{"id":514,"date":"2015-09-07T21:05:17","date_gmt":"2015-09-07T21:05:17","guid":{"rendered":"https:\/\/courses.candelalearning.com\/waymakerintromarketing1xmaster\/?post_type=chapter&#038;p=514"},"modified":"2024-05-13T15:57:42","modified_gmt":"2024-05-13T15:57:42","slug":"reading-components-of-the-marketing-mix","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/waymakerintromarketingxmasterfall2016\/chapter\/reading-components-of-the-marketing-mix\/","title":{"raw":"Reading: Components of the Marketing Mix","rendered":"Reading: Components of the Marketing Mix"},"content":{"raw":"<h2>Product<\/h2>\r\n<img class=\"alignright wp-image-9093\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/295\/2015\/09\/17215121\/IMG_Product.png\" alt=\"Purple hexagon with the following text in the center: Product: What solution does the customer want and need? Outside the hexagon, to the right, is a bulleted list of considerations: features, design, user experience, naming, branding, differentiation\" width=\"400\" height=\"220\" \/>In the marketing mix, the term \"product\" means\u00a0the solution that the customer wants and needs. In this context,\u00a0we focus on the solution rather than only on the physical product. Examples of the product include:\r\n<ul>\r\n \t<li>The Tesla Model S, a premium electric car<\/li>\r\n \t<li>A Stay at a Holiday Inn Express, a low-price national hotel chain<\/li>\r\n \t<li>Doritos Nachos Cheese, a snack food<\/li>\r\n \t<li>Simple, an online banking service<\/li>\r\n<\/ul>\r\nEach of these products has a unique set of features, design, name, and brand that are focused on a target customer. The characteristics of the products are different from competitors' products.\r\n\r\n&nbsp;\r\n\r\n[caption id=\"attachment_623\" align=\"aligncenter\" width=\"675\"]<img class=\"wp-image-623\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images-archive-read-only\/wp-content\/uploads\/sites\/1505\/2015\/09\/04104349\/Smarter_Banking___Simple-1024x409.png\" alt=\"Screenshot of simple.com website reads \u201cAll your finances, in your pocket or on the web, whenever you need it\u201d and shows four different services Simple offers: the Simple Visa Card, ATM access, Powerful Reporting, and photo check deposits. The details for the Simple Visa Card read \u201cIt all starts here, and is connected to an FDIC insured account, for your security. Spending on your debit cards is quickly reflected in your account, and you\u2019ll get push notifications, too.\u201d The details for the ATM access reads \u201cOver 55,000 surcharge-free ATMs \u2013 the most in the nation \u2013 with STARsf. Find the closest one with our iPhone and Android apps.\u201d The details for Powerful Reporting read \u201cThere\u2019s so much information in each transaction you make. Simple\u2019s powerful organization tools automatically categorize, analyze, and personalize, your data so you can see your spending come to life.\u201d The details for the photo check deposit read \u201cHate putting on pants? We got you. Deposit a check from your couch with Photo Check Deposit.\u201d\" width=\"675\" height=\"269\" \/> Source: https:\/\/www.simple.com\/banking[\/caption]\r\n<h2>Promotion<\/h2>\r\n<img class=\"alignright wp-image-9095\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/295\/2015\/09\/17215155\/IMG_Promotion.png\" alt=\"Green hexagon with the following text in the center: Promotion: What is the dialogue between customer and company? Outside the hexagon, to the right, is a bulleted list of considerations: Message, method of delivering message, timing of delivery, communications by customers and influencers, competitor promotions.\" width=\"400\" height=\"223\" \/>In the marketing mix, the term \"promotion\" refers to the communications that occur between the company and the customer.