Page 22 - DMGT408DMGT203_Marketing Management

Unit 1: Marketing: Scope and Concepts

don't mind visiting some selected dealers (selective distribution), and for high-end, very expensive Notes
items such as Mercedes Benz cars, expensive and exclusive jewellery status watches and accessories,
etc., customers are quite willing to visit exclusive dealerships, even if there are just one or two
in the city (exclusive distribution).

Price (Customer Cost)

Pricing decisions are almost always made in consultation with marketing management. Price is
the only marketing mix variable that can be altered quickly. Price variable such as dealer price,
retail price, discounts, allowances, credit terms, etc., directly influence the development of
marketing strategy, as price is a major factor that influences the assessment of value obtained by
customers. Price can be kept as high or low, or at any level in between these two extremes. Too
high would be the point at which any meaningful sales are not possible because the target
customers won't accept the product, and too low would be the point at which company would
incur losses instead of profits. Price is said to be an important competitive tool, and intense price
competition between rival companies often culminates in a price war and the contestants generally
end up gaining nothing. The customers, however, enjoy the benefit of low prices till such time
that good sense prevails between contestants and prices are brought back to normal. In case of
certain products, price becomes the indicator of product quality and helps impart an image to
the product.

Example: Coke charging a fixed amount of money on their soft drinks, salons charging
a fee for the services rendered, teachers charging a fee for the lessons given, etc.
1.3.2 Marketing Mix Coherency and Dynamics

Marketing mix coherency refers to how well the different elements of the mix blend together to
accomplish the desired impact.

Example: To sell an expensive luxury item in discount or bargain stores would show
poor coherency between distribution and product offering.

Marketing mix dynamics focuses on how the mix must be adapted to suit the changing business
environment, changes in company resources, and the changes in product life cycle stages.

Self Assessment

Multiple Choice Questions:
9. .................. classified "marketing mix variables" in terms of 4Ps

(a) Prof. E. Jerome McCarthy (b) Albert Frey
(c) William lazer (d) Bernard Booms
10. 4Cs was being classified by..................

(a) Jokily (b) Booms born
(c) Launder booms (d) Lauterborn
11. ………………………..is the only marketing mix variable can be altered quickly.
(a) Product (b) Price
(c) Place (d) Promotion

LOVELY PROFESSIONAL UNIVERSITY 15