Marketing Mix Case

Marketing Mix

The concept of a marketing mix originally discussed in the 1950s and included 12 categories of marketing variables important to the marketing plan:

Product Planning

Organizations consider the products to offer and where to sell them.

Pricing

The product price and margin structure is determined.

Branding

How will the product will be branded and if any intellectual property will be involved.

Channels of distribution

How will the products move from manufacturer to consumer.

Personal selling

Extent to which personal selling will be used.

Advertising

Product image, type of advertising, and how much will be spent.

Promotions

The role and type of product used.

Packaging

The labeling and package design of the product.

Display

The location and type of point of sale display.

Servicing

What is the type of after-sales service.

Physical handling

How is the warehousing, inventory control, and transportation handeled.

Fact-finding and analysis

Securing and analyzing marketing information.

The 12 categories were later organized into what is currently referred to as the 4Ps: product, price, place, and promotion. It is essential to understand the marketing objective and the needs and wants of target segments. It is important to select a target that can deliver the necessary sales volume, revenue, and profitability.

The marketing mix, or the 4Ps (Product, Price, Place, and Promotion) is a collection of marketing variables managed to achieve the desired sales performance in a target market. "The strength of the 4Ps approach is that it represents a memorable and practical framework for marketing decision making and has proved useful for case study analysis in business schools for many years" (Constantinides, 2006). The 4Ps remain the most common classification of a marketing mix. It is important to think of the 4Ps from a managerial perspective because it helps to organize business activities. Organizations must be sure to market the correct product, to the correct individual through the correct promotion at the correct price in the right place at the right time.

Businesses are constantly reevaluating and recreating marketing-mix strategies. A change of business objectives or marketing objectives are common reasons to consider a marketing mix strategy. Business brands, such as with packaged-goods companies, change brand portfolios and may require retargeting or repositioning existing brands through new marketing-mix strategies. Sometimes market conditions and new marketing-mix strategies need to be developed.

Cadillac History

"Cadillac reigned supreme among American brands for almost fifty years" (Cawthon, 2002). In 1998, the Cadillac was considered the luxury car of perfection until it was dethroned by the Lincoln. Mercedes and Lexus captured the luxury crown causing Cadillac to badly stumble. Then in 2001, Cadillac began a massive turnaround because Cadillac fell as low as sixth place among the luxury vehicles. Thanks to the addition of new models and financing from General Motors, the division many analysts wrote off is stronger than ever. Cadillac was born out of the combinations of an automobile company that failed and engines rejected because of this Cadillac have overcome many adversities.

The changing market and economy, within the past 50 years, Cadillac has the ability to represent the excesses and dreams of the American automobile. Cadillac has many classics such as a 1959 Cadillac Eldorado, and some disappointing vehicles or clunkers, the Cimarron. New models were introduced to attract new and returning customers whereas enough quality and tradition was retained to satisfy the faithful. The new CTS with its edgy styling, have also proven popular, completely eclipsing the Catera it replaced.

Cadillac Marketing Mix

Cadillac, founded in 1902 and historically one of General Motors most prestigious brands, has experienced a sales renaissance over the past decade with edgy high-performance products. "General Motors Company, is one of the world's largest automakers, with its global headquarters in Detroit, GM employs 209,000 people in every major region of the world and does business in more than 120 countries" (General Motors News, 2009). The Cadillac product portfolio consists of sedans (CTS, DTS, and STS) a crossover (SRX), a sport utility (Escalade) and a sports car (XLR). There are some variations within the portfolio, including different engine sizes and a V-series premium performance version of most of the vehicles. Although the CTS an XLR-V both weigh more than 3,800 pounds, there are many differences, including the marketing-mix strategies for both vehicles.

Product

The XLR-V is a two seat, 443 horsepower coupe based on the Chevrolet Corvette manufacturing platform. The CTS is a midsize sport sedan that shares a platform with the Saab 9-3 and Chevrolet Malibu. When considering the products, companies, such as Cadillac have to know if the veicles or services will be profitable, are there other targets that may be more viable and profitable than current choice, how to track target requirements and if the targets like the vehicles offered.

Place

Both the CTS and the XLR-V are sold through the Cadillac dealer network. The XLV-R is sold in limited volumes and not all dealers have them in stock. The XLV-R is often used as a halo vehicle, one used to create interest in other vehicles and increase showroom traffic.