MARKETING MIX

Marketing Mix

Marketing Mix

Importance of New Product for Competitive Edge

Product has a life cycle, and for that reason, companies require new product development in order to obtain an edge. Adopters of a new product tend to be younger, more educated, and trendier than the population as a whole. As the product becomes better known and more widely accepted, larger numbers of more risk-adverse people will adopt it, sales increase, the market expands, and the firm can be confident of a consistent stream of future revenues. Finally, when the product becomes widely known, rates of new purchases will slow down as the market becomes saturated (Naveed, 2009, pp. 1078).

As the product proceeds through its cycle, the supply conditions change accordingly. With innovations, where the information content is high, firms must expend considerable sums for research and development. Small firms in the early stages of the product cycle accept the market price that is; they are price takers rather than price setters. As the product becomes more widely adopted and the market expands, firms can shift to producing larger quantities, standardizing the production process. As larger firms out-compete the smaller ones, the industry becomes more capital intensive in nature and more reliant on economies of scale and the market becomes increasingly oligopolistic (Shocker, et al., 1994, pp. 154).



Organization of Distribution for convenience of customer

The structure of the distribution channel plays an important role in the marketing mix. The main objectives of distributive policies is to achieve a certain percentage of turnovers, the conquest of a given market share and minimize distribution costs. The main objective of the organization of distribution networks to effectively sell their products (Geana, 2009, pp. 873-877).

The choice of distribution channel is the result of the adoption of long-term solution, which is very difficult to change. In addition to this, the fact that after the product gets to a particular distribution channel, the manufacturer cannot exert a significant influence on him. The distribution channels in most cases are necessary for the manufacturers. Thus, it is difficult to imagine a company selling chewing gum in specialty stores or salespeople (Sallot and Elizabeth, 2005, pp. 151-159).

Distribution channel helps to bind the manufacturer to the consumer and provides the necessary flow of funds between them.

Management of the company, above all, must choose a strategy of marketing policy, as it should have organized marketing system: through its own dealer network and, through the types of resellers should be turnover, etc (Shapiro, 1988, pp. 119-125).



Channels of Distribution

This is the intermediate links, a combination of physical and legal persons who take over ownership of the goods on their way to the end user. As these links can appear simple resellers, wholesalers and retailers (Workman, et al., 1998, pp. 21-41).

In practice, there are various options for distribution of products. It depends on many factors: intentions and capabilities of most producers take the risk on the marketing of its products, the presence of competitors and their trade policies, the possibility or ...