{"id":6301,"date":"2016-08-17T17:28:13","date_gmt":"2016-08-17T17:28:13","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/masterybusiness2xngcxmasterspring2016\/?post_type=chapter&#038;p=6301"},"modified":"2024-05-03T15:42:58","modified_gmt":"2024-05-03T15:42:58","slug":"finding-the-right-marketing-mix","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/chapter\/finding-the-right-marketing-mix\/","title":{"raw":"Finding the Right Marketing Mix","rendered":"Finding the Right Marketing Mix"},"content":{"raw":"<div class=\"textbox learning-objectives\">\r\n<h3>Learning Outcomes<\/h3>\r\n<ul>\r\n \t<li>Give examples of the marketing mix<\/li>\r\n<\/ul>\r\n<\/div>\r\n<img class=\"alignright wp-image-714\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/143\/2016\/08\/16210901\/3541657734_b24840f7fd_b-1024x669.jpg\" alt=\"salon shelves full of hair-care products\" width=\"350\" height=\"229\" \/>\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<table>\r\n<caption>Table 1. Comparing Discount, Upscale, and Premium Shampoo Using the Four Ps<\/caption>\r\n<thead>\r\n<tr>\r\n<th style=\"width: 10%;\" scope='col'>4 Ps<\/th>\r\n<th style=\"width: 30%;\" scope='col'>Discount<\/th>\r\n<th style=\"width: 30%;\" scope='col'>Upscale<\/th>\r\n<th style=\"width: 30%;\" scope='col'>Premium<\/th>\r\n<\/tr>\r\n<\/thead>\r\n<tbody>\r\n<tr>\r\n<th scope='row'>Product<\/th>\r\n<td>Cleansing product, pleasant smell, low-cost packaging<\/td>\r\n<td>Cleansing product, pleasant smell, attractive\u00a0packaging<\/td>\r\n<td>Cleansing product, pleasant smell created by named ingredients, premium\u00a0packaging<\/td>\r\n<\/tr>\r\n<tr>\r\n<th scope='row'>Promotion<\/th>\r\n<td>Few,\u00a0if any, broad communications<\/td>\r\n<td>National commercials show famous\u00a0female \"customers\"\u00a0with clean, bouncy hair<\/td>\r\n<td>Differentiating 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<tr>\r\n<th scope='row'>Place<\/th>\r\n<td>Distributed in grocery stores and drugstores<\/td>\r\n<td>Distributed in grocery stores and drugstores<\/td>\r\n<td>Distributed only in licensed\u00a0salons<\/td>\r\n<\/tr>\r\n<tr>\r\n<th scope='row'>Price<\/th>\r\n<td>Lowest price on the shelf<\/td>\r\n<td>Highest price in the grocery store (8 times the prices of discount)<\/td>\r\n<td>3\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\u00a0<em>or<\/em> if it causes shoppers to visually confuse it with a more expensive product.\r\n<div class=\"textbox tryit\">\r\n<h3>Practice Question<\/h3>\r\nhttps:\/\/assess.lumenlearning.com\/practice\/2b140581-eae1-4b86-97af-3afa491128e4\r\n\r\n<\/div>\r\nThe goal with the marketing mix is to align marketing activities with the needs of the target customer.\r\n<div class=\"textbox examples\">\r\n<h3>Tool Product Lines<\/h3>\r\nAnother example of an effective marketing mix comes from a tool company with both B2B and B2C customers,\u00a0creating three distinct product lines\u2014each with an appropriate marketing mix\u2014to satisfy the needs of the three distinct target customers.\r\n\r\nThe first product line is an inexpensive set of basic tools for the home, available to purchase almost anywhere, that are advertised on TV. The second line is a moderately-priced set of better tools designed for the workshop enthusiast, distributed through big box home improvement stores that are promoted in DIY magazines. The third line is an expensive set of commercial-grade tools for the construction industry, sold directly at work sites and promoted in professional journals.\r\n<table>\r\n<caption>Table 2. Comparing Discount, Upscale, and Premium Tools Using the Four Ps<\/caption>\r\n<thead>\r\n<tr>\r\n<th style=\"width: 10%;\" scope='col'>4 Ps<\/th>\r\n<th style=\"width: 30%;\" scope='col'>Discount<\/th>\r\n<th style=\"width: 30%;\" scope='col'>Upscale<\/th>\r\n<th style=\"width: 30%;\" scope='col'>Premium<\/th>\r\n<\/tr>\r\n<\/thead>\r\n<tbody>\r\n<tr>\r\n<th scope='row'>Product<\/th>\r\n<td>Simple, basic home tools<\/td>\r\n<td>Better tools for workshop use<\/td>\r\n<td>Commercial quality for construction use<\/td>\r\n<\/tr>\r\n<tr>\r\n<th scope='row'>Promotion<\/th>\r\n<td>T.V. advertising to reach consumers<\/td>\r\n<td>D.I.Y magazines and web sites<\/td>\r\n<td>Professional journals<\/td>\r\n<\/tr>\r\n<tr>\r\n<th scope='row'>Place<\/th>\r\n<td>Distributed to all mass market retailers<\/td>\r\n<td>Distributed through big box home improvement stores<\/td>\r\n<td>Distributed directly to construction job sites<\/td>\r\n<\/tr>\r\n<tr>\r\n<th scope='row'>Price<\/th>\r\n<td>Inexpensive<\/td>\r\n<td>Moderate<\/td>\r\n<td>Expensive<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\nNotice how the characteristics of each segment of the mix are geared for the target customer.