Marketing Mix Of CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP

Posted by Zander Henry on Aug-22-2018

1. marketing mix

1.1. Understanding the marketing mix

  • The marketing mix is an important set of marketing tools and characteristics that a firm uses to increase penetration in the target market groups
  • Using the marketing mix strategically includes focusing on seven important aspects of marketing and branding for an organization, namely: product, place, price, promotion, people, process, and physical evidence

1.2. Importance of marketing mix

  • The marketing mix helps a company choose and decide on a suitable marketing strategy
  • The marketing mix also helps a company in resource and budget allocation to different aspects of the marketing strategy and product development
  • The marketing mix also allows a company to choose the right and effective marketing tactics for its promotional needs

2. Marketing mix for CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP

CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP makes use of the marketing mix strategically to achieve not only the marketing objectives but also the broader organizational objectives.

Marketing Mix CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP is presented below:

2.1. Product

Product is one of the most important components of the CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP Marketing mix. The distinctive characteristics of the product by CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP are:

2.1.1. Quality

  • CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP maintains the high quality of products
  • High product quality is maintained by adding value during different stages of the value chain
  • CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP procures raw materials from reliable and trusted suppliers only
  • These raw materials are processed under carefully maintained environments to maintain high and consistent quality of the products
  • High quality promise and delivery also provides CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP with a distinctive competitive advantage

2.1.2. Ease of use

  • The products manufactured and sold by CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP are relatively easy to use
  • All products come with a user manual, which is easy to understand and which provides simple instructions for product use
  • The consumers can also call the 24/7 helpline to understand details about product usage
  • Also, retail representatives provide detailed instructions and explanations regarding the use of the product at the time of the sale

2.1.3. Portfolio broadness

  • CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP has a broad portfolio of products
  • The broad portfolio helps CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP in reaching different target groups in the market
  • Also, the broad portfolio allows financial strength to CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP
  • The broader product portfolio also adds more value for CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP

2.1.4. Benefits of product consumption

  • CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP offers functional benefits to consumers of the product use
  • These functional benefits are promised and delivered – however, they are also delivered by other similar products
  • The distinguishing aspect of CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP is its delivery of emotional benefits to the consumer
  • Products manufactured and sold by CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP promise consumers an ego boost, confidence, and security
  • CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP also promises fulfilment of psychological needs on product consumption
  • These psychological needs include, for example, the need for empathy, the need for belonging, and the need of feeling loved.

2.1.5. Different SKUs

  • The products by CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP are available in different sizes
  • CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP has made use of different SKUs to increase market penetration
  • Different SKUs can be brought and used as per the consumption needs of the consumers, and the target markets
  • Through the production of different SKUs, CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP has also increased the trial rate
  • Different SKUs have also helped CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP improve its product accessibility

2.2. Price

CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP marketing mix focuses on a hybrid strategy for pricing to obtain maximum value for its products. The marketing mix CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP uses a combination of a number of techniques for pricing its products, which are detailed below:

2.2.1. Premium pricing

  • By using premium pricing for some of its product ranges, CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP encourages favorable brand and product perceptions in target consumer groups
  • Premium pricing for products also encourages a favorable quality perception of CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP products amongst consumers
  • With premium prices, CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP has successfully also made some of its product ranges exclusive by restricting sales and production. This, in turn, leads to a perception g luxury in consumption products
  • Premium prices add a touch of privilege and high value in CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP products
  • Using elements of premium prices in other product ranges has also allowed CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP to maintain significantly high profits and a consistent business growth

2.2.2. Psychological pricing

  • Since CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP has a number of different product ranges and product groups, the use of psychological pricing has been beneficial
  • With the use of psychological pricing, CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP also successfully adds more value to its products from the point of view of customers
  • CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP also gains higher sales with psychological pricing
  • Consumer purchase a higher amount of CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP products because of its use of psychological pricing
  • CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP is able to increase its target audience and broaden its target purchaser groups

2.2.3. Geographical pricing

  • CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP is able to penetrate different regional markets optimally with the use of geographical pricing
  • For offshore locations, geographical pricing also allows CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP to cover shipping and customs expenses
  • Geographical pricing also allows CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP to maintain consistent revenue growth by altering pricing in different markets based on local currency value

2.2.4. Bundle pricing

  • For some product ranges, CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP is also known to use bundle pricing strategy popularly
  • CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP also uses bundle pricing during sales
  • Bundle pricing increases the trial rate for consumers
  • CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP experiences higher return on the cost of gaining a new customer
  • With bundle pricing, CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP is also able to control costs and prices by lowering marketing and distribution expenses
  • The use of bundle pricing also adds value to the umbrella brand name of CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP.

2.3. Placement

CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP places high importance on the placement of its products because it directly relates to accessibility for consumers.

