Download The Role of Brand and Advertising in Marketing Mix

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The Role of Brand and Advertising in Marketing Mix
(A Review of Marketing Mix)
Hamid Sadeghi Rad
Dean of Applied Sciences University of Tax, Mashhad, Iran
Zahra Akbari
MA Student of Linguistic, Ferdowsi University of Mashhad, Iran
Mojtaba Ghorabi
Department of Business Management, Islamic Azad University, Neyshabur Branch,
Iran
Mahmoud Motevaselian
Department of Business Management, Islamic Azad University, Neyshabur Branch,
Iran
Corresponding Author: Zahra Akbari
Postal address: MA Student of Linguistic, Ferdowsi University of Mashhad, Iran
Abstract:
Companies must realize that in current situation, they can not take advantage of the
previous competitive advantages. So, they are looking for new advantages. Hope to
find a sustainable and profitable advantage is not an easy task; particularly in large
competitive atmosphere that others all follow the same effort and research. As a
result, companies by using the correct marketing mix can promote and increase their
sales and help increase profitability.
Keywords: Marketing, Marketing mix, McDonald’s Brand, 4ps
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1. Introduction:
Recognizing the importance of the marketing as a branch of business in early
twentieth century, American Marketing Association and first marketing approaches
and theories developed. However, entering the next phase in which market
orientation and the buyer were focused on, lasted for several years. This section
explains key improvements to the marketing since the first steps to date, which are
the foundation of understanding the service marketing (Woodrof, 1385: 29).
Marketing emphasizes on achieving to customer goals, along with the goals of the
organization. Marketing should be an essential part of the companies. Today,
marketing is one of the important tasks in achieving the goals of the organizations'
profitability (Sui pheng, Low et al, 1997: 273).
Marketing includes creating goods and services, providing a suitable place for the
supply, and appropriate pricing in order to meet the consumers' needs. Therefore, it
is necessary to have enough knowledge about the consumers (Ketabchi, 1383: 13).
2. Literature Review
Marketing mix is a controllable part of marketing tools that affects the demand and
increases it (Jonathan Ivy, 2008: 298). 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. If any of these components is
inconsistent with others, the result would be decreased effectiveness and efficiency
of the complex, and the prevents the company from achieving its objectives. But by
the tactics or tools , it is meant that the company has these tools and devices in
order to fight more successfully than competitors in the market.
Jerome McCarthy in the early 1960s categorized the marketing mix variables by
four variables which are known as the Four Ps that includes product, price, place
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(distribution) and promotion and each of these marketing tools has its own subsets
(Dragy, 1386: 246).
Robert Luther Born believed that besides the four marketing mixes called the four
Ps, there are four Cs from the customers' side that includes customer's solution,
customer's cost, customer's convenience, and communication systems. The
successful companies are those that can meet the customers' needs economically and
easily, and also in the light of providing an effective communication system (Cutler,
1383: 20).
Customers are trying to find their goods and services desired in reasonable ways.
This sourcing process eventually causes the customer to go to a specific resource for
preparing the products. In this process, 4 Ps act as a source for empowering the
customers to select their desired goods and services in rational ways (Bennett, 1997:
154).
2.1.
Formation of the 4 Ps concept
The four ps concept is accepted as a principle in different marketing texts. Four ps
stand for product, price, promotion and place (distribution). The concept of
marketing mix was introduced by Neil Borden for the first time in 1950 and became
known as four ps (Gronroos, 1997: 323).
In the following, we classify the marketing mix elements, and go on to describe in
detail each of the elements of the marketing mix includes product, price, place, and
promotion.
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Figure 1, The combination of marketing mix
Marketing
mixture
Place
Promotion
Price
Product
Channels
sale promotion
price lists
commercial brand
Their covers
advertisement
discounts
packaging
Sale forces
special offers
variety of products
Stocking
public relations
payment periods
quality
Transportation
direct sale
credit conditions
characteristics
Matching of
channels
2.1.1.
