Marketing Managers Marketing Mix Marketing Essay

Marketing Managers Marketing Mix Marketing EssayThe Marketing Mix, a basic tool of Marketing managers, the particular admixtureture of trade techniques, for caseful, price, packaging, and advertising, employ to promote the sale of a ingathering. Marketing managers bring the elements of the Four Ps together, combining them to achieve a greater conduce from their conclave then each of the individual effects of the Four Ps.In brief this assignment is concerned most trade management .It c overs in details about the concept of foodstuff mix with the aid of PepsiCo Inc., Which I every last(predicate)(prenominal)ow taken as a case study in exploring the way this organization has apply the merchandise mix.CONTENTSEXECUTIVE SUMMARYINTRODUCTIONBACKGROUN OF THE COMPANYLITERATURE SURVEY IN trade tittup marketing MIX IN PEPSICO INCCONCLUSIONREFERENCESAPPENDIXINTRODUCTIONMarketing is about identifying humans and well-disposed compulsions, in shortest form may be meeting the n eeds meshingably. In opposite haggle marketing raft be defined as an organizational function and set of processes for creating, communicating and delivering observe to guests and managing customer relationships in ways thats gain the organization and its stakeholders (marketing management, Philip Kotler Kevin lane Keller 13th Edition 2006).Mainly marketing was not being through with(p) only with the marketing department of the organization. It needs to interact with the aspects of the customers experience marketers must(prenominal) properly manage either possible points to satisfy the customer. Satisfying the customers was not an easy task for a marketer to market his crossing, a proper marketing plan definitely needed for the success of the process for this, marketing mix was a precise important tool for the proper marketing plan in success. Thats why now a days marketing mix as become a very vital role in the organization overlaps. The proper marketing mix definite ly gives a coercive growth and enabling the organization to adjoin the market shargon in the particular stub market.merchandising MIXThe term marketing mix refers to the four major areas of decision making in the marketing process that are blended the results desired by the organization. The four elements of the marketing mix are any(prenominal) quantifys referred to the four Ps of marketing. The marketing mix shapes the role of marketing with in all types of organization, some(prenominal) profit and non-profit. Marketing managers make numerous decision based on the various sub elements of the marketing mix, all in an take on to satisfy the needs and requires of customers.In recent times, we have seen the explosion of new media (Internet, viral marketing, event marketing, fruit placement, etc.) belittled television viewership, the advent of TiVo and similar technology where viewers plenty be skip through commercials, and increased cost-cutting muddleures. All of this has combined to increase demands for marketing departments to maximize the re fun on their marketing investments that is to optimize the combination of marketing and advertising investments in order to generate the greatest sales growth and or maximize profits. Marketing mix modelling measures the potential value of all marketing inputs and identifies marketing investments that are most likely to produce long-term revenue growth.As a marketing manager of PepsiCo Inc., is a world loss leader in convenient snacks, foods and beverages with revenues of more than $39 billion and over 185,000 employees. Here i am going to discuss about my organization, organization marketing schema and in the offshoot place the marketing mix implemented by PepsiCo.BACKGROUND OF THE COMPANYNAME PEPSI COCOUNTRY OF ORGIN joined STATESINDUSTRY Food Snacks Non-alcoholic BeveragesCEO Indra Krishnamurthy NooyiPRODUCTS Pepsi Mountain Dew Sierra Mist Starbucks Frappucino Lipton Iced Tea Tropi bottoma ware s, Etc.,HISTORYThe Pepsi Cola smart set began in 1898 by a Pharmacist and Industrialist Caleb Bradham, but it only became known as PepsiCo when it merged with Frito sic in 1965. Until 1997, it also owned KFC, Pizza Hut, and Taco Bell, but these fast-food restaurants were spun off into Tricon Global Restaurants, now Yum Brands, Inc. PepsiCo purchased Tropi thunder muga in 1998 and Quaker Oats in 2001. In December 2005, PepsiCo surpassed Coca-Cola Company in market value for the first time in 112 course of instructions since both companies began to compete.PepsiCo, Incorporated (Short for Pepsi Company) (NYSEPEP) is a big(a) transnational with interests in manufacturing, marketing and interchange a wide variety of carbonated and non-carbonated beverages, as well as salty, sweet and grain-based snacks, and other foods. similarly the Pepsi-Cola brands. PepsiCo is a world leader in convenient snacks, foods and beverages with revenues of more than $39 billion and over 185,000 emplo yees.In IndiaPepsiCo gained accession to India in 1988, by creating ventures with Punjab government-owned Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited. This joint venture marketed and interchange Lehar Pepsi until 1991, when the use of contradictory brands was allowed PepsiCo bought out its partners and ended the joint venture in 1994. In 2003, the Centre for Science and Environment (CSE), a non-governmental organization in New Delhi, said aerated waters produced by soft drinks manufacturers in India, including multinational giants PepsiCo and The Coca-Cola Company, contained toxins, including lindane, DDT, malathion and chlorpyrifos pesticides that can contribute to cancer, a breakdown of the immune carcass and cause birth defects. Tested overlaps take gust, Pepsi, 7 Up, Mirinda, Fanta, Thumps Up, Limca, and Sprite. CSE found that the Indian-produced Pepsis soft drink products had 36 times the level of pesticide residues permitted under europiuman me rger regulations Coca Colas 30 times.CSE said it had