Marketing Mix Strategies and Business Launch Considerations

This report provides a comprehensive analysis of marketing mix strategies, comparing the approaches for products and services. It begins with an introduction to the marketing mix, outlining its core elements: product, price, place, and promotion. The report then delves into the characteristics of both products (tangibility, separability, ownership, and quality measurement) and services (intangibility, inseparability, ownership, and heterogeneity). Detailed examples, such as Nissan UK for products and Premier Inn Hotels for services, illustrate how these elements are applied in practice. The report further explores the marketing mix of a product and service, highlighting the inclusion of people, physical evidence, and process in the service marketing mix. Finally, the report addresses the considerations for launching a food and beverage company, focusing on capital and financing, market analysis, legal requirements, and operational planning, providing a roadmap for business setup, launch, and auditing after one year.

Marketing Management

Contents
Question 1........................................................................................................................................1
A. Introduction of Marketing Mix Strategy.................................................................................1
B. Characteristics of a Product and a Service..............................................................................1
C. Marketing Mix of a Product....................................................................................................3
D. Marketing Mix of a Service....................................................................................................4
Question 2........................................................................................................................................5
A. Opening or setting up a business............................................................................................5
B. Launch of a business...............................................................................................................7
C. Auditing a business after one year of launch..........................................................................8
REFERENCES................................................................................................................................9

Question 1
In this section of the report, an attempt is being made to analyse the similarities and
differences between the marketing mix of a product and marketing mix of a service.
A. Introduction of Marketing Mix Strategy
Marketing Mix can be defined as the comprehensive set of elements which are considered
by a business organisation with an objective of promoting and branding the products and services
which are being offered (Londhe, 2014). Marketing mix primarily consists of four elements
which are product, price, place and promotions which act as tools aiding the marketer to decide
future course of action for offering any product or service in the product. People, physical
evidence and process are another elements of marketing mix which are now being considered by
many business organisations. Marketing Mix provides broad guidelines with respect to different
aspects of promotions, advertising and branding of a product which increases the potential
customers and maximises generation of revenue.
Use of marketing mix by marketers:
Marketing Mix is one of the most vital tool which is being used by marketers in today’s
business environment. It helps them to create and foster a compatible mix of various elements
which are considered in the marketing mix strategy and ensure that each element works well in
harmony and compatibility with the other to increase the overall sales and revenue of the
product. Marketing Mix is a very important and crucial guide to business growth and
development which can be analysed by the marketers to make key changes in promotions
strategy or price strategy to increase sales and provides a provision of flexibility to the company
(Khan, 2014). Hence, marketing mix is being used by marketers to enhance the process of
product development and create a suitable atmosphere which can foster the increasing sales of a
product or a service.
B. Characteristics of a Product and a Service
Characteristics of a Product:
A product can be termed as any object or article which is manufactured and produced for
satisfying a need or requirement of a customer. Some of the distinguishing features of a product
are as follows:
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Tangibility: A product is tangible in nature which implies that the customers of a product
can physically touch the product and evaluate its various aspects before making a purchase
decision. Tangibility of a product majorly influences the buying or the purchase decision of a
customer since the quality of touch or feel of the product derives the stimulation or motivation
for customers (Product – Features, Characteristics and Types, 2020).
Separability: Due to its physicality, products can be separated from the manufacturer or the
producer of the product. Products are first manufactured and then sold to be consumed
afterwards by the buyer of the product. For example, goods produced in some part of a country
are exported to different geographical locations and areas and are distributed via multiple selling
channels and mediums which is an important feature of separability of a product. Hence, it is not
essential for a business organisation to install the complete production system in order to sell
products or goods at a certain place or location.
Ownership: Ownership in a good or a product is transferred to the buyer as soon as the
customer purchases the product. This also gives the liberty or the authority to the buyer of the
product to resell the article after using it. Upon the selling transaction in case of a product, the
ownership of goods is transferred to the buyer of the product (Product – Features, Characteristics
and Types, 2020).
Measurement of Quality: Quality of a product or an object can be easily measured or
evaluated by a customer using the physicality of the product and by the initial looks and feel of
the product. For example, it is easy to determine the quality of a clothing product by determining
the quality of fabric using physical element of touch and tangibility.
