The Marketing Mix: A Comprehensive Analysis

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This assignment delves into the fundamental principles of marketing, focusing on the four Ps of the marketing mix – product, price, place, and promotion. It examines the historical evolution of these concepts, their practical applications in various industries, and the impact of modern trends like digital marketing and sustainability. The analysis draws upon academic research, case studies, and contemporary examples to provide a comprehensive understanding of how businesses leverage the marketing mix to achieve success.
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MARKETING
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Elements of marketing process.........................................................................................3
1.2 Cost and benefits of marketing orientation.....................................................................4
TASK 2............................................................................................................................................5
2.1 Macro and micro environmental factors...........................................................................5
2.2 Proposing with segmentation criteria...............................................................................7
2.3 Choosing targeting strategy..............................................................................................8
2.4 Determining different buying behaviour.........................................................................8
2.5 Positioning strategy for McDonald..................................................................................9
TASK 3..........................................................................................................................................10
3.1 Development of products to ensure competitive edge in the market ............................10
3.2 Different distribution strategies........................................................................................1
3.3 Various pricing strategies.................................................................................................1
TASK 4............................................................................................................................................3
4.1 Planning marketing mix for two different segments for McDonald................................3
4.2 Difference in marketing products and services to businesses rather than consumers......5
4.3 How international marketing is differs from domestic marketing in McDonald.............6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7
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INTRODUCTION
Marketing is just not to sale of the products, it is having a broad meaning related to the
products and services. In the earlier times a company use marketing tool just to sale their
products and services, the company is highly focused to make higher sales. So this is making a
bad situations for them because their products are not completing the expectations of their
customers. In the contemporary world scenario most of the big companies are using the
marketing in wider area. Marketing process starts with the idea of making a goods and services.
The owner and a manufacturer have to use this latest marketing tool with making analysis of
market needs and customers needs (Hawkes and Harris, 2011). After it they have to develop their
goods and services. Promotion and distribution are the main concept of the marketing strategy
and this have to be effective. This project report is based on the McDonald's which is having
affair in the food industry. The company is having a wide range of Pizza, Burgers, Puffs and
coffees, they are having more than 36,000 outlets in across the world. They are using an effective
marketing and they are having different marketing policies in different teams. They are making
distinct products and service styles in different countries and it is an example of marketing in the
food industry. This report is having content of marketing elements and benefits and cost of
marketing orientation. Micro and macro environmental factors are making a direct impact of the
companies activities and they have to adopt these affects in their business and production.
TASK 1
1.1 Elements of marketing process
McDonald's is using the latest marketing tool which is helping them to sale and fulfil the
customers expectations and here is element;
Target customer: In the first, company is making target of customers. Many types of
customers are available in the markets and this is depends on them that which type of customers
to take as a target by the company. They are having generally two types of customers poor and
rich. Mostly company is making focus on the high and middle class peoples. They are having
sufficient money to afford the expenses so this is easy for McDonald's to fulfil their
requirements.
Product Development: After making target they are developing products and services
according to their targeted customers (Jobber and Ellis-Chadwick, 2012). Most of the persons
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wants a general tastes but they are having differentiation in the prices so they are making distinct
packages and prices of their products. They are adjusting their prices according to the customer's
financial conditions.
Effective advertisements: The company is making their all activities according to the
customers demands and which can attract them. They are using classifications of their customers
on the basis of their mediums which are suitable for them to communicate about new products
and available price range. They are using effective communication tools like; print media and
electronic media. They have to make distinction according to customers facilities.
Selling and distribution: This is the main part and they are using the both online and
offline process to sale their products (Kelleher, 2011). They are having both type of customers
who wants the home delivery of foods and who wants to go for outing. They have their outlets in
the big markets which are suitable for the customer's.
1.2 Cost and benefits of marketing orientation
Marketing provides number of benefit to company to achieve sustainable growth. There
are various merits which describes as per under:
Benefits of marketing orientation.
Identify the demand: Through adopting marketing concept organisation can find out the
desire of customer in targeted market which contribute to deliver desirable value to satisfy their
need and also enterprise can meet with predetermined goals.
New market opportunity: As being a global brand MacDonald can enter in new reason
though marketing concepts. The model of marketing helps to identified interest of customer that
is essential for the growth of company. In some nations by used this concept organisation can
deliver their needed product and service to cover new market for its product (Kotler and et.al.,
2015).