\r\n\r\n<\/div>","rendered":"<div class=\"textbox learning-objectives\">\n<h3>Learning Outcomes<\/h3>\n<ul>\n<li>Give examples of the marketing mix<\/li>\n<\/ul>\n<\/div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-714\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/143\/2016\/08\/16210901\/3541657734_b24840f7fd_b-1024x669.jpg\" alt=\"salon shelves full of hair-care products\" width=\"350\" height=\"229\" \/><\/p>\n<p>How does an organization determine the right marketing mix? The answer\u00a0depends on the organization&#8217;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<p>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<p>Consider, for a moment, the simple selection of hair shampoo. Let&#8217;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<table>\n<caption>Table 1. Comparing Discount, Upscale, and Premium Shampoo Using the Four Ps<\/caption>\n<thead>\n<tr>\n<th style=\"width: 10%;\" scope=\"col\">4 Ps<\/th>\n<th style=\"width: 30%;\" scope=\"col\">Discount<\/th>\n<th style=\"width: 30%;\" scope=\"col\">Upscale<\/th>\n<th style=\"width: 30%;\" scope=\"col\">Premium<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<th scope=\"row\">Product<\/th>\n<td>Cleansing product, pleasant smell, low-cost packaging<\/td>\n<td>Cleansing product, pleasant smell, attractive\u00a0packaging<\/td>\n<td>Cleansing product, pleasant smell created by named ingredients, premium\u00a0packaging<\/td>\n<\/tr>\n<tr>\n<th scope=\"row\">Promotion<\/th>\n<td>Few,\u00a0if any, broad communications<\/td>\n<td>National commercials show famous\u00a0female &#8220;customers&#8221;\u00a0with clean, bouncy hair<\/td>\n<td>Differentiating 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<tr>\n<th scope=\"row\">Place<\/th>\n<td>Distributed in grocery stores and drugstores<\/td>\n<td>Distributed in grocery stores and drugstores<\/td>\n<td>Distributed only in licensed\u00a0salons<\/td>\n<\/tr>\n<tr>\n<th scope=\"row\">Price<\/th>\n<td>Lowest price on the shelf<\/td>\n<td>Highest price in the grocery store (8 times the prices of discount)<\/td>\n<td>3\u00a0to 5 times the price of Upscale<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>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<p>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\u00a0<em>or<\/em> if it causes shoppers to visually confuse it with a more expensive product.<\/p>\n<div class=\"textbox tryit\">\n<h3>Practice Question<\/h3>\n<p>\t<iframe id=\"assessment_practice_2b140581-eae1-4b86-97af-3afa491128e4\" class=\"resizable\" src=\"https:\/\/assess.lumenlearning.com\/practice\/2b140581-eae1-4b86-97af-3afa491128e4?iframe_resize_id=assessment_practice_id_2b140581-eae1-4b86-97af-3afa491128e4\" frameborder=\"0\" style=\"border:none;width:100%;height:100%;min-height:300px;\"><br \/>\n\t<\/iframe><\/p>\n<\/div>\n<p>The goal with the marketing mix is to align marketing activities with the needs of the target customer.<\/p>\n<div class=\"textbox examples\">\n<h3>Tool Product Lines<\/h3>\n<p>Another example of an effective marketing mix comes from a tool company with both B2B and B2C customers,\u00a0creating three distinct product lines\u2014each with an appropriate marketing mix\u2014to satisfy the needs of the three distinct target customers.<\/p>\n<p>The first product line is an inexpensive set of basic tools for the home, available to purchase almost anywhere, that are advertised on TV. The second line is a moderately-priced set of better tools designed for the workshop enthusiast, distributed through big box home improvement stores that are promoted in DIY magazines. The third line is an expensive set of commercial-grade tools for the construction industry, sold directly at work sites and promoted in professional journals.