Product
The product as the first p something that is taken to the market to be noticed, sold,
applied, or consumed; which is possible to satisfy a need or desire. Product can be a
physical object, service, location, organization, or even an idea or thought (Moheb
Ali et al, 1385: 195).
The ultimate goal of organizations is to produce the products which are better and
superior in one or more aspects compared with others to be welcomed by customers
and make them to pay well for each product (Cutler, 179:1379).
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Vignali in an article with the title of McDonald: the globalization thought by using
marketing mix states that in marketing mix, McDonald has offered its product by
creating a standard procedure that is the same in all parts of the world, according to
the tastes and traditions of different countries and their laws. For instance, Big Mac
is served without cheese in Israel, or it is served in Indian McDonald's restaurants
with specific types of vegetables and lamb meat. And also the limitations which are
imposed by various religions are considered (vignali, 2001: 99).
2.1.2.
Brand
The name and logo of a product is an important component of goods in consumers'
views, and the brand name adds value to every goods. For example, consumers
consider a bottle of cologne with famous brand name, as an expensive and highquality merchandise. But if this bottle lacks any indication of the brand, even if the
flavor is similar, shall be considered as low quality merchandise. The brand
differentiates the goods and services that are offered by competitors. A good brand
makes the consumer loyal. A research showed that among the present dish washing
liquids, the housewives are the most loyal to Goli, Jaam, and Rika. These three
groups of customers buy their desired dish washing liquid regularly. The interesting
point was that all customers have considered the same characteristics for a good
dish washing liquid (e.g. cleaning power, concentration, high foam, etc). But it was
believed that only the dish washing liquid that is bought by them (In other words,
they are loyal to) has all those qualities. In other words, those who bought Goli dish
washing liquid believed that Goli has all the qualities of a good product, and those
who bought Jaam, thought that Jaam is better than other dish washing liquids
(Esmailpoor, 185:1381).
According to the arguments presented, the value of brand name can lead to a
product's reputation and induction of high quality product to its customers, make a
very strong image in the minds of customers, and become one of the major assets of
a company.
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2.1.3.
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Packaging
There is 8000 years statistics about packing in which packaging has been used as
the containers were made of clay and glaze rough mats in Mesopotamia and Egypt.
The customers identify a product through its packaging. Package transfers the
producer's message to the buyer and communicates and exchanges information
between them. The packaging gives identity to the product, and protects the protect
against
impact,
moisture,
climatic
conditions,
odors,
fumes,
vibration,
microorganisms, pressure, collapse and insects (shafaghizadeh, 1384: 13). Also the
packaging protects the goods, makes distinction, beauty, product safety, easier
storage of goods and products (Esmaeil Pour, 192:1381). If the package is done in a
great way, it gains interest to customers and will promote the manufacturer.
2.1.4. Product pricing
Pricing, is the monetary value of goods and services or the amount of benefit that
consumers particularly pay for the benefits of having or using the product or service.
Pricing simply means determining the price for the product or service (Golchinfar et
al., 1385: 1).
Vignali states that McDonald's in price marketing mix used different strategies for
pricing in different countries. For example, it used strategies such as cost based on
the target strategy, the ultimate cost plus a percentage of profit, or prestigious
pricing. For example, a Big Mac in the United States is equivalent to 14 minutes
work of a worker a day, but in a country like Nigeria it is equivalent to several hours
of work (2001: 101 vignali).
Types of pricing methods in dealing with competitors
The competitors may price their products in four ways:
1. Pricing based on cooperation: the price is determined by cooperation and
consensus with partners. This situation occurs mostly in competitive oligopolistic
markets.
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2. Adaptive pricing: market leader and main shareholders determine the price,
and the others price their products according to them.
3. Opportunistic pricing: in some markets, when a supplier increases the price for its
products, a rival that has good resources might not change the price of its product.
Sometimes, in the case of the increase in prices by a producer, the rival increases the
prices, but tries to offer more services to attract part of customers of the company
which first increased prices. This method is called opportunistic pricing.
