Marketing Exam Question (Marketing Mix) Essay Example | Topics and Well Written Essays - 750 words

Marketing Exam Question (Marketing Mix) - Essay Example So what is market segmentation? Consumers differ and they â€Å"place differing degrees of importance on the individual elements of the marketing mix.† â€Å"They differ not only in the price they will pay, but in a wide range of benefits they expect from the product and its method of delivery. As a result, the market becomes split into several segments.† (SBDC, 2005) SBDC, (2005) argued that understanding the concept of segmentation is central to marketing because each different customer group will require a different marketing mix strategy and that each segment will offer differing growth and profit opportunities so the trick is to deliver the best offer to the best segment. Assuming now that there is market segmentation, it is now easier to answer the question how to have differential advantage. SBDC, 2005 advised saying: â€Å"Differential advantage can be obtained via almost any element of the marketing mix - creating a superior product, more attractive designs, better service, more effective distribution, better advertising and so on. These are actually the three P’s which include the Product (creating a superior product, more attractive designs, better service), Place (more effective distribution) and Promotion (better advertising) The key is to understand that the advantage must be based on research into what customers really value and that the differential is developed after due consideration of competitive strategies and offers. (Emphasis supplied). With the three P’s strategically combined, the fourth P, which is Price, would be easier to handle. In fact the purpose of the differential advantage is to avoid mere competition based on price, because the customers look at the four P’s as four C’s. These four C’s include cost to the customer for price, convenience for place, communication for promotion and customer needs and wants for product. It must be noted that knowing what