4.2. Marketing Complex
4.2.1. Concept and elements of the marketing complex
General characteristics of the marketing complex
The concept of "marketing complex" For the first time it was scientifically fixed in 1964 by H. Borden, professor at Harvard Business School. However, its origins go back to the distant 40-ies. XX century, when D. Kallitop first applied the so-called recipe approach in the study of marketing costs. The seller was defined by him as the "compiler of the marketing program from the ingredients", since it is he who is planning the competition strategy, while at the same time being a manager able to integrate all the components into the marketing mix.
In 1960, J. McCarthy synthesized a marketing mix of items such as goods, chains, distribution and promotion, in order to create skilled marketing staff, by creating the "4P" model.
Currently, the most common is the definition of a marketing complex, which characterizes it as a set of controlled factors aimed at the emergence of predictable and desired responses of a certain market segment. These are activities that the company is able to carry out in order to promote its product on the market.
The marketing mix is a set of verifiable variables that the entity uses to create the desired response from the target market. The function of the marketing mix is to form a complex that not only satisfies the needs of potential customers in the target markets, but also maximizes the efficiency of the enterprise.
The concept of J. McCarthy & lt; P consists of four elements: the product (product - product), the price (rice), distribution (distribution) of goods to consumers (place - < strong> place) and promotion of products (promotion).
Let's take a closer look at each of the above components.
One of the most important components of the marketing complex is product (product), or an assortment policy that directly depends on the direction of cash flows, its valuation and forecast.
The assortment can be changed in accordance with three approaches: vertical, horizontal and complex. Vertical change of the assortment represents the beginning of the output of products previously purchased from other producers, as well as its promotion in its own trading network. Horizontal change - is the expansion of the range and the emergence of new sales markets within the framework of existing cooperation. The integrated approach is characterized by the expansion of the assortment in both vertical and horizontal directions.
Price as the most important economic tool of the marketing complex has a direct impact on the nature of the profitability of the enterprise. To determine the price of any product, the most important indicators of its feasibility are the demand for similar products, the sensitivity of purchasing power, competitiveness, and the level of costs associated with all production and sales. Therefore, a very important direction of the marketing service of the enterprise is a reasonable choice of an effective price strategy aimed at developing a policy of a single or differentiated, high or low, stable or unstable, preferential or discriminatory price, as well as a policy that provides all kinds of surcharges and discounts.
The choice of the distribution system (distribution) is decisive in determining the direction of the marketing policy and can be carried out both by the enterprise itself and with the involvement of trade intermediaries - wholesale and retail sellers, distributors , brokers, dealers, all kinds of agents, etc.
Advertising, public relations (public relations), sales promotion and direct marketing (direct marketing) promote the implementation of product promotion (communication policy) . All these tools are aimed at promoting the product by stimulating the activities of sellers, intermediaries and, of course, buyers. They consist in carrying out various actions, competitions, lotteries, providing all kinds of gifts, discounts, benefits, etc. in order not only to increase sales and create an image of new products, but also to promote and consolidate the image of a particular brand.
In order to competently plan the profitability of the company in the short and medium term, it is necessary to resort to operational marketing. This is a fairly effective tool based on a thoughtful marketing strategy, based on measurements, processing market data, and transforming them into reliable information. Sometimes, at first glance, the most fashionable and high-quality product does not find demand due to its price and availability to the mass consumer.
The modern approach to the marketing mix is not limited to the concept of marketing mix "4P", but tends to include in it additional components that allow to form approaches such as "6P", "7P" and even P & quot ;.
The most successful (due to prevalence in the minds of marketers and scientists) from the "extended" interpretations of the marketing complex can be called the concept of "7P", in which to "4P" three people are added: people (people), the purchase process (process) and the physical attribute (pehysical evidence).
People - a contingent related to the buying and selling process. The buying process is what is related to the buyer's activities in the implementation of the product selection. Physical attribute - is a material object that can serve as a confirmation of the fact that the service was provided to the client.