\u00a0Promotion\u00a0includes both the messages sent by the company and messages that customers send to the public about their experience. Examples of promotion include:\r\n<ul>\r\n \t<li>An advertisement in Cooking Light magazine<\/li>\r\n \t<li>A customer's review of the product on Tumblr<\/li>\r\n \t<li>A newspaper article in the local paper quoting a company employee as an expert<\/li>\r\n \t<li>A test message sent to a list of customers or prospects<\/li>\r\n<\/ul>\r\nMarketing professionals have an increasingly difficult job influencing promotions that cannot be controlled by the company. The company's formal messages and advertising are only one part of promotions.\r\n\r\n[caption id=\"attachment_525\" align=\"aligncenter\" width=\"351\"]<img class=\"wp-image-525\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images-archive-read-only\/wp-content\/uploads\/sites\/1505\/2015\/09\/04104336\/like_us_facebook-300x89.png\" alt=\"facebook logo plus their slogan: &quot;Like us on facebook.&quot;\" width=\"351\" height=\"104\" \/> Marketers often run social media campaigns, rewarding customers who \"Like\" the company on Facebook.[\/caption]\r\n<h2>Place<\/h2>\r\n<img class=\"alignright wp-image-9096\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/295\/2015\/09\/17215221\/IMG_Place.png\" alt=\"Turquoise hexagon with the following text: Place: how does the customer act or buy? Outside the hexagon, at the right, is a bulleted list of considerations: location of purchase, ease of transaction, access to distribution channels, sales force, competitor approaches\" width=\"400\" height=\"224\" \/>\r\n\r\nIn the marketing mix, the term \"place\" refers to the distribution of the product. Where does the customer buy the product?\u00a0\"Place\" might be a traditional brick-and-mortar store, or it could be online.\u00a0Examples include:\r\n<ul>\r\n \t<li>Distribution through an online retailer such as Amazon.com<\/li>\r\n \t<li>Use of a direct sales force that sells directly to buyers<\/li>\r\n \t<li>Sales through the company's Web site, such as the shoe purchases at Nike.com<\/li>\r\n \t<li>Sales by a distributor or partner, such as the purchase of a Samsung phone from Best Buy or from a Verizon store<\/li>\r\n<\/ul>\r\nIn today's world, the concept of \"place\" in the marketing mix rarely refers to a specific physical\u00a0address. It takes into account the broad range of distribution channels that make it easy for the target customer to buy.\r\n<div class=\"textbox examples\">\r\n<h3>Starbucks Online Ordering<\/h3>\r\nHow did a company like Starbucks that sells hot drinks from a storefront use mobile technology to improve distribution? Watch the video, below, to find out:\r\n\r\n<iframe src=\"\/\/plugin.3playmedia.com\/show?mf=4017709&amp;p3sdk_version=1.10.1&amp;p=20361&amp;pt=375&amp;video_id=xw-Gw1K3Pn4&amp;video_target=tpm-plugin-a8sfy2nr-xw-Gw1K3Pn4\" width=\"800px\" height=\"520px\" frameborder=\"0\" marginwidth=\"0px\" marginheight=\"0px\"><\/iframe>\r\n\r\nYou can <a href=\"https:\/\/oerfiles.s3-us-west-2.amazonaws.com\/WM+Marketing\/Transcriptions\/StarbucksLaunchesMobileOrdering.txt\" target=\"_blank\" rel=\"noopener\">view the transcript for \"Starbucks Launches Mobile Ordering So You Can Skip The Line\" here (opens in new window)<\/a>.\r\n\r\n<\/div>\r\n<h2>Price<\/h2>\r\n<img class=\"alignright wp-image-9097\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/295\/2015\/09\/17215254\/IMG_Price.png\" alt=\"Orange hexagon with the following text in the middle: Price: what is the cost to the consumer? Outside the hexagon, at the right, is a bulleted list of considerations: value to buyer, price sensitivity, existing price points, discounts, competitor pricing\" width=\"400\" height=\"223\" \/>\r\n\r\nIn the marketing mix, the term \"price\" refers to the cost to the customer.\u00a0This requires the company to analyze the product's value for\u00a0the target customer. Examples of price include:\r\n<ul>\r\n \t<li>The price of a used college textbook in the campus bookstore<\/li>\r\n \t<li>Promotional pricing\u00a0such as Sonic Drive-In's\u00a0half-price cheeseburgers on Tuesdays<\/li>\r\n \t<li>Discounts to trade customers, such as furniture discounts for interior designers<\/li>\r\n<\/ul>\r\nMarketing professionals\u00a0must analyze what buyers are willing to pay, what competitors are charging, and what the price means to the target customer when calculating\u00a0the product's value. Determining\u00a0price\u00a0is almost always a complicated analysis that brings together many variables.