4. Punitive pricing: some suppliers who are able and good facilities, in order to
eliminate smaller competitors, lower prices for their products. Sometimes this
method will result in removal of small suppliers from the market (Aflaki, 1386:
169).
According to the arguments presented, the pricing strategy of a product, when the
product is part of a group of products, has different characteristics. In this case, the
organization considers overall prices of one group in order to maximize profits.
The firms, after codifying pricing strategy, are faced with conditions in which they
are compelled to reduce or increase prices, and marketers need to respond to the
change in pricing strategies and develop other strategies.
2.1.5.
Promotion
Promotion includes all the communication tools that can deliver a message to the
target audience, and includes: advertising, sales promotion, public relations, sales
force, and direct marketing (Cutler, 1379: 190).
Vignali states that in the promotion marketing mix, McDonald's made a huge
investment in advertising using reference groups and individuals who could be
model in every country; For example, in England used famous football players
(football captain, Alan Shearer), and in France, used famous goalkeeper of the team
(Fabian Bartez) (2001: 102 vignali).
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Advertising is the most powerful tool in the identification of a company, product,
service, or idea and viewpoint.
Advertising carries out the marketing
communications task.
Sales force (personal selling): One of the most costly means of communication in
marketing is using sales force who takes several long and short trips to attract new
customers or enhance customer satisfaction. The sellers see the customers, talk with
them, respond to their questions and their problems, invite them to lunch or other
receptions, and organize large and profitable transactions (Cutler et al, 1380: 785).
2.1.5.1.
Sales promotion: Short term incentive policies to encourage the
purchase or sale of a product or service are called sales promotion.
Public relations: establishing a good relationship with various sectors of society,
creating a positive corporate image, and eliminating rumors and so are called public
relations. Public relations is the sum of our actions to build good relationships with
all those who are associated in some way with (Esmailpoor, 1381: 277).
Today, through the efforts of public relations, people's consumption habits can be
changed. For example, in our society the red meat is too much consumed. This
compels us to import red meat on the one hand, and has unfavorable effects on
health on the other hand. Therefore, we can enjoy public relations to push people to
consume more seafood. In this way, besides enjoying a variety of seafood resources
at our disposal, we can also contribute to the health of our society (Moheb Ali et al.,
1385: 341).
2.1.5.2.
Direct Marketing: currently the market is splitted into a group of
small markets. And, consequently, new media are working in various fields. There
are many specialized journals, each offers specific advertisements to their target
audiences (Cutler, 1379: 200). According to the above discussions, to make good
communications, companies should take the help of advertising agencies. In
general, organizations should communicate with their customers.
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Today successful organizations have developed a system of modern
advertising, including advertising, sales promotion, public relations and direct sales.
2.1.5.4.
Commercial advertisement: it is the communication that the
company makes with its customers via impersonal media and pays for it.
2.1.5.4.1. Types of commercial advertisements:
Informative Advertising: including information about new products, offering new
uses of the product, informing the market about changes in the market price,
describe how the product is used, describe existing services, and eliminate rumors,
reduce the fears of customers and creating a positive corporate image for the
company (Mohammadian, 1379: 76).
Using informative advertising is to supply the product in the market. Marketers, by
providing messages that relate the product to the original brand can overcome
resistance to implementing. If they have a strong brand, can further gain the trust
and confidence of customers towards new products (Chien, Chung, Wan, 2006:
1049).
2.1.5.4.2. Persuasive advertising: such as making preference for a specific
brand, encouraging the purchase of a specific brand instead of the bought brand,
changing customers' perception of product characteristics, persuading customers to
buy "today" instead of "tomorrow", and urging customers to accept the company's
sellers in the future.
2.1.5.4.3.
