GBS0812: Analyzing and Evaluating Marketing Mix Strategies Report

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This report, submitted by a student for a BTEC HND in Business, analyzes the extended marketing mix (7Ps) and its application in various organizations. The report begins with an introduction to the marketing mix, defining its components and their roles within an organization. It then delves into each of the 7Ps: product, price, place, promotion, process, people, and physical evidence, providing detailed definitions, examples, and practical applications. The student explores product classifications, layers, and decision-making processes. The report includes real-world examples and practices of how different organizations utilize each element of the marketing mix. Finally, the report analyzes and evaluates marketing mix tactics applied by organizations, drawing conclusions and providing references. The goal is to understand how the marketing team can build a strategic marketing plan for a new product line.

ASSIGNMENT 2 FRONT SHEET
Qualification BTEC Level 4 HND Diploma in Business
Unit number and title Unit 2 Marketing Essentials
Submission date Date Received 1st submission
Re-submission Date Date Received 2nd submission
Student Name Võ Minh Anh Student ID GBS200287
Class GBS0812 Assessor name
Student declaration
I certify that the assignment submission is entirely my own work and I fully understand the consequences of plagiarism. I understand that
making a false declaration is a form of malpractice.
Student’s signature
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Table of Contents
I. Introduction .......................................................................................................................................................... 4
II. The extented marketing mix (7Ps) theory and concepts: ..................................................................................... 4
1. What is marketing mix? .................................................................................................................................... 4
2. Roles and responsibilities within an organization ............................................................................................ 5
3. The extented marketing mix (7Ps) .................................................................................................................... 5
3.1. Product...................................................................................................................................................... 5
3.2. Price .......................................................................................................................................................... 9
3.3. Place ........................................................................................................................................................ 12
3.4. Promotion ............................................................................................................................................... 13
3.5. Process .................................................................................................................................................... 15
3.6. People ..................................................................................................................................................... 18
3.7. Physic evidence ....................................................................................................................................... 20
III. Examples and practices about how different organizations utilize each element of the marketing mix ...... 22
IV. Analyze and evaluate marketing mix tactics applied by organizations through practical cases. ................... 28
1. Product............................................................................................................................................................ 28
2. Price ................................................................................................................................................................ 30
3. Place ................................................................................................................................................................ 30
4. Promotion ....................................................................................................................................................... 31
5. Process ............................................................................................................................................................ 32
6. People ............................................................................................................................................................. 32
7. Physical evidence ............................................................................................................................................ 32
Evaluate .................................................................................................................................................................. 33
V. Conclusion........................................................................................................................................................... 33
VI. References ...................................................................................................................................................... 33

I. Introduction
In the first report, the BOD has understood the important of the marketing department in organization. In
this report, as a new member of marketing department of company X, my duty assign to conduct a small
study in order to review the various ways in which the competitors use the marketing mix to achieve their
overall business objectives. So that the marketing team build a strategic marketing plan for a new product
line, which will be launched in the next 3 months.
II. The extented marketing mix (7Ps) theory and concepts:
1. What is marketing mix?
According to Philip Kolter & Gary Armstrong (2012,p.76), marketing mix is Is the set of marketing
plan tools that companies mix to produce the response individuals want in the target market. The
marketing mix is everything that the company can do to affect the demand for its product.
Marketers can collect the many possibilities into four groups of variables-the four Ps which are
Product, Price, Place,and Promotion.
• The extented marketing mix- from 4Ps to 7Ps
At first, original marketing mix was created by E. Jerome McCarthy (1960) and after 20 years this
model was expanded into 7 elements by Booms & Bitner (1981) which add new 3 elements to 4Ps
concept. These elements are people, process, and physical evidence that focus on not only
products but also the services. And originally developed for the service industry.
Source: UPLEVO, nd

