Evaluation of the extent of usefulness of marketing mix as a basis to developing marketing strategies for service industry


Essay, 2017
7 Pages, Grade: A+

Excerpt

Abstract

The marketing strategies that of service industry through the use of marketing mix have to content with some unique characteristics. Marketing mix elements include the product, place, promotion and price.

The paper seeks to evaluate the role of the marketing mix in the development of the marketing strategies in the service industry.

Marketing mix is very helpful in the value creation, supporting the needs and wants of the customers and the improvement of the returns on investment (ROI) by helping to develop the marketing strategies. Qualitative research method will be applied in the research through the use of case studies and interviews.

The expected results indicates that when properly applied, the marketing mix helps in the development of the marketing strategy of the firms.

Keywords: Marketing Mix, Marketing Strategy, 4Ps, 7Ps

Introduction

The marketing strategies that of service industry through the use of marketing mix have to contend with some unique characteristics (Ferrell & Hartline, 2011, p. 196; Lamb, Hair & McDaniel, 2017, p. 415). The unique characteristics include intangibility, heterogeneity, inseparability of production and consumption, perishability and lack of ownership for the customer. In the marketing strategy of many firms in the service industry, greater emphasis is usually placed on the product rather than considering the whole component of the marketing mix – price, product, place and promotion – as whole in the development of the strategy. The focus of service players is usually on the products: in the case of service industry the services that are offered as they are responsible for fulfilling the needs and wants of the customers (Ferrell & Hartline, 2012, p. 149). The service industry in many countries is mature and is characterized by high levels of competition thus the product alone cannot provide the differentiation that is needed to achieve profitability. The paper seeks to evaluate the role of the marketing mix in the development of the marketing strategies in the service industry. All the elements of the marketing mix will be considered rather than focused merely on the product offering.

Literature review

Marketing strategies refers to the means through which a firm can achieve its marketing objectives. The marketing strategy is closely linked to the various elements of the marketing mix (Plomaritou, 2008, p.60). Marketing mix elements include the product, place, promotion and price. Dann (2011, p. 157) noted that the marketing mix is very helpful in the value creation by ensuring the compatibility of the 4Ps of the marketing mix. He argues that a synergy of the 4Ps would create more value for the firm thus helping to capture the customers through supporting the needs and wants of the customers. Reid & Bojanic (2009, p. 263) argued that on top of creating value for the service organization, the marketing mix also helps in product development. The consideration of the marketing mix can help a firm to develop new products through the consideration of the 4Ps. This significantly plays a role in the marketing strategy of the firm by helping in the achievement of the objectives of the firm especially its marketing objectives. The marketing mix also plays an important role in the improvement of the returns on investment (ROI) especially through the consideration of the extended 7Ps that include people, processes and physical evidence.

Two cases of service industry players that have used the marketing mix to develop their strategy are McDonalds and JetBlue. McDonald applied the marketing mix to achieve its marketing strategy and remaining true to its ‘Think Global, Act Local’ philosophy. The firm makes use of standardized taste and appearance up to the limits allowed by local laws and tastes, pricing depending on the market and the value created fir the customer, strategic place expansion, localized promotion strategies, standard processes, use of local people who understand the local culture and the physical evidence where the locations are created similarly in terms of family friendliness, menus, toys on children meals amongst others (Lamb, Hair & McDaniel, 2011, p. 25)

JetBlue has been able to achieve high levels of customer service and increase productivity through the development of a marketing mix that helps to develop the right strategies. The pricing considers the needs of customers for more leg room and high quality service (Hill, 2012, p. 66-67). The people are highly skilled and the product include cozy lounges, excellent restaurants and retail stores that helps make the customers comfortable.

Methodology

Qualitative research method will help the researcher to gain a deep understanding of the restaurants experiences in using marketing mix to develop the marketing strategies to help in devilment of new products, improving the ROI and value creation (Taylor, Bogdan & DeVault, 2015, p. 7). The Qualitative study included interviews with participants who are experienced leaders in the service restaurants and have great experience in the development of marketing strategies based on the 4Ps or 7Ps. The in-depth interview is used as it minimizes the biases of the researcher and increase honesty of participant (Taylor, Bogdan & DeVault, 2015, p. 101). Purposive sampling will be applied to select the successful restaurants from personal research and local directories. The research design will be multiple case study design to explore the research question as it allows for the comparison of the subjects (Yin, 2013, p. 106; Taylor, Bogdan & DeVault, 2015, p. 29). Case study is used as it helps in exploring the concept that is complex through the use of intensive real-world analysis. The data will from the case study interviews will be triangulated through the use of secondary data collected from internet and library searches (McMurray, Scott & Pace, 2004, p. 263; Watson, Benner & Ketefian, 2008, p. 276).

Expected outcomes

The expected outcome is that marketing mix plays an important role in the marketing strategies of the service industry players. The marketing mix can contribute to the marketing strategies through enhancing new product development, the provision of services in line with the needs and wants of the customers and the increase in ROI (Dann, 2011, p. 157; Reid & Bojanic, 2009, p. 263; Lamb, Hair & McDaniel, 2011, p. 25).

Conclusion

The marketing strategies that of service industry through the use of marketing mix have to content with some unique characteristics. Marketing mix elements include the product, place, promotion and price. Marketing mix is very helpful in the value creation, supporting the needs and wants of the customers and the improvement of the returns on investment (ROI) by helping to develop the marketing strategies. Qualitative research method is applied and the results indicates that when properly applied, the marketing mix helps in the development of the marketing strategy of the firms.

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Details

Title
Evaluation of the extent of usefulness of marketing mix as a basis to developing marketing strategies for service industry
College
University of Nairobi
Grade
A+
Author
Year
2017
Pages
7
Catalog Number
V499801
ISBN (eBook)
9783346026903
Language
English
Tags
evaluation
Quote paper
International Business Management David Onditi (Author), 2017, Evaluation of the extent of usefulness of marketing mix as a basis to developing marketing strategies for service industry, Munich, GRIN Verlag, https://www.grin.com/document/499801

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