Marketing Mix Elements of Retail Petrol Outlets

In: Business and Management

Submitted By bae85
Words 1773
Pages 8
MARKETING MIX ELEMENTS OF RETAIL PETROL OUTLETS

Australian retail petrol outlets all essentially provide the same products to the customer whether the service stations are privately owned and operated or managed under agreements with the supplying oil companies such as BP, Shell, Caltex, Mobil etc. The difference is in their ability to position themselves in the market as having an understanding of their target markets needs, wants and desires and delivering on these to create customer satisfaction and ultimately maximising their return. A useful tool to ensure successfully positioning of their offer is the use of the four marketing mix elements. The four marketing mix elements, collectively known as the four P’s include Product, Price, Promotion and Place. This report provides an overview of each element and how they are applied to retail petrol outlets; sending an overall message to the consumer about quality, cost, performance and the product’s position compared with a competing brand.

PRODUCT

A product is ‘anything tangible or intangible that satisfies the consumer or business customers’ needs as a result of an exchange process’. A product can be physical goods, services, ideas, people or places. A good is a tangible product that we can see, touch, smell, hear, taste or possess. Intangible products, such as services, ideas, people and places, are products we can not always see, touch, taste, smell or possess.

A product has three distinct layers; the core product, consisting of the benefits that the product provides for consumers (or business customers), the actual product which is the physical good or the delivered service that supplies the desired benefit and the augmented product which is the ‘actual product plus other supporting features’ such as warranty, credit purchase facilities, delivery, installation and after-sales service. (Solomon, et…...

Similar Documents

Elements of Marketing Mix

...Elements of Marketing Mix MKT/421 Elements of the Marketing Mix Today’s high performance organizations are placing a high emphasis on marketing as a key to organizational success. The planning phase of the marketing management process is extremely important to effective marketing operations. Marketing planning involves setting objectives, evaluating opportunities, creating marketing strategies, preparing marketing plans, and developing marketing programs. Developing a market strategy consists of identifying a target market for a product or service, followed by building a marketing mix to reach the target group as creating marketing strategy is a key element in the process of market planning. The marketing mix and its elements make up the basic tactical components of a marketing plan. The elements of the marketing mix are known as the Four P’s including some products marketed at a price with some promotion to tell customers about the product and a way to reach the potential customers (Perreault, 2011). The idea that the customer is also an element of the marketing mix is a common misconception. The customer is in fact the target of the marketing mix. “The basic reason to focus on some specific target customers is so that you can develop a marketing mix that satisfies those customers’ specific needs better than they are satisfied by the competitors in the industry” (Perreault, 2011). Elements of Product The product element of the marketing mix refers to...

Words: 1447 - Pages: 6

How Four of the Marketing Mix Elements Combine to Make It a Success.

...The marketing mix is a combination of marketing tools that are used to assure consumers and satisfy company goals. The marketing mix can be considered the offering of the company to the consumer. This offer is controlled by the following elements often referred to as the four P’s: • Product • Price • Place • Promotion By using alternative mixes of these four elements you have the capacity to reach multiple customers within your target audience. Biodesign is an advanced tissue repair graft for use in soft tissue repairs by surgeons. It is a product which is owned by Cook Medical, a medical device company. Biodesign was a revolutionary technology that was first to market ten years ago and since then several competitors have come to the market. Since then Biodesign’s positioned has changed to meet the needs of today’s market. Creating a successful marketing mix that will lead to increased market share, often takes market research and experimenting. Biodesign is no different, extensive market research was conducted and several mixes were tested before the final combination was agreed upon. In the case of Biodesign, the product caters to a niche market, and the marketing mix matches that: the price is within market budget, they are distributing the product where it will be seen, and the promotion is geared to solve the problems that the audience is encountering. ***One of the main keys to the success of any marketing plan is the ability to work effectively in......