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2. Roles and responsibilities within an organization
Philip Kolter & Gary Armstrong(2012) pointed out that marketing is a process that creat value as
well as build strong relationship with customer in order to capture customers’s value in return.
And marketing is a part of this process after determining overall marketing stratergy. Planning a
good marketing will bring many benefits for organization. The first role of the marketing mix is
assist marketers understand what produce or service can offer to customer and plan a best
product offering by defining the needs and wants of target customer. Secondly, it is also
contribute to plan, develop, and execute a long term marketing strategies effectively because not
only considering product but also other 6 elements to make sure customer can capture the value
that are setted by the company. Moreover, marketing mix help to recognize the strength to use it
maximum and the weakness as well as threats to avoid and reduce the unnecessary costs for the
firms. Forcasting the risks find the ways to face or avoid that minimize the consequences.
Fourthly, it decide whether the product or service fits customers. Finally, it help the marketers
know when and how to promote the products or services.
3. The extented marketing mix (7Ps)
3.1. Product
• Definition: Product is something that can be sold to a consumer to fulfill a need or desire for
attention, acquisition, use or consumption. Productions include more than just tangible objects,
such as smartphones, clothes, …. Broadly defined, products also include services, events,
persons, places, organizations , ideas or a combination of them. Services are a type of product
consisting of selling operations, rewards or satisfactions that are basically intangible and do not
lead to ownership such as banking, hotel,… . Usually, market offering of the company comprises
tangible items and intangible services. Though some firms only produce tangible items and some
other only provide seriveces. Both tangible and intagible product is created to meet the needs of
customers. (Philip Kolter & Gary Armstrong,2012, p.248)

Source: Marathon Electric, n.d
• Layers of a products: The product which are established must reach the market’s needs and
follow 3 level of product which are core customer value (1), actual product (2), augmented
product (3). (Philip Kolter & Gary Armstrong,2012, p.250)
Source: Philip Kolter & Gary Armstrong,2012
(1) Core customer value: is the basic need that satisfies the consumer when the product is
purchased. The core benefit from the customer perspective is important to think about. The
best way to do that is to ask, " Fundamentally,why is the consumer purchasing that
product?”. For instance, A cell phone 's key advantage is calling and main benefit of a car is
transport people and goods.
(2) Actual product: The physical good or the service delivered offering the desired benefit; also
includes the product's distinctive features such as its look and style, the packaging and its
brand name. Take the cell phone example, the actual product then consists of the phone
design and characteristics, including: color, packaging, dimension, app ecosystem,….
(3) Augmented product: Any non-physical aspects of the product are the augmented product.
Typical items such as warranty and customer service include the enlarged product. The
augmented product can be a significant way to tailor the product to suit different customers
' requirements. Once again the example of cellphone, the augmented product could have a
12-month guarantee for all customers. Corporate customers can receive a 24-hour
replacement service for damaged mobile.
• Types of product: There are two primary product classifications: consumer (1) and industrial (2)
goods.
(1) Consumer goods: Philip Kolter & Gary Armstrong (2012) have suggested that consumer
products are goods and services purchased for personal consumption by final consumer.
Such goods and services are usually further categorized by marketers based on the way
customers purchase them which comprise convenience, shopping, specialty and unsought
products.

Source: : Philip Kolter & Gary Armstrong, 2012, Principles od Marketing, p.251
o Comfort products are consumer products and services which generally consumers buy
frequently, promptly, with a minimum of comparison and purchasing effort. Items are typically
low priced and are conveniently accessible in many ways when consumers need them or want
them. For exmample, toiletpaper, candy, fastfood,…
o Shopping products are consumer products and services less commonly purchased that
consumers carefully compare in their matched price, pricing and design. Consumers spend a lot
of time and money in the processing and analysis of details while purchasing shopping goods
and services. Intances involve clothing, cars, furniture,… Marketers in this types of products
usually distribute their goods over fewer channels but offer greater sales assistance to
consumers in their comparison.
o Specialty products are buyer products and services with unique features or brand identification
that are ready for a special purchasing initiative for a significant group of buyers. Examples
comprise paticular car brands, luxury fashion brand, make up, high-end photograghphy
equipments. Generally the consumer does not compare items of specialization. They just invest
the time to meet dealers with the items they are searching for.
o Unsought products are consumer products which are not known or known to market and which
typically are not intended for purchase. Insurance, preplanned funeral servicces and blood
donations are the classical examples. Unsought products need huge advertising , personal selling
and other marketing activities to attract customers.