Capture appropriate market-share: The concept of marketing is focus on the customer
interest rather profit. It helps to understand the requirement of customer which assist to company
to produce it to satisfy them by provide qualitative product and service at affordable price. It also
aids to increase sales revenue to captured large market-share as well as defeat competition
against rivalries.
Cost of marketing orientation: As mentioned above, Mc Donald's is following marketing
orientation for exploiting maximum benefit of emergence of International business market.
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However, continuing with this strategy to pull maximum customers requires for the cited
company to incur costs on various marketing aspects. The concept of marketing orientation
mainly focuses on acquiring higher market shares by funding different marketing activities
mentioned below:
Cost required to be incurred on researching market: Acquiring information and data with
respect to customer's preferences and needs is an important aspect of marketing.
Information resources including customers feedback can provide a clear picture of what
is expected in the market.
Cost incurred for carrying out promotional activities: Marketing orientation focuses on
attracting customers on a large scale for acquiring increased market share, by using
promotional means of advertising and sponsorship (Lee and Kotler, 2011). These
activities are highly effective in pulling potential customers that requires investing of
available funds.
TASK 2
2.1 Macro and micro environmental factors
The macro and micro environment factors have a greater influence on McDonald for
taking the decisions for the company. Thus, for evaluating the internal factors SWOT analysis
tool is been used to identify the internal strength of the company:
Strengths
It have renowned brand image in the
market.
It is serving with wide range of
products which attracts large number of
customers.
It is having a high balance sheet
position (Lefebvre, 2011).
Weaknesses
With the emergence of new companies,
the market share of McDonald is
declining at a higher pace.
The development of new products is
weak.
With the time, the quality and taste of
the products is been reducing.
Threats
It may suffer in the strength of
competition.
Opportunities
To develop with dining-out market.
To expand there business all over the
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The demographics are changing with
the time.
High competition rate due to other new
companies.
world.
It should respond to the upcoming
social changes in the market.
Further, for analysing the macro factors PESTLE analysis is been used in an efficient
manner.
Political
International trade
provides opportunities
to expand the srervices
of organisation at
global level increasing
the revenues for firm
The company has to
make reform in its
strategies as
government of many
countries are making
laws against health and
safety standards. The
increasing awareness
among consumers for
health and fitness have
forced the government
to make control on
junk foods.
Social
The innovation and
varieties in junk food
menu has increased a
lot due to various
preferences of
customers. This makes
competition fierce
among fast food
industries.
Increasing
consciousness among
customers for fitness
and health made them
to avoid junk food and
shift to healthy meals
which may affect the
sales of firm
(Leonidou, Katsikeas
and Morgan, 2013).
Economic
The company should
make the right decision
to make or buy as it
operates in different
countries so tax rate
use to fluctuate.
The cost of labour in
different countries use
to vary for which the
organisation should
make strategies so that
cheap labour can be
arranged.
Technological
The innovation in
technological fields can
Legal
The fast food industries
are exposed to a large
Environmental
The packing material
used by cited firm
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assist the company to a
large extent. With the
help of improved tools
and techniques,
enterprise can increase
productivity and
deliver faster services.
Management of
ordering, delivering
and payment system
can also be arranged in
more systematic way
that can improve its
revenues.
number of laws that
should be complied
with like food and
safety standards,
employment laws and
tax payment systems.
increases the wastage
and also pollute the
environment because
of which many
environment conscious
customers use to avoid
the consumption of
food from this
company.
Use of paper bags and
organic ingredients in
food can help in
improving the
condition.
These models are highly efficient in influencing the company to make the decisions for
performing the activities in a proper manner. Thus, it will help them to develop with the
strategies and plan which will provide them with high efficiency and develop with high quality
products.
2.2 Proposing with segmentation criteria
To ensure the growth and development of the company, it is very important to provide
with the products which may satisfy the customer to a greater extent (Lovelock, 2011). Further, it
is crucial for McDonald to efficiently evaluate the market segmentation so as to develop with the
products and services for a certain group of people. The following are the major basis for
segmenting the market:
Demographic- It mainly includes the factors such as race, age, religion, income, gender
etc. Thus, it is very important for the company to evaluate with the disposable income of
the country in which they are serving with there products and services as it will assist
them in developing with the goods which is affordable for them. For example, the
country which is having low economy than it is important for the company to serve them
with cheap products to attract the customers (Lusch and Vargo, 2014).
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Geographic- It refers to the segmentation of the market on the basis of its geography. It
mainly involves the areas, region, countries etc. which have a great impact on the
operations of the company. Thus, it becomes important for McDonald to develop with the
products by evaluating the taste and preferences of the customers so that it can provide
them with high satisfaction. For example, serving the food in India the company needs to
provide with vegetarian range of products as they mostly prefer veg food.