\r\n\r\n[caption id=\"attachment_629\" align=\"aligncenter\" width=\"457\"]<a href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images-archive-read-only\/wp-content\/uploads\/sites\/903\/2015\/09\/23225236\/Sonic-Cheeseburger.png\"><img class=\"wp-image-629\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images-archive-read-only\/wp-content\/uploads\/sites\/903\/2015\/09\/23225236\/Sonic-Cheeseburger.png\" alt=\"Sonic Cheeseburger ad showing two cheeseburgers, the Sonic logo, and the text &quot;One half price Cheeseburgers on Tuesday. It's Cheesy Good.&quot;\" width=\"457\" height=\"457\" \/><\/a> Sonic offers discounts on cheeseburgers on Tuesday, which is typically\u00a0a low sales day of\u00a0the\u00a0week.\u00a0Source: https:\/\/www.sonicdrivein.com[\/caption]","rendered":"<h2>Product<\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-9093\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/295\/2015\/09\/17215121\/IMG_Product.png\" alt=\"Purple hexagon with the following text in the center: Product: What solution does the customer want and need? Outside the hexagon, to the right, is a bulleted list of considerations: features, design, user experience, naming, branding, differentiation\" width=\"400\" height=\"220\" \/>In the marketing mix, the term &#8220;product&#8221; means\u00a0the solution that the customer wants and needs. In this context,\u00a0we focus on the solution rather than only on the physical product. Examples of the product include:<\/p>\n<ul>\n<li>The Tesla Model S, a premium electric car<\/li>\n<li>A Stay at a Holiday Inn Express, a low-price national hotel chain<\/li>\n<li>Doritos Nachos Cheese, a snack food<\/li>\n<li>Simple, an online banking service<\/li>\n<\/ul>\n<p>Each of these products has a unique set of features, design, name, and brand that are focused on a target customer. The characteristics of the products are different from competitors&#8217; products.<\/p>\n<p>&nbsp;<\/p>\n<div id=\"attachment_623\" style=\"width: 685px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-623\" class=\"wp-image-623\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images-archive-read-only\/wp-content\/uploads\/sites\/1505\/2015\/09\/04104349\/Smarter_Banking___Simple-1024x409.png\" alt=\"Screenshot of simple.com website reads \u201cAll your finances, in your pocket or on the web, whenever you need it\u201d and shows four different services Simple offers: the Simple Visa Card, ATM access, Powerful Reporting, and photo check deposits. The details for the Simple Visa Card read \u201cIt all starts here, and is connected to an FDIC insured account, for your security. Spending on your debit cards is quickly reflected in your account, and you\u2019ll get push notifications, too.\u201d The details for the ATM access reads \u201cOver 55,000 surcharge-free ATMs \u2013 the most in the nation \u2013 with STARsf. Find the closest one with our iPhone and Android apps.\u201d The details for Powerful Reporting read \u201cThere\u2019s so much information in each transaction you make. Simple\u2019s powerful organization tools automatically categorize, analyze, and personalize, your data so you can see your spending come to life.\u201d The details for the photo check deposit read \u201cHate putting on pants? We got you. Deposit a check from your couch with Photo Check Deposit.\u201d\" width=\"675\" height=\"269\" \/><\/p>\n<p id=\"caption-attachment-623\" class=\"wp-caption-text\">Source: https:\/\/www.simple.com\/banking<\/p>\n<\/div>\n<h2>Promotion<\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-9095\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/295\/2015\/09\/17215155\/IMG_Promotion.png\" alt=\"Green hexagon with the following text in the center: Promotion: What is the dialogue between customer and company? Outside the hexagon, to the right, is a bulleted list of considerations: Message, method of delivering message, timing of delivery, communications by customers and influencers, competitor promotions.