Marketing Mix - 4p

6.4 Marketing Mix (4P's)

By drawing conclusions from conducted market analysis regarding prospects of businesses in this area, company needs to develop marketing strategies and concrete solutions by aid of components of marketing. The main components of the marketing activities are: Product, Price, Promotion & Placement. So-called Marketing Mix, or 4 P's of Marketing. Marketing Strategy is a program that reflects problems of marketing, as well as particular actions to implement them with necessary resources for that. In present conditions of company, need to develop competitive marketing actions is determined by situation and conditions of "external environment". Decisions made in marketing strategy, designed to specify a sequence of tasks, developing a financial plan and reports of problems and actions to employees. The main components of marketing strategy are making decision for following parameters of business:

1 Production

2 Pricing

3 Advertising and promotion

4 Sales Organization

5 Sales Plan

Product:

Determination of types of offered services and products that meet needs of specific consumer segments is fundamental for entrepreneur. Development and definition of product range is a key element of marketing. Decision in this area is needed for development of marketing and sales programs, determine configuration of production equipment and conditions of business organization, planning advertising. In marketing, it is generally identified three major types of goods:

* Durable Goods (this is commodities that utilized during long period of time, for example, furniture, refrigerator, computers and so on)

* Nondurable Goods (this is commodities that are immediately consumed in one use or several lifespan, for example: food, magazines and so on)

* Services (this is intangible benefits, which cannot become a property of consumer, for example: consulting, domestic services and so on)

Entrepreneur should determine exactly what type of goods or services he/she wants to offer targeted group of consumers. Product range of company depends on strategy and its activities and determined by market demand, practice of competitors' activities and manufacturing capabilities. There are several factors influencing decision-making in field of furniture production:

* Depending on orientation of consumer segments: individual consumers or organizations, in terms of income, social status, group of preferences and needs;

* Depending on consumer preference;

* Depending on specialization of furniture production, for example: office furniture, cabinet and upholstered furniture, cabinet manufacturing

In order to more clearly distinguish limits and possibilities of production, should answer basic questions, namely:

* What main group will be oriented furniture production on?

* What range of furniture will be produced?

* What additional services can be offered to consumers to create company a competitive advantage?

After analyzing market, it was decided to make decision to produce cabinet furniture, focusing on organizations and individual consumers. Decision to produce cabinet furniture for offices is defined by that number of small businesses increases and demographic population growth, at best, is on small increase. Nevertheless, there is unsatisfied demand on market for inexpensive furniture for people, that allowing also focusing on production for individual consumers.

Percentage ratio of focus on consumers will be as follows: 70% of furniture will be made for organizations and 30% for individual consumers. Orientation on average consumer allows making simple office furniture and to focus production on only most necessary pieces of furniture that are needed to staff of each office and individual consumers. In the first phase of work of enterprise will be produced the following range of furniture:

Name Size (LxBxH) sm*

Working table 150х90х74

Computer table 75х90х74

Nightstand Withdrawable 48х45х60

Bookcase 86х34,5х191

Wardrobe 86х34,5х191

Shelving 70х34,5х183

*Size of furniture is indicated on the basis of standard, most common sizes.

For individual clients it can be provided furniture that made to order. The samples can be changed depending on customer requirements. This work will be served by manager-designer. When ordering, customer can discuss with manager dimensions, equipment and furniture color. It is also planning to carry out delivery and furniture assembly according to customer desire. Cost of additional services is negotiated separately. Besides, it can provision free service to assemble furniture for customers who ordered goods on amount of 5 million UzSum (ca. 3000 USD). With further development of production, it is planning to increase range of products, namely:

* set up production of side tables with oval shapes and desks with rounded shapes

* create a workplace kits for office

* to make coffee tables for people

* to develop several versions of hallways to the public

* to make lockers for shoes and shelves for books at low prices, focusing on poverty-stricken class

With further development of furniture production, an additional service can become departure of professional designer to customer's place.

Price:

Correct definition of product impacts directly on success of company's business and, along with other components of marketing, is an extremely responsible stage of marketing program. Pricing is determined by amount of cash income and is a key element for calculating breakeven point of business, profitability, financial plan, project planning and marketing. Depending on chosen strategy, company may have differently shape their prices on products. Main factors affecting pricing are:

* Level of production costs

* Degree

...