A company naturally wants maximum production results. Not only that, they certainly want every product to be well received by consumers. The better consumers receive the company’s products, the greater the potential income received.
To maximize marketing of production results, there are many things that can be done. One of the most popular and important is market segmentation . Market segmentation is part of the company’s strategy to maximize profits.
This market segmentation is done by dividing heterogeneous markets so that it becomes a more homogeneous unit of buyers, then each homogeneous buyer becomes the company’s target market to be achieved through its own marketing mix.
It should be underlined that market segmentation is not only done by differentiating products or creating new products. Market segmentation is done by orienting to the interests and needs of consumers. So, the main benchmark of the production process here is consumers. Consumers are the ones who determine how the production must be done by the company.
Market segmentation helps companies to maximize marketing of their products to be more affected and ultimately, the resources owned by the company or the factors of production they have can be more effective and efficient. So, it can also be said that this marketing mix strategy also helps maximize a company’s production factors, indirectly.
Market segmentation focuses on homogeneous markets. So, companies can focus more on maximizing the factors of production they have to serve these predetermined market segments. Regarding the market homogeneity, the marketer or the company itself determines the criteria.
In essence, the purpose and objectives of market segmentation undertaken by these companies are among the resources so that: 1) the market is easier to distinguish, 2) service to buyers is better, and 3) marketing strategies are better directed.
If a company has to serve broad and heterogeneous target customers, the company will have difficulties. Companies will find it difficult to determine what products are right for their customers. In addition, the factors of production possessed can also not be maximized by good utilization.
With market segmentation, companies can focus more on serving homogeneous consumers. This method also means that the company can develop a marketing mix strategy better. This marketing strategy in the form of a marketing mix or marketing mix can help companies determine product planning, pricing, distribution and promotion better.
Chapter List ☰
Marketing mix or marketing mix
What needs to be underlined in determining marketing goals is that marketing objectives can be measured. This can be measured using a variety of benchmarks, such as the size of sales, market share, profits, volume, number of outlets, level of trust and others.
The marketing strategy used to achieve this marketing goal can be stated in a marketing mix or marketing mix. Understanding the marketing mix is a set of variables that exist in a controlled marketing plan that is generally stated in 4 P namely Product , Price , Place (distribution), and Promotion (promotion).
This marketing planning must be done by optimizing the mix carried out by adjusting each existing variable along with the budget on each variable so that the value for consumers and the contribution to the company can be maximized. This is measured through sales and profits as well as other organizational goals.
When a marketing mix is done on target, then success in business is no doubt. However, the marketing mix has the goal to be able to achieve satisfaction for consumers or buyers of the product, promotion, price and product distribution.
Through the marketing mix, the company tries its best to satisfy consumers and adjust products to customer demand. In modern marketing, marketing mix has also become the main concept that is lived.
In the marketing mix, there are 4 (four) variables or main components. These four variables are commonly referred to as the traditional 4P name. Then, there is also the addition of 3 P as a complement to the main element.
Traditional P3 is specifically used for maximizing the marketing of goods, while additional P3 is more focused on marketing services. The traditional 4 P includes Products, Price, Place and Promotion, while the additional 3 P includes People, Physical Evidence, and Process.
P1 = Product
In a process of production to marketing, the product is a central point. Because, all marketing activities basically focus on efforts to be able to market these products to the maximum extent possible. The product in question can include everything that producers can offer to consumers so that they can be looked at, sought, requested, bought, used, or consumed to meet market needs or wants.
Each product is basically inherently interconnected with certain other products. What is meant by a product hierarchy is a product level that starts from basic needs to certain items that are purchased only to satisfy needs.
The product hierarchy can be divided into seven levels, which include: (1) Need family ; (2) Family products ; (3) Product class ; (4) Product lines ; (5) Type of product (product type) ; (6) Brand (brand) ; (7) Special items or units .
In addition, there are other things that must be considered in creating products, namely in the form of product attribute components. Components of this product attribute are the elements of the product as the basis for consumers in making decisions whether to make a purchase or not. So, producers need to meet the attributes of these products to match the intended target market.
The product attributes include: brand, packaging, label, guarantee (warranty), and other complementary services.
