Principles and Practice of Marketing Management
The marketing mix components. product, place, promotion and pricing are influenced by environmental factors thus before choosing a strategy, PEST analysis is important. None of these components acts in isolation and therefore a marketer determines the best combination that can lead to marketing success. First, the marketing division establishes the kind of product to sell. Such aspects as. type of product whether it is for consumption or business use, packaging, branding and size, is considered. Political factors such as government regulations on packaging and labelling, environmental regulations and protection are considered to ensure compliance (Stone, 2001). Social factors such as lifestyle, age and income distribution can help in segmenting the market hence provide the right products for the target market. Technological factors determine production methods and new product inventions. For example, advancements in mobile technology enable the use of a wide range of services to satisfy the customers.After developing the product, the marketing division determines how well to mix place, price and promotion strategies to achieve success. Depending on where the customers are located, the channel of distribution is selected as the product has to be made available to the customer at the right place and the right time (Lamb et al. 2009). The division also promotes the products and sets the right prices depending on the target market. The quality of the product, cost of promotion and channel of distribution all play a part in determining the price. PEST factors are useful in determining the marketing mix. For example, economic trends such as interest rates, inflation and exchange rates determine the consumption hence pricing of the product. Technology is important in promotion especially use of the internet to promote the organization and brands (Stone, 2001). Social factors determine distribution, pricing and promotional activities.