Marketing Mix: Comparing Tangible Products and Services Marketing

This report provides a comprehensive analysis of the marketing mix, comparing and contrasting strategies for tangible products and services. It begins by defining the marketing mix and its significance, followed by a detailed examination of the 4Ps (product, price, place, promotion) and their application to both product and service marketing. The report extends the discussion to include the 7Ps, incorporating people, process, and physical evidence for services. It delves into the characteristics of products (compatibility, complexity, observability, relative advantage) and services (intangibility, inseparability, perishability, variability). Furthermore, the report outlines critical considerations for launching a new food and beverage company, including naming, logo design, funding, and location. It also discusses operational aspects during the launch and post-launch audits to check the viability of the investment. The report concludes with a summary of key findings and recommendations for effective marketing strategies in the food and beverage industry.

Marketing
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY 3
TASK 1 3
1.Discuss and explain the differences and similarities between the marketing mix for a
tangible product and the marketing mix for a service 3
a. A general overview of the marketing mix stating why marketers use it3
b. Explain 4 characteristics of a product and another 4 characteristics of a service. 4
d. Which Ps make up the marketing mix of a service. 6
TASK 2 7
2.You are about to launch a new food and beverage company in a highly competitive market.
Discuss 4 things to consider before setting up the business, 3 others during the launch and 1
thing to consider a year after the launch. You need to support your argument with valid
reasoning 7
a.Before setting up a company, there are many things that a businessperson should consider.
Name and discuss FOUR of these things. 7
b.When the company is up and running, different aspects of the company need to be kept
under control. Mention and discuss the importance of monitoring THREE of these. 9
c. Periodically, businesses need to be audited to check the viability of the investment. Mention
ONE thing that needs to be audited 1 year after the company has launched. 10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12
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INTRODUCTION
Marketing is considered as a practice that firm undertakes for promoting the purchasing
or selling of goods or services. It consists advertisement, selling as well as delivery products or
services to customers or another business (Kotler and et. al., 2018). So, it is essential for all
entities to manage their marketing part in more effective and efficient way. Moreover, marketing
is crucial for business as it assists them in developing relation with consumers and understanding
them as well. This report is divided into two parts; in first part the differences and similarities
between marketing mix for tangible products and services. By covering some topics like
marketing mix and why marketers utilise it, four characteristics of products and services and
other. In second part, a new food and beverage company launch into highly competitive
marketplace through considering 4 things three at the time of launch and one thing after launch.
MAIN BODY
TASK 1
1.Discuss and explain the differences and similarities between the marketing mix for a tangible
product and the marketing mix for a service
Both product and service marketing mix are somehow similar but few differences are
there among them. Product marketing mix comprises of 4P’s such as product, price, place and
promotion which is mainly utilised in respect of Tangible goods. Moreover, into service
marketing mix three more P’s are extended such as people, process and physical evidence. The
similarities and differences among both are discussed in more detailed manner:
a. A general overview of the marketing mix stating why marketers use it
Marketing mix considered as the process of exchanging value which is provided the 4P’s.
In simple term, this is a marketing tool which combines a number of components for
strengthening as well as solidifying a product’s brand and also to assists sell the goods or
services (Chernev, 2018). Firms have to come up with strategies for selling its products and used
marketing mix for it. Mainly, it has 4P’s such as product, price, place and promotion are created
by the marketing professor named as E. Jerome McCarthy in year 1960 and further 3 more P’s
are extended like people, process and physical evidence. The marketer utilise it for designing
plan of action as well as campaigns to promote its goods or services. Also, it is helpful for them
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in understanding that what type of elements should be accumulated for accomplishing its
objective and goals of marketing. Moreover, marketers also use it so that they can able to put
right product, at a right price, at right place and right time.
b. Explain 4 characteristics of a product and another 4 characteristics of a service.
Product is considered as an item which is facilitated for sale. Each product is made at a
cost as well as all is sold at a price. The products have various characteristics such as
compatibility, complexibility, observability, trialability and others (Aghazadeh, 2015). Some of
them are discussed below:
Compatibility: It is how customers purchases new product in individual’s lifestyle
choices. When product matches the person’s requirements, desires, values and consumption
pattern. So, the innovation may be considered highly compatible with customer.
Complexibility: The extent to which customers considers innovation or creativity to be
difficult in utilization is called complexibility. It is considered to an important characteristic as
this develops innovation into products at higher level.
Observability: It is also an essential characteristic of products as the extent to which
potential clients may monitor innovation whose positive affects is called observability. This
positive observation from customer view point makes product different from others.
Relative advantage: It is also a crucial characteristic of products as it is an extent to
which potential customers observe a certain attributes of new products to be more effective in
comparison to existing goods. In case clients monitor that attribute of new product is better than
present ones, this is not necessarily means that that one is better. It means that respective product
a characteristic is depends upon customer perception.
Services are considered as a practices, satisfaction and benefits that are facilitated for sale
or are offered into connection with the sale of goods. Some of the characteristics of services are
discussed below:
Intangibility: It is essential consideration which complicates the functional
accountability of a marketing manager especially during encouraging and influencing the
consumers (Homburg, 2016). It is an important characteristic of services as it is generally
intangible. Because of the services cannot be experienced or consumed unless the purchased in
made.
