Marketing Mix Of Relationship: An Essay Analysis." (61 Characters)

Analysis of Marketing Mix Concepts

Discuss about the Marketing Mix of Relationship.

The original marketing mix was developed to include 4Ps such as promotion, price, place, and product. However, further studies by marketing scholars led to the expansion of this paradigm. The contemporary marketing mix is composed of 8 popular Ps having added four more Ps that take the form of physical evidence, process, people, and productivity and quality. In this study, an in-depth analysis of the key components of the individual tenet is taken a look at. In addition, this is applied to the business model of Hennes Mauritz that retailing company specialized in clothing. The marketing environment is changing on a daily basis as a result of dynamics that emanate from various sources. It should be noted that since the marketing mix is comprised of several ingredients, each one of them has inherent forces that influence its innate traits and efficiency. This study seeks to provide strategic recommendations that can be applied by the management of H&M in the face of the changing marketplace.    

Promotion component of the marketing mix entails all activities that  the  so as to ensure that the product or service sells in the market. These are efforts undertaken by the marketing department under the authorization of the top management to sensitize the prospects about the availability of the product in the market. These activities are custom made so as to encompass aspects such as price, quantity, brand, variety, benefits, distinguished traits, user guide, after sale services and points of sale. There are several methods which can be used to promote the product or service of the company such as advertising, salesmanship, publicity, sales promotion, demonstrations among others (Groucutt, 2005).

It is important to agree that advertising is the most popular method adopted by companies to promote their products and services. This method takes various forms such as use of print media, mass media, billboards, the Internet among others. H&M is known to be an ardent marketer of its products within the market. The management takes time to invite outside parties such as media and designers during the launch of its products. In this respect, the company uses mega events to promote its products. The company has an online channel with a huge following of customers (Groucutt, 2005).

Price refers to the amount of money that a company attaches to its product or service. This value is obtained by the company after taking into consideration all the costs incurred in producing the product or those involved in providing the service. In most cases, companies use the price as their penetration strategy into new markets when launching new products. There are companies that adopt the strategy of being the market leader in terms of setting the price that the product or services will sell. In contrast, there are companies that are loss-leaders whereby they wait for the rivals to set the price and then imitate these actions. This is a very dangerous situation since the companies have different cost models and it is difficult to compare prices of companies without considering the aspects of the individual company. It is common knowledge that H&M is a premium seller and does not bargain when it comes to the price of its top-notch quality. The asking price of printed hooded top is $29.99, flounced blouse is $34.99, men’s T-shirt is $12.99, kids top is $14.99, and storage basket is $29.99 among others (Nguyen & Nguyen, 2011).

Promotion

Place refers to the situation where customers can purchase the product or enjoy the service at their comfort and discretion. It is the prerogative of the management to communicate to the customers about the locations where they can find the products as well as access the services. It is imperative for the management to develop an appropriate supply chain model that will ensure continuous and regular distribution of the products to the customers.  In this context, the company has the obligation of ensuring that it licenses local wholesalers, retailers, and agents to undertake the distribution of the products and provision of the services.  H&M is easily accessible on the website of the company as well as other e-commerce sites. Similarly, the company has authorized dealers across the globe to display and sell the clothing (Bühler & Nufer, 2010).

Product refers to the commodity being sold by the company that takes the form of tangible goods or intangible services. It is very crucial for the management to come up with a differentiated product with a unique brand name and features. The management should spend adequate funds to conduct market research about the needs of the consumers and take time to develop the products that will satisfy their needs. In this regard, the design of the product is very significant in determining the success rate in the market. For example, the product should be of appropriate size, appealing color, proper quality, and be in tandem with the class of the users. The usability of the product should be simple to all the customers irrespective of their academic abilities. This means that technical products should be accompanied with manuals to give instructions to the users. The product should be useful; in solving the problems of the consumers. Apple produces several variants of clothing such as clothes, shoes, and accessories for men, women, and children (Grönroos, 2014).

Physical evidence refers to the ability of the product to be touched and the service to be enjoyed by the customers. The company has a very fantastic H&M store where customers can find various products for purchase. The company runs a website that customers use to make purchases, post compliments and complaints (Allah Pitchay, 2013).

Process refers to the mechanisms and methodologies used by the company to produce the product or provide the service to the customers. It is essential for the company to adopt processes that are latest in terms of technology so as to gain the cost advantages relative to its competitors. The processes should ensure that there is the continuous production of the products and provision of the services to the customers without hesitation. The production process should ensure that the products are delivered and services provided just in time (JIT). In the same vein, there should be well-structured systems that handle customer complaints so as to ensure that the target market is fully served. There should be mechanisms within the company to ensure that responses are delivered to the customers at a faster rate. The process adopted by H&M is world class to ensure the delivery high-end products to its customers. The company has decentralized its production processes depending on important underlying factors such as costs and legislation. The company achieves the desired sophistication by adopting simpler production processes to come up with high-end clothing (Gummesson, 2012).

