Introduction
The concept of market mix was introduced by Neil Borden in his article “The Concept of Marketing Mix”. However, it was E.Jerome McCarthy who classified marketing elements generally referred to as “market ingredients” by Borden, into four main categories. These categories include price, place, promotion and product.
The concept became known as the 4P’s of marketing. The concept remains relevant to modern companies marketing strategies in the face of increased competition (Armstrong & Kotler, 2011). Marketing strategies are centered on controlling the above elements under various constraints.
Expedia is an online travel company started under Microsoft in the late 90’s (Expedia, 2012). The company offers customers a broad range of products. The company enables customers to book hotels, flights to different destinations across the globe. Also, it offers car rental services and exotic vacations packages. Finally, it offers customers an opportunity book rooms on cruise ships including the Norwegian Jewel.
Discussion
Product
Product refers to goods or services that a company produces or offers. Production of a product or service is depends on the availability of factors such as physical and human capital. Product decisions, therefore, are dependent on several things that differentiate a product from competitor’s products.
One key product decision is branding. Branding is refers to the name that a company uses to differentiate its products from those of competitors. Marketers have to generate a positive perception of the product by investing heavily towards establishing and developing the company’s brand.
Another product decision is packaging, Packaging refers to the physical and visual characteristics of a product. Packaging influences consumers heavily as most buying decisions are based on the presentation of the good or service. Other factors that influence product decision include quality, styling and safety.
Expedia has a broad range of products. Expedia Inc., operates several subsidiaries through which it offers several services. They include Hotel.com, Hotwire, Egencia and TripAdvisor (Expedia, 2012). Hotel.co. enables customers to book rooms in hotels ranging from two star to five star hotels.
Egencia offers corporate clients with travel services. Clients, therefore, book flights and rooms in different locations across the world. The site, therefore, offers business to business travel thus corporate clients with tight time schedules are in a position to prepare for both local and international trips.
Under Hotwire, there are two sites namely Car-Rental.com and Travel-Ticker.com. Car Rental.com offers has links with major car rental companies across the world. On the site, customers can rent a car in advance to ease their local travel concerns while visiting different parts of the world. Travel-Ticker.com offers customers a chance to book flights with different carriers across the world.
Elong.com is an Expedia affiliate based in China. It focuses on the expansive Chinese and also Asia-Pacific market. On the site, customers are able to book flights, hotel rooms and vacations across the Asia-Pacific region. Classic vacations are offers clients all inclusive vacation packages in different places across the world.
Some of the holiday destinations include the Caribbean, Hawaii, Europe and South Pacific. Therefore, Expedia Inc. has a diversified range of product that caters both personal and corporate client needs.
Price
Pricing is a critical aspect for any business or organization. Pricing is influenced by factors such as cost of production and economies of scale. Other factors include expected profit margins and possible pricing responses by competitors in the industry (Baye & Morgan, 2001). The primary objective of any firm, therefore, is to offer customer with the most competitive prices. Pricing decisions entail factors such that as discounts, list prices and financing.
Expedia Inc., through Hotel.com has a list of prices for all hotels including two stars and five star hotels in different locations across United States and the world. In order to attract more customers, Expedia Inc, offers a variety of discounts to customers.
For example, for $ 669, an individual can enjoy an all inclusive 7 night vacation to in any destination of choice in the Caribbean. Similarly, for $ 399, an individual can enjoy a 7 day cruise in the Norwegian Jewel, a four star cruise liner.
Also, through Car Rental.com, one can rent a car for a little as $ 11.95 per day in different cities across the United States. Expedia offers discounts to its customers up to 50% off for the vacation in the Caribbean and 70% for the cruise for customers who book early and regularly.
Expedia runs a loyalty program where it rewards customer loyalty. Customers earn points on money spent in any of the sites and can redeem points in form of vacations various places.
Place
This refers to the network of distribution established by a company. A company has to establish efficient distribution channels in order to enhance customer access products or services. Additionally, distribution channels are aimed at increasing customer convenience thus he or she saves both time and money. Marketing strategies aim at establishing convenient and economical distribution channels.
Several factors are taken into consideration before setting up of distribution channel. One factor that influences distribution is target market. A company has to identify the characteristics of the target market in order to establish relevant distribution channels.
Therefore, the company is able to set up premises near its target market increasing its sales volumes. Also, a company has to establish different levels of service. This is a breakdown of its products thus customers are aware of the premises from where they can get a specific good or service.
Expedia Inc. has established distribution channels through which customers are able to identify products. The company through its synergies has divided the global market into four major regions including Caribbean, North and Central America, Europe, South America and Asia-Pacific region (Expedia, 2012).
Each region is served by one of the company’s synergies and thus it’s able to comprehensively cover all the regions indicated above. For example, through Venere.Com, Expedia Inc offers hotel booking services across Europe. The company, therefore, has affiliates across Europe thus customers are able to access five star hotel services at very competitive prices. The company caters for both individual and corporate customers. The site offers travel agencies services where customers can organize for local transport offered by local travel agencies.
Expedia Inc has established several levels of services to ensure that customers access quality service. On various sites, customers access information regarding different services. For example, a customer who wishes to book a hotel room, he or she has several options.
Expedia encourages customers to create an account from where a customer accesses different kinds of hotels and prices. Thereafter, the customer can book hotel room online or one can call in and book the room over the phone.
Payment is done using credit or debit cards from accepted providers. Expedia uses the customer account to contact the customer on successful placement of room. Also, the company contacts the customer over the phone where he or she does not open an account.
Promotions
Promotions refer to a communication of a company’s products or services to potential customers. A company uses various marketing tools to improve potential customer’s perception of the image. Promotions are aimed at changing potential customer perception of the product’s ability to satisfy needs.
However, a cost-benefit analysis has to be done in order to establish added value associated addition of the new customer. Tools used in promotions include public relations, personal selling and advertising. Expedia has established several tools aimed at marketing the company’s products.
Expedia is able to advertise on its websites where customers are to access information on various products. For example, on Classic Vacation.com, customers can sample various vacation destinations. This is done via use of maps, images and virtual tours.
Maps provide topographical information on the destination including major physical features surrounding the vacation destinations. Virtual tours provide customers with first hand information on the various destinations.
Customers, therefore, are in a position sample various facilities in the vacation destination. Expedia, also, runs a press room where major company announcements are made. On the internet site, Expedia runs a virtual media room where journalists submit queries that are attended to by the management in subsequent press conferences.
Conclusion
Marketing encompasses successful integration of the above elements. Expedia has recorded tremendous growth over the last decade. Quarterly results released at the end of January indicate the company recorded a 4% increase in its net income. Marketing objectives are, therefore, based on the above elements and evaluation is done on successful realization of the marketing objectives.
Reference List
Armstrong, G., & Kotler, P. (2011). Marketing: An introduction (10th ed.). Upper Saddle River, NJ: Prentice Hall.
Baye, M., & Morgan, J. (2001). Information gatekeepers on the internet and the competitiveness of homogenous product markets. American Economic Review, 91, 454–474.
Expedia. (2012). Expedia Travel: Vacation, cheap flights, airline tickets & airfares. Web.