{"id":57,"date":"2015-08-28T18:20:42","date_gmt":"2015-08-28T18:20:42","guid":{"rendered":"https:\/\/courses.candelalearning.com\/waymakerintromarketing1xmaster\/?post_type=chapter&p=57"},"modified":"2016-02-18T17:04:27","modified_gmt":"2016-02-18T17:04:27","slug":"outcome-using-the-marketing-mix","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/clinton-marketing\/chapter\/outcome-using-the-marketing-mix\/","title":{"raw":"Reading: Finding the Right Marketing Mix","rendered":"Reading: Finding the Right Marketing Mix"},"content":{"raw":"\"Photo<\/a>\r\n\r\nHow does an organization determine the right marketing mix? The answer\u00a0depends on the organization's goals. Think of the marketing mix as a recipe that can be adjusted\u2014through small adjustments\u00a0or dramatic changes\u2014to support broader company goals.\r\n\r\nDecisions about the marketing-mix variables are interrelated. Each of the marketing mix variables must be coordinated with the other elements of the marketing program.\r\n\r\nConsider, for a moment, the simple selection of hair shampoo. Let's think about three different brands of shampoo and call them Discount, Upscale, and Premium. The table below shows some of the elements of the marketing mix that impact decisions by target customers.\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n
<\/td>\r\nDiscount<\/td>\r\nUpscale<\/td>\r\nPremium<\/td>\r\n<\/tr>\r\n
Product<\/td>\r\nCleansing product, pleasant smell, low-cost packaging<\/td>\r\nCleansing product, pleasant smell, attractive\u00a0packaging<\/td>\r\nCleansing product, pleasant smell created by named ingredients, premium\u00a0packaging<\/td>\r\n<\/tr>\r\n
Promotion<\/td>\r\nFew,\u00a0if any, broad communications<\/td>\r\nNational commercials show famous\u00a0female \"customers\"\u00a0with clean, bouncy hair<\/td>\r\nDifferentiating features and ingredients highlighted\u00a0(e.g., safe for colored hair), as well as an emphasis on the science behind the formula. Recommended by stylist in the salon.<\/td>\r\n<\/tr>\r\n
Place<\/td>\r\nDistributed in grocery stores and drugstores<\/td>\r\nDistributed in grocery stores and drugstores<\/td>\r\nDistributed only in licensed\u00a0salons<\/td>\r\n<\/tr>\r\n
Price<\/td>\r\nLowest price on the shelf<\/td>\r\nHighest price in the grocery store (8 times the prices of discount)<\/td>\r\n3\u00a0to 5 times the price of Upscale<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\nA number of credible studies suggest that there is no difference in the effectiveness of Premium or Upscale shampoo compared with\u00a0Discount shampoo, but the communication, distribution, and price are substantially different. Each product appeals to a very different target market. Do you buy your shampoo in a grocery store or a salon? Your answer is likely\u00a0based on\u00a0the\u00a0marketing mix that has most influenced you.\r\n\r\nAn effective marketing mix centers on a target customer. Each element of the mix is evaluated and adjusted to provide unique value to the target customer. In our shampoo example, if the target market\u00a0is\u00a0affluent women who pay for expensive salon services, then reducing the price of a premium product might actually hurt sales, particularly if it leads stylists in salons to question the quality of the ingredients. Similarly, making the packaging more appealing for a discount product could have a negative impact if it increases the price even slightly\u00a0or<\/em> if it causes shoppers to visually confuse it with a more expensive product.\r\n\r\nThe goal with the marketing mix is to align marketing activities with the needs of the target customer.","rendered":"

\"Photo<\/a><\/p>\n

How does an organization determine the right marketing mix? The answer\u00a0depends on the organization’s goals. Think of the marketing mix as a recipe that can be adjusted\u2014through small adjustments\u00a0or dramatic changes\u2014to support broader company goals.<\/p>\n

Decisions about the marketing-mix variables are interrelated. Each of the marketing mix variables must be coordinated with the other elements of the marketing program.<\/p>\n

Consider, for a moment, the simple selection of hair shampoo. Let’s think about three different brands of shampoo and call them Discount, Upscale, and Premium. The table below shows some of the elements of the marketing mix that impact decisions by target customers.<\/p>\n\n\n\n\n\n\n\n
<\/td>\nDiscount<\/td>\nUpscale<\/td>\nPremium<\/td>\n<\/tr>\n
Product<\/td>\nCleansing product, pleasant smell, low-cost packaging<\/td>\nCleansing product, pleasant smell, attractive\u00a0packaging<\/td>\nCleansing product, pleasant smell created by named ingredients, premium\u00a0packaging<\/td>\n<\/tr>\n
Promotion<\/td>\nFew,\u00a0if any, broad communications<\/td>\nNational commercials show famous\u00a0female “customers”\u00a0with clean, bouncy hair<\/td>\nDifferentiating features and ingredients highlighted\u00a0(e.g., safe for colored hair), as well as an emphasis on the science behind the formula. Recommended by stylist in the salon.<\/td>\n<\/tr>\n
Place<\/td>\nDistributed in grocery stores and drugstores<\/td>\nDistributed in grocery stores and drugstores<\/td>\nDistributed only in licensed\u00a0salons<\/td>\n<\/tr>\n
Price<\/td>\nLowest price on the shelf<\/td>\nHighest price in the grocery store (8 times the prices of discount)<\/td>\n3\u00a0to 5 times the price of Upscale<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

A number of credible studies suggest that there is no difference in the effectiveness of Premium or Upscale shampoo compared with\u00a0Discount shampoo, but the communication, distribution, and price are substantially different. Each product appeals to a very different target market. Do you buy your shampoo in a grocery store or a salon? Your answer is likely\u00a0based on\u00a0the\u00a0marketing mix that has most influenced you.<\/p>\n

An effective marketing mix centers on a target customer. Each element of the mix is evaluated and adjusted to provide unique value to the target customer. In our shampoo example, if the target market\u00a0is\u00a0affluent women who pay for expensive salon services, then reducing the price of a premium product might actually hurt sales, particularly if it leads stylists in salons to question the quality of the ingredients. Similarly, making the packaging more appealing for a discount product could have a negative impact if it increases the price even slightly\u00a0or<\/em> if it causes shoppers to visually confuse it with a more expensive product.<\/p>\n

The goal with the marketing mix is to align marketing activities with the needs of the target customer.<\/p>\n\n\t\t\t

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