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17-12 Principles of Marketing [CH 17

Sometimes an organization chooses several target markets for a given good or
service. A college or university might select several target markets for its $10 million
fund-raising campaign: alumni, wealthy individuals, foundations, and local

businesses. Target marketing requires considerable research and analysis.

Developing a Marketing Mix
The second step in the development of a marketing strategy is creating a

marketing mix marketing mix to satisfy the needs of the organization's target market. The
Combination of a firm's marketing mix is a combination of the firm's product, pricing, distribution, and
product, pricing, distribution, promotion strategies. Marketers focus all of these strategies on the selected consumer
and promotional strategies segments.
focused on selected
consumer segments. Product strategy includes decisions about package, design, brand name,
trademark, warranty, guarantee, product life cycle, and new-product developments.
product strategy Pricing strategy is one of the most difficult parts of marketing decision making. It
Element of marketing deals with the methods of setting profitable and justifiable prices. Both government
decision making that deals
with developing goods and regulations and public opinion must be considered in pricing decisions. Distribution
services, package design, strategy involves the physical distribution of goods and the selection of distribution
trademarks, warranties, and channels, the organization of wholesaling intermediaries and/or retailers who handle
product life cycles. the product's distribution. Promotional strategy involves personal selling,

pricing strategy advertising, and sales promotion tools. These elements must be skillfully blended to
Element of marketing produce effective communication between the firm and the marketplace.
decision making that deals The marketing mix is the mechanism that allows organizations to match
with methods of setting consumer needs with product offerings. To illustrate how marketing mix elements
profitable and justifiable
prices. are combined to satisfy the needs of the target market, consider the marketing
strategy developed by Chuck Bennett, president and founder of Zymol Products.
distribution strategy Several years ago, Bennett introduced the world's most expensive surface care wax, a
Element of marketing product targeted at "lovers of cars and fanatics." The wax is a natural, nonabrasive
decision making involving the
physical distribution of goods compound containing expensive oils and a coconut scent. It is produced in small
and the selection of batches and packaged in a high-tech container imported from Sweden. Zymol Z503A
distribution channels. Cleaner— priced at $28.95 for a 16 ounce container —reflects the product's prestige
image and expensive ingredients. Zymol is sold at automobile supply stores and
promotional strategy
Element of marketing through direct-response advertisements placed in publications read by target
decision making involving the customers, such as BMW's Roundel, Mercedes' Star, and Porsche's Panorama, as
blending of personal selling, well as Autoweek and Import Parts & Accessories. Advertisements are designed to
advertising, and sales appeal to owners of expensive cars. In one ad, headlined "Not for the masses," the
promotion tools to produce
effective communication Zymol container rests in a brandy warmer next to a mound of caviar on a crystal
between the firm and the plate. The advertising copy communicates a simple message—"Collected and
marketplace. enjoyed by the owners of the best loved automobiles in the world.''

The Marketing Environment

In selecting a target market and developing a marketing mix, marketers must
consider certain environmental forces. The five dimensions of the marketing
environment are competitive, political/legal, economic, technological, and social/
cultural. As Figure 17.5 illustrates, these external forces provide the framework

within which marketers plan product, pricing, distribution, and promotion strategies
aimed at the target market.
The Competitive Environment. Marketers must continually monitor the
marketing activities of competing organizations. Analyzing the competition enables

an organization to devise a strategy that will give it a competitive edge.
The Political/Legal Environment. Governments at the federal, state, and local
levels have enacted laws that regulate many marketing activities, ranging from
package labeling to product safety. Most laws are designed to maintain a competitive

environment and protect consumers. Marketers must not only be aware of the many
laws, but they must also comply with them. Noncompliance could result in fines,
negative publicity, and expensive civil damage suits. Two telemarketing firms were

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