2.3.1. Company-operated stored

  • The company maintains stores operated by the management of CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP in all markets
  • Company-operated stores give CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP higher control over operations as well as store layout and design
  • CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP also interacts directly with the consumers and gathers important details regarding consumer behavior and consumer feedback through company-operated stores
  • The company operated stores also give leverage to CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP in terms of decisions regarding the stocking of different product items

2.3.2. Licensed stores

  • CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP licensed stores also allow consumers to enjoy the various product offerings by the company
  • Licensed stores also decrease the risk of financial and physical investment for CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP in unstable markets
  • Licensed stores have also given CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP high business growth, and a boost for rapid market expansion and penetration
  • Through licensed stores, CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP has also learned about local consumers and cultures
  • Licensed stores and shops encourage sales of products by CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP by aligning it with local cultural values
  • Licensed stores also help CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP in localizing its product offerings to enhance brand equity and band image

2.3.3. E-commerce

  • CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP has developed a successfully operational website for online order placement and order tracking
  • CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP also encourages sales through social media portals, where the company takes orders through direct messages, as well as through a mini-shop model
  • The company also stocks products with online retailers such as Amazon and eBay, as well as smaller local online retailers as well
  • Online retailing, and using the internet to make sales has boosted the sales for CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP and has also increased the accessibility of its products for consumers.

2.3.4. Supermarkets and hypermarkets

  • CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP also places its products in supermarkets and hypermarkets across the country
  • A large number of CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP target groups shop from supermarkets and hypermarkets
  • Placement in supermarkets and hypermarkets also improve cost efficiency for CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP

2.3.5. Partner agents

  • In offshore locations, CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP also makes use of partner agents for its products’ placement
  • These partner agents are assessed and evaluated on strategic compatibility and reliance
  • CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP contracts with partner agents in other countries and markets for its product placement to ensure quality control and terms of negotiation

2.4. Promotion

The marketing strategy for CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP also places high importance on the promotional tactics and strategies used. The promotional strategies allow the CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP to interact with the consumers and influence them directly. CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP uses a 360-degree approach in its promotional activities, and makes use of the following means of promotion:

2.4.1. Digital marketing

  • CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP has corporate profiles on all social media websites and portals
  • CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP uses its social media presence to directly, engage with consumers
  • This direct engagement and interaction allows CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP to understand the customers, their needs and demands
  • CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP uses this feedback and incorporates it in its broader marketing and organizational strategy
  • CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP also maintains a corporate website – which highlights company information, product information as well as information regarding any ongoing campaigns and sales

2.4.2. Reward Programs

  • CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP has a loyalty card program for its customers
  • The loyalty card allows customers to redeem points in exchange for products or other exciting gifts, as directed by the company
  • Each purchase is entered into the loyalty card by CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP and is valued for points against the products’ monetary value
  • The loyalty card can be purchased or is given complementary by CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP on high valued purchases
  • Frequent usage and purchase of products by CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP also has rewards against the loyalty card

2.4.3. Community Influencers

  • CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP makes use of community influencers as its on-ground promotional efforts
  • CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP identifies strong and confident individuals to be brand ambassadors in their communities
  • CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP provides these brand ambassadors and community influencers with its product range and invites them to use it themselves to see benefits

2.4.4. Conventional marketing

  • The company places advertisements in consumer-related magazines. This largely includes home decor, and home management magazines
  • Magazine ads are not very frequent, but appear twice every quarter of the fiscal year
  • In high-density locations, CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP also makes use of out of house hoardings
  • Hoardings increase visibility for CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP and also work towards building stronger brand recall
  • CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP also produces TV advertisements
  • All TV advertisements have an emotional appeal to them
  • TV advertisements by CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP have progressed to include a slice of life elements and characteristics
  • TV advertisements by CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP also highlight the functional benefits of the product

2.5. People

The marketing mix of CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP also places an essential focus on people development and people building. This is because CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP realizes the importance of employees in building strong customer relationships. CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP develops its employee and people by focusing on the following aspects:

2.5.1. Training

  • CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP makes sure that all employees undergo regular training sessions for skill development and enhancement
  • Trainings at CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP are not the only field related, but also focus on essential management and organizational skills
  • Training sessions and activities at CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP also identify with the employee's own needs of progression, development and growth
  • All training sessions and activities designed and carried out by CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP take into consideration business goals and objectives, as well as employee's personal goals and aspirations
  • CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP, therefore, tries to develop the employee as an organizational member, as well as an individual
  • All training is engaging, and hands-on so that employees do not only learn but also experience

2.5.2. Organizational ownership

  • CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP works on strengthening the organizational commitment in its employees
  • CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP builds employee loyalty so that people can reflect their optimal best at work
  • CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP also understands that satisfied employees will lead to happy and satisfied customers
  • CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP regularly shares different reward programs for employees, including stock sharing, so that their organizational commitment and ownership is enhanced
  • CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP also includes employees in decision making at different managerial levels, and regularly takes their feedback for different projects and products – which also work towards building organizational ownership

2.5.3. Motivation building

  • CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP employees are the face of the organization
  • CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP are motivated through the exciting and creative organizational culture
  • Employees are also motivated through different reward programs and bonuses that CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP distributes
  • Another source of motivation is appreciation programs where management appreciates and acknowledges the work and performance of different employees

2.5.4. Succession planning

  • CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP remains one of the leading players in the industry also because of its focus on succession planning
  • CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP conducts succession planning for all managerial levels
  • Succession planning is done through internal promotions as well as external recruitments to meet the needs and demands of the vacant job position at CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP
  • Strategic succession planning has allowed CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP to be prepared for different challenges, and also be resourceful enough to deflect them

2.6. Process

CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP has organized and systematic processes in place to make sure that the business experiences consistent growth.