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Inseparability: This characteristic of services concentrates upon the facts which the
services are not of separable nature. As service are unique because it are generally rendered and
consumed at same time and location. Due to this characteristic, consumers have strong
expectations about how services will be facilitated.
Perishability: It is also an important characteristic of services, it is often perishable
which mean that unused capacity cannot be stored for upcoming utilisation or sale. So, in case
demand is steady, the perishability of services is not a problem. Thus, services firm utilise
several techniques for developing a effective match among supply and demand.
Variability: Among four one of the important characteristics of services is variability
which differentiate a services. As variability expresses the notion which a service may vary into
standard or quality from one facilitate to others (Järvinen and Taiminen, 2016). Which Ps make
up the marketing mix of a product.
Product marketing mix comprises of 4P’s such as product, price, place and promotion
which is mainly utilised in respect of Tangible goods. It includes product, price, place,
promotion. All these are discussed below:
Product: It is an initial element of marketing mix before starting any business. It may
distinguish into three parts core products, augmented product and tertiary product. So, product
decisions are taken before making any type of marketing plan.
Price: Generally, it depends upon various distinguish variables and this is constantly
updated. The main part which firm have to be considered into price is product, advertisement and
marketing costing. So, pricing have to be such that it may bear various changes fro specified time
period.
Place: It considered as the distribution channel of product. If goods is customer products,
it requires to be available as far as possible. Where as if it is premium consumer product then this
will be available only into selected stores. Therefore, place is a market where product get
distributed.
Promotion: In marketing mix, promotion involves completed integrated marketing
communication. Promotions are dependent a lot upon product and pricing decision. Moreover,
this also, decides the product segmentation, targeting and positioning (Stacey and Wilson, 2014)
. It can be done with the help of various techniques such as online promotion through social sites,
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like facebook, instagram, ads on websites and others. Another one is offline by mouth to mouth,
newspaper ads etc.
d. Which Ps make up the marketing mix of a service.
Services marketing mix is also known as extended marketing mix as well as it is an
integral part of services blueprint design. It includes 7P’s such as product, price, place,
promotion, people, process and physical evidences as all these aspects are essential for optimum
service delivery (Nordhielm and et. al., 2015). All these are discussed below:
Product: Product into service marketing mix is intangible in nature. Also, it is perishable,
heterogeneous and cannot be owned. The best example of this is tourism and educational
industry.
Price: Price in services case is more difficult than in case of product. Usually, service
price includes overhead, labour and material cost. Through adding a profitability mark up firm
get final service pricing.
Place: Place in respect of service is determine in which service product is going to be
located. For example: the software company can be effectively placed into business hub with a
various firms.
Promotion: It is considered to be the most vital elements into service marketing mix.
Services are simple to get duplicated and thus it is usually the brand that sets services apart from
their counterpart. For example: various banks and telecom firms promotes themselves rigorously
it is so because competition into services industry in usually higher as well as promotion is
compulsion for survival.
People: In service marketing mix, people is considered as the crucial elements. It defines
services. So, within service marketing people may develop or break a firm. For example:
employees working in a company are known as a people. for example: If anyone have an IT firm
then the engineering working in that organisation define them. So, now a days, companies are
involved into hiring trained workers which helps them to provides effective results.
Process: Process in services is a way where a service is delivered to the end clients. For
example: Mcdonalds, it is known for their quick services as it consider that what they do it is
their confidences on its processes.
Physical evidence: This is considered as the last and important element of services
marketing mix. It is utilised as a differentiator into service marketing and this is vital for
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developing a better customer experience. Moreover, the physical evidence is utilised as a
differentiator into service marketing.
TASK 2
2.You are about to launch a new food and beverage company in a highly competitive market.
Discuss 4 things to consider before setting up the business, 3 others during the launch and
1 thing to consider a year after the launch. You need to support your argument with valid
reasoning
A new food and beverage company are about to launch named as delightorzo restaurant
within United Kingdom market. Some of the things that have to be considered before setting up
business, during running and after 1 year are discussed below:
a.Before setting up a company, there are many things that a businessperson should consider.
Name and discuss FOUR of these things.
In respect of setting up new Food and Beverage Company, the businessperson has to
consider few things such as name, location, funds and others. All things are explained in detail
below:
Name of the company: It is considered as the most important things before setting up
new company (Brumana and et. al, 2017). So, the name of new company is Delightorzo
restaurant which is a restaurant that provides food and beverages to the customers. They
facilitate various kinds of food item and also different variety of beverages that attract customers.
Logo: It is considered as a combination of text as wel as visual imagery which serves two
purpose such as tells individuals the company name and visual symbol which represent business.
So, before setting up business it is also vital. Therefore, the logo of respective company is shown
below:
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Funds: Before setting up any type of business or company funds is essential as without
this nothing can be performed in effective manner. It is a considered as a pool of money which
set aside for particular intent. So, the business person who is deciding to launch a new company
named as delightorzo restaurant then it should arrange fund before it which help them to run the
business in more effective way.
