In order to achieve the marketing objectives, a corporation needs to have a strategy that includes different elements, the various parts of the marketing mix. The marketing mix reminds the corporation to get the balance right between the different elements. It is easy to assume that one part of the marketing mix is wrong when, in fact, it is another.
Marketers have fours tools to use to develop an offering to meet the needs of their targeted customers. Together they are called the marketing mix; in detail they are viewed as: product, price, place, and promotion. The marketing mix should be viewed as an integrated and coordinated package of benefits that reflect the characteristics of customers and various targeted publics and satisfy their needs, wants, and expectations (the economist). Note that the elements of the marketing mix should be integrated because each element of the mix usually has some impact, direct or indirect, on the other three.
For example, if a corporation improves the product or service, the price must be changed because it costs more to produce it. Although the corporation may not have to change where the product is delivered to the customer, a change in the promotion must be done as well because the customer has to be kept updated about the changes and how these changes will make the product or service more desirable and satisfying. One problem in many organizations is that different divisions may be responsible for different elements of the marketing mix. This happens even in well managed organizations. The result is that the offering is confusing to the target market. Lack of communication among divisions makes this problem worse, and if they do not share the same view of organizational objectives, the problem is worse still (the economist).
AMC Theater's product will be the showing of films, bowling games and refreshments sales. AMC will need to be able to provide viewings of newly released films, keep the furnishings maintained and employ friendly and courteous staff in the cinemas and in all other sections of the business to ensure that their customers will return.
The prices that the products are to be sold at should be at a level which the customer will believe to be value for money and not just cheap, as this may sometimes be thought as a reflection of the quality of the product they will receive, influencing their final decision on whether or not they will purchase it. AMC Theater could use one of the following pricing strategies to sell their product at, depending on the market:
Penetration pricing- is where a firm charges a very low price when the product is new and it is used to increase the interest from customers (the economist).
Skimming- occurs when firms charges a high price to make the product seem desirable to customers who have large income (the economist).
Destroyer pricing- occurs when firms charge prices which they know are unprofitable for their competitors, driving them out of the market (the economist).
Competition pricing- occurs when firms charge very similar prices as other firms. Usually this happens where there is very little product differentiation (the economist).
AMC Theater needs to advertise for four main reasons:
To make customers aware of new products, to remind customers about existing products, to persuade customers to switch from rival products and finally to improve the image of the business. The ultimate aim of these points is to sell more products in this case more move tickets.
AMC Theater is located in a place that is convenient for the market and more custom has been created because more customers are going to the movies. Also the location is close to a form of public transportation, e.g., bus station.
In conclusion, these are the four main tools that organizations use to develop offerings to satisfy their targeted market. If the marketing mix does not meet the customer's needs, they will not be satisfied, and if they are not satisfied the corporation offering the product or service is unlikely to be meeting its own objectives.