2.6.1. Operations

  • All operations at CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP are clearly defined and communicated to the employees
  • CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP makes sure that employees are well trained, and knowledgeable of all processes relates to operations
  • All stages of operational processes focus on maintaining a high quality level and standard of the products
  • Systematic process re in place for all operation – from procurement to the final sale of the products
  • All operational processes are maintained, checked, and uploaded through the internal portal of the organization for supervisory purposes
  • The use of online portals for operational processes also builds a strong backup for managerial purposes at CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP

2.6.2. People Management

  • CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP has also defined clear processes for people management through streamlining its human resource management department
  • CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP has defined guidelines regarding recruitment, training, compensation management, and performance appraisal of employees
  • All people related processes are not only communicated to the management and supervisors, but also to employees to create a sense of transparency, and an environment of trust
  • Progressive people management systems and processes have allowed CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP to keep its workforce motivated and happy – which reflects in satisfied customers

2.6.3. Quality maintenance

  • CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP also has defined policies and processes for managing and maintaining quality
  • All products undergo triple quality checks to ensure that customers receive the best product
  • In addition to quality checks at the production and distribution level, the management has also placed separate quality maintenance and quality check department
  • The quality maintenance department has experts who make sure that not only the final product but also the processes involved in producing the product were infused with quality

2.6.4. Store management

  • CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP manages store management through stringent and closely monitored policies and processes
  • These processes relate to not only the floor and space design but also to the performance of the employees at the store
  • The processes for store management also regularly monitor footfall and work on strategies to increase footfall through different tactics, and changes in the store design and store management
  • The company also has a systematic process for customers who interact with the products and feel them before making the purchase
  • The final sale at the store is also clearly defined – for the employees and the customers both
  • Processes and policies are important for CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP for maintaining quality of the products, and for ensuring that the company does not experience any unnecessary expenses and costs

2.7. Physical evidence

The physical evidence is also important in the marketing strategy for CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP as it works towards influencing the consumers in favor of the brand and its offerings. The physical evidence for CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP include:

2.7.1. Store atmosphere

  • The store design and management for CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP is exciting and creative
  • The store atmosphere makes the customers feel relaxed and comfortable –so that they can interact with, and enjoy product offerings by CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP at ease
  • The store design is also important for CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP because it controls the level and nature of experience and interaction that the customers have with the product and the brand
  • With company-operated stores, it is easier for CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP to control and manage the store atmosphere to be able to positively influence customers and to be able to appeal to them emotionally

2.7.2. Packaging

  • CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP has unique packaging, which is different from other players in the industry
  • CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP also has a vibrant touché to its packaging, which is regularly changed in terms of colors and patterns
  • The logo for the company is simple, and recognizable by the consumers easily
  • The brand logo has also become a symbol of confidence, ambition, and aspiration for consumers who use products by CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP
  • The packaging of the products is sophisticatedly done and matches the brand image developed and maintained by CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP

2.7.3. Website design

  • The website design is simple and easy to use
  • CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP has a customer friendly user interface which allows easy navigation and understanding of its various product offerings
  • The corporate website of CUTTING YOUR LOSSES HOW TO AVOID THE SUNK COST TRAP also has the brand logo, and is packaged similarly to the products offered by the company
  • The design patterns, and color change on the website with changes to the product packaging to match various campaign needs and sale offerings

3. References

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Harish, R., 2008. Brand Architecture and its Applications in Strategic Marketing:The Example of L’Oréal. The Icfai Journal of Marketing Management, 7(2), pp. 39-51.

IÅ¡oraitÄ—, M., 2009. Theoretical aspects of marketing strategy. Ekonomika ir vadyba: aktualijos ir perspektyvos: mokslo darbai, Volume 1, pp. 114-125.

Keller, K., 2001. Mastering the marketing communications mix : Micro and macro perspectives on integrated marketing communication programs. Journal of Marketing Management, Volume 17, p. 819–847.

Kotler , P., 2003. Marketing Management. New Jersey: Pearson Education Inc.

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Rafiee, V. & Sarabdeen , J., 2013. Social Media Marketing: The Unavoidable Marketing Management Tool. Dubai, University of Wollongong, pp. 933-942.

Rao, K., 2011. Services Marketing. New Delhi: Pearson Education India.

Richards, K. & Jones, E., 2008. Customer relationship management: Finding value drivers. Industrial marketing management, 37(2), pp. 120-130.

Schmitt, B., 1999. Experiential marketing. Journal of Marketing Management, p. 57.

Teilmann, V., 2010. Market Entry Strategies: International Marketing Management. Berlin: GRIN Verlag.

Zahay, D. & Griffin, A., 2010. Marketing strategy selection, marketing metrics, and firm performance. Journal of Business & Industrial Marketing, 25(2), pp. 84-93.

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