Words: 985 - Pages: 4

Marketing Mix

...INTRODUCTION This report introduces the four elements that constitute the makeup of the overall marketing mix and then applies them to the practical real world workings of the Australian automotive fuel retailing industry – retail petrol outlets. The four elements making up the overall marketing mix include product, price, place and promotion. Collectively they are referred to as the four P’s of marketing as their significance makes them the very foundations and building blocks of marketing. This report affords each individual element its own discussion section opening with the definition of the discussed element before delving deeper into what each element brings to the overall marketing mix and ultimately applying them to the retail petrol industry. MARKETING MIX PRODUCT A product is ‘anything tangible or intangible that satisfies the consumer or business customers’ needs as a result of an exchange process’. A product can be physical goods, services, ideas, people or places. A product has three layers beginning with the core consisting of the benefits that the product provides for consumers (or business customers), the actual product, that is the physical good or the delivered service that supplies the desired benefit and the augmented product which is the ‘actual product plus other supporting features’ (Solomon, et al. 2011, p. 181-185). In the automotive fuel retailing industry, Convey (2011, p. 11) found that ‘retail sales of petrol and diesel, together with......

Words: 1607 - Pages: 7

The Marketing Mix

...that will ultimately deliver customer satisfaction. In order to successfully position their offer in today’s dynamic environment, organisations employ the use of the marketing mix. This report discusses the four components that form the composition of the marketing mix, commonly referred to as the four P’s. These four components include, product, price, place, and promotion. They are considered the very building blocks of marketing. Each component is explained and applied to the functions of Australian retail petrol outlets, which will provide a solid understanding of the significance of the marketing mix in the market. THE MARKETING MIX PRODUCT The product is a combination of many different components, all of which attribute to its success within the market. A good, service idea or place a product is anything that can be offered in an exchange, that meets the customers needs or wants. Products can be tangible (physical item that can be touched) or intangible such as a service. Products are usually referred to as having three layers, a core, actual and augmented. In the core are all the products benefits to the consumer. The actual describes the product itself. The augmented are the features or additional benefits that are provided alongside the product, such as free delivery or installation. The retail fuel market is highly competitive and dynamic. The product itself is a naturally occurring liquid found in formations in the Earth. The benefits of petroleum......

Words: 1643 - Pages: 7

Marketing Mix Elements

...Starbucks Marketing Mix Paper Aiza Ashley Starbucks Marketing Mix Paper A good marketing plan must possess a strong marketing mix strategy. Organization uses marketing mix strategy modeling to estimate causal relationships and measure how marketing activity affects outcomes. The Marketing-mix models analyze data from a variety of sources, such as retailer scanner data, company shipment data, pricing, media, and promotion spending data, to understand more precisely the effects of specific marketing activities. In this paper there will be a description of the four elements of marketing mix: product, price, place, and production. It will describe how the four elements of marketing mix affect the development of the marketing strategy for Starbucks. The Four Elements of the Marketing Mix Modeling The four elements of the marketing mix modeling products, price, place, and promotions also known as the four Ps of marketing were known as the controllable parameters likely to influence the consumer buying process and decisions (Constantinides, 2006). The strength of the four Ps approach is that it represents a memorable and practical framework for marketing decision-making and has proved useful for case study analysis in business schools for many years (Constantinides, 2006). Product Product refers to aspects such as the firm’s portfolio of products, the newness of those products, their differentiation from competitors, or their superiority to rivals’......

