Marketing mix: 4ps for Second Life Company Essay

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Marketing mix is a very essential tool that is used in marketing of goods and services (Kerin et al 12). Quite often, the tool is used to define the brand or uniqueness of a product in order to distinguish it from those of other potential competitors in the market.

Needless to say, marketing mix comprises of four components that are generally known as the 4Ps. The company will consider the 4Ps that include product, price, promotion and place (Bradley 14). These components will be discussed in detail in order to illustrate how they are useful in marketing plan of the company.

Marketing Mix: 4 P’s

Product

We deal with goods produced from already used raw materials for the sake of making profit. To emphasize on this, the products in the company entail recycled goods which we obtain from disposed raw materials as well as donations from well wishers.

From a careful analysis of the market situation, we anticipate that the products will be able to satisfy basic needs of consumers who fall below the poverty line.

The company is in a position of expanding its product mix by increasing production depending on the amount of resources available for use. The Second Life Company focuses on the following:

  • Features of products and services produced are of high quality in order to ensure that it remains unique from those of other competitors (Bradley 22).
  • In order to ensure that the company’s products remain competitive, we will rebrand the products as a strategy of making sure that they look different from the original ones. This will be executed by making use of a different brand name, improving the quality of our products as well as the mode of packaging (Bradley 23). This will make our product appealing to customers and this will be an integral feature of marketing that cannot be ignored since customers tend to be physically impressed before they end up buying particular products.
  • It is also notable that creating new labels, name and design will enhance easier identification of our company’s products by customers. In line with this, production method and delivery of services are crucial factor that will be considered (Kerin et al 12).
  • For instance, businessmen should employ production methods that are cost effective while maintaining the quality of goods and services offered to customers. This company will employ high quality and improved technical methods of production to ensure that the goods produced effectively meet the overall needs of the target market as well as individual tastes and preferences of customers just like new ones would do.
  • Additionally, since production is a complex activity, the company will employ and allocate workers in diverse production areas depending on their skills and qualifications. This will help to uphold the quality of products produced and consequently, our products will be able to stand out in the competitive market (Bradley 36).
  • We plan to meet the needs of the market

Price

It is indeed definite that price determines the returns a company gets and its future performance in terms of financial turnover (Kerin et al 18). There are numerous pricing strategies that can be used to determine the cost of products in our company.

Competitive Analysis for pricing strategies

StrategyAdvantages
profit-oriented
  • The latter pricing strategy will entail the process of evaluating the cost of production and anticipated profit as part and parcel of determining the prices of our products
  • It is worth to mention that the cost of production is a key guiding factor when assessing the likely profit margin of a business organization
sale-oriented
  • In most cases, when the volume of sales for a given product is relatively high, it is expected that the cost of production will be lower due to the concept of economies of scale.
  • Nevertheless, the latter largely depends on the availability of ready markets (Bradley 44).
  • Therefore, it is anticipated that recycled goods will have a larger market than first hand goods since majority of consumers have a lower purchasing power and also bearing in mind that most of them survive on meager incomes.
  • This explains why the pricing of our products will have to be made lower by 4% than those of other market rivals in order to enable them acquire our products.
value-oriented
  • Notably, consumers evaluate the value and quality of various substitute products in the market and compare them with the various price levels as offered by different companies.
  • In this case, the company will consider the consumer perceived value of our products to set the price.
  • In addition, status quo is also a strategy that can be used. This is whereby the company compares the price of goods produced by other companies and sets up prices based on the average market value (Bradley 63).

Our prices

Recycled itemRelative Cost (USD)
#1 Plastic (PETE)60
#2 Plastic (HDPE)90
Aluminum Cans and Materials55
Batteries100
Cardboard10
Carpets130
Ceiling Tiles200
Colored Office Paper2
Cooking Grease15
Copper80
Debris40
Electrical Cable100
Computers200
phones60
Ferrous Scrap Metal150
Fiberglass Insulation130
Food Waste70
Glass100
Lighting, fluorescents & ballasts80
Magazines, Brochures,5
Motor oil5
Newspaper2
Non-Ferrous Scrap Metal40
Office Panels – Metal70
Photographic Film/ X-Rays60
Plastic Drums50
Plastic Packaging1
Printer/Copier Toner Cartridges100
Printers50
Publications2
Shredded Paper1
Telephone Directories3
Textiles6
Tin/Steel Cans5
Tires300
White Office Paper1
Wood Pallets5
Wood waste – Construction3
Yard Waste3

Place

This will involve efforts made to ensure that the products offered are capable of reaching the target consumers in the most effective and convenient way. In this case, the concept of “place” is synonymous to distribution of goods and services whereby various strategies are used to ensure that consumers access the products (Kerin et al 42).

In this context, the company will establish numerous locations within the marketing sites in order to ensure that customers can buy our goods in the most comfortable way. That notwithstanding, the company will also exercise intensive, selective and exclusive distribution of products to consumers.

In order to achieve this strategy, we will establish myriads of stores within the marketing zones in the sense that our suppliers will be able to collect and distribute goods to customers within the shortest time possible. Some of the notable distribution channels that will be used include producers, wholesalers and retailers (Clow and Baack 4).

It is important to mention that in most cases, physical distribution of products depends on variety of factors such as availability of transport facilities and the cost of transportation. Since distributing products using trucks might be expensive at the start of the business, the company will rely on wholesalers who will collect products, supply the same to retailers and finally consumers.

In a collective manner, sales and marketing will be enhanced through the use of suppliers, wholesalers and retailers who will determine their selling price depending on the various costs incurred. Unlike cost that might be affected, the quality and perceived value will remain the same.

4 Promotion: This is a broad concept that comprises of numerous elements such as posters, billboards, media advertisement, personal selling, direct mails and sales promotion. The company will use variety of the aforementioned promotional strategies in addition to personal selling, advertising, social media, radio, television, website and telemarketing.

Personal selling will mostly entail the use of suppliers, wholesalers and retailers to reach out for customers (Bendinger 47). These groups will act as intermediaries through which information flow between customers and the company will be largely enhanced.

We also anticipate increasing our volume of sales through sales promotion. This will comprise of offers such as discounts, use of coupons, trade shows, sweepstakes and contestants (Clow and Baack 8).

Finally, the company will organize seminars and conferences that will enable members of staff to establish positive and well sustained public relations with customers. This will help them to make appropriate decisions on how to use our products. Notably, using word of mouth will help to create awareness to ordinary customers on the possible benefits of purchasing our products (Fill 33).

It will also provide a forum where we will identify consumers’ attitude, values, perspectives, needs and beliefs. The latter will equally be instrumental in selective production of goods that are of high quality and meet the cultural and ethical demands of customers. Finally, temporary promotions to some extent will aid in attracting new customers (Fill 42).

Works Cited

Bendinger, Bruce. Advertising & the business of brands. London: Pearson, 1999. Print.

Bradley, Nigel. Marketing research. Tools and techniques. Oxford: Oxford University Press, 2010. Print.

Clow, Kenneth and Donald Baack. Integrated advertising, promotion, and marketing communications. London: Pearson Education. 2007. Print.

Fill, Chris. Marketing communications: Contexts, strategies and applications. New York: Prentice Hall, 2001. Print.

Kerin, Roger at al. Marketing: The Core. New York: McGraw Hill Publishing, 2001. Print.

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