The concept of 7P Originally created for marketing services, but now more and more researchers are trying to apply it to the "commodity" marketing. However, this makes it even more vulnerable to criticism.
In accordance with the above approaches, the marketing complex models may include the following additional elements:
o packing (package);
o buying (purchase) - not only the prerequisites for the purchase, but the consequences of making that decision;
o client (people) - a contingent related to the buying and selling process
o Personnel (personal);
o the process of buying (process) - what is related to the buyer's activity in the selection of the goods;
o environment (physical premises) - conditions created by the seller in order to more effectively sell their goods;
o profit (profit) - the capital received in the form of income relative to the invested funds;
o public relations (PR), creating a positive reputation for the product and the organization as a whole.
At its core, the concept of "4P is a marketing position from the point of view of which the seller approaches the formation of his sales strategy, and the consumer perceives it as receiving possible benefits and certain benefits.
At present, there is the following trend: to improve the balance of internal and external marketing environment, the first plan is the concept of "4C", elements of which are:
o customer needs and needs (customer needs and wants);
o customer costs (cost to the customer);
o information exchange (communication);
o convenience (convenience).
The preferences of consumers are highlighted as a priority. And this priority operates on all stages of the production and sale of goods or services, without exception. An interesting approach, but it raises doubts on three grounds.
First of all, it does not conflict with the concept of "4P", which also focuses on consumer preferences. Therefore, there is no reason to give preference to the concept of "4C". According to the concept of 4C mandatory factors that need to be considered when developing the concept of marketing are suppliers, competitors, as well as contact audiences. However, as practice shows, these factors can not be considered determinative. Accordingly, the concept of AS is more theoretical than practical.
Finally, user management is doomed to failure in advance, as this element of the external environment is almost not manageable.
As you can see from the analysis, despite some attempts to increase the number of components of the marketing complex, in the long run it remains unchanged. However, research in the sphere of interaction between the marketing and environment complex, resources and marketing tools is quite actual.
The sequence of elements of the marketing complex clearly shows the sequence of implementation of the main marketing functions:
1) it is impossible to raise the question of any marketing program if the marketer does not have at his disposal a product that can be offered to the market with a certain value to the consumer;
2) If there are at least two parties, each of which is interested in exchanging with the opposite party, they should have any means for interaction. The proposed product must be available to the consumer interested in it, so the next function of the marketing complex is distributive;
3) the consumer always evaluates the product not only based on a set of its consumer properties, but also on the amount of costs associated with its acquisition. It's about the well-known marketing relationship "price-quality". Specialists more clearly define this ratio as "utility - quality": the consumer analyzes the utility of the product offered to him and the price of that utility that is acceptable to him. The next element of the marketing mix is the pricing policy
4) potential deal participants will never be able to learn about each other if there is no communication between them, so the last element of the marketing mix is the communication policy.
The parties to the transaction should be sufficiently informed about the essence of the available proposals, and each of them, using the means of communication, must convince in attractiveness of its own proposal.
An alternative model of the marketing mix was proposed by Chekitan S. Dev and Don E. Schultz in the magazine Marketing Management for January-February 2005. In essence, this is the same model 4P & quot ;, only with back hand - the eyes of the buyer. In this model, each of the elements of the classical formula 4P The SIVA model element:
o product - solution (solution) - how suitable the solution to the problem was found (customer satisfaction);
o promotion - information (information) - whether the buyers know about the decision, and if so, from whom they receive information sufficient to make a purchasing decision;
o price - value (value) - whether the buyer knows the value of the operation; what costs it will incur, what benefits; than he can sacrifice, what will be the reward;
o distribution (English distribution - distribution) is a term that implies the distribution, distribution or interposition of any objects. Effective distribution allows the firm to properly form distribution channels for their products.
The basic models of the marketing mix and their comparison are given in Table. 4.2.
The company itself determines with which marketing complex it can enter the market. In this it can be based both on its own experience and on the most effective forms of marketing activities of other companies.
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