Marketing Mix
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- Date Submitted: 08/14/2013 04:02 AM
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Marketing Mix
Understanding the marketing mix is essential for an organization in creating marketing strategy and tactics. A successful marketing mix always contains the four Ps, which are product, place, price, and promotion. Dollar General, Inc. (DG) is the organization undergoing review to highlight the elements of the marketing mix and the affect they have on DG’s marketing strategy and tactics.
Based in Goodlettsville, Tennessee Dollar General is the nation’s largest small-box discount retailer (Dollar General Corporation, 2013). Founded in 1955 in Springfield, Kentucky the concept was simple; no item would cost more than a dollar. Currently about a third of DG’s, merchandise sells for a dollar or less. In 2012 DG opened its 10,000th store. Wal-Mart is the only discount retailer with a comparable amount of locations, boasting 10,000 stores worldwide.
How does product affect the development of Dollar General’s marketing strategy and tactics?
The first element in the marketing mix is product (Truell, 2007). DGs product is the goods they offer to satisfy the needs and wants of their customer. They offer tangible products; products that customers can physically touch. These products fall into three basic product levels (Truell, 2007).
The first level is the core product (Truell, 2007). Actual benefit customers receive from DG’s core product is the low cost of goods. The second level of product is the actual product offerings. This is DG’s mix of hard line goods, soft line goods, and perishables. Brand names, features, and packaging are some of the components that provide the benefits customers are seeking at the first level (Truell, 2007).
The final third level is the augmented component of the product (Truell, 2007). This is the additional benefit provided from the first to levels of product. Product offerings often include warranties, guarantees, complementary products, and availability (KnowThis LLC, 2013).
DG’s products are consumer goods. They...
Understanding the marketing mix is essential for an organization in creating marketing strategy and tactics. A successful marketing mix always contains the four Ps, which are product, place, price, and promotion. Dollar General, Inc. (DG) is the organization undergoing review to highlight the elements of the marketing mix and the affect they have on DG’s marketing strategy and tactics.
Based in Goodlettsville, Tennessee Dollar General is the nation’s largest small-box discount retailer (Dollar General Corporation, 2013). Founded in 1955 in Springfield, Kentucky the concept was simple; no item would cost more than a dollar. Currently about a third of DG’s, merchandise sells for a dollar or less. In 2012 DG opened its 10,000th store. Wal-Mart is the only discount retailer with a comparable amount of locations, boasting 10,000 stores worldwide.
How does product affect the development of Dollar General’s marketing strategy and tactics?
The first element in the marketing mix is product (Truell, 2007). DGs product is the goods they offer to satisfy the needs and wants of their customer. They offer tangible products; products that customers can physically touch. These products fall into three basic product levels (Truell, 2007).
The first level is the core product (Truell, 2007). Actual benefit customers receive from DG’s core product is the low cost of goods. The second level of product is the actual product offerings. This is DG’s mix of hard line goods, soft line goods, and perishables. Brand names, features, and packaging are some of the components that provide the benefits customers are seeking at the first level (Truell, 2007).
The final third level is the augmented component of the product (Truell, 2007). This is the additional benefit provided from the first to levels of product. Product offerings often include warranties, guarantees, complementary products, and availability (KnowThis LLC, 2013).
DG’s products are consumer goods. They...