he Marketing Mix

There are many items or situations that require a well-balanced mixture in order
to be successful. For instance, a cake mix requires a specified amount of each
item, otherwise the cake might be too sweet or just not good at all if the
ingredients aren't mixed right. The same is true with marketing. Marketing
requires a good mixture in order to be successful in the final sale of the product
at a profit. The following will discuss what the marketing mix is and a brief
history of the marketing mix. It will also discuss further in detail the four P's of
the marketing mix, as well as, show the relation of the marketing mix to a
product offered by Verizon Communications.
The History of the Marketing Mix and the Four P's
The term "marketing mix" has been dated to originate sometime in the late
1940's. Neil H. Borden, a teacher at the time, began using the term after James
Culliton had described the marketing manager as a "mixer of ingredients". The
term "marketing mix" gained its popularity in 1964 when Borden published his
article, The Concept of the Marketing Mix. Borden's original marketing mix
included product planning, pricing, branding, distribution channels, personal
selling, advertising, promotions, packaging, display, servicing, physical handling,
and fact finding and analysis. The ingredients of Borden's original marketing mix
were later regrouped by E. Jerome McCarthy into what is known today as the 4
P's of marketing: Product, Price, Place, and Promotion (NetMBA, 2006).
The product area is the emphasis in developing the right product or service for
the target market. In the case of physical products, it also refers to any services
or conveniences that are part of the offering (quickmba, 2004). In the product
area of the marketing mix there are certain strategy decision areas that will need
to be addressed. A company needs to decide what the physical good or service
is. Once the general idea of the product is decided, the company will need to
address other area such as: features, benefits, quality level, accessories,
installation, instructions, warranty, product lines, packaging and branding
(Perreault, 2004). These are all general areas that the company will need to
address in order to meet the needs and expectations of the consumer.
The price of the product or service is the next P in the marketing mix. The pricing
decisions should take into account profit margins and the probable pricing
response of competitors (quickmba, 2004). Pricing decisions might include:
pricing strategy, suggested retail price, volume discounts and wholesale pricing,
and even cash and early payment discounts. There may even be a need to make
seasonal pricing decisions, as well as, decisions in relation to bundling, price
flexibility and price discrimination (NetMBA, 2006). Some strategy decisions
involved with the pricing aspect of the product include: objectives, flexibility, and
level over product life cycle, geographic terms, discounts, and allowances
(Perreault, 2004).
When a product is desired by a customer, it is important that the product is
available when and where the customer wants it. Strategy decision areas for

place are: objectives, channel type, market exposure, kinds of middlemen, kinds
and locations of stores, how to handle transporting and storing the product,
service levels, recruiting middlemen, and managing (Perreault, 2004).
Distributing the product to the consumer is a decision that may include one or
more channels of distribution. According to Marketing Teacher, a channel of
distribution comprises a set of institutions which perform all of the activities
utilized to move a product and its title from production to consumption
(Marketing Teacher, 2000). Depending on the product and the consumer, there
are four different types of marketing channels that may be used. A direct channel
of distribution involves the consumer receiving the product directly from the
manufacturer or producer. This type of distribution is common in business
markets and in the marketing of services. However, the uses of direct channels
of distribution are becoming more common today due to the use of the internet
(Perreault, 2004). The other three types of distribution channels involve an
intermediary who might be a wholesaler, agents, and/or retailers. There are even
circumstances in which there may be multiple channels of distribution (Perreault,
2004). The distribution system involves transactional, logistical, and facilitating
functions in which the decisions include market coverage, channel member
selection, logistics, and levels of service (quickmba, 2004).
The promotion of the product is the communication and selling of the product to
potential consumers. There are three types of promotion: personal selling, mass
selling, and sales promotion. Personal selling can be very expensive. It involves
the direct communication between sellers and potential customers. This type of
selling can occur in a face-to-face setting or even over the telephone or via a
video conference. The benefit of personal selling is that it allows the salesperson
to adapt the firms marketing mix to each potential customer, but is rather costly
and may need to be blended with mass-selling and sales promotion (Perreault,
2004).
Mass selling is simply how it states. It is the communication of a product to large
numbers of customers at the same time. Mass selling has two main aspects:
advertising and publicity. Advertising is any paid form of non-personal
presentation of ideas, goods, or services by an identified sponsor. Publicity is the
unpaid form of the same non-personal presentation of ideas, goods, or services
(Perreault, 2004). Mass selling involves many types of media which may be
billboards, television, newspapers, radio, or even the Internet.
The third aspect of the promotion portion of the marketing mix is sales
promotion. Sales promotion refers to the other promotion activities that don't
involve advertising, publicity, and personal selling. The sales promotion is an
attempt to stimulate interest, trial, or purchase by the consumers or others
involved in the distribution channel. S ales promotion might include: coupons,
samples, signs, contests, catalogs, novelties, and circulars (Perreault, 2004).
The market mix is designed to accommodate the customer. Therefore, each
aspect of the marketing mix (4 P's) has equal importance. When the marketing
mix is being developed, all (final) decisions about the P's should be made at the