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(2) Industrial products: Industrial products are those which have been bought for further
processing or use in a corporation. Three types industries products are: materials and parts,
capital items, and supplies and services. Materials and parts include goods and components
manufactured as well as raw materials such as agricultural products and natural products.
o Capital items, include installations and accessories, are industrial goods that assist
development or operations of a purchaser. Installations require large acquisitions of
the building (factories, offices) and fixed installations (geners, drills, computer
system, evaluators). The accessories include portable manufacturing machinery ,
tools and office equipment (computer, fax machines, desks). They have a shorter life
than installations and help the manufacturing cycle clearly.
o Supplies and services Include operating supplies and repair and maintenance
services. Supplies are industrial feild convience goods, but they are typically
purchased with the minimum effort or contrast. Business services provide repair and
maintenance services and asvisory services for companies. Such services are usually
delivered by contract.
• Product and Service Decision:
The first discussion is about product and service ttributes: The development of a product
involves defining its characteristics like quality, characteristics, style and design. The
product quality is the product or service features that are dependent on its capacity to
meet the customer's stated or implied needs
Source: Philip Kolter & Gary Armstrong, 2012, Principles od Marketing, p.253
Secondly is randing which is an identification of the goods or services of one seller or group of
sellers, a name, symbol, or design , or a combination of these, which distinguishes them from
those of competitors. Branding can add value to a consumer's purchases. A consumer views the
brand as an important part of a product. Brands give their customers meaning and brand
connection develops. The brand thus has significance that goes far beyond the physical
characteristics of a product.
In many ways, branding assists consumers. Brand names allow consumers to identify products
that could benefit them. Brands also speak about product quality and loyalty consumers who
always buy the same brand know that every time they buy it they get the same functionality,
advantages, and price. Branding offers a number of advantages for the retailer too. The logo and
trade mark of the seller provide legal security for the single attribute of the product that rivals
may otherwise copy. The seller to segment markets is assisted by branding. Finally, the brand is
used to create a whole tale on the specific qualities of a product.

The following is packaging thatt is a product cover or jar, but a lot more. The commodity is
protected by packaging. This allows the handling and storage of the drug for customers. In
communicating brand personality, packaging also plays an important role. Enhanced
competition and disruption on retail shore shelves means packages now have many sales tasks
to perform, ranging from buyers to brand positioning communications to closing sales
In addition, labels define the product or brand, it also could explain server stuff about the
product-who was made, where it was manufactured, when it was created, how it is to be used
and how it is to be used for protection. Finally, the company could be promoted, its positioning
supported and its customers contacted. Labels have become an important factor for many
businesses in larger marketing campaigns.
And the last things is support services. In order to get ideas for new programs, businesses must
constantly consider the importance of existing services. They do need to create a service
package to customer satisfaction and benefit the business.
• Product line/ mix is a category of goods closely related as they work in a similar manner, are
sold to the same consumer groups, are sold through the same form of outlets or fall within the
price range specified suh as adidas which produce many line of running shoes and apparel.
Product line length is the number of goods in the product line. The line is too short if the
manager can increase sales revenue by adding items; if the manager can increase profits by
reducing items, it is too long. Managers need to constantly review their product lines in order to
measure the revenue and earnings of each item and see if each item affects the overall success
of the line. Product line filling includes inserting additional items in the current line set. There
are a range of reasons to fill the product line: raising extra profits, pleasing retailers, using
surplus power, becoming a leading full-line firm and plugging troughs to sustain
competitiveness. And product line stretching occurs when an company expands its product line
beyond its existing range. Organizations at the high end of the market will extend down their
routes. Companies in the lower part of the market will broaden their product lines.
Organizations in the center of the market will grow in both directions. (Philip Kolter & Gary
Armstrong, 2012, p.258)
3.2. Price
• Definition:
First of all, people need to make clear the price definitions and the factors associated with this
section. According to Philip Kolter & Gary Armstrong (2012), price is the amount of money that a
good or service costs. In general, the price is a sum of all the products or services that customers
give up for profit. Price remains one of the most important factors determining the share of the
market and profitability of a company and the only element in the income-generating marketing

mix; all other elements are expenses. Price is also one of the most flexible elements of the
marketing mix.
• Methods of price
Source: Philip Kolter & Gary Armstrong, 2012, Principles od Marketing, p.314
In setting price, there are two basic way to approach which are value-based and cost-based.
About value-based pricing, using the buyer's value expectations as the pricing base, not the
seller's cost. Pricing based on value ensures that the marketer does not plan and instead set the
price for the product and marketing campaign. Price and other marketing mix variables will be taken into
account before the marketing program is developed. Two kinds of evaluation are based on certain
values: good-value pricing and value-add pricing. Good pricing provides the best quality and good service
mix at a decent price. And add pricing differentiate the company product and charge higher prices by
value-added products and services.
The next manner is cost-based pricing which includes setting prices on the basis of costs for the
manufacture, delivery and sale of the commodity plus a reasonable return rate for its effort and risk.
Cost-based pricing raises the cost of the commodity by a regular markup. Similarity with value-based,
there are two form of cost which are fixed and variable. Fixed cost (also referred to as over head) are
cost not variable by the level of production or sales that include rent, heat, interest. Costs that vary
directly by output volume are variable costs which include packaging and raw materials. The total cost
for any given level of output is the sum of the fixed and variable costs.
• Pricing Considerations:
Price determination is one of the main decisions of the marketing mix that rely on 4 major
considerations: overall marketing strategy, objectives, and mix, target costing, types of markets
,and demand and costs which are the limiting factors. The price ceiling is established by demand
factors, such as buyer-perceived value. The expenses of the product set the price point. In
between, marketers must consider costs of rivals and other considerations such as reseller
requirements, government regulations and business targets into account. Overall Marketing
Strategy, Objectives, and Mix is general price goals can include sustainability, maximization of