\" width=\"400\" height=\"223\" \/>In the marketing mix, the term &#8220;promotion&#8221; refers to the communications that occur between the company and the customer.\u00a0Promotion\u00a0includes both the messages sent by the company and messages that customers send to the public about their experience. Examples of promotion include:<\/p>\n<ul>\n<li>An advertisement in Cooking Light magazine<\/li>\n<li>A customer&#8217;s review of the product on Tumblr<\/li>\n<li>A newspaper article in the local paper quoting a company employee as an expert<\/li>\n<li>A test message sent to a list of customers or prospects<\/li>\n<\/ul>\n<p>Marketing professionals have an increasingly difficult job influencing promotions that cannot be controlled by the company. The company&#8217;s formal messages and advertising are only one part of promotions.<\/p>\n<div id=\"attachment_525\" style=\"width: 361px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-525\" class=\"wp-image-525\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images-archive-read-only\/wp-content\/uploads\/sites\/1505\/2015\/09\/04104336\/like_us_facebook-300x89.png\" alt=\"facebook logo plus their slogan: &quot;Like us on facebook.&quot;\" width=\"351\" height=\"104\" \/><\/p>\n<p id=\"caption-attachment-525\" class=\"wp-caption-text\">Marketers often run social media campaigns, rewarding customers who &#8220;Like&#8221; the company on Facebook.<\/p>\n<\/div>\n<h2>Place<\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-9096\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/295\/2015\/09\/17215221\/IMG_Place.png\" alt=\"Turquoise hexagon with the following text: Place: how does the customer act or buy? Outside the hexagon, at the right, is a bulleted list of considerations: location of purchase, ease of transaction, access to distribution channels, sales force, competitor approaches\" width=\"400\" height=\"224\" \/><\/p>\n<p>In the marketing mix, the term &#8220;place&#8221; refers to the distribution of the product. Where does the customer buy the product?\u00a0&#8220;Place&#8221; might be a traditional brick-and-mortar store, or it could be online.\u00a0Examples include:<\/p>\n<ul>\n<li>Distribution through an online retailer such as Amazon.com<\/li>\n<li>Use of a direct sales force that sells directly to buyers<\/li>\n<li>Sales through the company&#8217;s Web site, such as the shoe purchases at Nike.com<\/li>\n<li>Sales by a distributor or partner, such as the purchase of a Samsung phone from Best Buy or from a Verizon store<\/li>\n<\/ul>\n<p>In today&#8217;s world, the concept of &#8220;place&#8221; in the marketing mix rarely refers to a specific physical\u00a0address. It takes into account the broad range of distribution channels that make it easy for the target customer to buy.<\/p>\n<div class=\"textbox examples\">\n<h3>Starbucks Online Ordering<\/h3>\n<p>How did a company like Starbucks that sells hot drinks from a storefront use mobile technology to improve distribution? Watch the video, below, to find out:<\/p>\n<p><iframe loading=\"lazy\" src=\"\/\/plugin.3playmedia.com\/show?mf=4017709&amp;p3sdk_version=1.10.1&amp;p=20361&amp;pt=375&amp;video_id=xw-Gw1K3Pn4&amp;video_target=tpm-plugin-a8sfy2nr-xw-Gw1K3Pn4\" width=\"800px\" height=\"520px\" frameborder=\"0\" marginwidth=\"0px\" marginheight=\"0px\"><\/iframe><\/p>\n<p>You can <a href=\"https:\/\/oerfiles.s3-us-west-2.amazonaws.com\/WM+Marketing\/Transcriptions\/StarbucksLaunchesMobileOrdering.txt\" target=\"_blank\" rel=\"noopener\">view the transcript for &#8220;Starbucks Launches Mobile Ordering So You Can Skip The Line&#8221; here (opens in new window)<\/a>.<\/p>\n<\/div>\n<h2>Price<\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-9097\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/295\/2015\/09\/17215254\/IMG_Price.png\" alt=\"Orange hexagon with the following text in the middle: Price: what is the cost to the consumer? Outside the hexagon, at the right, is a bulleted list of considerations: value to buyer, price sensitivity, existing price points, discounts, competitor pricing\" width=\"400\" height=\"223\" \/><\/p>\n<p>In the marketing mix, the term &#8220;price&#8221; refers to the cost to the customer.