<\/p>\n<table>\n<caption>Table 2. Comparing Discount, Upscale, and Premium Tools Using the Four Ps<\/caption>\n<thead>\n<tr>\n<th style=\"width: 10%;\" scope=\"col\">4 Ps<\/th>\n<th style=\"width: 30%;\" scope=\"col\">Discount<\/th>\n<th style=\"width: 30%;\" scope=\"col\">Upscale<\/th>\n<th style=\"width: 30%;\" scope=\"col\">Premium<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<th scope=\"row\">Product<\/th>\n<td>Simple, basic home tools<\/td>\n<td>Better tools for workshop use<\/td>\n<td>Commercial quality for construction use<\/td>\n<\/tr>\n<tr>\n<th scope=\"row\">Promotion<\/th>\n<td>T.V. advertising to reach consumers<\/td>\n<td>D.I.Y magazines and web sites<\/td>\n<td>Professional journals<\/td>\n<\/tr>\n<tr>\n<th scope=\"row\">Place<\/th>\n<td>Distributed to all mass market retailers<\/td>\n<td>Distributed through big box home improvement stores<\/td>\n<td>Distributed directly to construction job sites<\/td>\n<\/tr>\n<tr>\n<th scope=\"row\">Price<\/th>\n<td>Inexpensive<\/td>\n<td>Moderate<\/td>\n<td>Expensive<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Notice how the characteristics of each segment of the mix are geared for the target customer.<\/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-6301\">\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>Finding the Right 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><li>Practice Question. <strong>Authored by<\/strong>: Robert Danielson. <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><li>Tool Product Lines Example. <strong>Authored by<\/strong>: Robert Danielson. <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\">CC licensed content, Shared previously<\/div><ul class=\"citation-list\"><li>Introducing Marketing. <strong>Authored by<\/strong>: John Burnett. <strong>Project<\/strong>: Global Textbook Project. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><li>Vast Array of Hair Care Products. <strong>Authored by<\/strong>: Sea Turtle. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/www.flickr.com\/photos\/sea-turtle\/3541657734\/\">https:\/\/www.flickr.com\/photos\/sea-turtle\/3541657734\/<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by-nc-nd\/4.0\/\">CC BY-NC-ND: Attribution-NonCommercial-NoDerivatives <\/a><\/em><\/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":26,"menu_order":16,"template":"","meta":{"_candela_citation":"[{\"type\":\"original\",\"description\":\"Finding the Right Mix\",\"author\":\"\",\"organization\":\"Lumen Learning\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"},{\"type\":\"cc\",\"description\":\"Introducing Marketing\",\"author\":\"John Burnett\",\"organization\":\"\",\"url\":\"\",\"project\":\"Global Textbook Project\",\"license\":\"cc-by\",\"license_terms\":\"\"},{\"type\":\"cc\",\"description\":\"Vast Array of Hair Care Products\",\"author\":\"Sea Turtle\",\"organization\":\"\",\"url\":\"https:\/\/www.flickr.com\/photos\/sea-turtle\/3541657734\/\",\"project\":\"\",\"license\":\"cc-by-nc-nd\",\"license_terms\":\"\"},{\"type\":\"original\",\"description\":\"Practice Question\",\"author\":\"Robert Danielson\",\"organization\":\"Lumen Learning\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"},{\"type\":\"original\",\"description\":\"Tool Product Lines Example\",\"author\":\"Robert Danielson\",\"organization\":\"Lumen Learning\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"}]","CANDELA_OUTCOMES_GUID":"65ee77a7-84df-4a7d-9176-fc5948b6e7a9, 70034443-b1bc-4d52-948b-58f86dc9d2a9","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-6301","chapter","type-chapter","status-publish","hentry"],"part":7046,"_links":{"self":[{"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/6301","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/wp\/v2\/users\/26"}],"version-history":[{"count":10,"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/6301\/revisions"}],"predecessor-version":[{"id":15390,"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/6301\/revisions\/15390"}],"part":[{"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/pressbooks\/v2\/parts\/7046"}],"metadata":[{"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/pressbooks\/v2\/chapters\/6301\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/wp\/v2\/media?parent=6301"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/pressbooks\/v2\/chapter-type?post=6301"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/wp\/v2\/contributor?post=6301"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/wp-json\/wp\/v2\/license?post=6301"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}