Price

People in the organization are the individuals who put their time and effort to ensure that several functions are carried out successfully. There are several groups of people that ensure smooth functioning of the company such as founders, employees, suppliers, customers among others. The founders are formulators of strategic decisions that determine the course on which the company shall tread. They are engaged in meetings so as to come up with viable and sound decisions that will propel the organization to the desired level of performance. The employees are involved in implementing the decisions undertaken by the top management. The culture of the company is fostered by its philosophy are propagated by the founders. This is reflected in core values and competencies, mission and vision statements, corporate strategy as well as a slogan. The management of H&M cherishes its employees and recruits the best talent in the world. The management offers them the best pay packs and other fringe benefits. The management promotes friendly business relations with its customers (Constantinides, 2006).

Productivity and quality refer to the overall performance of the company in the marketplace in terms of volume of sales and standards of products and services. These are reflected in the consistency of production of products and provision of services to the customers without failure. The efficiency and effectiveness of the company is determined by the degree with which it continues being in business without generating increased levels of customer complaints (Van Waterschoot & Van den Bulte, 2012). 

The company should continue promoting its products in the same way it has been doing.  The mega events being organized to launch new products should be expanded to include scholars, potential employees, shareholders and upcoming designers. Moreover, the company should keep on improving the quality of its website so as to increase the ease of usability by the consumers. It is important for the company to engage in corporate social responsibility that will ensure it cements its public image among the customers (Londhe, 2014).

The price of the product should reflect the quality being delivered by the products. It is common knowledge that H&M concentrates in serving the premium market that demands luxurious clothing at pocket-friendly prices. In contrast, the company should never be convinced to compromise on the price level since it will send negative signals to the customers that quality is diminishing. Hence, it is a requirement that the management puts measures in place that will ensure it keeps on improving the quality of the clothing so as to be in tandem with the prices they are selling at (Albaum, 2010). 

Place

The management should continue ensuring that the products are available to the customers whenever they need them. This means that it is up to the management to ensure that it has put in coordinated efforts with its distributors across the world to deliver timely produced products (Nyong Abam, 2016).

The clothing being produced by the company should conform to the varied tastes, preferences, and fashions of the customer base. The company aims to provide luxurious products to the customers that are unique in terms of comfort, design, and characteristics. It is important for the company to keep on developing clothing that is advanced in terms of wearability. This means that the company should come up with clothing that is an improvement of the ones in the markets. This is achievable through intensive research that will ensure that new features are added, the strengths are capitalized while weaknesses are improved (Boehner & Gold, 2010).

The management has the responsibility to ensure that the physical presence of its products is enhanced in terms of being available at the convenience of the customers. The product is a global brand and therefore, the management should ensure that it has instituted programs to ensure it circumvents the challenges posed by globalization. Likewise, the management should ensure that it reaps maximum benefits from this global phenomenon (Weinberg & Pehlivan, 2011).

The processes used by the company are supposed to be the ones that respect the calls of conserving the environment. In this regard, the company should strive to adopt environmental friendly processes that reduce its carbon footprint. Moreover, it is important for the company to come up with programs that minimize the amount of waste produced from its operations such as recycling, conserving water and energy. In addition, it is vital for the company to adopt green sources of energy that will reduce the amount of money spent on pollution permits (Meldrum & McDonald, 2015). 

The philosophy of the company calls for the employment of visionary leaders who will ensure that it continues being the market leader in mobile technology. Similarly, the company strives to ensure that it remains the organization of choice for the top talented individuals in fashion around the globe. In this respect, it is important for the management to offer very attractive packages and benefits to these scarce resources. In the same context, the management should provide a friendly working environment as well as conditions to reduce the rate of staff turnover especially in the face of bottleneck competition (Mangold & Faulds, 2009).

Product

In the contemporary market, customers are yearning for clothing of higher quality and those that can be used easily worn in different climatic conditions. In this regard, it is imperative that the management of H&M becomes responsive to ensure it delivers the expected level of quality to the customers. This can be achieved through the adoption of latest technologies that promote the quality of the clothing. In addition, the management has to continue conducting research in the market to determine the needs of consumers (Mangold & Faulds, 2009). 

Conclusion

The marketing mix is made of tools that determine the success of the company and its products and services in the industry. The current marketing mix is an extrapolation of the antique 4P model. It is common practice to find a company applying the product, price, place, promotion, process, physical presence, people and productivity in its marketing mix. Each of these components determines whether the product or service will succeed or fail in the marketplace. Each one of these components is influenced by various forces and factors that should be put into consideration by the management of the company. H&M is a good example of a company that has ensured the eight components of the marketing mix are put into practice in all its operations. However, it is common knowledge that there are several factors that have hindered the company from attaining its ideal position in the marketplace. This paper has strived to provide a number of options that the management can use to achieve the desired state. 

References

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