P2 = Price
The second P in the marketing mix is Price. So, companies really need to pay attention to price issues when they want to do marketing. The price given to consumers or the price issued by the company must be right. It should be underlined that the right price does not mean cheap or expensive. There are many factors that must be considered when determining the price of goods.
Some determinants of prices can be: cost of goods, conditions of competition, quality of goods, purchasing power of people, targeted consumers, economic conditions and so on.
In general, there are two forms of pricing methods that producers can do. First is the highest possible price (skimming price), and secondly with the lowest possible price (penetration price).
The highest possible price (skiming price) can be done when there are no competitors from other companies. This pricing method is usually used on products whose target market is the rich. Thus, producers can expect large profits to cover high company costs, such as laboratory costs and other factors to create new goods.
While the lowest possible price (penetration price) is done with the aim that the product can break into the market and compete with other similar products that are already commonly found in the market.
P3 = Place = Distribution Channel
The definition of a distribution channel (distribution channel) in this marketing mix is a route or series of intermediaries, which includes a place under the management of the marketer and independent, and is used in delivering goods from producers to consumers.
Distribution can also be interpreted as a marketing activity undertaken to facilitate and facilitate the delivery of goods and services from producers to consumers. So, the use of this distribution must be adjusted to various other factors that are needed such as type, amount, price, place, and when needed.
In marketing activities as a marketing mix strategy, the distribution process has several benefits. Such as to create value added products through marketing functions and to facilitate the flow of marketing channels physically and non-physically.
So, to achieve these benefits, companies must consider several factors when they want to choose the distribution channel to be used. These considerations can include: market considerations, product considerations, and company considerations.
P4 = Promotion
Another component of marketing mix is promotion. Promotional activities and products consist of advertising, publicity, sales promotion, selling personnel, which can be carried out in various places, such as in homes or company places visited by sales agents. The following is a brief explanation.
1) Personal selling
Personal selling is a presentation activity through the conversation of one or two sellers with the aim of making a sale. Personal selling activities can be done in stores, homes or company places visited by sales agents.
2) Sales promotion
Sales promotion is an activity carried out by giving encouragement to buyers who generally only want to buy a product when there is a reward or certain lure like getting a gift or bonus.
Sales promotion is usually done when certain periods, such as special days, such as independence day, anniversary of corporate birthdays, birthdays of consumers and others.
Prizes can be in the form of sweepstakes, korting, or sale. In essence, sales promotion is carried out with several objectives, such as:
- attract new buyers
- give rewards to old users
- increase purchasing power
- avoid consumers moving to other brands
- increase the number of short-term sales
Advertising is a form of presentation or presentation and promotion carried out about ideas, goods, or services by certain sponsors. This promotional activity can be done in many ways and forms, either through printed or electronic mass media, billboards, banners, posters and so on.
4) Public relations or publicity
Publicity is done with the aim to provide a good image of the company aimed at the public towards. Publicity can be done in various ways, for example by inviting journalists to visit the company, then giving interviews about company news in the newspaper.
Additional 3 P for service marketing
The 3 additional Ps in service marketing, can be understood through the following explanation
P 5 = People
People are elements of people or people, where this person is a party who serves in the sale of company services to consumers. P 5 includes several elements such as: leaders, who make decisions, and elements of employees who serve consumers.
Every party related to producing services for these consumers must be maximized with good management. For example, employees must get direction and training to be able to serve customers as well as possible so that consumers can feel satisfied.
P 6 = Physical Evidence
Physical Evidence is a physical evidence owned by a service company to attract consumer interest. For example, in the sale of transportation services, consumers need physical evidence in the form of the condition of the car being used, then for restaurants, consumers consider how cleanliness is displayed and also the menu that is presented.
P 7 = Process
P7 in this marketing mix is a process that shows how a marketing process is carried out so that the services requested by consumers can be received satisfactorily.
In a service company, the service products provided to consumers occur when the ‘process’ takes place. So, when the process of providing services to consumers is what must be considered.
Consumer satisfaction in receiving service products from companies can be indicated from several factors, such as whether consumers are satisfied enough to receive services, fast service provided, neatness, timely delivery, accurate, clean, and so on.
Well, this is information about the marketing mix as a marketing strategy to maximize sales potential and as a consideration in increasing the company’s production factors. By considering this marketing mix, companies can be wiser in managing their production factors.