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The marketing mix Is composed of four elements: product, lace, promotion, and price (also known as the four AS). The purpose of the marketing mix is to build a marketing strategy around a target group, and focus the strategy to create a campaign that will persuade, influence and motivate the identified customer (Perpetual, Cannon, & McCarthy, 2009). The first ‘P’ of the marketing mix is the product. Product, in this case, refers to both physical products and intangible services.
Forethought and research is important to create the right product or service that the target audience desires at the appropriate time (Perpetual, Cannon, & McCarthy, 2009). The second component is place. This is the location where the product is delivered and can be purchased by a consumer. A business must determine the most effective way to distribute Its product by developing a supply chain management system that Includes recognizing the best channel partners, warehousing, Inventory management, order processing, and transportation (Perpetual, Cannon, & McCarthy, 2009). The third element Is promotion.
Promoting products Is the effort of the marketer to inform and persuade potential customers to purchase the product or service. The organization can choose to use advertisement through different forms of media, sales remissions and salespeople to promote the specific product to the target market. Often the elements are combined to offer the best chance of reaching customers. The fourth and final ‘P’ is price; the most difficult element to determine. The organization must consider its requirement for net income and its objectives for long-term market control to Influence the pricing strategy.
Pricing Is a quantifiable way of measuring the value a consumer places on the product or service (Perpetual, Cannon, & McCarthy, 2009). If the cost is too high or too low, it will not generate the 1 OFF rising for different regions based on several factors but must be cautious of using this strategy so it does not alienate consumers. CUTBACKS MARKETING MIX Cutbacks is a brand name recognized worldwide; not only for its coffee but also for its commitment to the environment and local communities wherever the stores are located.
The first Cutbacks opened in Seattle and 39 years later there are more than 16,000 locations in more than 50 countries (Cutbacks, 2010). Few organizations have achieved the kind of success Cutbacks has; the marketing mix has contributed largely to the growth of the company. Cutbacks website states that its customers are “people of diverse ethnic, income and age groups with varying tastes and interests” (Cutbacks, 2010, Para. 1). This diverse customer base makes marketing a challenge but Cutbacks has found the formula to do it successfully.
Cutbacks marketing strategy revolves around the four elements of the marketing mix. Cutbacks mission statement is to “inspire and nurture the human spirit one person, one cup and one neighborhood at a time” (Cutbacks, 2010, Para. 3). As an organization, Cutbacks fulfils its mission statement beginning with its products. It tarts with more than 30 blends of single-origin premium Arabica coffees, hand- crafted beverages that include hot and cold choices, teas and a wide variety of fresh food products (Cutbacks, 2010). Cutbacks also sells merchandise from espresso machines, cups, books, music, and books.
Offering multiple products caters to the various clientele who frequent the coffeehouse giant. Behind the products are the baristas who work behind the counters and are encouraged to know the regular customers and his or her favorite beverage. Providing legendary customer service is as important to Cutbacks as the product itself. Location is everything and Cutbacks has the formula for finding ideal places that are highly visible with heavy traffic. Cutbacks can be found in shopping malls, airports, grocery stores, office buildings, and stand-alone stores with drive through convenience.
The company has also created an inviting atmosphere for its customers to check e-mail, read, study, or socialize. Unlike some restaurants, Cutbacks wants the customer to linger on the comfortable chairs, couches, or sit at a table. Promoting products is something Cutbacks does differently from most businesses. It goes not bombard the public through advertisements. Instead, Cutbacks competes on the merits of its products and services in all sales and advertising. Communications with current and potential customers are truthful and accurate; everything must be substantiated and cannot disparage its competitors (Cutbacks, 2010).
The majority of advertising campaigns have been directed to customers who have registered to receive e-mails and other notifications. As a part of the local community and promoting environmentally friendly practices is reputation. The Cutbacks Foundation was created in 1997 to support communities round the globe. Some of the projects include nurturing young leaders, supporting coffee, tea and cocoa development projects, providing access to clean water in third world countries, fostering education in China, and most recently rebuilding the gulf coast after the devastating hurricanes Rata and Strain hit the area (Cutbacks, 2010).
The latest environmentally friendly initiative is to have recycling available in all of its stores where it controls waste collection and serve 25% of beverages in reusable cups. In 2009, Cutbacks hosted a Cup Summit in Seattle with all facets of the paper ND plastic cup manufacturers to agree upon criteria for a comprehensive recyclable cup product (Cutbacks, 2010). The last and hardest element to manage is price. The price reflects the importance that a consumer places on a product.
Like most global companies, Cutbacks prices its products based on geographical areas and how well the economy is doing in that specific area. The cost also includes the manufacturing and distribution of the products around the world. The loyal customer base keeps coming back regardless of the rising prices over the past several years because of the increased costs of coffee means because of natural disasters and other factors. Cutbacks has been cautious not to raise its prices too high; the increases have been relatively small as compared to other sectors.
CONCLUSION Without a strong strategy, organizations will struggle to satisfy customers and identify the right products at the right time. The marketing mix will help a business develop strategy and tactics to build a successful marketing plan to recruit and then retain new customers (Kettle & Keller, 2009). Marketing professionals understand without the four AS, an organization will grapple with fulfilling the needs and wants f a customer.