Marketing Mix Paper    


Marketing Mix Paper

University of Phoenix

Sustainable Customer Relationships - MBA 570

Marketing Mix Paper

The 4 P’s, also known as the marketing mix, is a concept created by Neil H. Borden. According to author Laura Lake, “your marketing mix is a combination of marketing tools that are used to satisfy customers and company objectives” (Lake, 2009, ¶ 1). The four variables that make up the 4 P’s are Product, Price, Place (Distribution), and Promotion. This paper will further detail each element of the 4 P’s and will provide a description of Caterpillar Inc., and how each element of the marketing mix impacts the development of Caterpillar’s marketing strategy and tactics.

Organizations must understand that creating an effective marketing mix will require experimenting and market research in order to see increased results. By using variations of the 4 P’s, organizations will gain the ability to reach a magnitude of consumers within their targeted market. Furthermore, the 4 P’s were designed to focus on an organization’s target customers to identify the value of the product or service and to determine how well the product or service will be received.


The first variable, Product can be defined as the products or services an organization offers to its customers. Product is concerned with creating the right product or service for the target population. Product entails the physical attributes, what it does, how if functions, how it differs from competitors and what benefits it provides. Additional aspects include “brand name, functionality, styling, quality, safety, packaging, repairs and support, warranty, accessories and services” (NetMBA, 2007, ¶2). The product or service should satisfy the need of the targeted market, and for this reason is very important for an organization to understand and know the wants and needs of the targeted market.

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The second variable, Price involves determining the pricing decisions and strategies such as “pricing, suggested retail price, volume discounts and wholesale pricing, cash and early payment discounts, seasonal pricing, bundling, price flexibility and price discrimination” (NetMBA, 2007). Organization should price its product or service at a rate that will allow them to remain competitive, but allows for a good profit margin is crucial for any organization.  Pricing differentiates the organization’s products or services from competitors.


The third variable, Place or distribution, is where the business sells products or services and distribution is how a product will be delivered ...

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