“Marketing Mix”

A Term Paper

Presented to the Faculty of the Senior High School Department

University of Cebu – Banilad Campus

In Partial Fulfillment

Of the Requirements for the Course

Entrepreneurship

Submitted by:

Gullem, Mary Jhuneth P.

Submitted to:

Mrs. Roselita Rafols Doming

Senior High School

University of Cebu – Banilad

March 5, 2018
 I. INTRODUCTION

Marketing Mix, a term coined by Neil Borden, are the ingredients

that combine to capture and promote a brand or product’s unique selling

points, those that differentiate it from its competitors. The ideas behind

Borden’s model were refined over the years until E. Jerome McCarthy

reduced them to 4 elements called “The Four Ps.” This proposed

classification has been used by marketing companies, branding agencies and

web design companies throughout the world. It is the policy which

determines the position of the company’s goods and services on the market.

It is obvious that in order to achieve success in marketing, one should be

aware of all the aspects and methods of the process. The key factors which

play the essential role in marketing mix are the quality of the product, its

price, the place where it is sold and promotion or advertising. These key

elements are the most important if the company expects to gain high profit

and remain successful. First of all the product should be of high quality and

be popular and required by consumers. Then, the price of the product should

be adequate and reasonable; otherwise it will be very difficult to sell it, as

people always try to save money.

 There are many benefits of the marketing mix, and reasons why they

should be used. In many cases, it provides a valuable framework for

allocating financial and human resources, nearly every company has to

allocate a certain amount of its precious resources towards its marketing

efforts, and they need to be used in the most effective ways. Also, a well

blended marketing plan helps with goal achievement, which will constitute

the company’s tactical-tool-kit for establishing strong positioning in the

target markets.

It can also promote customer satisfaction, by delivering a special

customer benefit tied together with each element of the 4 marketing

P's/marketing mix. For example the "Price" could be fixed in such a way that

imposes minimum cost to the customers, and "Promotion" activities may be

designed in a way to properly and completely "communicate the message"

of the company to targeted consumers in the correct markets. An analytical

study and interpretation of marketing mix has some benefits that are made

available to the business firms. First, it provides a valuable guide for

resource allocation. Second, it helps to allocate the responsibilities. It also

provides an opportunity to analyze cost benefit elasticity’s. Lastly,

marketing mix facilitates communication process. A lot of understanding of

the main ingredients of the marketing mix will go a long way in providing a
framework of relations around which the jobs can be allocated and the

respective tasks and task-expectations can be communicated clearly.

The main purpose of a company's marketing mix is to control its

marketing plan. An effective marketing mix includes the 4Ps: product, price,

place and promotion. How a company combines the 4Ps determines its

standing with customers and its income. The practical application of

marketing mix concept can be explained in a way that a firm can vary its

marketing mix by changing any one or more of these ingredients. Thus, a

firm may use one marketing mix to reach to one target market and a second,

somehow different marketing mix to reach to another target market. This

statement reveals the flexibility of marketing mix components in a way that

marketing mix strategy adopted by companies o not have to be universal and

rigid, and they have to be adapted to different markets, taking into account

the characteristics of each individual market.

 II. BODY

Theories

This current paper was based on one carefully selected major

theory and three supporting theories to form the theoretical framework.

They are the theory of (1) SWOT Analysis, (2) PESTEL Theory, (3) The

Boston Consulting Group Matrix, and (4) Stakeholder Mapping.

This study is anchored in the theory of “SWOT Analysis” by Albert

Humphrey (2005). SWOT is a strategic analytical tool for assessing

strengths and weaknesses of a business, analyzing opportunities available to

the business, as well as, threats faced by the business. SWOT analysis can be

used at organizational and personal levels. It is intended to specify the

objectives of the business venture or project and identify the internal and

external factors that are favorable and unfavorable to achieving those

objectives. Users of a SWOT analysis often ask and answer questions to

generate meaningful information for each category to make the tool useful

and identify their competitive advantage.

PEST or PESTEL theory (political, economic, socio-cultural and

technological) describes a framework of macro-environmental factors used

in the environmental scanning component of strategic management. It is part

of an external analysis when conducting a strategic analysis or doing market

research, and gives an overview of the different macro-environmental

factors to be taken into consideration. It is a strategic tool for understanding

market growth or decline, business position, potential and direction for

operations. Specifically the PEST or PESTLE analysis is a useful tool for

understanding risks associated with market growth or decline, and as such the

position, potential and direction for a business or organization.

