Question

Marketing Mix BOG's marketing mix consists of the following approaches to pricing, distribution, advertising and promotion, and customer service. • Pricing- BOG will be charging a per basket fee for the stock production baskets. Regarding the custom baskets, a price can be quoted once the customer decides on the ingredients that they want. • Distribution- While the orders for the baskets can be placed on our secure Website, by phone, or at the office, the distribution of the product will occur from the office and can be shipped to any continental U.S. address. • Advertising and Promotion- A Website, brochures, and networking will be used to raise awareness and generate sales. • Customer Service- Following benchmark companies such as L.L. Bean, Eddie Bauer, and Siemens, customer service will be a priority. Susan truly believes that reputation is everything. The Basket of Goodies Page 9 3.8 Marketing Research The informal market research began five years ago when Susan was purchasing a gift basket for a friend. She did not have the time to make her own basket so she called a few different places to get quotes. Over the next few years she purchased several more baskets from established companies while keeping the idea in the back of her head that she might start her own basket company. With this idea she analyzed the different vendor's offerings. While working on the initial business plan for BOG, Susan held two focus groups, each with seven to nine people, to determine customer preferences in regards to gift baskets. The focus groups explored the different preferences that the people held in regards to gifts and gift baskets. Although Susan had a list of questions already drawn up that she asked both groups, she also had time set aside where there could be a free flow of discussion. The focus groups proved to be a very worthwhile exercise giving Susan valuable insight into the participant's minds as well as confirming a number of assumptions that Susan held. Overall, this market research confirmed and strengthened the BOG business and marketing plan.

Question: What marketing mix does the firm use?

Answer 1

The firm uses 4P’s of the marketing mix that are product, price, place, and promotion.

Product: The firm analyzed the need and preferences of customers before producing its goods. The firm shaped its products according to the needs and preferences of the customers.

Price: prices are set on the basis of the ingredients added by the customers. Customers are allowed to make custom baskets and are charges accordingly. This is one of the best pricing strategies used by the firm.

Place: the firm enables customers to order online and offline as well. It distributes its products across the country.

Promotion: the firm uses different promotion strategies such as advertising and creating customer awareness. It also provides customer support services to the customers in order to promote its goods and services.