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A firm can vary its marketing mix by changing any one or more of these ingredients. Thus a
firm may use one marketing mix to reach one target market and the second, somewhat different
marketing mix, to reach another target market. For example, most automakers produce several
different types of vehicles and aim them at different market segments based on age and income.
1) The product ingredient includes decisions about the product’s design, brand
name, packaging, warranties, and the like.
2) The pricing ingredient includes both base prices and discounts of various kinds.
Pricing decisions are intended to achieve particular goals, such as to maximize
profit or even to make room for new models. The rebates offered by automobile
manufacturers are a pricing strategy developed to boost low auto sales.
3) The distribution ingredient involves not only transportation and storage but also
the selection of intermediaries.
4) The promotion ingredient focuses on providing information to target markets.
The major forms of promotion include advertising and publicity.
The “ingredients” of the marketing mix are controllable elements. A firm can vary each of
them to suit its organizational goals, marketing goals, and target markets.
3. A MARKETING STRATEGY
A marketing strategy is a plan for the best use of an organization’s resources to reach its
objectives. Developing a marketing strategy involves selecting and analyzing a target market and
creating and maintaining a marketing mix that will satisfy that market.
A target market is chosen through the market segmentation approach. A market segment is a
group of individuals or organizations within a market that have similar characteristics and needs.
The market segmentation approach directs a marketing mix at a segment of a market.
Market measurement and sales forecasting are used to estimate sales potential and predict
product sales in specific market segments. Strategies are then monitored and evaluated through
marketing research and marketing information system, which stores and processes internal and
external data in a form suitable for marketing decision making.
III. Answer the questions:
