The Power of MARKETING MIX

The assignment discusses the importance of segmentation, targeting, and positioning (STP) in achieving a successful marketing mix. It explains how STP helps divide large target markets into subsets, predict target audiences, and create product images in consumers' eyes. The marketing mix is defined as a set of business tools used for decision-making, comprising product, price, place, and promotion. The assignment also provides examples of companies using the marketing mix concept, including Samsung, which uses STP to launch new products in the Australian market.

Running head: MARKETING MIX
Marketing mix
Assignment 1
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MARKETING MIX 1
Introduction
In this present paper we will discuss the importance of segmentation, targeting and positioning to
achieve the successful marketing mix. We will also describe the various companies who are
using these marketing mix concepts and who are not using these concepts.
The segmentation helps to divide the large target market into subsets which helps to
predict the target audience. The targeting market is divided on the basis of demographic,
social–class and others then the company prepare the marketing strategies according to
the target market. After targeting the market the product positioning is used to create the
image of the product in the eyes of consumers. Thus all the three activities are
interrelated.
Marketing mix
Marketing mix is defined as the business tools which help to control and decision making relates
to product, price, place and promotion. Following are the four components of marketing mix.
1. Product
The product mix comprises of various products produced by an organization. It includes
tangible and intangible products. The product concept consist of actual, Core, and
augmented products which helps to extract the benefits of the product to the consumers
(Boon et al., 2015). The product life cycle helps to analyze the challenges faced by the
product at every stage.
2. Price
It is used to take the price decision by considering the profit margin, competitor’s price,
maximization of shareholders wealth, target market, quality of the product and others.
3. Place
It is used to select the effective distribution channel by considering various factors such
as inventory management, cost optimization, risk, and others. The medium include online
and offline mode to deliver the product.
4. Promotion
It is used to consider the suitable promotional activities which help to create awareness
by communicate the benefits of the product. It creates the brand image in the eyes of the
consumers which helps to increase the perceived user value.
Application of marketing mix and STP
Marketing mix concept is applied by every organization which helps to enhance the sales and
profitability of the company by appropriate product positioning, promotional activities, pricing,

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and effective distribution channel. Following are the example of companies using marketing
mix:
The Samsung is using marketing mix concept by applying product development strategy for
launching new product in the Australian market. The decoy pricing strategy is used by the
company to attract the consumers (Kartawinata et al., 2013). The promotional activities include
advertisement, sponsorship and discounts, percent off deals which helps to promote the product.
The distribution channel is also very effective by using various methods such as distributors,
retailers, digital plazas and others which helps to purchase the product conveniently by the
consumers. The market is segmented on the basis of demographic factors such as income, social-
class and others. The company has selected middle-class as a target audience then product
positioning is done through cost leadership strategy which helps the company to produce large
products by the advantage of economies of scale which helps the company to increase its profit
margin.

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References
Kartawinata, B. R., & Wardhana, A. (2013). Marketing Strategies and Their Impact on
Marketing Performance of Indonesian Ship Classification Society. International Journal of
Science and Research (IJSR), 4(2), 69-74.
Boon, B. T. L., & Liang, T. W. (2015). Firms’ Marketing Mix Effectiveness and Modes of Entry
in the Host Countries. In Proceedings of the 1998 Academy of Marketing Science (AMS) Annual
Conference (pp. 474-474). Springer International Publishing.