Horti-Business Management (2+0)

The Marketing Mix

• In considering the needs of their customers, companies must think in terms of the product itself, the price of the product and the place where the customers needs it, while making sure that the existence of the product is known through effective promotion. These various components are described in more detail below:
Product

• The product is the focus of markting. Although many aspects of the prodct are not marketing responsibilities (such as production and processing), marketing is concerned with the product’s attributes and what these mean to the customer. Such factors include quality, appearance and performance.
Price

• Price creates sales revenue and is therefore important in determining the total value of the sales made. Price is really determined by what customers perceive as the value of a commodity or service as well as how much they are prepared to pay in relation to the benefit they expect to earn.
Place

• The place factor deals with the various methods of transporting and storing commodities and then making them available to the customer. Getting the product to the right place at the right time depends on the distribution system. The choice of distribution method will depend on market circumstances and the nature of both the commodity and the customer.
Promotion

• Promotion is the business of communicating with and influencing the customer. Although the cost associated with promotion can be a significant element in the overall cost of a product, successful product promotion increases sales so that costs are spread over a larger output. While increased promotional activity may be a response to competitor activity or a new product launch, it is important to maintain a constant flow of messages to the consumer as well as visibility in the market place.
Mix

• Mix is an appropriate word to describe the marketing process, as it is a blending of ingredients to fulfill a common purpose. Each ingredient is vitally important and each depends upon the other for its contribution. Different markets will require a different balance of ingredients. The mix should comprise;
A time scale

• A company must have a plan, which indicates when it expects to achieve its objectives, both in the short, medium and long term.