The world is full of all different types of products. Everything we use is a product and manufactured by one company or the other. Products are manufactured and produce to meet the needs and demands of the customers and consumers.
There is a range of millions of products for different people and ethnic groups.Different people have different needs and tastes and that is the main reason for production companies to produce and manufacture different products. And different products have their range of purchasing market. In this assignment I have chosen a product which has a very high purchasing market and is used as an entertainment by mostly everyone on planet earth.Considering the fact that I am producing music CDs, I will therefore need to carry out and analyse the four marketing mix of my chosen product.
The following are the facts and elements of the marketing mix for my product of music CDs.The marketing mix consists of four 'P's used in the marketing manufacturing. Before producing a product the company should consider the facts and factors of the marketing mix for their product. This way the company is able to know whether the product will be a success or not.
Otherwise, the company will mass produce the product without knowing the actual facts of the market and rely more on luck for the product to be a success.Place - The place of the target audience has to be considered appropriately to justify the location of the product's success. Music is a success all over the United Kingdom because 9 out of 10 teenagers are in to some sort of music. So, they will be purchasing new albums and songs tracks when they are newly released.The place of my target audience will be the whole nation, although the mass production for the whole nation would be a problem assuming the fact that the price of the CDs are lower then the market. But if the budget is available then the mass production for the whole of United Kingdom will not a problem at all.
Due to the high demand of music CDs and budget of my company, I have decided that the production of the CDs will be for the people in the United Kingdom and will be available for everyone.I have also decided to sale my product at a cheaper price then the market until the demand of the product is increased. So, market penetration strategy will be used in the production of my product. I can slowly increase the price of my music CDs once the requirement of the product has risen.Product - The significant reason I have chosen to produce music CDs is on the account of the high market in the music industry. 6 billion people around the world listen to some sort of music from cultural to hip-hop.
Music is admired because it makes some people relax and others stay up-to-date with the 21st Century modernisation.It was important for me to decide the convenient product to be produced by my company. After considering and examining all possible products and its market I had been approached by the idea of using a product, which has a very high market industry not only in the UK but also around the world.The only market that has all the above mentioned elements is obviously the music industry.
This is possibly the biggest business industry on planet earth. The main reason being is because its entertainment, enjoyable and has the music for all different people and their preference.Promotion - When a new product is launched the promotion is the vital component of success. The Production Company should be able to give the customers something back for purchasing their product. It's sort of a gift because they are rising your profit sales through the purchasing of your product and you are rewarding them for their role to brand your company a success.The promotion for my product will be a CD single of the customers' choice.
If and after the rising of profit sales occurs, Special Edition Autographed CDs will be published and signed by the consumers' very own favorite singer, band or group. It will not be exactly free of charge; the prices of the CDs will increase to be able to obtain the customers' very own Special Edition Autographed CD.The reason for publishing Special Edition CDs after the rising of sales profits is because the CDs are cheaper then the actual market and the company is producing out of their own loss for a while. And if they publish Special Edition CDs at the same time then the company will go bankrupt. Because it will have to pay its messenger to travel (including travel expenses) to different countries for the signing of CDs. And possibly the celebrities if the signing is in mass production.
Price - The price of a product is vital, this is the element that transforms a company into a success or bankrupt. If the price of a product is high and the quality s poor then the consumers' will not be tempted to purchase the company's product. However, if the price is high and the product quality is good then consumers' will purchase the product.But this, in many cases, does not happen. Some company products are very good quality and the price is high and yet they are losing out in the market share of their field.
One of the main examples will be the crisis caused in the Marks & Spencer's company. The company produces good quality clothing but at a higher price then the rest of the market. So, customers are then tempted to buy the same product at a cheaper price form a different company within their similar field.So, after examining all company crisis and success I have no doubt and obligation but to sell my product at a cheaper price then the market. This way my company would have a greater market share and more customers' purchasing the company product(s) in the future. Then the strategy of market penetration would be used and the company will be able to increase the price of the products(s).
The company and I could also use the strategy of destroyer pricing but unfortunately it is now illegal by law. And if a company they will be condemned uses the strategy, face charges and ordered to issue compensation to their business competition that they run out of business.The marketing mix supports the idea of using the market penetration strategy for this particular product. The reason being is because music CDs are widely available in the market at this present moment.
And launching the product with a high price would be a very senseless thing to do. Because the customers' will not purchase your company's product and the objective of success will be vanished.PEST analysis for a product is as much important as producing the actual product. The PEST abbreviation stands for Political, Economy, Social and Technology. These elements are the significant facts that could and will change the company and its production. All elements have different effects on the production of products and goods.
It could totally change the manufacturing process and sales.Political - Politics could change the prices of raw materials, labour, manufacturing and the selling price. It just depends on the plans of the Government and its objectives. Plans and objectives are likely to change once the new Government is in charge. The plans could suggest that car and other motor vehicles will be sold at a cheaper price then before, which means fewer profits and cheap vehicles for consumers.