tested the same products in the US and found no such(prenominal) residues. However, this was the European standard for water, not for other drinks. No law bans the presence of pesticides in drinks in India.In 2006, the CSE again found that soda drinks, including both Pepsi and Coca-Cola, had high levels of pesticides in their drinks. Both PepsiCo and The Coca-Cola Company maintain that their drinks are safe for consumption and have published newspaper advertisements that say pesticide levels in their products are less than those in other foods such as tea, fruit and dairy products. In the Indian state of Kerala, sale and ware of Pepsi-Cola, along with other soft drinks, was banned by the state government in 2006, but this was change by the Kerala High Court merely a month later. Five other Indian states have announced partial bans on the drinks in schools, colleges and hospitals. (http//en.wikipedia.org/wiki/PepsiCoPepsiCo_in_In dia)LITERATURE SURVEYMARKETINGMarketing is a sociable and managerial process where by individuals and groups obtain what they need and want through creating and exchanging products and value with others (kotler and Armstrong principles of marketing)MARKETING MIXMarketing mix is the set of controllable tactical marketing tools that the form blends to produce the response it wants in the target market. marketing mix is consist of every thing the fast(a) can do to work on the demand for its products the many possibilities can be collected in to four groups of variables 4pproduct, outgo, place, and forwarding (kotler Armstrong ).The marketing mix principle are controllable variable which have to be carefully manage and must need the target customers. All elements of the marketing mix are linked and support each other.PRODUCTThe first element in the marketing mix is the product .The term product refers to the tangible physical products as well it includes profits. harvest-festiva l means the goods and services combination the society declare oneselfs to the target market. (Kotler Armstrong) .An object or a service that is mass produced or manufactured on a large scale with a special(prenominal) volume of units. A typical example of a mass produced service is the hotel industry. A less unequivocal but ubiquitous mass produced service is a computer operating system.Product is divided in to three basic levelsCore productsActual productsAugmented productsCore ProductsThe perceived or real affectionateness benefit or service to be gained from a product.Actual ProductA composite of the features and capabilities offered select and durability, design and product styling, packaging and brand name.Augmented ProductsSupport for the product, including customer service, warranty, delivery and credit, personnel, installation and after-sales support. setThe second element in marketing mix is expenditure. The price of the product covers all the expenses incurred in manufacturing and selling. price is the amount of m unrivaledy customers have to wages to obtain the product.(kotler armstrong) .It is determined by a subroutine of factors including market share, competition, material be, product identity and the customers perceived value of the product. The business may increase or decrease the price of product if other stores have the same product. For example When pricing a new product, businesses can use either market penetration pricing or a paring strategy.Types of setPENETARTION determine discernment pricing is the pricing technique of setting a sex actly low initial entry price, a price that is often lower than the eventual market price. The expectation is that the initial low price will secure market acceptance by breaking down existing brand loyalties. incursion pricing is most commonly associated with a marketing objective of increasing market share or sales volume, rather than short term profit maximization.SKIMMING PRICINGSki mming pricing is the strategy of establishing a high initial price for a product with a view to skimming the lap up off the market at the upper end of the demand curve. It is accompanied by heavy expenditure on promotion. A skimming strategy may be recommended when the nature of demand is uncertain, when a association has expended large sums of money on research and drivement for a new product, when the competition is expected to develop and market a similar product in the near future, or when the product is so progressive that the market is expected to mature very slowly.Pricing objectives usually four formsProfitability mountain group meeting the Competition prestigiousnessProfitabilityProfitability means that the firm focuses mainly on maximizing its profit. on a lower floor profitability, a company increases its prices so that additional equals the increase in product production cost.VolumeVolume pricing objectives a company aims maximize sales volume with in a given speci fic profit margin. The focus of volume pricing is increasing sales rather than on an immediate increase in profits.Meeting the CompetitionMeeting the price level contests is another pricing strategy. It is focusing in less on price and more on non-price competition items such as location and services.PrestigePrestige pricing refers to the practice of setting a high price for an product, throughout its entire breeding cycle as opposed to the short term opportunistic high price of price skimming. This is done in order to evoke perceptions of quality and prestige with the product or service.PROMOTION promotion is the troika element in the marketing mix.Promotion means that the activities communicate the merits of the product and persuade the target customers to buy their product. (kotler)Promotion represents all of the communications that a marketer may use in the marketplace. Promotion has four distinct elements advertising, public relations, word of let the cat out of the bag a nd point of sale. A certain amount of crossover occurs when promotion uses the four principle elements