Characteristics of a Service:
A service can be defined as the transaction which involves delivering a value to the
customer or satisfying the needs and requirements of a customer without any physical transfer of
goods or objects. Some of the distinguishing characteristics of a service are as follows:
Intangibility: Services are intangible which implies that their presence can only be felt
but not seen or touched. Hence, the purchase decision in case of a service is usually much
difficult to be evaluated and determined by the customer due to non-physicality of service. Thus,
extrinsic elements play an important role in determination of a purchase decision under service
industry. For example, quality of service being provided by a hotel is often evaluated by other
physical elements such as lobby, garden, building, interior etcetera.
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Inseparability: Services are not separable from its producers or providers. Services are
first sold, then produced and afterwards consumed by the buyer or customer of the service. It is
essential to take along the service production system for providing a service at any particular
location or geographical area. Interaction and communication between the customer and the
service production system is essential for providing a service due to its feature of inseparability
(Features of Service, 2020).
Ownership: Ownership in case of services is not transferred to the buyer of the service
rather the customer only gets an access for a limited period to the service. It also restricts
reselling activities of services by any buyer or customer. For example, a tourist may avail the
accommodation service by a hotel but the right of ownership of hotel rooms remains with the
service provider.
Heterogeneity: One of the primary characteristics of service is its heterogeneity which
implies that high level of standardization can’t be achieved while offering services. Services are
highly variable and are also sold at variable prices. Level of satisfaction under a service is also
variably influenced by the perception of the customer (Features of Service, 2020).
C. Marketing Mix of a Product
Marketing Mix of a product primarily consists of four different elements which are
product, price, place and promotions (Singh, 2012). The elements which constitute the marketing
mix of a product can be understood considering the following example of cars manufactured by
Nissan UK.
Product: It refers to the actual object or the article which is being offered to the customers
for satisfaction of their needs and requirements. Product specifications must meet the demands
and requirements of the customer. For example, different range and sections of cars are being
sold by Nissan UK to meet expectations of various customer segments.
Price: Price refers to the amount at which goods or products are being offered to the
customers. Price is determined for a factors based on the cost of production and the market
forces of competition with an objective of increasing the value for money for the customers
(Kotler, 2012). For example, Nissan UK offers a premium range of sedan cars at affordable
prices for increasing the money’s worth for the customer.
Promotions: It includes all the activities which are aimed at increasing the sales and
promotions of the product such as personal selling, mouth of word, advertising, social media
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campaigns, digital marketing etcetera. Promotions is a very important aspect of marketing mix
for a product which provides a hospitable environment to the product fostering its increased sales
and revenue. Various channels of promotions such as online marketing on platforms such as
Facebook and Instagram etcetera are being done by the management of Nissan UK to increase
the brand awareness of the products being sold by the company.
Place: Place refers to the point where the selling transaction happens between the customer
and the company offering products. Place is another important element of marketing mix for a
product which determines the effectiveness of company’s distribution strategy to target
customers which are widely spread. For example, both online and offline medium of sales are
being used by the management of Nissan UK to promote the sales of the company.
D. Marketing Mix of a Service
In addition to the common elements of marketing mix of a product, there are three different
elements which are also included in the marketing mix of a service which are people, physical
evidence and process (Kushwaha and Agrawal, 2015). Elements which form the marketing mix
of a service can be better understood by considering the hospitality service provided by Premier
Inn Hotels in London, United Kingdom.
Product: It includes the wide range of services which are being provided by the company in
the hospitality sector such as accommodation and lodging, food and beverages, rich and
premium holiday and visit experience etcetera.
Price: The company offers its services at premium prices which justifies the quality of
service being provided by the company. In case of marketing mix for a service, price is not a
constant element but it tends to vary in quick response to the demand and seasonal nature.
Promotions: For promotions under service industry, online mediums of advertising and
branding are more commonly used by the management of Premier Inn Hotels such as social
media networking sites.
Place: Services are offered at both online and offline point of transaction. In the context of
Premier Inn Hotels, online selling of hospitality service is a common element of marketing mix
which is being adopted by the company.
People: People is an important element in the marketing mix of a service which refers to the
employees who are responsible for providing the service. For example, the employees or the staff
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of Premier Inn hotels are trained for providing the best quality of service to the customers and
form an important element of the company’s marketing mix (Anitsal, Girard and Anitsal, 2012).
Physical Evidence: Due to lack of tangibility of a service, physical evidence such as interior
of the building, lobby, gardens, staff appearance etcetera are important element of marketing mix
of hospitality service which are essential to be considered by the marketers of Premier Inn
Hotels.
