Creating the Marketing Mix
Every business problem has alternative solutions else decisions would be unnecessary. The criteria for such decisions must be based on objectives – aspects affecting volume, profits, service and growth. Every business decision including creating the marketing mix must be based on whatever facts are available or can be assembled – the more the better so long as manageable.
Questions may be developed to organize facts to cover marketing decisions. Such questions, when answered properly, would create the most logical “marketing mix.” Thus all of the functions of marketing would be performed in maximum coordination as the modern concept of marketing management demands. The implementation of these components into an operable mechanism is a matter of delegation, management, and administration.
To emphasize the need for review and check-off of all marketing functions, and to insure full coverage in the marketing program, 17 questions are presented which a manufacturer might well ask his staff when reviewing in detail prospects for a product, particularly a new one. While many will call for clearly factual, even statistical data, others can be answered readily from observation and experience.
Most failures in marketing can be attributed to executive oversight, neglect, or lack of facts with respect to answering these questions. Hence, their importance cannot be overemphasized.
A marketing plan consists of a total volume goal broken down (at least) by products, customer types, areas, and time periods. That is, how much of each product is to be sold to each type of customer in each territory over each month or quarter? How much profit is each to produce?
The results of such planning create the salesman’s budget or quota, his responsibilities over the time period selected, and a basis for his appraisal and control and for his compensation. It is essential to the salesman’s performance that he understand these procedures and provisions. Therefore, they must be included in his training.
In summary, good business organization calls for management to:
•Establish the business goal
•Analyze the market potential
•Plan a marketing program to get the job done
•Organize manpower, equipment, capital
•Train people to execute assignments
•Execute-administrate the program
•Control it – goals, budgets, performance as planned
Thus the “marketing mix” is developed and the selling and sales promotion job defined. Only then can we question and measure the performance of those responsible.