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existing income, leadership in market share or retention of customers and the creation of
relationships.To order to form a consistent and effective integrated marketing strategy, pricing
preferences must be aligned with product design, delivery and promotional decisions. Also
companies place their goods on the markets and then adjust other mixed marketing options to
their desired markets. The next consideraion is target costing that begin with an ideal sales price
based on customer value and then target costs to guarantee price fulfillment. In general there is
an inverse relationship between demand and price that lower demand is equal to the high price.
Yet, when consumers see higher prices as higher quality for prestigious (luxury) products, the
higher price can be equal to higher demand. For these reasons, Marketers need to know how
price changes are sensitive to clients and how demand is affected by this change. The elasticity
of demand is the unit sales change percentage resulting from a price shift rate. If price changes
affect the quantity required, then demand is elastic. Then, types of markets is the following
consideration which comprises 4 kinds of market: pure monopoly, pure, monopolistic, and
oligopolistic competition. Competitors ‘s strategy is one of the most important thing must
consider. Often the pricing policy of a business includes pricing its products near, above or below
competition.The company should pose some questions in the assessment of competitor pricing
strategies.What is the market position of the company in comparison to its customer value
offers by competitors?How big are the current competitors and the pricing policies? And why
does competition affect the price response of customers? The last one is economic condition
that can have a powerful impact on the organization’s pricing plan. The company must also
recognize the effect of its prices on other environmental groups, such as resellers and the
government.
• New Product Pricing Strategies
Once new goods are first launched by businesses, they face the task of setting prices. Two
different methods can be selected which are skim and penetrate. Many companies that produce
new goods layer by layer from the market, set high initial prices to "skim" revenue. This is known
as market skimming prices. Market skimming makes sense when the quality and reputation of
the product support the higher price, and more customers continue to want it at that price. To
use skimming competitors would not be able to quickly reach the market and lower the high
price. Some businesses use market penetration pricing not just to set a high price to skim small
but lucrative segments of market. In order to penetrate the market quickly and depth, they set a
low initial price to attract a large number of buyers quickly and to gain a significant market
share. This low-price approach needs to satisfy many requirements. Firstly, to produce increased
market growth at low prices, the market must be highly priced reactive. Secondly, cost of
production and distribution will decrease as volume of sales increases. And the low price needs
to help keep competition out and the price of the penetration must maintain its low price

position, otherwise the price advantage will only be temporary.
3.3. Place
• Definition: CIM (2015) has showed that place is where customers buy products, and the means
by which your product is distributed to that location shall be appropriate and appropriate to the
customer. Another definition was established by Philip Kotler and Gray Armstrong (2012) is
place involves operations of corporations that make the product accessible to target customers.
• Distribution channel:
Before distribution channel, wee must underand the supply chain that represents the network
for the creation and delivery of a particular product between a business and its suppliers and the
supply chain is a step towards taking the product or service to its customers. The supply chain
involve “upstream” and “downstream” partners. Upstream of the company is the group of
companies that provide the raw materials , components, components, information, funding and
expertise necessary for the production of a product or service. "Downstream" part of the
marketing chain (or distribution channels), that is look forward to consumer. Distribution
channel which is a set of interdependen assist to make a goods or services available for
consumption or use for consumer by business user or customer. (Philip Kotler and Gray
Armstrong,2012, p.363). The distribution channel is the final step of product delivery. For
customers. To customers. Corporations concentrate on increasing distribution channels only
when they have a successful product and correct pricing plan, goods are accepted by the
consumer and the revenue continues to rise for companies over a certain era. After the first two
years, this will begin. The choice of location and distribution channels for services depends
largely on the specific market requirements and the nature of the service. For certain cases, the
advantage of service proximity to consumers has been improved by technology.
• The role of channel
Many of the distribution channel functions are called improved supply quality. Large-scale
production, specialization and reasonable labor division savings. The broad and fast distribution
increases the volume of sales. Supports manufacturers with inadequate capital to directly carry
products to customers. Establish close customer relationships. Reduce transaction number.
Boost the quality of the transaction. Reduce transaction costs by rising transaction numbers.
Facilitate the search for end consumers' products and services.