Process: Every service organisation has a unique and distinct process of providing the
services to its customers which is another crucial element that forms the marketing mix of a
service.
Hence, the marketing mix of service includes three more elements as compared to the
marketing mix of a product which are people, physical evidence and process.
Question 2
In this section of the report, a food and beverage company is about to be launched in a
highly competitive industrial environment. This section deals with the consideration of important
things before opening the business, during the initial launch of the business and after a year to
the launch of the business organisation.
A. Opening or setting up a business.
In the light of today’s competitive business environment, there are many things which
should be considered by an individual before setting up a business venture. Four of the most
important things which are to be considered before launching a food and beverage company are
as follows:
Capital and Financing: Every business venture requires a substantial amount of
investment to be made for acquiring various kinds of resources. Before launching a food and
beverage company, it is important to consider the amount of capital which is required for
arranging various resources such as premises, machinery, equipment, staff, materials etcetera.
Further, the management needs to consider and evaluated the sources from where capital
requirements of the venture are to be fulfilled. Effective evaluation of different alternative
sources of finance is essential to obtain funds at a very low rate of interest and run profitable
business operations (Mullins, 2017). Along with this, various types of costs are also to be
considered such as marketing costs, promotional costs, legal costs etcetera. Capital and financial
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consideration made before launching a business helps the individual to determine the amount of
sales required to cover the initial investment and the break-even selling point where the fixed
costs of the company can be recovered.
Target Market: Target market refers to the potential customers of the business
organisation who are most likely to purchase the products and services which are being offered.
Target customer analysis is important consideration before setting up a business venture as it
helps to determine the current demand in the industry and also devise better marketing strategy
and product specification which can satisfy the needs and requirements of potential customers
(Malhotra, Sivakumar and Zhu, 2009). For example, the target market for food and beverage
industry primarily includes people aged between 15-45 years of age and it has been found that
social media websites is a common networking tools used by the target customers which makes
online promotions an effective strategy for interacting and communicating with these target or
potential customers of the business organisation.
Competition: Competition analysis is of utmost importance for any new business venture
to offer a unique value proposition to the customers which can help the company in obtaining a
market share and maximising the revenue. In order to derive long-term success in an industry, it
is important and crucial to consider what the current and existing firms in the industry and doing
and analyse any gaps in the expectations and demands of the customers (Cheung, 2015). For
example, food and beverage industry faces a high level and extent of competition with many
firms entering the industry in the last decade due to its high attractiveness. Hence, it is very
essential for an individual to analyse what the current firms or competitors are offering in this
industry such as Starbucks, McDonald’s, Costa Coffee etcetera. Without competitor’s analysing,
launching a business venture can’t provide strategic and tactical advantage to the company for
maintaining competitive position.
Human Resource Requirement: Assessing and considering the manpower requirements
for a business venture is very crucial. Human resource of an organisation are primarily
responsible for allocation and utilisation of every other organisational resource to increase and
maximise the sales and profits of the company. Hence, it needs to be considered that what skills
and qualities are required in the human resource and staff of the company which can provide a
competitive edge to the business (Hafeez and Aburawi, 2013). For example, in food and
beverage industry, skills and qualities such as communicating with the guest, providing a high
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quality of service, cooking skills, management skills etcetera are essential skills which should be
possessed by the staff of the company. Considering the various sources of recruitment is also
essential and determination of the training and development program for employees is also to be
considered by the individual before setting up or launching a business.
These are four of the most important considerations which needs to be made before
launching a business in addition to other things such as location, technology used, legal
complications or the process of registration and incorporation.
B. Launch of a business.
Different aspects needs to be managed and controlled after a business is successfully
launched to promote its sales and revenue. Three of the most important aspects to be managed
and controlled after the launch are being discussed as follows:
Marketing: After launching a business or setting up a company, it is very important that
the marketing strategy of the company is evaluated and managed to assess and determine its
effectiveness in meeting the business objectives and goals. Marketing strategy for a newly
launched business venture is a very important aspect of the company which extends beyond the
promotion and advertising of the products and services being offered but build an image and
reputation of the company and increases brand awareness (McDaniel and Gates, 2013). Hence,
marketing is a key aspect which has to be controlled and management which will help the
business in increasing sales, revenue, attracting more customers, building market image and
goodwill etcetera. Constant evaluation of marketing strategy also helps to analyse the customer
expectations and satisfaction levels along with determination of the strategy which has proved to
be effective until now. Marketing management is the only available option for a newly
established business venture to derive more sales and revenue which increases the importance of
managing and controlling this aspect of a company.
