Explain the marketing mix through product, price, promotion and place, linking coordinated decisions to customer needs, competitive position and sales.
Sources for use with Extract D In congested Istanbul, companies get goods to you fast There has been a rapid growth in the demand for shopping services in Istanbul, Turkey. These on-demand services are expanding because transportation can be slow. Businesses are making use of new technology, wages are rising and more people have access to smartphones. Shopping services such as Kapgel and Getir offer innovative delivery solutions to meet the needs of their customers. Both firms have different approaches, but aim to meet people’s immediate needs and develop customer loyalty by using technology to develop apps and deliver goods as quickly as possible. Kapgel has designed an app to allow customers to shop from a wide number of stores and supermarkets. The customer creates a basket of goods on the app and a delivery person shops for these items and delivers directly to the customer. Deliveries are made within one hour for a delivery fee of 5 Turkish Lira (US $0.85). Kapgel does not keep any stock and uses part-time and temporary delivery people, rather than employing workers on a permanent and full-time basis. Getir owns many warehouses around Istanbul to stock over 1,000 different products, including food items and small electrical goods. Customers select from the 1,000 items using an app on their smartphone. Getir employs over 350 people for this delivery business and have an average delivery time of 9 minutes and 6 seconds. Unlike Kapgel’s delivery fee, Getir adds a cost to each product. It has a minimum shopping total of 15 Turkish Lira (US $2.55) before it will deliver an order. Extract E BiSU Water Delivery In Turkey, most tap water is not drinkable. Delivery services in the past were slow and not well organised. On-demand delivery services such as BiSU have changed the water delivery market in Turkey. Customers can now order water using an app on their smartphone. They can have it delivered quickly and at a time to suit them. BiSU has a large team of delivery drivers. The business was launched in 2015 and has expanded to many cities in Turkey, receiving over 100,000 orders a month from 38,000 users. Water prices depend on the brand requested and the region the water is delivered to.
Assess the extent to which product is the most important element of the
marketing mix for on-demand delivery businesses in Turkey.
Indicative content guidance
Answers must be credited by using the level descriptors (below) in line with the
general marking guidance. The indicative content below exemplifies some of
the points that candidates may make but this does not imply that any of these
must be included. Other relevant points must also be credited.
Knowledge, Application, Analysis, Evaluation - indicative content
- Product is one element of the marketing mix. The other three
elements are place (distribution), promotion and price.
- Product range may be an important element in the delivery market.
Getir stock 1,000 different products in its warehouses. Kapgel do not
keep stock and allow the customer to shop from a wide range of
shops.
- This may influence demand for the businesses if consumers are
looking for a wider variety of goods.
- Tap water in Turkey is not drinkable, therefore the product of clean
water is crucial to the success of BiSu.
- However, other aspects of the marketing mix: place, price and
promotion are equally as important to the success of the delivery
businesses.
- Price may be an important element due to the competition in the on-
demand market. Increased numbers of people are using the delivery
services in Istanbul and therefore suppliers may need to compete on
price to survive.
- Deliveries are made within one hour by Kapgel for a delivery fee of 5
Turkish Lira. Getir add a cost to each product and has a minimum
shopping total of 15 Turkish Lira before it will deliver an order. Price
may be an important element for some consumers resulting in
reduced revenue for Getir.
- Due to the intense competition in Turkey, delivery businesses must
stand out in the market and ensure they are using promotional
methods suited to the audience.
- The distribution of the goods may also be important to consumers.
Kapgel deliver in one hour but Getir, who have warehouses located
around Istanbul, are able to delivery to customers in under ten
minutes. If speed of delivery is important to consumers' then place
will be an important element of the marketing mix.
- Whilst product is crucial to the success of the delivery services, all
elements of the marketing mix are equally importance to ensure the
business succeeds in the long term.
Level
Mark
Descriptor
0
No rewardable material.
Level 1
1-2
Isolated elements of knowledge and understanding - recall based.
Weak or no relevant application to business examples.
Generic assertions may be presented.
Level 2
3-4
Elements of knowledge and understanding, which are applied to the
business example.
Chains of reasoning are presented but may be assertions or
incomplete.
A generic or superficial assessment is presented.
Level 3
5-7
Accurate and thorough knowledge and understanding, supported
throughout by relevant and effective use of the business
behaviour/context.
Analytical perspectives are presented, with developed chains of
reasoning, showing cause(s) and/or effect(s).
An attempt at an assessment is presented, using quantitative and/or
qualitative information, though unlikely to show the significance of
competing arguments.
Level 4
8-10
Accurate and thorough knowledge and understanding, supported
throughout by relevant and effective use of the business
behaviour/context.
A coherent and logical chain of reasoning, showing cause(s) and/or
effect(s).
Assessment is balanced, wide ranging and well contextualised, using
quantitative and/or qualitative information, and shows an awareness
of competing arguments/factors, leading to a supported judgement.
Question
Number
Indicative content