Behavioural- The company make the proper analysis for determining the attitude,
behaviour etc. of the customers so that they can serve them with the most efficient
products. Thus, McDonald must take several measures to check out the behaviour of the
customers.
2.3 Choosing targeting strategy
McDonald chooses the behavioural factor for serving there products to the customers. As
the company is serving in many countries, so it becomes important for the company to the
attitude of the people towards the consumption of the products. Thus, they are targeting the
people who are preferring healthy food items in there meal. As in the present situation people are
becoming more health conscious and are avoiding fast food so the company have to develop with
the products which are having high nutrition value to them. Thus, it becomes important for the
organization to develop with the range of the products which are healthy in nature and serves
with high satisfaction level to the customers (Meraj, Fernandes and Ross, 2016). Further, for this
McDonald have to evaluate with the items which are on the core preference of the people.
Moreover, they need to change with the process of production for the development of the
products. They must come up with the products such as healthy salads, burger with veggies and
healthy drinks like fresh juices etc. This will help to attract wide range of customers towards
there organization. Further, they need to set lower prices for these product at the initial stage so
that it is highly affordable for the people.
2.4 Determining different buying behaviour
Buying behaviour refers to the perception of the people which assist in determining with
the attitude and value for the purchase of the goods. Thus, every person takes the decision before
the purchase of the products. Thus, there are various types of buying behaviour. Some of them
are stated under:
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Complex buying behaviour- It involves with the products which are of high value and
requires more time for taking the decision regarding making its purchase. Further, it has
high level of involvement as the products are of high cost. It includes cars, house etc.
Dissonance buying behaviour- It involves with the products which are of crucial value
which means that it is available with limited edition so the value of these products
increases. In this, they have high involvement in making the decision for the product
(Mintz and Currim, 2015).
Habitual buying behaviour- In this the degree of involvement towards the purchase of
product is very low. As these are the regular things which the customers purchases
frequently. The products of McDonald is included in this category as they are of less cost
and people consume them on regular basis. The marketing managers need to develop
with the products which gives high value to the people and are highly affordable to them.
So they must also evaluate with the taste and preferences of the customers and make the
goods according to them so that they can satisfy the people to a greater extent.
2.5 Positioning strategy for McDonald
Product positioning is very crucial for the company as it is an important marketing tool
which help to attract large number of customers towards there organization. Thus, in the present
time, the demand for healthy products is been increased and many company has taken initiatives
to serve the people with healthy products. Further, for promoting this product they must develop
with effective advertisement through different means such as television, pamphlets, website etc.
Thus it must be ensured that the ad must be so attractive that it must appeal the customers to
have the product. Thus, they must provide with the major features of the products and the
additional value which the other competitors are not serving (Palmer, 2012). Further, in the
online website there must be different column for the range of healthy food items so that it
becomes easy for the customers to select there product. Moreover, in the physical outlet they
must develop with different segment for this which may provide with only healthy foods so that
the people who prefer them do not have to wait for longer time. Moreover, they must also
provide some offers like with veggie burger, one glass of fresh juice free so as to attract wide
range of customers towards there organization.
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TASK 3
3.1 Development of products to ensure competitive edge in the market
It becomes difficult for McDonald to retain its position in the industry as there are many
other companies which are serving with similar products to the customers. Thus for attaining the
competitive edge in the market it is important to develop with the products which are unique
from its competitors. The concept of product is applied in a unique way by the organization. The
development concept for the product is been adopted by McDonald in the determined manner: Core product: This layer refers to the evaluation for McDonald where the company seeks
for the demands for the certain products within the market and take efficient measures to
meet these demands. This layer majorly focuses on development of the product available
at adequate price to the consumers. For examples increasing demands for healthy food
items will be attaining by developing wide range of food items which enhances the sale
volume of the company. Expected product: This layer of product development is achieved by the organization by
checking the quality and standards of the products which are been served by the
company. In this, the organization highly examines and investigate the product standards
to make sure that the products are of high quality and as per the determined quality
standards. The company also focuses on analysing the packaging, features and styles of
product (Rahbar and Abdul Wahid, 2011).
Augmented product: This layer of product development gives importance on the
development of consumer convenience so as to increase with the sales volume in the
market. It is been seen that the services are highly prompt enough which develops high
value for McDonald. This helped the business in enhancing wide sales measures.
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Illustration 1: Product concept
(Source: Rahmani, Emamisaleh and Yadegari, 2015)
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3.2 Different distribution strategies
The following are the major distribution channels which are mainly adopted by
McDonald are as follows: Intensive distribution: This distribution strategy of the organization mainly focuses on
the development of the products and services which are available within the market to
enhance market sales. McDonald is highly successful in developing an efficient supply
chain management to serve with the products to the customers in a easy manner. This has
helped the business in creating an competitive edge in the economy. For this measure the
organization uses online websites and physical stores. By this, the people can book there
order by the means of internet and the parcel will be delivered to them at there respective
places. Selective distribution: This measure is the one where the business unit develops with an
effective measure for analysing the needs of consumer and developing measures to attain
the product (Sferle and et.al., 2012). For this McDonald has developed with the Drive and
through facility for the customers who just need to take the parcel. This provides with
greater assistance to the people as they do not have to wait for longer time for there
parcel.
Exclusive distribution: This distribution of the company focuses on developing
distribution agreements with other people so as to develop with the brand image in the
market. They can develop licensing form so that many people can open up with the
company to serve the people with greater assistance.
3.3 Various pricing strategies
Pricing strategy is one of the most crucial factor which must be taken into consideration
while developing the product. Further, the pricing strategy mainly involves with two major
forms, one includes with the perspective of the profitability of the company and other is the
perspective of enhancing the sales volume by attracting wide range of customers. The pricing
strategies helps the company in developing wide market demands and enhance sales measures as
well. In essence this is one of the main source through which the aims and objectives of a
business unit can be achieved in an effective manner. McDonald determine with the pricing
strategy for the product by considering large number of factors such as competitors price,
disposable income of the country and the demand for the product in the market. This assist the
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company to attain high competitive edge and attract wide range of customers. Psychological
pricing measure is yet another measure which has helped the business in developing high sales
prospects (Sheng, Zhou and Li, 2011). This strategy helps in influencing buyers' perspective for
products. Thus, it becomes important for the company to adopt with the best pricing strategy as
the sales and profit of the company is highly dependent on the value of the products served in the
market. Further, it is very important to evaluate the prices of the other companies which includes
Burger King, Subway etc. as they are serving with the similar products in the market.
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3.4 Promotional strategies adopted by the company
Promotional activities are highly beneficial to reach the customers in an efficient manner.
Further, McDonald is highly successful in adopting with the promotional techniques to promote
there products in the market. They uses different means such as television, radio, newspapers etc.
which highly influence the people to avail the products and services of the company. Further,
they also uses a cartoon character which has become a recognition for the brand in the market.
Moreover, they adopt with several offers such as discounts, prize vouchers etc. which are highly
beneficial to attract wide range of customers to avail there products and services. Moreover, to
influence the children to buy the product they provide with different toys in Happy meals which
have a great impact on them and help to increase the sales volume of the company (Hawkes and
Harris, 2011). This highly help them to attract the people to make purchases of the product of the
organization. It is been seen that these techniques are highly beneficial in achieving the goals and
objectives of the firm to a greater extent.
3.5 Additional elements of marketing mix
The additional elements which are included in the marketing mix process are people,
process and physical evidence. This assist in developing with effective marketing prospects. The
following elements are as follows:
People- These elements of the marketing process involves the consumers and employees
as people for the organization. The modern marketing scenario has efficiently analysed
the significance of these factors for the growth and development of business. Thus, it is
been seen that McDonald that they are having efficient employees as they provide with
regular trainings so as to keep them up to date as per the market demand. They provide
with prompt services to the customers which attracts them towards the organization
(Marketing Mix – The 4 p’s of marketing. 2014).
Physical Evidence: This elements includes the physical evidence of the place where the
products are been available for the customers. McDonald is efficient enough in
developing with the physical outlets so appealing that they attract large number of
customers towards there organization. They uses modern and well developed
infrastructure which helps the business in enhancing market sale. Moreover, they provide
with the access to physical evidence of new products helps business in generating
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demand for the same. They are also effective in displaying the products in an effective for
developing market sales and profit.
Process: This segment of the marketing mix focuses on developing effective process of
selling products in order to generate convenient shopping measures for the consumers.
McDonald has developed with different processes for introducing new products.
Developing effective billing process has helped the businesses in developing time saving
measures for consumers to enhance market sales. Moreover, they have become efficient
enough in creating effective online measures which has developed sales for the
company.