\u00a0This requires the company to analyze the product&#8217;s value for\u00a0the target customer. Examples of price include:<\/p>\n<ul>\n<li>The price of a used college textbook in the campus bookstore<\/li>\n<li>Promotional pricing\u00a0such as Sonic Drive-In&#8217;s\u00a0half-price cheeseburgers on Tuesdays<\/li>\n<li>Discounts to trade customers, such as furniture discounts for interior designers<\/li>\n<\/ul>\n<p>Marketing professionals\u00a0must analyze what buyers are willing to pay, what competitors are charging, and what the price means to the target customer when calculating\u00a0the product&#8217;s value. Determining\u00a0price\u00a0is almost always a complicated analysis that brings together many variables.<\/p>\n<div id=\"attachment_629\" style=\"width: 467px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images-archive-read-only\/wp-content\/uploads\/sites\/903\/2015\/09\/23225236\/Sonic-Cheeseburger.png\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-629\" class=\"wp-image-629\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images-archive-read-only\/wp-content\/uploads\/sites\/903\/2015\/09\/23225236\/Sonic-Cheeseburger.png\" alt=\"Sonic Cheeseburger ad showing two cheeseburgers, the Sonic logo, and the text &quot;One half price Cheeseburgers on Tuesday. It's Cheesy Good.&quot;\" width=\"457\" height=\"457\" \/><\/a><\/p>\n<p id=\"caption-attachment-629\" class=\"wp-caption-text\">Sonic offers discounts on cheeseburgers on Tuesday, which is typically\u00a0a low sales day of\u00a0the\u00a0week.\u00a0Source: https:\/\/www.sonicdrivein.com<\/p>\n<\/div>\n\n\t\t\t <section class=\"citations-section\" role=\"contentinfo\">\n\t\t\t <h3>Candela Citations<\/h3>\n\t\t\t\t\t <div>\n\t\t\t\t\t\t <div id=\"citation-list-514\">\n\t\t\t\t\t\t\t <div class=\"licensing\"><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Original<\/div><ul class=\"citation-list\"><li>Components of the Marketing Mix. <strong>Provided by<\/strong>: Lumen Learning. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><\/ul><div class=\"license-attribution-dropdown-subheading\">All rights reserved content<\/div><ul class=\"citation-list\"><li>Screenshot of Simple Banking. <strong>Provided by<\/strong>: Simple Banking. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/www.simple.com\/banking\">https:\/\/www.simple.com\/banking<\/a>. <strong>License<\/strong>: <em>All Rights Reserved<\/em>. <strong>License Terms<\/strong>: Fair Use<\/li><li>Screen Shot of Facebook Logo. <strong>Provided by<\/strong>: Facebook. <strong>License<\/strong>: <em>All Rights Reserved<\/em>. <strong>License Terms<\/strong>: Fair Use<\/li><li>Screen Shot of Sonic Burger Ad. <strong>Provided by<\/strong>: Sonic. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/www.sonicdrivein.com\/\">https:\/\/www.sonicdrivein.com\/<\/a>. <strong>License<\/strong>: <em>All Rights Reserved<\/em>. <strong>License Terms<\/strong>: Fair Use<\/li><li>Get Ready to Love the New Starbucks Rewards. <strong>Provided by<\/strong>: Starbucks. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/youtu.be\/-FalnLT5irs\">https:\/\/youtu.be\/-FalnLT5irs<\/a>. <strong>License<\/strong>: <em>All Rights Reserved<\/em>. <strong>License Terms<\/strong>: Standard YouTube license<\/li><\/ul><\/div>\n\t\t\t\t\t\t <\/div>\n\t\t\t\t\t <\/div>\n\t\t\t <\/section>","protected":false},"author":20,"menu_order":20,"template":"","meta":{"_candela_citation":"[{\"type\":\"original\",\"description\":\"Components of the Marketing Mix\",\"author\":\"\",\"organization\":\"Lumen Learning\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"},{\"type\":\"copyrighted_video\",\"description\":\"Screenshot of Simple Banking\",\"author\":\"\",\"organization\":\"Simple Banking\",\"url\":\"https:\/\/www.simple.com\/banking\",\"project\":\"\",\"license\":\"arr\",\"license_terms\":\"Fair Use\"},{\"type\":\"copyrighted_video\",\"description\":\"Screen Shot of Facebook 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