Reminder advertising: such as reminding the fact to customers that
a specific product may be required in the near future, including the cases of
insurance companies, reminding to buy the product to customers, such as changing
the company branch or store location, recalling the time when buying off-season to
customers,
including
some
seasonal
discounts,
sales
and
concessions,
and preserving or maintaining the client relationship with the product or company
(Mohammadian, 1379: 76). When a new product is introduced to the market, and
the goal is to create initial demand, informative advertising is highly used. For
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example, when personal computers were introduced to the market, manufacturers
were forced to make customers aware of the benefits of the personal computer and
ways to use it.
In the case of increased competition, and when the goal is to create selected
demand, persuasive advertising is used. For example, the Mercedes Benz company,
in its global advertising, tries to convince customers that Benz is better than other
automobiles. In some countries, some of the advertisements encourage comparative
advertising, directly or indirectly through which a brand is compared with one or
more other brand. In these countries, comparative advertisements are used for
products such as computers, perfume, toothpaste, soda and automobiles. The use of
this type of advertising is illegal in some countries, and in other countries,
companies which use this method must be able to prove their claim.
Once the product is in the maturity stage of its life curve, the goal is that the
consumer constantly thinks about it, and then the reminding advertising is used; For
example, Coca-Cola costly advertisements in different countries is to regularly
remind the customers not to forget this brand in the case of any need. In educational
institutions and service companies such as banks, insurance companies this method
is used (Mohammadian, 1379: 77).
2.1.6.
Distribution
Distribution is one of the components of the marketing mix. In the simplest case, it
is responsible for the task of transferring the product from manufacturer to the
customer. In other words, the main task of distribution management is to make the
goods available at the time and in place to the potential customers.
Vignali, in its article under the title of McDonald's: the globalization thought by
using the marketing mix, states that, in the place marketing mix, McDonald's
considered high potential for growth in both internal and international market. They
started by 300-400 branches in the United States, and continued by adding 415
restaurants in Japan in 1998. And in long periods, it created new branches in the
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China, Mexico, and Italy markets. And now there are more than 25,000 McDonald's
branches in more than 100 countries. With respect to the issues presented above, by
the use of marketing mix, McDonald's could take the World Market and now has
branches in more than 100 countries (2001: 106-107 vignali).
2.1.6.1.
Distribution channels: a combination of organizations and
individuals which makes the desired product or service available to end-customers.
Distribution channels connect the producers and consumers of goods (Bkhtayi et al.,
1386: 1).
Based on the findings of a study, it is suggested that the independent sellers must
constantly re-examine their business strategies to achieve the strategies that provide
consumer satisfaction more and better. The consumer expectations are constantly
changing due to the dynamic nature of selling atmosphere, including the presence of
chain stores and facilities of online shopping. Meanwhile, independent retailers,
because of their small size, enjoy the ability to adjust their services to their local
customers, sort properties by providing sales services, presents a unique set of
products and to offer strategies to provide costs, marketing, merchants and
consumers' services. Totally, offering a unique and exclusive strategies for local
customers seems to be important and practical (Eun Lee2008: 151).
The nature of distribution channels:
Manufacturers mostly use intermediaries to deliver their products to consumers in
more productive ways. The intermediaries in fact consist the distribution channels.
In other words, the distribution channel can be defined as:
Distribution channels include companies or individuals who are helping to be
delivered a commodity or service from the producer to the final consumer or
industrial consumer. In other words, the distribution channel is the path through
which goods and services reach from producer to final or industrial consumer.
According to the discussion above, a distribution channel is successful if all its
components effectively carry out their duties and communication between the
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various parts is performed easily. It also requires that the distribution channel
system design, and consumer needs, goals and limitations be determined and
evaluated; then the optimal solutions for the distribution method are selected.
3. Conclusion:
Marketing mix represents the main activities of marketing managers.
After
selecting a target market, marketing managers need to codify a systematic plan to
sell to their customers and develop long-term relationships. Marketing plan consists
of decisions about product, price, promotion and place (distribution) which form a
marketing mix. These are the most important parts that marketing managers
allocate company's resources to achieve goals of sale and profitability.
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