TASK 4
4.1 Planning marketing mix for two different segments for McDonald
McDonald is operating in food industry and provide services in many countries. It uses
various marketing strategies to attract consumers, in this the company offers services to old age
people and youngsters as well. In both segments there is different marketing mix plan is to be
formulated to attract them, which is enumerated below:
Marketing mix Young age people Old age people
Product Products are main element
which attract to consumers. In
the present case McDonald
company offers different types
of dishes which are tasty and
hygienic. When it provides
more number of dishes then
youngsters will purchase or
consumer food items.
Another segment is old age
people where the company
offers natural and healthy
products. Apart from this they
prefer hygienic products and
health conscious so it offers
dishes which are healthy and
hygienic.
Price Young people are not thinks
about prices, they prefer
healthy and branded products.
Hence, in this segment
Old people are very concern
with price factor of goods and
services, they are not afforded
higher cost in comparison to
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McDonald firm will offer
various products and services
at high price. Pricing strategy
of the company is high due to
young people are ready to pay
(Jobber and Ellis-Chadwick,
2012).
youngsters. In this segment the
company is charge less price
because they can not afford
and ready to pay higher price
as well. So, prices of products
and services is fewer in this
segment compare than another
segment.
Place To sell products and services
the company use retail shops
or outlets because they are
ready to go outside. Young
people are like outside areas so
place for selling is shops,
outlets etc.
Old people are not like to
outside for taking food. So
place for selling products in
this segment is online and
home delivery services.
Promotion As per the promotion, the
McDonald company uses
internet and social media sites
to advertise and promote its
products and services.
According to the old age
segment promotional activities
are done with help of
newspapers, templates, articles
etc.
4.2 Difference in marketing products and services to businesses rather than consumers
In the market scenario there are different types of transactions for marketing and selling
products and services. There are mainly two types of transactions such as business to business
and business to consumers. Differences among B2B and B2C are given as below:
In business to business market, products and services are sale to another organisation or
enterprise while in the business to consumer market, goods and services are sale to the
individuals who are the decisions makers for making decisions related to buying products
(Kotler and et.al., 2015).
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Another difference is related to buying behaviour where in B2C marketing, emotional
elements are plays an integral role at the time of making buying decisions while in B2B
market, factors which are take care by buyers are such as cost, economic factors,
productivity, sttributes of various products and services etc.
In B2B, the buyers are taking huge number of products and spend more amount in
comparison to B2C market. In business to business market, buying process of goods and
services is lengthy and more complex compare than consumer market.
In B2B market at the time of purchasing personal meeting is organised due to purchasing
in bulk while in consumer market, negotiation plays major role due to purchasing very
less number of products and services.
In terms of communication channel, in business market channel is websites and pages on
various social media sites. On the other hand in consumer market advertising and
promotional activities are plays significant role to aware consumers and increase sales
and revenue.
Hence, it can be said that there are several differences among businesses and consumer
markets for marketing as well selling goods and services offered by the organisation in food
industry.
4.3 How international marketing is differs from domestic marketing in McDonald
The market where company offers goods and services within a country, known as
domestic market. On the other international market is that, company operates and serves its
products and services out of country and earn profit. Both are different up to greater extent for
each and every industry and for food industry as well (Rahim, 2014). Difference between
international and domestic market for McDonald is as follows:
Scope: In terms of international market the food company have wider scope and more number of
consumers while in domestic market fewer consumers and scope as well (Mintz and Currim,
2015).
Profit: When the company operates in national market then profit level is low but when operates
in international level then able to earn another currencies and increase customers by which profit
level is also high.
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Obstacles: The McDonald has to face several obstacles while entering in international market
and it has to follow all the rules and regulation of that country. On the other hand if it operates in
domestic market then there is not any type of obstructions.
Products: It is not necessary that all the countries like same food, the McDonald is mainly for
non veg foods or dishes. In its own market it offers non veg foods but when it enters into
international market such as India then it has to change products and come up with vegetarian
foods.
Risks: At the domestic market risks are low due to less number of competitors while in
international market there are various number of rivalry firm and substitute products as well so
risk is high.
Hence, there are various differences between domestic and international market for
offering services and products by the McDonald.
CONCLUSION
From the above report, it can be concluded that marketing principle is an important tool
for developing with a system for business units to create competitive edge within the market. It
also assist the organization in planning its overall strategies for enhancing products demand in
the market. Further, it is important to analyse the micro and macro-environmental factors to take
the decisions regarding the operations of the company.
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Marketing Mix The 4 p’s of marketing. 2014. Available through: <
http://www.marketing91.com/marketing-mix-4-ps-marketing/> [Access on 10th January
2017].
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