Question

Prepare a 1,400 word paper in which you describe the elements of the marketing mix (product,

place, price, and promotion). In addition, select an organization with which you are familiar and

describe how each one of the four elements of the marketing mix impacts the development of

the organization’s marketing strategy and tactics. Be sure to specifically identify your selected

organization and the industry in which it exists.

Solution

Introduction

One of the traditionally used marketing tools by the firms to achieve its marketing

objectives is the “Marketing Mix”. The marketing mix plays a vital role in the growth and

survival of an organization. A proper and carefully evaluated mix of these elements enables the

marketer in achieving a consensus between the expectations of the target customers and the

organizational objectives.

Elements of Marketing mix:

The elements of the marketing mix are the 4Ps namely –

Product

Place

Price and

Promotion.

Product is anything that can be offered to a market for attention, acquisition, use or

consumption that might satisfy a want or need. It includes physical objects, services, persons,

organizations and ideas. It refers to the totality of 'goods and services' that the company offers

the target market. (Kotler, Armstrong, Saunders, & Wong, 1999).

The major decisions that are to be made by the marketer with respect to the product element are:

The needs and wants of the customer which the product can satisfy

The features that the product should bear to satisfy those stated needs

The place and the way customer will use the product

The appearance of the product

The experience the customer will have on the usage of the product

The name of the product

Branding of the product

Differentiation from competitors

The methods like extension strategies, specialized versions, new editions, changed features like

packaging, technology that are used to improve or differentiate the product helps in increasing

the sales more effectually, thereby help in achieving a competitive advantage over the

competitors.

Place refers to the collection of activities or the means through which goods and services

reaches the user or the customer through the manufacturer/ service provider. It is commonly

referred to as “Distribution channel” or the “Intermediary”. It includes the channels, coverage,

assortments, locations, inventory, transportation and logistics. (Barrow, 2006).

The price element involves major decisions that have a greater impact on the success of the

marketing program. The marketer has to decide on,

Where the customer has to look for the product – this helps in deciding the place to sell –

online or offline. If offline, what kind of store will they look in – a specialist store, a

supermarket or any other?

The type of distribution channels to be used. The channel can be direct channel – the firm

itself taking the product direct to the customer through their sales force or indirect

channel – taking the product to the customers through intermediaries.

The type of intermediaries – wholesalers, retailers, agents, distributors

The intermediary channels to be used – avoiding conflict between the companies

involved in the channels

How to differentiate from the competitors? (Kotler, Armstrong, Saunders, & Wong,

1999).

If the product is made available at more number of places, it becomes more easier for the

consumers to buy it and hence it is better for the business.

Price refers to the amount of money charged for a product or service, or the sum of the

values that consumers exchange for the benefits of having or using the product or service. Price

is what consumers pay to get the product. (Kotler, Armstrong, Saunders, & Wong, 1999).

The considerations that the marketer has to make while deciding upon the price factor are:

The value that the buyer will get upon buying the product or service

Knowledge about the price points for the specific product that exists in the market.

The price sensitivity of the customer – the effect of decrease in price on the market share

and profit margin.

The discounts that are to be offered to the wholesalers, retailers and other intermediaries

and to the customers.

Comparison of the price with that of the competitors.

Promotion refers to activities that communicate the merits of the product and persuade

target customers to buy it. (Kotler, Armstrong, Saunders, & Wong, 1999). The communications

takes the form of advertising, public relations, point of sale and word of mouth. The key

considerations with regard to the promotion element are:

The time and way of communication of the marketing messages to the target market.

The choice of the promotional element – it can be an advertisement in television or radio

or hoardings, by direct marketing, through public relations.

The timing of initial promotion and the subsequent promotions.

The choice of promotional elements of the competitors and its influence on the choice of

promotion.

Marketing mix of KFC:

Kentucky Fried Chicken Corporation, popularly known as the KFC Corporation is the

world’s most leading and popular chicken restaurant chain. The firm is based in Louisville in

Kentucky. The firm is part of the Yum! Brands, the largest system restaurant company in the

world with presence in more 36,000 locations around the world.

Product of KFC:

The main product of KFC is the fried chicken in its various varieties like flavors &

snacks, plated meals, sandwiches and sides. Along with this they provide variety of salads and

desserts. KFC specialize in Original Recipe®, Extra Crispy®, Kentucky Grilled Chicken™ and

Original Recipe Strips with home-style sides, Honey BBQ Wings, and freshly made chicken

sandwiches. The product of KFC is unique and is widely famous among the consumers for its

Original Recipe® fried chicken that was prepared with its exclusive and secret blend of 11 herbs

and spices in the same way as prepared by Colonel Harland Sanders who founded KFC. The

products of KFC are customized to suit the tastes of the people in the nation in which it is

operating. There are over 300 products of KFC all over the world ranging from the salmon

sandwich in Japan made from the commonly available salmon fish to the Kentucky Grilled

Chicken in the United States.

Place element of KFC:

The channel of distribution of KFC is a single level distribution system wherein KFC

distributes its products to the customers directly without any intermediaries. Upon targeting the

urban, youth population and the family sector, the outlets of KFC are conveniently placed in

malls, and near colleges, shops, theatres, thereby enabling increased footfall to the outlets. In

some selected countries, KFC offers free home delivery to offices and homes.

Price of KFC products:

The most common pricing strategy followed by KFC in most of its operating markets is the

skimming strategy. The products of KFC are priced high initially and are targeted to the upper

middle class population. Upon establishing a foothold in the market, the prices are gradually

reduced to attract the middle income group. This strategy helps them in achieving better

coverage of the market.

Promotion at KFC:

Of the various tools of promotions, KFC widely uses the advertising and sales promotions to

promote its products. The advertisement of KFC featuring its tagline “finger licking good” is

most inducing and is frequently broadcasted on television, radios, flyers and billboards. The

advertisement shows how a person get himself lost in the taste of the KFC chicken and induces

the viewer to taste one. The recurring broadcast of the advertisement not only attracts a new

customer but also acts as a reminder call of the previous experience of KFC, thereby increasing

the repeat purchase. And also the logo of KFC – the smiling face of colonel is one of the world’s

most recognized logo in the world and has an immediate reminding effect in the consumer. They

also promote their brand and position themselves as a responsible firm through various programs

in the field of education, diversity and animal welfare. It also uses various sales promotion tools

like coupons, discounts and gift certificates. The customers are provided with various forms of

incentives in various outlets of KFC. Benefits like free meals and free add-ons are given to the

customers through the coupons. They also provide customers meal vouchers and coupons in the

print advertisements which the customer can redeem at any of the KFC outlet.

Thus careful selection of the 4Ps is one of the main factors that contributed to the success

of KFC.