Marketing_Mix

Marketing Mix Haylee Blanchard MKT/421 October 11, 2012 Stuart Ringer Marketing Mix The most critical phase of launching a new product is implementing the four elements of the marketing mix. Deciding on the product or service an organization is considering to use to capture consumers, determining a price that meets the quality of the product, and guaranteeing the goods are in the right place when consumers are ready to purchase are important factors that require careful planning strategies. Promoting the organization and product that marketers are attempting to sell is another factor in implementing the elements. When considering these elements marketers should also take into account the state the economy is in to refrain from setting too high or low of expectations that can result into a disaster. Product With several types of organizations existing marketers must discover a strategy that will help their line of business stand out. The product an organization offers should capture consumer’s attention. Marketers must take into consideration what they can offer in means to becoming a successful organization by offering a product or service that will please consumers. Take Exxon Mobil for instance, the largest global oil company everyone is familiar with. Exxon Mobil became a popular gas station throughout several years of selling crude oil, natural gas, and petroleum products. Their mission is becoming the global leader in the oil industry. Consumers rely heavily on these substances to travel back and forth in their motor vehicles, to upkeep their automobiles, and for household purposes as well as many other reasons. There are three octane levels, including diesel that help meet different needs. Exxon also provides additives to enhance performances for different purposes. With several competitors Exxon serves Mobil brand name products to stay unique. Exxon Mobil lubricants come with a limited warranty in case of defects the consumer will not be out of pocket. As technology advances Exxon has come up with new innovations to maintain competition in their industry. Exxon offers a variety of credit cards, including personal credit cards, commercial credit cards, gift cards, and Speedpasses to meet the different needs of individuals. For those who may not have cash on hand these cards can be charged and paid at a later date making it convenient for consumers. Some employers provide their staff with these charge cards as a form of payment for the miles driven to and from work. Exxon also distributes their products and services to other businesses giving them more stability in the oil industry. Over the years Exxon has become a trustworthy company that other wholesalers rely on for excellent quality and cost-effective pricing. Price Exxon is always changing their fuel prices to meet the condition of the economy. As the economy becomes healthier the price for crude oil rises, “With rising gas and oil prices, analysts expected the five biggest oil companies -- with Exxon as the largest -- to report that they are swimming in revenue. Exxon earned $10.7 billion in the first quarter, up from $6.3 billion,” (Kim, 2011, p. 1). This typically is a sign that buyers are paying more for the product to meet demands. Specific periods of the year can have an influence on escalated fuel costs. For example, during the summer students are out of school, and families go on vacation resulting in them spending more on fuel. For Exxon to remain a competition, they must vary prices according to their competitors Chevron, and Shell along with other gas stations. There are a variety of reasons consumers choose to purchase gasoline at certain locations. It could be the quality or price, but most often consumers shop at a location most convenient. “No matter what price you charge—high, low, or in between—be certain to give customers superior value for that price,” (University of Phoenix, 2009, p. 280). As mentioned earlier Exxon offers credit cards, and in using these credit cards to purchase fuel consumers will receive rebates. This is a strategy many organizations propose consumers to persuade them to sign up. Consumers who use credit cards may approve of Exxon’s credit term and conditions compared to other gas stations. When marketers notice a decrease in fuel spending their objective is to lower the prices encouraging consumers to increase their spending so that they can raise the prices again. Exxon offers coupon discounts that consumers can redeem online at Exxon Mobil’s website as a way to encourage consumers to shop. The pricing element is also an important factor because it is the organizations way of making money. Promotion ExxonMobil is the only gas station that promotes SpeedPasses, a form of payment that can be swiped at the pump, but without the hassle of consumers inputting data information. To activate a SpeedPass a consumer uses his or her debit/credit card providing personal information that links to the tag so that it contains the billing information and never asks for it again until their debit/credit card expires. Exxon provides two forms of SpeedPasses. One is a key tag that consumers hook to their keychain, and the other is a car tag that consumers stick to their rear window the same side where consumers pump fuel. This makes it convenient for consumers not to have to search through their wallets or purse to locate cash or their debit/credit cards. Exxon advertises their promotion through radio commercials and print ads. Exxon employee’s job consists of selling these tags. Reason for this is because employees will receive immediate feedback helping them to understand consumers point of view and adapt to their jobs objective in driving sells. To apply for a SpeedPass consumers can visit Exxon website or fill out an application in store. Recently ExxonMobil has considered setting up registration tables for those interested in applying, “Alternatively, ExxonMobil is suggesting that marketers set up a registration table at their stations. When the refiner ran a similar promotion last year, 134,000 customers registered for the promotion and increased their purchase volume by 28%,” (Donoghue, 2012, p. 1). If marketers agree to this tactic Exxon will have a greater chance in promoting their devices and increasing the reputation of SpeedPasses. The advantage of purchasing the new technological device is that a consumer can swipe it, pump gas, and go in a quick stop. Consumers should be careful when using these devices because it has been known they are easy to hack, but if consumers are responsible and put their belongings in protected areas the worries are slim. When Exxon Mobil decides to advertise products, it will be an advantage in their interest to promote products that consumers find beneficial and not just for the organizations profit. Place Deciding where to open an Exxon takes much research. Indeed just about everyone needs fuel for one reason or another, but the issue that comes to mind is Exxon’s competitors are everywhere. With this the case marketers have to determine where the best locations are to open business. Where marketers decide to conduct business in a specific location they will incur long-lasting effects. This means that once opening an Exxon the organization will be responsible for financing their liabilities. Therefore, opening an Exxon in a heavy traffic area is a good choice. Even if it is around other competitors it gives consumers a variety of options to choose from, and typically if a consumer shops once he or she will become loyal customers if the product meets his or her satisfaction. When managing a business it is important to make sure the goods that consumers shop for are in stock at the exact moment a consumer is in need. Consumers will shop elsewhere if they take notice that their choice of business lacks the goods they prefer. Part of managing a company is to have the responsibility of making sure there are enough goods per shipment to last until the next delivery arrives. There are Exxon Mobil gas stations around the world and to deliver a good reputation the organization must maintain a trustworthy reliable convenient store that consumers can depend on. Conclusion In conclusion, implementing the four elements of the marketing mix takes careful planning and research. After analyzing Exxon Mobil’s success through implementing the four elements it can be said that it is an important procedure in achieving a successful organization. The marketing mix is about informing consumers of the excellent quality and service an organization has to offer while setting valuable prices. The type of industry will give an organization a running start on the strategies required to meet their mission. Reference Armstrong, G., & Kotler, P. (2009). Marketing: An introduction (9th ed.). Upper Saddle River, NJ: Pearson Education. Donoghue, C. (2012, February 18). ExxonMobil to Offer Speedpass Promotion. CSP Exclusive, p. 1. Kim, S. (2011, April 28). Exxon Profit Up 69 Percent as Gas and Oil Prices Boost Top Five Oil Companies . abc News, p. 1.