Words: 1733 - Pages: 7

Pricing as an Element of the Marketing Mix

...Pricing as an Element of the Marketing Mix THE COMMERCIAL EXCHANGE Although people often think of marketing as synonymous with advertising or salesmanship, it is actually much broader. Marketing consists of the full range of activities involved in facilitating commercial exchanges and having all of these activities be guided by a concern for customer needs. The central idea here is that of the commercial exchange (see Figure 1.1). This is where a seller provides a product to a buyer in return for something in exchange (usually an amount of money). The product could be something tangible, which is referred to as a good, or the product could be the result of human or mechanical effort, which is referred to as a service. The buyer could be a consumer - an individual who purchases a product for his or her own use - or the buyer could be a business customer - an individual or group who purchases the product in order to resell it or for other business purposes. One aspect that makes the commercial exchange a very important idea is that it describes an interaction that is voluntary. Both the buyer and seller participate in the exchange voluntarily because the exchange will lead them both to be better off. For example, consider the vendor in the street selling Chocolates. You pay in your money and get a large package of M&M’s. You do that voluntarily because you would rather have the bag of candy than the money. On the other hand, the Mars company, which produces......

Words: 5931 - Pages: 24

Four Elements of Marketing Mix That Are Poorly Appied by Macdonald

...its global business yet allows for local adaptation. Through the execution of initiatives surrounding the five elements of its Plan to Win – People, Products, Place, Price and Promotion – McDonalds has enhanced the restaurant experience for customers worldwide and grown comparable sales and customer visits in each of the last eight years. This Plan, combined with financial discipline, has delivered strong results for company’s shareholders. - Introduction of new production McDonalds is considered the first one enter to fast food industry. It initiates to other brand to enter this industry. As a result, when think about fast food, customers always remember McDonalds first. In fact, in some big countries, especially in US, McDonalds is the first choice of a large number of customers. - Technology Innovative: McDonald’s is keeping at the forefront of technology around the globe. For example, In Brazil McDonald’s is currently studying the installation of Internet access terminals in some outlets as well as enabling customers to order online. This will create a more efficient process that will reduce the amount of lag time between a customer’s orders and pick up of the order. - Good marketing strategies: No matter the continent, children and adults know the face of Ronald McDonald is synonymous with the colossus restaurant chain. This results in wonderful marketing strategies among management which conducts a very thorough market analysis, resulting in much success around......

Words: 2443 - Pages: 10

Marketing Mix

...MODULE-5 Marketing Notes 20 MARKETING MIX I n the previous lesson you learnt that marketing identifies consumers’ needs and supplies various goods and services to satisfy those needs most effectively. So the businessman needs to: (a) produce or manufacture the product according to consumers’ need; (b) make available it at a price that the consumers’ find reasonable; (c) supply the product to the consumers at different outlets they can conveniently approach; and (d) inform the consumers about the product and its characteristics through the media they have access to. So the marketing manager concentrates on four major decision areas while planning the marketing activities, namely, (i) products, (ii) price, (iii) place (distribution) and (iv) promotion. These 4 ‘P’s are called as elements of marketing and together they constitute the marketing mix. All these are inter-related because a decision in one area affects decisions in other areas. In this lesson you will learn about the basic aspects relating to these 4‘P’s viz., product, price, place and promotion. OBJECTIVES After studying this lesson, you will be able to : • • • • • • • • explain the concept of marketing mix and its components; explain the meaning of product and its classification; state the various factors affecting pricing decisions; describe different methods of pricing; state the meaning of channels of distribution; identify the various channels of distribution; state the factors affecting......

Words: 6686 - Pages: 27

Marketing Mix

...Marketing Mix XXXXXXXXXXXXX MKT/421 October 16, 2013 XXXXXXXXXXXXXX Marketing Mix The Marketing Mix Marketing mix is a general phrase used to describe the different kinds of choices organizations have to make in the whole process of bringing a product or service to market. The marketing mix helps companies define the marketing elements for successfully positioning your market offer. The term "marketing mix" became popularized after Neil H. Borden published his 1964 article, The Concept of the Marketing Mix. Borden began using the term in his teaching in the late 1940's after James Culliton had described the marketing manager as a "mixer of ingredients". The ingredients in Borden's marketing mix included product planning, pricing, branding, distribution channels, personal selling, advertising, promotions, packaging, display, servicing, physical handling, and fact finding and analysis. E. Jerome McCarthy later grouped these ingredients into the four categories that today are known as the 4 P's of marketing. The marketing mix model can be used to help you decide how to take a new offer to market. It can also be used to test your existing marketing strategy. Whether you are considering a new or existing offer, the steps below help you define and improve your marketing mix. Marketing decisions generally fall into the following four controllable categories: * Product * Price * Place (distribution) * Promotion These four P's are the parameters......

