Product development: This can be done by developing new features of a product for example by offering their product in different containers as well as developing new tastes for different target markets. Diversification: This method exists when the company sells new products to new markets. The Product/Market Expansion Grid can be used while developing and choosing strategies for the case study. It clarifies the classification and grouping of the chosen strategies. In case of Church Street this means analyzing all of the options and exploring the right strategy for future growth. 2.5.2 Marketing mix Marketing mix, also known as the 4P’s of marketing, can be defined as “The set of controllable tactical marketing tools – product, price, place and promotion – that the firm blends to produce the response it wants in the target market” (Kotler 2010, 34). A marketing mix is used as a general guideline for understanding the basics of a successful marketing campaign. The tool is applied as soon as a company has chosen its overall marketing strategy. (Kotler 2010.) Productmeans the good or service that the company offers to the particular market. The final product introduced by the company can be split into three parts: core product, actual product, and augmented product. The core product is
15 the actual core benefit or the service that the customer gets (what a customer buys). The actual product is built around the core product and can include such parts as packaging, design or brand name, etc. Finally, the augmented product includes additional services such as installation, delivery, credit, and others. The actual product as well as the augmented product part is built around the core product and adding value to it. The company can decide its own strategy of how the product or service will look, and it will be branded (positioned in the market) based on its goals and opportunities. (Kotler 2010.) Priceis the amount of money that the company asks for its product or service. In other words, it is a set of the values that are exchanged by consumers for getting any benefits of using or owning the particular product or service. When setting a price (applying pricing strategy) the company should take into consideration such matters as consumer demand, the product life cycle, potential substitutes together with the marketing strategy, costs, and other factors. (Slater & Olson 2001; Kotler 2010.) Promotionis the set of activities by which the company informs the final consumers about its products or services, persuading them to make a buying decision. The activities can include such promotional tools as advertising, personal selling, sales promotion, public relations, or direct marketing. Each company can create its own marketing communication system that is considered the most appropriate for reaching goals. (Kotler 2010.) Placecan be defined as a number of activities organized by the company in order to make its products or services available to the target consumers. Based on the type of product and objectives of the company, it can choose the most suitable distribution strategy. While building the strategy the company should
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- Fall '15
- Marketing, CHURCH STREET BREWERY, Church Street Brewing Company