The theory of growth–share matrix (aka the product portfolio matrix,

Boston Box, BCG-matrix, Boston matrix, Boston Consulting Group

analysis, portfolio diagram) is a chart that was created by Bruce D.

Henderson for the Boston Consulting Group in 1970 to help corporations to

analyze their business units, that is, their product lines. This helps the

company allocate resources and is used as an analytical tool in brand

marketing, product management, strategic management, and portfolio

analysis. Some analysis of market performance by firms using its principles

has called its usefulness into question. The initial intent of the growth–share

matrix was to evaluate business units, but the same evaluation can be made

for product lines or any other cash-generating entities.

Stakeholder Theory is a widely understood concept in Business today.

Stakeholder theory states that the purpose of a business is to create value for
stakeholders not just shareholders. Business needs to consider customers,

suppliers, employees, communities, and shareholders. In his influential book

Strategic Management: A Stakeholder Approach, R. Edward Freeman

(1984) stated that "as the recent global financial crisis has taught us. The

21st Century is one of “Managing for Stakeholders.” The task of executives

is to create as much value as possible for stakeholders without resorting to

trade-offs. Great companies endure because they manage to get stakeholder

interests aligned in the same direction.” Freeman's "landmark book set the

agenda for what we now call stakeholder theory" , and the importance of

taking a stakeholder approach has been proven by successful stakeholder

actions over the past 30 years and recently by the global financial crisis

(Cambridge University Press, 2015).

Summary

Marketing is a continually evolving discipline and as such can be one

that companies find themselves left very much behind the competition if

they stand still for too long. One example of this evolution has been the

fundamental changes to the basic Marketing mix. Where once there were 4

Ps to explain the mix, nowadays it is more commonly accepted that a more

developed 7 Ps adds a much needed additional layer of depth to the

Marketing Mix with some theorists going even going further. Marketing Mix

P’s in some way shape or form so making them key knowledge for any

marketer to be used alongside other Marketing theories such as SWOT

Analysis, PESTEL Theory, the Boston Consulting Group Matrix and

Stakeholder Mapping.

The major theory, SWOT Analysis, seems simple enough – you use it

to evaluate the Strengths, Weaknesses, Opportunities and Threats that is

involved in a marketing or business project. You will specify the objective

for the project and then identify the internal and external factors that will

have a positive as well as negative impact on the objective. The reason for

this is to ensure that the objectives are achievable and not unrealistic given

the current internal and external environments.

 A PESTEL analysis is a framework or tool used by marketers to

analyze and monitor the macro-environmental (external marketing

environment) factors that have an impact on an organization. The result of

which is used to identify threats and weaknesses which is used in a SWOT

analysis. PESTEL stands for: P – Political, E – Economic, S– Social, T –

Technological, E – Environmental and for L – Legal.

The matrix assesses products on two dimensions. The first dimension

looks at the products general level of growth within its market. The second

dimension then measures the product’s market share relative to the largest

competitor in the industry. Analyzing products in this way provides a useful

insight into the likely opportunities and problems with a particular product.

Lastly, the theory of Stakeholder Mapping highlights why organizations

need to be able to identify their stakeholders and also judge the level of

power they hold to affect the decisions and outcomes of the organization.
Review of Related Literature
According to Rad & Akbari (2014), Marketing mix is a controllable

part of marketing tools that affects the demand and increases it. By the

compound, mix, or a combination, it is meant that the four Ps (product,

price, promotion, place) should have an established and coordinated

systematic approach in order to have effective influence on persuading the

customers. In other words, the right product at affordable prices is

accompanied by better distribution and use of appropriate communication

techniques and they act together in costumers' views.

The main reason why a consumer buys a product shows the basic

benefits of the product to the consumer. The main product – this is the

minimum characteristics of the product, which requires that the user can

receive substantial benefits. The expected product includes the following

features of the product, which the user expects to get out of it, and this

covers the user's expectations. A supplemented by product - this is a product

that surpasses the expectations of the average user, and can be supplemented

with new properties or the improved existing ones. It depends on many

factors: the chosen marketing strategy targeted segment features competing

product characteristics, product technical feasibility, the available amount of

resources, etc. The potential of the product can transcend not only the
smallest but also the largest expectations of a contemporary user and have

properties, which may surprise the user (Thrush, 2011).

Uznienė (2011) states that "distribution - companies' products in the

dissemination of measures to ensure the identification and implementation.

Distribution - that helps customers and users to find and keep purchase those

products from those manufacturers / providers with them at the time of need.

