THE IMPACT OF “MARKETING MIX” IN THE ACCOMPLISHMENT OF ORGANIZATION OBJECTIVE
1.1 GENERAL BACKGROUND TO THE SUBJECT MATTER
This study practically involves the investigation of marketing mix (product, price, promotion, place) in the accomplishment of organisational objectives. There are numerous definitions of marketing written by various marketing fanatics and practitioners around the globe. As a result, student’s lectures, and marketing practitioners believe so much on whatever tool or monographs they could lay their hands on that relates to marketing.
Marketing administration itself takes a managerial approach to marketing problems. Hence, marketing is an instinct discipline. Practitioners consequently rely on principles; researches, ideas, concept and techniques including a problem solving approach to enable them (practitioners and scholars) handle global challenges. In general, a well-organized marketing economy creates numerous opportunities for viable investment and it gives rise to high level of business activities. But, when marketing activities are overlooked diminishing returns on investment and total failure of business initiative is likely to be encountered.
Looking at marketing from a marketing managers facet, one can envisage that he is concerned with the direction of specific functions and activities which must lead to specific result.
Having conceived this notion or idea logy, we may say that; Marketing is the performance of business activities that direct the flow of goods and services from producer to consumers in order to satisfy customers and accomplish the firms objectives from this stand point, we can define marketing as; the performance of activities that direct the flow of goods and services from source (producer) to the customer (consumer) or users.
Marketing as a managerial practice rest on the economic functions of, production, distribution and consumption. Based on the discussion so far, we should try to establish a link between marketing and marketing mix.
The marketing mix is a major concept in modern marketing. It is the term used to describe the combination of the four variables which constitutes the core of a company’s marketing system, viz the product, price, the distribution system and promotional activities. The application of these variables determines to a large extent the success in the marketing environment.
A firms marketing mix has been defined as the particular blend of controllable marketing variables that the firm uses to achieve its objectives I the target market:- P. Kotler. It can also be defined as a combination of those controllable internal marketing variables- comprising the four ps (product, place, price and promotion) which the firm uses to operate successfully within the marketing environment.
The marketing mix is further sub. Classified showing the possible mix for each marketing mix. In this study, each element of the marketing mix will be analyzed with a view to understanding the essential facts of the marketing mix. These facts will be illustrated in a diagram below.
Quality List price Advertising Channels
Features Discounts Personal Coverage
Options Allowances Sales promotion locations
Brand-name Payment period Direct marketing Inventory
Packaging Credit sales Publicity Transport
Sizes Credit terms
Product: According to cotter and Gay (1995), a product is anything that can satisfy need or want. Consequently, the word “product” is not limited to physical objects (anything capable of satisfying need) for example; the importance of tangible goods lie in possessing them as in the benefits they provide.
Managing the product variables embraces planning and developing the right goods and for services to be marketed by the company. Decisions need to be taken on product quality, features, options, styles, brand-names, packaging, sizes, services, warrants and returns.
Price: The first thing that comes to mind after the emergence of a product is “price”. How much does a certain good cost? This is a question usually asked by executives or top management who owe the responsibility of pricing the product or services they are marketing.
Price itself as defined by William J. Staton (1983) is an offer or an experiment to test the purse of the market. If prices are embraced by consumers, that means the offer is accepted or acceptable but, where prices are rejected, products may be withdrawn from the market to enable executives to adjust or reconsider the pricing option. It is also worth noting that the marketing price of a product influences wages, rent interest and profit. That is, the factors of production (Land, Labour, Capital and Enterpreneur).
Price is a basic regulator of the economic system because it affects the allocation of factors of production and is considered by top executive to be a key activity within the capitalist system of free enterprise. Moreover pricing has helped in accomplishing organisational objectives in the sense that it;
i. Maintains market shares.
ii. Increase market share.
Executives also set up policies on discounts, allowances payment periods, freight payment, credit terms and many other price- related situations, which ultimately affects the list price.
Promotion: This the component used by organization to inform, educate and persuade the market regarding the company’s offerings. Advertising, personal selling, sales promotion, publicity and public relations are the major variables of promotion.
Place: It can also be termed distribution. Before a product is ready, it is the responsibility of management to select and mange the trade channels through which the products will reach the right market, at the right time, in the right quantity and quality and at right price.
Management or top physically handling and transporting the product through these channels. Decisions also has to be mad on Warehousing, Storage locations, and levels of stocks inventory management.