The Marketing Mix and Dynamic Pricing - Paper Example

Activity 6.1.

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The marketing mix refers to the use of the four Ps of marketing, promotion, price, product, and price. In essence, all marketing strategies are developed around the four Ps framework regardless of the industry. However, with the progress made in the service sector, three other elements were added to the four Ps, making it seven Ps. These are physical evidence, process, and people. However, the Internet influences these marketing mix elements significantly in all industry sectors. In this discussion, the technological sector will be considered.

In the technological sector, the internet affects the availability of different products in the industry. For instance, the internet allows various competitors in the market, for example, Apple, Samsung, Sony, and Microsoft. As such, with these products, the internet allows the competitors to present different products with different quality, brands, customer services, image, as well as the availability of these commodities. In essence, for competitors to be triumphant, they need to have a product that are of quality and customers can buy it online via e-commerce platforms, such as PayPal. Also, to remain in the competition, the internet allows these competitors to maintain client services, such that their needs are attended to, such as supporting the clients to make an informed decision on the product they require.

Regarding promotion, the internet allows the competitors to adopt various advertising methodologies, such as social networks including Facebook and Twitter. Through marketing communications, the Internet allows the companies to gauge customer feedback and incorporate it in manufacturing for better products. It also allows the businesses to generate sales through online sales, as well as direct marketing to consumers so that its allows the clients to know when there are discounts.

The Internet influences the price by allowing the companies in the sector to offer price discounts as it allows the firms to communicate with the clients directly, especially through social networks, and corporate websites. It also allows the clients to pay for the products through the online payment system. Also, because the Internet allows for price comparisons between the different companies, customers can make decisions on what type of laptop or phone to buy based on their budget. It offers prices transparency, as well as downward pricing due to competition. In the sector, the companies, for example, Apple and Samsung, to capitalize on the Internet to offer price discounts.

Regarding place, the internet affects these tech giants to reach people globally. For this reason, the companies capitalize on the Internet to achieve global sales, which is usually facilitated through shipments. The companies through the web can identify what channels to use in global distribution depending on the location of the customer. Besides, the Internet allows the companies to offer tech and sales support to clients globally, making it possible to conduct business internationally.

Regarding the physical evidence, the Internet allows the enterprises in the technological sector to serve clients on an international level. However, the companies have to differentiate their products to match a certain global region. For instance, through the Internet, the firms can communicate with clients in need of tech of being support using different languages, such as English for the U.S. and Britain, or French for customers in France. Also, the internet allows the companies to communicate with their clients about the process before they get the product, such as shipment processes, as well as the date upon which the clients will receive the product, which is facilitated by use of emails. Lastly, the Internet allows the tech giants to deal with different people. For instance, over the globe, different clients have differing tastes and preferences. Through the Internet, the companies can devise ways of incorporating the needs and preferences of products, usually via feedback or online surveys, in the fabrication process. Therefore, it can be surmised that the Internet plays a significant influence on the marketing mix of tech companies.

Activity 6.2

Dynamic pricing also knows as real-time pricing, is a pricing mechanism where businesses set flexible prices for services and products based on prevailing market demands. As such, the goal of using the strategy is to allow firms to sell the goods and services over the Internet by adjusting the price based on market forces of supply and demand. As such, it is mostly applied on the Internet.

One of the major applications of dynamic pricing is in the stock and forex exchange market. In essence, stocks vary all the time, and thus, businesses have to provide real-time variations of the prices in the market for the clients. In effect, it offers customers with an opportunity to make decisions to buy or sell the stocks or money to allow them to make profits. At high price values, clients usually sell these stocks to obtain profits and buy at low prices so that they can sell them when they obtain a certain high price. The difference between the sell and buy prices will dictate their profits. As such, dynamic pricing will offer the clients with an opportunity to make these buy or sell decisions. Pricing bots that use algorithms to adjust the pricing, usually based on preset business rules, usually facilitate the trade-offs.

Also, dynamic pricing is applied in the hospitality sector. Firms in the tourism industry usually present the prices over the internet and adjust the prices according to the seasons. At peak seasons, the prices are high, but in low or off seasons, they are low. As such, the firms use the internet to adjust the prices based on the market demands. Firms can also use the internet to post these prices, which consequently enables clients to make decisions on when to buy and at what cost. Customers can also, through the web compare the prices for the tourism packages, and in effect, make informed decisions.

Dynamic pricing is also used in the airline industry. Many of the companies in the sector usually post the prevailing market prices for flights. Therefore, clients can access their websites and note the prevailing prices for the various companies, and in consequence, chose the lowest price for the flight. Clients usually go for the best services with the least amount of expenditure. As such, the companies have to adjust their prices on a real-time basis to promote their flights to clients with the aim of attracting them to their offers. On the other hand, the competitor companies can also access the pricing mechanism used and make counter offers to the clients, which subsequently the companies to provide competitive prices.

Dynamic pricing is also used in the retailing industry. The businesses can research prices of their competitors, and to become competitive, they must adjust their prices. In essence, companies always have to check how their competitors are pricing their products and services. For instance, if Best Buy is offering a 10% discount, and Walmart is not doing the same, clients will prefer Best Buy to Walmart. So for Walmart to rectify the situation, it has to follow suit. It is allowed by the Internet as the company can view current prices using Big Data analytics, which allows real time tracking of consumer preferences and tastes. Walmart can also access the prices on Best Buys website. In effect, Walmart can offer an 11% discount to nullify competition, and this, be able to make profits at that instant.