together, which is common in film promotion. Advertising covers any communication that is paid for, from television and motion picture commercials, radio and Internet adverts through print media and billboards. One of the most notable means of promotion immediately is the Promotional Product, as in useful items distributed to targeted audiences with no obligation attached. This category has grown each year for the past decade term most other forms have suffered. It is the only form of advertising that targets all five senses and has the recipient thanking the giver. Public relations are where the communication is not directly paid for and includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events. Word of mouth is any apparently informal communication about the product by ordinary individuals, satisfied customers or people specifical ly engaged to create word of mouth momentum. Sales staff often plays an important role in word of mouth and Public Relations. (http//en.wikipedia.org/wiki/Marketing_mix)For example a consumer is likely to want only one variant of your product and expect to purchase it immediately. A retailer is likely to want limited stock of a number of variants and not expect to pay for 60 days. A distributor is looking at large volumes of product in all its variants at greatly discounted rates. Your distribution policy needs to take account of these variables. If it does not, then you will find yourself in a very embarrassing position with a customer sooner or later which would result in the loss of a sale.The elements of the communication process areSender rewriteMessage / MediaDecodingReceiverFeedback NoiseThere are four promotion tools. Each promotion tools has its own crotchety characteristics and function.AdvertisingSales promotionPublic relationsPersonal selling(Term explanations are in Ap pendix) bulge outThe fourth element of the marketing mix is place . invest includes company activities that makes the product available to target customers (kotler) Place represents the location where a product can be purchased. It is often referred to as the distribution channel. It can include any physical store as well as virtual stores on the Internet. Place refers to having the skillful product, in the right location, at the right time to be purchased by consumers. This proper placement of product is done through middle people called the channel of distribution. The channel of distribution is comprised of interdependent manufacturers, wholesalers, and retailers. Each thespian in the channel of distribution is concerned with three basic utilities time, place, and obstinacy. Time utility refers to having a product available at the time that will satisfy the needs of consumers. Place utility occurs when a firm provides satisfaction by locating products where they can be easily acquired by consumers. The last utility is possession utility, which means that wholesalers and retailers in the channel of distribution provide services to consumers with as fewer obstacles as possible.MARKETING MIX IN PEPSIPRODUCTAs per kotler said product means any thing that can be offered to a market for attention, acquisition, use or consumption and might satisfy a want or need .mostly products are fall into two segments .consumer products and industrial productsThe Pepsi drink contains basic ingredients found in most other similar drinks including carbonated water, high fructose corn syrup, sugar colourings, phosphoric acid, citric acid and natural flavours. The caffeine free Pepsi cola contains the same ingredients but no caffeine.QualityPepsi follows one quality standard across the globe. Pepsi has a long-standing commitment to protecting the consumers whose trust and confidence in its products is the rudiments of its success. In order to ensure that consumers stay inform ed about the global quality of all Pepsi products sold in world .Pepsi products carry a quality assurance seal on them. The core benefit is drink for refreshment without alcohol and the feature is black colour with contain Aspartame (Nutra Sweet), Sucralose (splenda), Acesulfame Potassium (Sunnett). Augmented ProductGood customer support (i.e. Accessible, fast)DifferentiationPepsi has attempted to differentiate its products from cokes, but with little success. In an attempt to differentiate its products from cokes, Pepsi shifted its focus to the growing American teenage market in the 1990s, while coke keep to target baby boomers. Pepsi focused on varietal differentiation since 1999 by introducing a string of niche products although product innovation has been quickly copied by Coke. Since product extensions generate considerable uncertainty with modest results and high cost, both firms could jointly de-escalate the introduction of new products in favour of focusing on core brands, with some emphasis on product innovation. Pepsi could signal this intent by announcing its strategy publicly, hopefully encouraging Coke to follow suit.Brand Extension in PepsiPRICINGPricing is the only mix which generate the turn over for the organization the remaining are the variable cost for the organization. Price must support all elements of marketing mix, pricing is very difficult and must reflect and supply demand relationship.Types of pricing Strategy.Penetration pricingPenetration Pricing is a market-based approach to pricing wherein the price is set to a sufficiently low level (below the prices of competing products) to make the product attractive to the mass market. The aim is to achieve a large market share by high initial sales. It is introducing the product at a low price intended to capture the mass market for the product or service.Skimming pricingA product pricing strategy by which a firm charges the highest initial price that customer will pay. As the demand of th e first customers is satisfied, the firm lowers the price to attract another, more price-sensitive segment. Therefore, the skimming strategy gets its name from skimming