Location: It is the most important things that a business person has to consider before
establishing a business as it is a places where the company is going to be established (Turner and
Endres, 2017). So, the company delightorzo restaurant is going to be located in United Kingdom.
Business model: This is considered as a business tool which is utilised to visualize whole
building blocks when any person wants to start a company. Before starting any business,
individuals have to develop an effective business model (Latiff and Safiee, 2015). So, for a new
food and beverage company which is named as delightorzo restaurant a businessperson have to
build a business model by using canvas model. As it is a graphic representation of various
variables this shows the organisational values. Moreover, it is also deploy as strategy tool for the
establishment of new firm. This model can be used by them after establishment also as this
analyses the situation of exiting business.
KEY PARTNERS
 Supplier
 Customer
 Governm
ent
 Business
KEY ACTIVITIES
 Monitoring
quality of food.
 Low cost items.
 Services.
 Attractive menu.
UNIQUE VALUE
PROPOSITION
 Quality in
food and
services.
 Affordable
price.
CUSTOMER
RELATIONSHIP
 Discounts
 Personal
services
CUSTOMER
SEGMENTS
 Friends group.
 Family.
 Couples and dating
individuals.
KEY RESOURCES
 Staff.
CHANNELS
 Online orders.
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 Investors.
 Furniture’s.
 ERP system and
others.
 Social media
COST STRUCTURE
 Salary of staff.
 Kitchen appliances
 Promotion.
 Advertisement
 Rent
REVENUE STREAMS
 Catering services.
 Supplying food into parties and many more.
b.When the company is up and running, different aspects of the company need to be kept under
control. Mention and discuss the importance of monitoring THREE of these.
Control includes a procedures as well as methods which guide, regulate and protect a
firm. Moreover, monitoring is considered as an activity of analysing as well as reviewing
performance of such procedures to find issues and success (Salem, 2014). As business,
delightorzo restaurant which is established and are running so the businessperson has to monitor
and needs to kept control over the funds, it has to be managed and control in effective and
efficient manner. So, for this, it is recommended that a new company may utilise a set of
financial policies as it help them to managing finances.
Monitoring is considered as a systematic, timely and purposeful observation as well as
information for checking that if the business activities are being implemented as per the plan or
not. This is important as this provides information regarding what outputs while running a
business and any problems which are coming during business performance. Mainly, it is useful
in checking the progress of work as well as results in systematic manner. Moreover, it also
assists them to ascertain the ongoing business plan and the modification that may be required.
Therefore, owner of delightorzo restaurant have to monitor their company as it started running.
Evaluation: It is considered as an objective assessment of execution, design and
outcomes of ongoing business. It also involves accumulation information collection which will
be helpful in decision making, determining effectiveness, efficiency, impact and sustainability of
business either it is meeting the objectives or not. Also, the new company delightorzo restaurant
has to evaluate its activities and performance as they are running their business in UK.
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c. Periodically, businesses need to be audited to check the viability of the investment. Mention
ONE thing that needs to be audited 1 year after the company has launched.
If any business is started so it has to be audited for checking the viability of investment as
this help business perform to get knowledge about the financial performance of business. So,
after one year of the company, financial statement is to be audited. Financial statement is defined
as a formal record of financial practices as well as business position. It is important to audit
financial statement after one year as it facilitates credibility to the reported financial position as
well as business performance. Moreover, it also assures that all financial transactions are
recorded properly on the books of company (Stummer Kundisch and Decker, 2018). So, the new
food and beverage company named as delightorzo restaurant have to audit their financial
statement after the complement of one year as this helps them to know about its financial
position of business, operations and any issues. Moreover, as it is an small firm so it require
more funds so auditing is helpful as most of the investors rely on audited statement so that they
can able to determine either an ongoing business worthy for investment or not. It also show if
any fraud into company is going on.
So, after analysing all the above things, it has been also summarised that there are various
things that have to be consider before starting new business such as name, location, business
model and other. Also, at the time the business is running so monitoring play essential role as
assists them to ascertain the ongoing business plan and the modification that may be required.
Along with this, they have to audit their financial statement as it helps them to it facilitates
credibility to the reported financial position as well as business performance.
CONCLUSION
As per the above report it has been concluded that marketing is crucial for organisation as
it assists them in developing relation with consumers and understanding them as well. Moreover,
both product and service marketing mix are somehow similar but few differences are there
among them. Also it’s help marketers in designing plan of action as well as campaigns to
promote its goods or services. The services and products have some essential characteristic such
as compatibility, observability, inseparability, intangibility etc. which differentiate them with
others. The P’s like product, price, place and promotion makes up product marketing mix where
as in services more 3P’s are extended such as process, people and physical evidence. Apart from
this, it has been also summarised that there are various things that have to be consider before
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starting new business, while running and after one year such as name, location, business model
and other.
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REFERENCES
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Kotler and et. al., 2018. Marketing management: an Asian perspective. Pearson.
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Turner, S. and Endres, A., 2017. Strategies for enhancing small business owners' success
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Online
Services marketing mix. 2020. [Online]. Available Through:
<https://www.marketing91.com/service-marketing-mix/>
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