A call for progress

Introduction

The marketing mix is the operational part of a marketing plan that comprises the combination of the 4Ps: product, price, place and promotion. Armonstrong and Kotler explain that a firm adjusts the four elements until the appropriate combination that meets the needs of the product’s customers while meeting the firms’ goals is arrived at. (Armonstrong and Kotler, 2008)  The purpose of this paper is to identify and describe the various roles of product, pricing, promotion and distribution in different markets and how various factors influence these roles. The paper discusses the different roles of the 4Ps in both developed and emerging markets, the opportunities for standardization and customization and the role played by legal and cultural forces in the mobile phone industry.

Roles of market mix in the mobile phone market in developed countries.

The main purpose marketing mix in the cell phone market in the developed countries is mainly to segment the market, influence repeat purchases and retain customers’ loyalty. In market segmentation, firms identify a group within the cell phone market, identify their needs and strategize the best way to satisfy the needs of the identified group. In addition, marketing mix in already developed markets also strengthens the long-term competitive position of the cell phone manufacturing companies. Market mix strategies influence repeat purchase, perceived value, satisfaction, brand trust, and commitment. Application of all Ps may be used by firms in the already developed countries to promote brand loyalty in order to increase the customers’ likelihood of repurchasing or to continue using a particular brand. Varying market mix input such as product formulation, promotion and distributing may also affect brand penetration, market share, and sales volume.

Roles of marketing mix in emerging markets

One role of market mix in emerging markets is to create demand. Businesses engage in competitive pricing to influence customer purchases. Secondly, pricing is also important in gaining a competitive edge against existing competitors. Firms also set up their prices against bench marks to differentiate their products in the market by making their offer to be unique. A firms pricing is useful in sending a message to the market place regarding the quality of the new product.

In an emerging market, distribution strategies ensure that products are available where and when needed, in the right quantities, in the right place and where there is access to other services that can compliments the product. Distribution strategies impact on the demand of the product while at the same time influencing the level of competition.

Promotion involves the application of a range of techniques in a cost-effective way to initiate, increase and maintain awareness of a product. Promotion in an emerging market is aimed at moving customers from the total lack of awareness to the point where they buy the product. Components of the promotional mix include advertising, public relations, promotion, and packaging.

Standardization and customization in the mobile phone industry

Kale et al, explain that standardization refers to the extent of absence of variety in the product. Customization is used by industries as a strategy of producing standardized products by incorporating some degree of modular design or delayed differentiation. There are various opportunities for standardization and customization in the cell phone industry. The product is the easiest element of the marketing mix to standardize. Standardization and customization allow the integration of culture specification and regional differences into one product. However, firms must take into account local demands and needs. Standardization also affects the marketing mix to reflect the differences in the products. Mobile phone companies may decide on the degree of adaptation required in a specific market such as brand names, design, color and packaging of the product. (Kale et al, 1991)

Mobile phone companies may also standardize prices such that prices are fixed in all international markets without taking into consideration other factors. Factors that drive price standardization include reduction of trade barriers, cost of transportation, brand globalization, global sourcing, and communication inflow. Customization can be used by mobile phone companies to respond to customer preferences, cost situations, competitive situation, inflation and exchange rate and other regulations. Customization in pricing can be used to adapt to local condition and give the firm the opportunity to take advantage of price differences. Standardization of promotion by mobile phone companies will involve using promotion mix that suits all markets. According to Calantone et al, Customizing promotions through minor modification relatively reduces the cost. Standardization and customization increase volume of sale lowers cost of production, increase profitability and integrated image around the world. (Calantone et al, 2004)

Legal forces and cultural factors influence in the mobile phone industry

Legal and cultural forces influence how the cell phone industry conducts business. The legal environment in different countries is often a direct consequence of power. Factors such as taxation, regulations governing business, safety, regulations on imports, regulations on the operation of foreign companies and special interests significantly influence how mobile phone countries conduct business. Rules and regulation also have an impact on the cost of running business and how the marketing of products is carried out. Regulation agencies in different countries influence marketing activities including pricing, product development, advertising, packaging, and distribution. Such regulatory agencies have the power to establish and enforce rules and regulations that guide industry practices. Environmental regulations also determine Companies practices on recycling, waste disposal and packaging.

Culture also plays a significant role when conducting international business. Firms must change their approach due to the unique attitudes and values present in different cultures. Such changes influence the types of the marketing mix to be used in different cultural groups. Other elements of culture such as demographic composition of citizens also influence the types of products that the company sells and the marketing strategies that best suit the target market. Age, race, gender, education, income, parental and marital status have a significant bearing on individual behavior that affect how they use products. Regulations about color, slang the expression, the languages to be used in publications and broadcasts, slogans and music affect marketing promotions. Cultural norms also influence business ethics that companies should use in commercials when focusing on target market segment. A diverse customer base influences the modification and diversification of marketing practices to meet the diverse needs.

Conclusion

As “A Call for Progress” case describes, various marketing strategies have been employed by different companies in developing countries. Companies have to make decisions on the marketing mix strategies to use to suit different markets. Also, mobile phone companies have to decide on the extent they should apply standardization and customization in different markets. Managers can use ethnocentric approach, polycentric approach or geocentric approach to decide the extent to which they employ standardization and customization of the product mix. Mobile phone companies should also determine how legal forces and cultural factors influence pricing, promotion, product, distribution and how such companies conduct business. Mobile phone companies must contend with the differing legal and cultural environment and also capitalize on the synergies in the different markets.

References

Kale, S.H & McIntyre, R.P. (1991). Distribution Channel Relationships in Diverse Cultures, International Marketing Review, volume 8, no 3, P 31-45

Calantone, R.J. Cavusgil, S.T, Schmidt, J.B. & Shin, G.C. (2004).

Internationalization and Dynamics of Product Adaptation. An Emperical Investigation, Journal of Product Innovation Management, no 21, p185-198.

Armonstrong, G. & Kotler, P. (2008). Principles of marketing (12^th edition).

Sherry Roberts is the author of this paper. A senior editor at MeldaResearch.Com in urgent custom research papers. If you need a similar paper you can place your order from nursing school papers services.