Importance of the Marketing Mix Essay - 275 Words

Importance of the Marketing Mix (Coursework Sample) Content: Rationale for developing different market segments and theImportance of the marketing mixByPresented toTask 1.d) Discuss the reasons for developing different market segmentsMarket segmentation is a marketing strategy that involves identifying and dividing a large homogenous target market into smaller segments identifiable by similar needs, wants or priorities (Brassington, 2000). This results in a company developing different market segments. As customers have different needs or preferences, it makes more sense for a business to group similar customers together. The market is initially reduced to a smaller component and upon segmentation; the marketer finds a viable market.The main purpose of implementing market segmentation as a marketing strategy is so that a company can better satisfy the needs of similar customers. Customerà ¢Ã¢â€š ¬s needs are different and segmenting a target market makes the company more efficient and can achieve higher performance. Performanc e is seen through indicators such as revenue or sales.Another reason for market segmentation is the fact that customers have different disposable incomes. Thus, their sensitivity to price is different (Boundless, 2014). A business that segments their target market by offering their products at various prices can cater to a larger section of a given market. This results in enhanced profits for the company.Market segmentation can be used by a company to position a product. Customers can be encouraged to start using a particular product if it is offered at a low price. After gaining a low market price, a company can then growth the company through built up sales revenue that is reinvested back into the enterprise.A benefit of market segmentation as a marketing strategy is that it can be used to maintain a share of a market segment. A business without a strong lead will find it hard to maximize profitability due to larger brands. Large brands maximize scale of economies in production an d marketing and leverage their relationship with distributors and retailers to deliver an extremely differentiated product to the end consumer. Small companies may find it harder to find a particular segment of the market to satisfy.Task 1.e) Assess the importance of components of the marketing mix to the industryMarketing mix refers to a marketing strategy that involves combining factors that can be controlled by a business, to achieve its objectives of marketing a product to a particular target market segment (Chong, 2003). The reason for this is that these factors are essential aspects of marketing activities. Market planning can then be better translated into practice.The basic components of a marketing mix are the product, price, place, and promotion. Other components may include people, process, and physical experience. A successful business is one that can design a product or service that meets the needs of their target market and offer it at a price that is affordable. The c ompany can then sell it from locations that reach their target market best and inform the market best with active promotion.The components of a marketing mix are an important tool for a marketer or business. The business can identify a market that is attractive to them (Bennett, 2006). This is because these components make the marketing process seem easier to handle and can sepa...