It could also suggest the fact that raw production material will be sold at a high price then before due to the high usage of the raw material in the country. And means that the company profits may increase and the customers have to pay an increased price then before for the same product.So, depending on the plans and objectives of the current Government in charge, the prices of raw materials and selling price may increase or decrease.Economy - The economy has a vital role to play in everyday lives. Mostly everything in the world depends on the World's Economy. If the economy is good and high then the production and purchasing of products, goods, machinery, vehicles and etc will be towering.
However, the World's Economy can also drop as it is happening at this moment due to the collapsing of the World's Financial Center and the terrorist attacks on the United States. It has caused millions of businesses to come to a halt and standstill while thousands of people have been sacked due to the non - profiting companies unable to pay wages and other company expenses.Social - When a new product is launched the producing company has to decide the type of social community or area they are going to target their product at. The sales of the product depend on the right social market.
For example, sub - continental foods would and will be mainly targeted at sub - continental people ; groups and African foods would be mainly targeted at ethnic groups from the African continent. Following the steps of targeting products into different social markets can be the vital point of rising profit sales.All different products are aimed at different people and ethnic groups. The manufacturing company has to target its product at the right market where product has a higher demand then any other social market.
So, the social market I am going target my product at is not a particular or specific market. The product is aimed at everyone whom enjoys different genres of music and the artist of its industry. The product will be available nationwide and for everyone who is interested in music.Technology - Technology is very common nowadays in comparison with two decades ago. Most products and goods are manufactured and produced using the latest technology for the high quality expected from its customers and consumers.
Technology is also used to produce and manufacture products accurately and efficiently. Using technology means that labour costs are reduced and the mass production is increased in the producing speed.However, the use of technology may cost the company a little more then intended to spend. Technology requires well skilled and trained personnel to operate the machines and its related technology.
So, training courses would have to be studied before the proper use of the technology. Technology will and can effect my product, because music CDs is recorded using CD re - writers and recorders.However, there are advantages and disadvantages in the use and effect of the technology to manufacture and produce music CDs. Technology can help the producing company manufacture music CDs quickly and more efficiently. But it can also create problems and not record the whole of the CD with the song tracks required in the CD in case of complete malfunction of all systems required within the production process.The competition that I have within my product market field is very high.
There are number of companies that produce and manufacture music CDs and distribute them around the world. Companies such as Universal and BMG are the main threats because they are popular and are known to be very high standard as far as their products are concerned.If my production company does not produce the needs and the demands of customers then the competitors would take over and have a greater market share then company I am producing for. That will also earn them a high reputation in the market and rise their product profit sales and leave my company possibly bankrupt.The competitions in my business field have priced their products between the range of �12 to �15.
So, the company's main objective will be to sale the product at a cheaper price then the competitors, even if it means a loss to the company. Then that is the point where the market penetration strategy comes in to play and the company it's capable of increasing its product price.The production of the products manufactured by the competitors is very high and meets the standards of the customers and consumers. Having examined and analysed all competition priorities my production company has to manufacture the product to the highest standard and quality for its customers and consumers. The product will also have an extra feature then the competitor production; the compact disc used by my production company will be scratch proof for life.
This feature is not available in any other product within the same business field. It is unique and new to the market and customers. Th main reason for this is to let the customers know that the CD is scratch proof and will last them a life. It is also to assure customers that they will not have to purchase their favorite CD once again if their previous purchase has be severely scratched.Most competitors have small promotions, which leads to a rise in their profit sales and gain a good reputation in the market.
What I have decided to do is promoted CD singles at the choice of the customers and consumers. I have also promoted Autographed Special Edition CDs of the customers' choice but at a slightly increased price, which may and should not be considered by the customers and consumers considering the chance of a lifetime offer.As everyone knows music CDs are available across the nation and around the world. Most of my competitors have that freedom of worldwide distribution of their product. So, the production of my product will also be available across the nation and around the world. Considering the chance of a lifetime promotion, the cheap product price and the quality of the product I believe my company's production will be a huge success around the globe.
Strengths - The main feature and strength of my company is that the budget of the company is high, which enables the company and myself to mass product for the availability of the product around the world and across the United Kingdom. The company's production also holds a unique feature of the scratchproof compact discs, which can be favored by the customers and consumers of the product.Weaknesses - The cost of the labour and raw material maybe the weak point of my production company considering the fact of mass production for the whole of the nation and globe. One other main weakness could be the high expenses of the use of the latest technology and the pay rise required by the company's workforce, Board of Directors and shareholders.Opportunities - All available opportunities should be taken and used in the production of the product. The opportunities may only come once and could result in the high sales of the company's product.
It could also mean that the company's competitors might go bust due to the fact of losing the opportunity my company has obtained. Always take the opportunities in the company, process them and examine whether they are useful to the company or not.Threats - The main and obvious threat is the outside competition within the same business field. Competitors may use hidden illegal market strategies and out - run my production company. The budget of the company is low a low key point and a threat to the company.
If, the demand of the company's product does not rise and the company is producing out of loss then bankruptcy is the alternative outcome.All the information used in this report is valid and up - to - date. The information has been collected and used from the latest changes within the company. All information used is legitimate and gathered from the actual company itself.
All information has been collected and researched through the World Wide Web and in person with the company. All research has been done to suit the needs and demands of the chosen product.
