Marketing Mix

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Marketing Mix Michael Anderson MKT/421 May 30, 2011 Gabriel Renero According to the text-book Marketing an Introduction “Guided by marketing strategy, the company designs an integrated marketing mix made up of factors under its control—product, price, place, and promotion to find the best marketing strategy and mix” (Armstrong & Kotler, 2009, p. 47). In order to understand the marketing mix one must describe the elements of the marketing mix, how each element is implemented, and describe how each one of the four elements of the marketing mix affects the development of a company such as Pepsi –Cola Company’s marketing strategy and tactics.…show more content…
The Pepsi-Cola Company has 151 Pepsi-Cola brands, 43 Frito-Lay brands, seven Tropicana brands, 28 Quaker brands, and 49 Gatorade brands. Pepsi-Cola has spread worldwide because the way they have taken advantage of the place in marketing mix. When entering a new market Pepsi will join forces with companies such as Quaker Oats, Frito-lays, Lipton, and Starbucks. Pepsi distributes their product through direct sales, indirect sales, and E-Commerce. Pepsi did not get into E-Commerce until 2000 when they conducted a joint promotion with Yahoo. Pepsi-Cola was the first of the big drink companies to spend a significant amount of money for Internet advertising. The Pepsi products cannot be a fixed price because the price of the product is decided by keeping in mind factors like cost incurred on the product, target market, competitors, and consumer buying capacity. Pepsi-Cola Company uses three methods of pricing. First they use cost recovery pricing that basically means the company will recover the price of making their product before they count anything as profit. Second they use penetration pricing, which is when the price is set artificially low for the product in order to gain market share and once the market share is achieved, the price is enlarged. The third type of pricing that Pepsi-Cola Company uses is price skimming. Price skimming is when the company will charge a high price because they have a
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