Marketing Mix

Marketing Mix

The marketing mix is primarily made up of four variables, and they are product, place, price, and promotion. The marketing mix is often described as a method used in developing a viable marketing strategy, with each ingredient being used different ways and at different times based on the product or service one is trying to market (QuickMBA, 2007).

In order for a company to achieve its goals, the company must have a strategy that mixes the correct elements of marketing. The term Marketing Mix refers to “the four Ps” of marketing which are product, price, place, and promotion (Kotler & Keller, 2006). When creating a mix, a company must keep their target market in mind. The company must also understand the needs of the customer then create marketing strategies that will satisfy the demand. The marketing mix should also meet or exceed the goals of that company (Kotler & Keller, 2006).

The marketing mix is the parameters that a marketing manager can control, subject to internal and external constraints of marketing environment. The goal is to generate a positive response from the target market (NetMBA, 2007).

The four elements relate to an organization's marketing strategy. Marketing is just one element of an organizations overall business plan. By understanding the product which the organization is producing, the company will be able to determine materials needed, staffing needed to produce the product, and establish the cost to produce the product. Marketing should not take over production, accounting, and finance of an organization. Marketing should be included in these functions to aid in direction and coordination. Understanding the marketing mix will put an organization on the road toward success and profitability (Perreault & McCarthy, 2004, 17).

Foot Locker is one of the top competitors in the athletic shoe industry. Foot Locker was introduced to the retail market in 1974 and has since grown to over 2,000 stores worldwide. They compete with such companies as Finish Line, Champs, Sports Authority, and Dick’s Sporting Goods. Foot Locker prides itself in offering the most knowledgeable sales associates, the best customer satisfaction, and the lowest prices on the highest quality athletic shoes. Like any retail business, Foot Locker creates a marketing mix using the four elements in order to develop their marketing strategy and tactics (Foot Locker, Inc., 2006).

Foot Locker does not produce its own athletic shoes. Rather, they enter into contracts with shoe companies such as Nike, Adidas, Puma, Reebok, and Asics. These companies manufacture the products then shipped to Foot Locker stores where sales associates sell them to customers. Companies such as Nike often offer Foot Locker exclusive shoes in their contracts, featuring color schemes or entire shoe styles exclusively sold at Foot Lockers.

Place is an extremely important element of the marketing mix to any retail store. Being located in shopping malls gives Foot Locker an advantage in this area. When customers walk into a Foot Locker, they are greeted by friendly, knowledgeable sales associates who direct them to a wall of shoes marked specifically for the size or style of shoe the customer needs. Window shoppers pass by the store daily, and whether they are looking for athletic shoes or not, they are all potential customers. Using window displays and product placement attracts customers into the store, where sales associates then work on getting them to buy a product and for customers who are looking specifically for athletic shoes, the mall is a convenient, obvious place