Words: 1827 - Pages: 8

Marketing Mix

...Guide Marketing Mix What it is The ‘Marketing Mix’ is a term used to describe the combination of tactics used by a business to achieve its objectives by marketing its products or services effectively to a particular target customer group. It is also referred to as the ‘4 Ps’ – Product, Price, Promotion and Place, or the ‘7 Ps’ – the 4 Ps with the addition of People, Process and Physical Evidence. What you should do Make sure you have identified each of your target customer groups. If you have not already done so and would like further information on grouping your customers, take a look at our 10minute Target Customer briefing. Now, with each customer group in mind, work through the steps outlined below. Why it is important Businesses need to make sure they are marketing – — The right product to — The right person at — The right price in — The right place and at — The right time For example, if you manufacture pens, and have decided to target schoolchildren, it would be more appropriate to market – — Coloured ballpoint pens (product) — At a low price (price) — Selling them through newsagents and stationers (place) — And promoting them through point of sale material (promotion) than it would be to market – — Gold fountain pens (product) — At a high price, including insurance against loss (price) — Selling them through specialist outlets and jewellery stores (place) — And promoting them in glossy magazines and Sunday Supplements......

Words: 2076 - Pages: 9

For a Retail Organization of Your Choice Evaluate the Elements of Its Retail Marketing Mix, in Terms of the Effectiveness with Which They Are Used to Appeal to the Core Target Market

...SCHOOL OF MANAGEMENT Learning to make a difference MKIB: 230 Retail Marketing Coursework assignment: “For a retail organization of your choice evaluate the elements of its retail marketing mix, in terms of the effectiveness with which they are used to appeal to the core target market” ZARA – flagship chain store List of Contents I. Introduction: 2 II. Background 2 III. Retail Marketing Mix 3 1. Merchandise assortment 3 2. Location 3 3. Price 4 4. Store design and Visual merchandising 4 5. Advertising and promotions 5 6. Customer service 5 IV. Competitors 6 V. Conclusion 6 References 7 Appendix I………………………………………………………………...…..9 Appendix II…………………………………………………………………..10 Appendix III…………………………………………………………………11 I. Introduction: The following report is about the evaluation of the marketing mix of “ZARA” clothing, which is considered to be one of the most successful clothing brands in the UK nowadays. This report will focus your attention on the main elements of the its retail marketing mix. The main objective of the report is to show how effectively those elements are used by Zara to appeal to the core target market. For the report were used primary and secondary researches. The secondary data was derived from various academic books, journals, websites, Internet resources, annual reports. The primary data was collected through qualitative approaches. Some observations of the stores were made, as well as exploring the......

Words: 2548 - Pages: 11

Marketing Mix

...Assignment on- (4Ps of Marketing Mix) (Principles of Marketing) [pic] Submitted to Mohammed Masum Iqbal Assistant Professor Faculty of Business & Economics Daffodil International University Submitted by Md. Nahid Kadir ID No : 122-11-2574 Section : A Date of submission: April 21th, 2013 Marketing Mix 4p’s The Marketing mix is a set of four decisions which need to be taken before launching any new product. These variables are also known as the 4 P’s of marketing. The marketing mix consists of- Product Price Place Promotion Marketing Mix 4p’s [pic] The marketing mix principles are controllable variables which have to be carefully managed and must meet the needs of the defined target group.  All elements of the mix are linked and must support each other. PRODUCT STRATEGIES When an organization introduces a product into a market they must ask themselves a number of questions. • Who is the product aimed at? • What benefit will they expect? • How do they plan to position the product within the market? • What differential advantage will the product offer over their competitors? Three levels of a product Level 1: Core Product. What is the core benefit your product offers?  Customers who purchase a camera are buying more than just a camera they are purchasing memories. Level 2: Actual Product.  All cameras capture memories.  The aim is......