successive layers of cream, or customer segments, as prices are lowered over time.Competition pricing manner in which a seller uses prices of competing products as a benchmark instead of considering owns costs or the customer demand.Product Line pricingProduct lining is the marketing strategy of offering for sale several(prenominal) relate products. Unlike product bundling, where several products are combined into one, lining involves offering several related products individually. A promissory note can comprise related products of various sizes, types, colours, qualities, or prices. Line depth refers to the number of product variants in a line. Line consistency refers to how closely relate the products that make up the line are. Line vulnerability refers to the percentage of sales or profits that are derived from only a few products in the line.Bundle PricingAnother pricing adjustment designed to increase sales is to offer discounted pricing when customers purchase several different products at the same time. Termed bundle pricing, the technique is often used to sell products that are complementary to a main product. For buyers, the overall cost of the purchase shows a savings compared to purchasing each product individually.Psychological PricingPsychological pricing or price stopping point is a marketing practice based on the theory that certain prices have a psychological impact. The retail prices are often expressed as odd prices a little less than a round number.The ASIA CSD market is mature. The industry sales growth is largely driven by population growth as well as the amount of advertising and product innovation taking in the industry. given(p) the mature nature of the market, both PepsiCo and coca-cola have resorted to pricing discrimination strategies to maximise the value of the consumer demand.Direct Pricing DiscriminationThe simplest form of extracting customer surplus is charging customers with different prices based on their location and purchasing power. This is discernible in the international operations of both Pepsi and Coca cola. Cola prices in Mexico, Brazil and Eastern Europe are lower than prices in Asia. Restaurant fountain drinks, single drinks at gas stations and bring home packs at supermarkets have all different prices on a per-unit basis even though their costs adjusted for packaging and distribution would not warrant such a discrepancy. Obviously, such segmentation helps situational-based pricing differences.In-Direct Pricing DiscriminationQuantity discounts along with price coupons used in supermarkets are obvious verifying price discrimination tools Pepsi can use. However, the most effective indirect price discrimination tool Pepsi has is in fact its brand name. The Pepsi brand equity actually allows the company to maintain its pricin g power. Retailers use this product category to induce store traffic and create additional sales, which in turn reduces their power relative to Pepsi. Given the 80% margin on concentrate, it is easy to see why Wal-Mart and other discount retailers can undercut Pepsis pricing with private labels, but still they will be ineffective in larceny Pepsi customers as long as Pepsis brand (and Cokes for that sake) maintains high customer loyalty.PROMOTIONThe successful products are service means nothing and less the benefits of such service can be communicated clearly in to the target market. Normally the promotional mix consists ofAdvertisingPublic relationssales promotionPersonal sellingDirect mail internet, e-commerceNormally Pepsi spending more on advertising rather than any other promotion mix. The main promotional strategy for Pepsi is advertising on media and taking part in social corporate events and sometimes Pepsi also offering sales promotions during the non-peak periods to reta in the sales partly, now Pepsi advertising in internet also. As a marketing manager of Pepsi should go with Virgos advertising strategy to overcome the competitor and also Pepsi should contribute public relation also that will definitely give positive and rapid sales increase.PLACEThe distribution and logistics operations of the PepsiCo, one of the worlds leading beverages and snack foods companies. The distribution system of the company clearly explaining the significance of various distribution channels used including supermarkets/retail stores, fountain/restaurant, convenience stores, trade machines and others for distributing beverages and snack foods. It also describes the logistics operations of PepsiCos bottler (Pepsi Americas) and elaborates on how by employing the latest wireless technology solutions it enhanced the readiness of its distribution and logistics operations significantly.CONCLUSIONPepsi Inc., as built reputation around the world as a major player in the soft drink market as well as the leader in the snack food industry. This has been done by creating a wholesome environment for their customers all the while maintaining its integrity. This can be seen in the marketing mix which is the successful mix such as product, price, promotion and distribution. But in PepsiCo distribution must understand the importance of an efficient distribution and logistics management system in reducing costs and creating value for customers. An effective marketing program brings together all of the elements of the marketing mix to achieve the organisations marketing objectives by delivering to customers what they want and need. Thus, the most successful companies will be those that can meet these needs most effectively.REFERENCESMarketing a Service for Profit A Practical claim to Key Service Marketing ConceptsBy Ian Ruskin-Brown, Greg Clark, produce by Kogan Page Publishers, 2007MarketingBy Richard SandhusenPublished by Barrons Educational Series, 2008The Ma rketing MixPublished by Primedia Corporate University, 1998Marketing managementBy Philip Kotler and ArmstrongWeb Referenceshttp//www.pepsi.com/http//www.pepsico.com/http//www.sirpepsi.com/pepsi11.htm