Caso Cotsco Luisa Fernanda Rojas Hernandez

Luisa Fernanda Rojas Hernandez

Cod: 201311201

MARKETING RESEARCH

ESSAY

THE 4P’s OF COSTCO

Costco wholesale corporation is one of the biggest retailers in the world, to make their successful marketing plan they use a long list of product mix to give their consumers a plus so they prefer Costco over other retailers. They offer to their customers all the 4P’s to give them a better service. In Costco’s case, the business has a marketing mix that is relatively uncommon in the retail industry, especially in terms of the promotion element.

In terms of promotions Costco they use the main marketing communication tactics, depending on their marketing mix, they have to use different techniques to get to their main costumers, the promotion tactics that Costco use to attract their consumers are: public relations, sales promotions, personal selling and direct marketing. The main idea of Costco for a promotion is that they guaranteed to the consumer the lower price and a lot of other thing that make that the people will get customer loyalty as much as they can.    

Costco does not offer as much products as Walmart does, because Costco has a limited product mix, but though the time it has expand the product offering, to include in their product mix categories like: appliances, optical service, home service, health and beauty amongst others, they start expanding their product mix to services, life insurance and that make consider the diversification of the company products.

Talking about places, Costco actually have three different main places where they distribute their products, they have the warehouse stores, the online store and the Costco mobile app. The others retailers mainly have their product mix in their warehouse stores, but Costco put their product is the door of their customers just with going to the web page or the app and order the product or service that they want.

In terms of prices as we see after, Costco tries to put the lowest price as possible to their products but they make that so the customer buy as much product as they cannot, so they play with the brain of the people giving them a lower price but sometime giving a product that the consumer do not need so they spend as much money as they spend in a smaller amount of products in a super market.

Finally, we can say that Costco offer the 4P’s to give the best service to their consumers and make them feel comfortable with the store and what they are giving to them, but I think is wrong to play with the people brains so they buy more products that they do not need and even is important that Costco earn their money is kind of bad what they are doing.    

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