Words: 1400 - Pages: 6

Marketing Mix on Petrol Outlets

...SLMB100 Marketing Concepts Assignment 1 Marketing Mix Report INTRODUCTION Organisations today operate in a dynamic and uncertain economy within a greater competitive environment. To remain profitable, organisations must implement a marketing orientation strategy whereby all business decisions are centered on delivering customer satisfaction. This strategy emphasizes the importance of understanding the identified key audience, their needs, wants and desires to effectively create and position an offer of value to both the customer and the organisation. A useful tool to aid marketers in successfully positioning their offer is the Marketing Mix, more commonly referred to as the 4P’s – Product, Price, Promotion and Place. By adjusting these four elements, organisations are able to satisfy customer needs in their chosen target market/s whilst maximising their return. This model can be used for new offers entering the market, analysing existing offers or optimizing growth in a target market/s. This report provides an overview of each element of the Marketing Mix and how they are applied to retail petrol outlets. THE MARKETING MIX PRODUCT A product is defined as a good or service that offers a value to customers by satisfying their needs or wants. Products can be tangible, that is physically touched, or intangible such as services. A product consists of three layers. The inner core is the benefits it delivers to customers, the middle layer the actual physical......

Words: 1931 - Pages: 8

The 4 Elements of Marketing Mix

...Introduction Australian retail petrol stations are operating through a network of different major oil company such as BP, Shell, Caltex, Mobil etc. Some are privately owned and operated; some are agents operating the service stations under an agreement with the oil companies; many are owned by those companies. They all provide essentially the same products to customers; the difference lies in their locations, value added service and their marketing programmes. The fuel price levels vary between service station operators due to “the location, quality or the price policies of the operators. Australian’s oil industry has some unique characteristics and very competitive local environment. Therefore, in many cases petrol suppliers use the lens to focus the elements of marketing mix so that the consumers receives an overall message about quality, cost, performance and the product’s position compared with competing brand. 2. Elements of Marketing Mix Marketing mix is the term used to describe the combination of the four inputs: the product, the price structure, the promotional activities, and the distribution system that the firm uses to pursue the sought level of sales in the target market. 2.1 Product The product aspects of marketing deal with the specifications of the actual goods or services, and how it relates to the end-user's needs and wants. The scope of a product generally includes supporting elements such as warranties, guarantees,and support. The product mix......

Words: 1490 - Pages: 6

Marketing Mix

...The 4 Elements of Marketing Mix 1. Introduction Australian retail petrol stations are operating through a network of different major oil company such as BP, Shell, Caltex, Mobil etc. Some are privately owned and operated; some are agents operating the service stations under an agreement with the oil companies; many are owned by those companies. They all provide essentially the same products to customers; the difference lies in their locations, value added service and their marketing programmes. The fuel price levels vary between service station operators due to “the location, quality or the price policies of the operators. Australian’s oil industry has some unique characteristics and very competitive local environment. Therefore, in many cases petrol suppliers use the lens to focus the elements of marketing mix so that the consumers receives an overall message about quality, cost, performance and the product’s position compared with competing brand. 2. Elements of Marketing Mix Marketing mix is the term used to describe the combination of the four inputs: the product, the price structure, the promotional activities, and the distribution system that the firm uses to pursue the sought level of sales in the target market. 2.1 Product The product aspects of marketing deal with the specifications of the actual goods or services, and how it relates to the end-user's needs and wants. The scope of a product generally includes supporting elements such as warranties,......

Words: 313 - Pages: 2