Finance: Liquidity for a business organisation is a very important aspect and it has be
effectively managed and controlled. During the initial launch of a company, various activities of
business leads to inflow and outflow of cash which makes it imperative to control and manage
this aspect of a company to maintain a strong cash flow position and liquidity position to meet
the short-term liabilities and payment obligations of the company. Managing financial aspect of
the company also includes identification of the current level of sales and revenue and analysing
the break-even point requirements (Brigham and Houston, 2012). Strategic financial
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management in the early days of launching a business organisation is also essential for
determining the future growth and expansion of the company. Hence, the importance of financial
management for a newly established business venture can’t be overstated.
Operations: Managing the operational aspect of a business organisation or a company is
the most crucial and challenging task for the management. Operations of the company includes
manufacturing and production of service, inventory management, managing supply-chains and
distribution networks etcetera. Operational management is important aspect of the company
which helps in increasing operational productivity and profitability. Operational management is
also important to achieve the optimum utilisation of resources (Krajewski, Ritzman and
Malhotra, 2013). Importance of operations management as an important aspect of company
increases specially during the initial launch where there exist a high probability of error and
defects in the operations due to inexperience of the staff and members. Hence, monitoring the
operations in an effective manner during the initial launch will help the company to establish
better performance and productivity standards for company’s operations in the future as well.
C. Auditing a business after one year of launch.
After a period of one-year to the launch of a business organisation or a company, it is very
important to audit the company on several dimensions to determine the profitability of the
investment. One of the most important thing which needs to be audited after the company has
completed one-year of launch is being described as follows:
Revenue and Profits: Primary objective of every business venture or company is to earn
maximum level or amounts of revenue and profits on the capital which has been invested in the
company. Auditing the company with respect to the amount of revenue generated and the profits
earned after a year of its operations will help to analyse and determine the profitability or
viability of the investment in business opportunity. Amount of revenue generated will help the
business managers to determine whether the company is running in profits or losses and
optimum utilisation of resources is being made or not (Thakurta, 2016). For example, auditing
revenue generated by a food and beverage company in its initial year will help to determine the
effectiveness of business operations and profitability of investment. It also provides other vital
information such as number of sales, customers acquired, market share obtained and the net
profit ratio to calculate additional expensed. Hence, auditing revenue and profits after a period of
one year to the launch of a business is a very important aspect.
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REFERENCES
Books and Journals
Anitsal, I., Girard, T. and Anitsal, M.M., 2012. An application of services marketing mix
framework: how do retailers communicate information on their sales receipts. Business
Studies Journal. 4(2). pp.77-90.
Brigham, E.F. and Houston, J.F., 2012. Fundamentals of financial management. Cengage
Learning.
Cheung, L., 2015. Quantitative Techniques for Competition Analysis.
Hafeez, K. and Aburawi, I., 2013. Planning human resource requirements to meet target
customer service levels. International Journal of Quality and Service Sciences.
Khan, M.T., 2014. The concept of'marketing mix'and its elements (a conceptual review
paper). International journal of information, business and management. 6(2). p.95.
Kotler, P., 2012. Kotler on marketing. Simon and Schuster.
Krajewski, L.J., Ritzman, L.P. and Malhotra, M.K., 2013. Operations management. Pearson
Education UK.
Kushwaha, G.S. and Agrawal, S.R., 2015. An Indian customer surrounding 7P׳ s of service
marketing. Journal of Retailing and consumer services. 22. pp.85-95.
Londhe, B.R., 2014. Marketing mix for next generation marketing. Procedia Economics and
Finance. 11(1964). pp.335-40.
Malhotra, S., Sivakumar, K. and Zhu, P., 2009. Distance factors and target market selection: the
moderating effect of market potential. International Marketing Review.
McDaniel, C. and Gates, R., 2013. Marketing research. Singapore.
Mullins, J., 2017. The New Business Road Test: What entrepreneurs and investors should do
before launching a lean start-up. Pearson UK.
Singh, M., 2012. Marketing mix of 4P’s for competitive advantage. IOSR Journal of Business
and Management. 3(6). pp.40-45.
Thakurta, P.G., 2016. Revenue management: the ever changing landscape and the need to
innovate. Worldwide Hospitality and Tourism Themes.
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