same time (Perreault, 2004, p. 41). To summarize the marketing mix, a company
develops a product to meet the needs and desires of the customers. It is then
determined how the product will reach the final customer. A promotion plan is
then decided on to inform the customer of the product. Finally, a price is
established while ensuring the company earns a profit.
Use of the Marketing Mix with Verizon FiOS
The following is based on my experience as a Fiber Splicing Technician with
Verizon Communications. I have been employed with Verizon over five years and
have seen, first hand, the implementation of a new product Fiber to the
Premise (FTTP). Today, the Internet has gained such popularity and is used daily
by businesses and individuals alike. The Internet is used to carry out business
transactions, research, play games, check emailsthe list goes on and on.
However, with this increased Internet usage, there is also a desire to have faster
download and upload speeds. Verizon has created a product/service that allows
just that faster Internet speeds.
Product
The product/service is the faster Internet capabilities provided through fiber optic
cable. There have been previous competitors who have provided fiber optic to a
remote switch and there have been other competitors who have tried providing
fiber optic cable to the curb and then transferred to copper wire. The drawback is
that there is a great loss at these conversion points. Verizon is providing fiber
optic cable to the premise of the residential or business location. The speeds
available are: download of 5 megabits (mbps) with an upload speed of 2 mbps,
download speed of 15 mbps, and a download speed of 30 mbps. The average
ADSL line has speeds of 1.5 mbps to 3 mbps. The service will also include the
capabilities to have telephony and television along with the high-speed data.
Place
Verizon needed to decide where to start offering this product/service. The pilot
city chosen was Keller, Texas. "Part of the reason the city was chosen was due to
the high rate of growth in the area. It was also marketed to attract the attention
of the individuals who work from home as well as the kids who like to play
Internet games" says Keith Jones who is a Verizon First Line Supervisor. Now,
almost 3 years into offering the new service, the company has branched out into
many other states.

Promotion
The promotion of the new Fiber to the Premise is done in many ways. The
company has several commercials that air on television and also has Internet
advertisements. Whenever the promotion first started in Keller, TX, the company
used a mobile billboard campaign, which involved driving Hummers wrapped in
banners for the new FTTP service.

Price
Price is always a big factor in whether a product is worth the time and effort to
produce or is it just too costly. Verizon has attacked the pricing issues with the
new FiOS network by creating attractive prices. The base plan, which is the 5
mbps download and 2 mbps upload, is offered for $39.95 a month. The package
for the 15mbps is offered at $49.95 and the ultimate 30 mbps download speed is
offered for $199.95. Verizon is also offering, where available, a package which is
called a "Triple Play" in which the customer receives one telephone line, highspeed Internet, and television for around $99.00 a month (Reardon, 2005).
In conclusion, the marketing mix is a very important aspect of creating a
marketing strategy. Once the company develops a product or service that will
meet the customer's needs, it will then look into determining how the consumer
is ultimately going to receive the product. It will be either through direct or
indirect channels of distribution and in some cases may have multiple channels.
The company will then determine how to communicate to the public about the
new product or service. Finally, the company will determine a price for the
product or service that ensures a profit. Thus, the 4 P's of the marketing mix.

References
Marketing Teacher. 2000. Place, distribution, channel, Intermediary. Retrieved
November 27, 2006 from:
http://marketingteacher.com/lessons/lessons_place.htm
NetMBA. 2006. The Marketing Mix (The 4 P's of Marketing). Retrieved November
25, 2006 from: http://www.netmba.com/marketing/mix/
Perreault, William D. and McCarthy, Jr., E. Jerome. 2004. Basic Marketing: A
Global Managerial Approach, 15/e. The McGraw-Hill Companies. 2004. Retrieved
November 20, 2006 from:
https://ecampus.phoenix.edu/content/eBookLibrary/content/eReader.h
QuickMBA. 2004. The Marketing Mix (The 4 P's of Marketing). Retrieved
November 24, 2006 from: http://www.quickmba.com/marketing/mix/
Reardon, Marguerite. 2005. Verizon hits the gas on fiber campaign. Retrieved
November 25, 2006 from:
http://news.com.com/Verizon+hits+the+gas+on+fiber+campaign/2100-1034_35700996.html