stuff that he/she like among others. Fourth, constrain relationship which occurs when a customer just finds him/herself in a company may be due to lack of options (p.9).
KIA focused on the following plans in order to retain and improve the loyalty of customers. Firstly, it focused on selling right and quality products to its customers with a warranty of seven years. Secondly, KIA offers its products at a competitive price which gives them a competitive advantage. Thirdly, KIA is suited in right places where there is a high and increasing number of potential customers. Fourth, it has an appropriate promotion design like sponsoring crickets and partnering with football and tennis which helps in creating brand awareness and improving product and company recognition thus improving the loyalty of the customers (Fan, Lau & Zhao, 2015 p. 30).
Businesses are affected by close forces that make them not to effectively serve their customers well according to their desires and needs. There are several main forces that affect the ability of the company to serve its customers effectively. They include; customers, company, and the competitors. Customers are paramount for the success or failure of any company and therefore, all plans and strategies should be geared toward catering to their needs (Baker, 2014). For example in KIA, they offer right prices and quality products with a seven-year warranty that suits customer’s demand and needs. the Company here consists of top management, finances, human resource, and manufacturing among others. Top management makes decisions that determine the future of the organization. If the management is visionary and objective, the company is likely to succeed and vice-versa. Management directs and motivates its employees toward the achievement of the common goal using the available financial resources (Lancaster & Massingham, 2017 p.83). For example, KIA’s top management aim is to make KIA the main competitor in the car market of UK through promotions and identifying customer needs and planning toward meeting them.
The other force is competitors. Competitor’s tries to reduce or affect the business and the profit as you try to affect theirs. Any action taken affects the market of the competitors and therefore, business your business should embrace strategies that will give a competitive advantage that the competitors may not match like provision of quality products, lower prices, good customer relations among others (Kumar & Reinartz, 2018). For example, KIA is offering quality products at a lower price and effectively embracing promotion to market its products and company.
A company can have a best product or service in the market but fail to have the best marketing strategy to market the product resulting in failure since customers may not know the existence of that product. As a result, KIA adopted the use of market mix as a marketing strategy to create and increase awareness of the brand and its products. This marketing strategy is based on the principle of 4P which involves the provision of quality products at the right prices in the right places and using right promotions to create awareness. The 4P here means products, prices, places, and promotion. KIA used this strategy to understand competitor’s strengths and weaknesses and therefore, it provided quality products with a warranty of seven years, competitive prices for their products and right promotion designs to create awareness for the brand (Larimo, et al. 2018 p. 358).
KIA through the promotion of its products in the mass media has emphasized how its products are of high quality and design because it gives a warranty of seven years to their customers which is not the case with most competitors in the market.
According to McCarthy 1960, he defined this strategy as 4 P’s which stands for product, place, promotion, and price. The first P stands for products. It is concerned with the production of quality products which meet customers’ desire and needs. KIA achieved this by coming up with a durable product which made them give a warrant of seven years. The second P for Place is concerned with ensuring that the product is available in the market when the customer needs it. It is concerned with the availability of the product in the market all the time. Also, KIA in all its outlets ensured that its products are available all through. It has also expanded and enlarged the number of outlets to make its product available. The third P is promotion which is concerned with informing the customers about the availability of the quality and right product in the market. It the duty of the top management to decide the best promotion method to use depending on the size of the market, finances among others (Khan, 2014 p.95). KIA through its management used mass media as a method to promote and create awareness of its product and brand. The fourth P stand for prices. Apart from right product, place, and promotion, the company has an obligation to set up a right price for the product. This is done by considering the competition available in the market, the cost incurred in the whole market mix and also assess the reaction of the customers on the price issue. KIA came up with prices that give competitive benefit over its competitors (Tiago & Veríssimo, 2014).
KIA has succeeded in making its product to stand in the marketplace because of the following; it produced the right products according to the target customers’ needs, therefore, making clients the number one goal. Secondly, it intensely used right product promotion which helped in marking the company’s product and brand. Thirdly, it expanded its outlets which ensured that a large market is covered and products are available in the market. Lastly, it fixed the right prices for the product which made its product to succeed in the market.
There are three types of market strategies namely; differentiated, undifferentiated and concentrated targeting strategies. Undifferentiated refers to the targeting strategy that tries to target and reach all the target customers by using only one market plan. This strategy aims at the whole market not section of the market. Differentiated strategy targets to meet different clients in different market mixes so as to meet their needs (Posner, Williams & Posner, 2015). The market mix is customized to suit a specific segment of the market. Concentrated target strategy is a strategy whereby the sellers use single market strategy while targeting a particular market segment. For example, an energy drink for women and another for men. My preferred strategy is differentiated strategy. This is because this strategy gives a wider market and also there is flexibility in case of change of market conditions.
Conclusion
In conclusion, therefore, business market is very competitive and therefore, it requires the use of appropriate strategies like a right market mix in order to have a competitive advantage over the competitors leading to business success.
Reference
Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2015. Marketing: an introduction.
Baker, M.J., 2014. Marketing strategy and management. Macmillan International Higher Education.
Fan, S., Lau, R.Y. and Zhao, J.L., 2015. Demystifying big data analytics for business intelligence through the lens of marketing mix. Big Data Research, 2(1), pp.28-32.
Fine, S.H., 2017. Introduction to social marketing. In Marketing the Public Sector (pp. 1-12). Routledge.
Khan, M.T., 2014. The concept of’marketing mix’and its elements (a conceptual review paper). International journal of information, business, and management, 6(2), p.95.
Kumar, V. and Reinartz, W., 2018. Customer relationship management: Concept, strategy, and tools. Springer.
Lancaster, G. and Massingham, L., 2017. Markets and customers: market boundaries; target marketing. In Essentials of Marketing Management (pp. 70-101). Routledge.
Larimo, J., Zucchella, A., Kontkanen, M. and Hagen, B., 2018. Patterns of SME’s Marketing Mix Combinations and Their Characteristics in Export Markets. In Advances in Global Marketing (pp. 333-364). Springer, Cham.
Posner, H., Williams, S. and Posner, H., 2015. Marketing fashion: strategy, branding, and promotion. Laurence King Publishing.
Tiago, M.T.P.M.B. and Veríssimo, J.M.C., 2014. Digital marketing and social media: Why bother? Business Horizons, 57(6), pp.703-708.
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