Essay about MarkAlmeida MarketingMix 04 10 14

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Marketing Mix
Mark Almeida Quiñones
MKT-421 Marketing
April 10, 2014
Jose Medina

Marketing Mix The marketing mix consists of four elements of marketing, which a company follows and strategizes around to target different markets depending on its location, interest, and affordability, to be able to market a certain product or service. A good example of how these four metrics determine how you market a product, and the price of this product, is Allstate Insurance Company. Allstate sells insurance around the United States; they sell many types of insurance. From auto insurance, to home insurance, to renters and condo insurance. All of these products vary in price according to the location of the customer. The way Allstate markets its product also varies, depending on the location, the people that live in that location, and how the competition is perceived. Also, the different products are different prices, obviously; but even though they try to remain competitive all around, in all of their products and all of the locations they still use different marketing strategies from place to place. For example, even though Allstate has some of its global commercials, they also have certain marketing events that are specific to a certain area. In the past ten years or so, Allstate have been taking a close look at how fast the Hispanic population have grown. They have also done some research on how much money that population represents, and where are they located. This is one of the main reasons why they have a specific marketing plan in the states with high population of Hispanics, that they do not have in Oregon for example; a place where even though there might be some Hispanics, it is not as dense as it is in Texas, New Mexico, Arizona, and California. Allstate have switched their marketing campaign around quite a bit on these places. One of the most recent promotions that came out was in reference to the World Cup that is about to start in June 2014. This posters that have been lurking around with this new marketing strategy is only happening in places where there are a lot of Hispanics. This goes to show how they take all of these things into consideration when making any sort of marketing plan. When making a marketing plan one of the first things they take into consideration is the place. The place where the customer is located will determine the price of the product. Yes, there are some guidelines they have to follow from the Commissioner of Insurance of each state; but they still have some room to determine what price they are going to name. After they look at the guidelines for this, they also have to take into consideration the risk they are taking in that location. There are some places that have a higher statistic of how many cars are stolen per year in one place versus another place. They also have to determine the type of car and what features that car has. Once it is all said and done, they give a price, by taking into consideration the history of the customer with other insurance companies, and by looking at what is the competition doing. This is how Allstate determines the price of a certain product; there are many other factors that go into this, but the above-mentioned are the most critical. When it comes to the product they also have some considerations to take. Allstate does not offer the same products in all the states. There are certain products that are offered in Texas that are not offered in California; and you can go even more specific to the location. There are some products that are offered in San Antonio, Texas that are not offered in Houston, Texas, a place only three hours away. Some of these decisions are also based on the risk the company is taken, but some are made based on the need of the customer. If they know a certain product will not be as popular in a certain place, then they do not necessarily have to market it, or even offer it in that location. With the promotions Allstate does,…