“Distribution - this element of the marketing mix, which include decisions

and actions related to the movement of goods from the producer to the

consumer" (Matola, 2009). Thus, the distribution may become a functioning

complex system where producers, brokers and independent trade and the

interests of consumers wholly compatible with each other in a certain

environment and a certain time.

 III. Conclusion and Recommendation

Marketing involves a number of activities. To begin with, an

organization may decide which of its target group of customers to be served.

Once the target group is decided, the product is to be placed in the market by

providing the appropriate product, price, place and promotion. These are to

be combined or mixed in an appropriate proportion so as to achieve the

marketing goal. Such mix of product, price, distribution and pro-motional

efforts is known as Marketing Mix (Mei, 2011).

According to Kotler, ―Marketing mix is the set of controllable

variables that the firm can use to influence buyers’ response. The

controllable variables in this con-text refer to the 4P‘s [product, price, place

and promotion]. Each firm strives to build up such a composition of 4P’s,

which can create highest level of consumer‘s satisfaction and at the same

time meet its organizational objectives. Thus, this mix is assembled keeping

in mind the needs of target customers, and it varies from one organization to

another depending upon its available resources and marketing objectives

(Iranian Events, 1386).

 From the assumptions and conclusions of this term paper based on the

hypotheses, I conclude that there is a significant role of marketing mix

particularly in banking. In connection with this, the following suggestions

are offered:

(1) Proposals such as increasing profits, deposits and facilities from agency

managers and policymakers offered to customers should be so cheap so that

they can attract more resources to the institution.

(2) Possible time of operation should be short and they should increase

number of customer service staff and expertise over the counter at any

branch to be able to offer faster service to customers.

(3) Institutions such as banks can provide complete management services for

clients.

(4) The institute should have broader campaign to engage in a variety of

services and be more aware of its actual and potential customers. There

should be advertising and television messages and banners installed at

various sites to attract more customers because many customers will benefit

from the variety of deposits and payments of services and facilities.

(5) The bank should have major facilities to get the most important target

customers. The type of facilities and their benefits should be made clear to

customers, and in this way facilitating customers to deposit more.

IV. References

[1] Cambridge University Press. Description of Stakeholder Theory The

State of

the Art [online] Accessible at:

https://www.cambridge.org/gb/academic/subjects/management/strateg

ic-management/stakeholder-theory-state-art [Accessed 13 October

2015].

[2] Freeman, Edward. (2010) Strategic Management: A Stakeholder

Approach,

Cambridge: Cambridge University Press.

[3] Freeman, R. E. (1984) Strategic Management: A Stakeholder Approach,

p46,

Boston, MA: Pitman. Latest edition.

[4] Henderson, Bruce D. "The Product Portfolio". Retrieved 16 May 2013.

[5] Humphrey, Albert (December 2005). SRI Alumni Newsletter. SRI

International.

[6] Matolis, R. UAB “EUREMA” marketing strategijos analizė. 2009.

[7] PESTLE analysis history and application, CIPD. Retrieved 2009-10-21.

[8] Rad,H.S., Akbari, Z. The Role of Brand and Advertising in Marketing

Mix (A

Review of Marketing Mix). Interdisciplinary journal of contemporary

research in business, 2014, Vol. 6., No.7., p.p.114-127

[9] SWOT Analysis: Discover New Opportunities, Manage and Eliminate

Threats". www.mindtools.com. 1006. Retrieved 24 February 2018.

[10] Uznienė, R. Rinkodara ir rinkotyra. 2011.

http://www.esparama.lt/es_parama_pletra/failai/ESFproduktai/2011_

Rinkodara_ir_rinkotyra.pdf
 IV. Curriculum Vitae

Personal Information
Name: Mary Jhuneth Pepito Gullem
Age:16
Birth date: May 30, 2000
Religion: Roman Catholic
Status: Single

Educational Background
Senior High School: University of Cebu- Banilad
Strand: Humanities and Social Sciences
Junior High School: Dover Academic Center for Excellence

Achievements and Awards

1st placer, Oratorical Contest

Dover Academic Center for Excellence
Daanbantayan, Cebu City

1st placer, Essay Writing Contest

Dover Academic Center for Excellence
Daanbantayan, Cebu City

2nd Honor (2016)

Dover Academic Center for Excellence
Daanbantayan, Cebu City

3rd placer, Area School Press Conference

Daanbantayan, Cebu City
September 15, 2015

Skills

• Can lead and work on a team

• Can communicate and facilitate discussions effectively
• Can analyze situations from multiple viewpoints and research matters to define key issues.
• Can work under pressure and long hours
• Can comprehend instructions easily.