Marketing mix of Best Buy (4Ps of Best Buy)

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Marketing mix of Best Buy (4Ps of Best Buy)

This article ‍offers a comprehensive examination of the marketing mix of Best Buy (4Ps of Best Buy). The marketing mix is a model that illustrates the interactions between the four key items in marketing: product, price, place, and promotion. It explains how a company goes from an idea to a finished product that consumers can buy. Certainly, Best Buy has developed an excellent marketing strategy by leveraging its expertise in technology and human touch. It is an American consumer electronics company, headquartered in Minnesota.

 

Product strategies of Best Buy

Best Buy is a retailer for consumer electronics. Its products are divided into different categories e.g. appliances, TV & home theatre, computers & tablets, cell phones, video games, health & wellness, sports, fitness, & recreation, audio, outdoor living etc. (Best Buy, 2022).

 

Though Best Buy is a company for electronics, its product portfolio is certainly diversified. Its health and wellness items, home exercise items, and outdoor furniture have drawn a lot of customer attention. However, Loeb (2022) states that some analysts view this approach problematic as the synergies across these ranges are not evident.

 

In addition to selling products from many brands, Best Buy also manufactures and offers its own unique products under five private-label brands: Insignia, Rocketfish, Platinum, Modal, and Dynex. These products offer great value for customers.

 

Kim (2022) reports that Best Buy’s 60% revenues come from the sales of products from five companies i.e. Apple Inc., Samsung, HP Inc., LG, and Sony Group Corp. However, as customers can easily find products of those companies on Amazon, eBay, and many other online giants, they do not have any compelling reasons to shop at Best Buy.

 

Pricing strategies of Best Buy

Pricing is an important part of this marketing mix of Best Buy (4Ps of Best Buy). Best Buy offers everyday low prices to help customers spend less and live better. It also offers Price Match Guarantee with which it matches prices of major local and online competitors (i.e  Amazon.com, Crutchfield.com, Dell.com, HP.com and TigerDirect.com) for immediately available new products. However, this Price Grantee is offered to a selected number of customers and excludes clearance, refurbished, and open-box products (Best Buy, 2022).

 

Place/distribution strategies of Best Buy

Best Buy has over 1000 retail locations throughout the United States, and Canada. Each location was chosen for its proximity to a large population center. The company uses UPS, FedEx, and USPS to deliver products to customers’ home. It also sometimes uses its employees and other home delivery companies in some selected areas.

 

Best Buy’s products and services are also available online. Its website is very user friendly. However, many customers have shared their frustration on its official Facebook page over several issues such as order cancellation, slow system, hacking of account.

 

Promotional strategies of Best Buy

Promotion is the last item in this marketing mix of Best Buy (4Ps of Best Buy). Best Buy offers sales promotions and discounts every day. Likewise, it offers exclusive services and offers to its ‘Totaltech’ members. However, the annual subscription fee for ‘Totaltech’ membership is $199.99 which put many customers off.

Best Buy advertises on TV and online platforms. Its presence in social media is very good as well. It also sponsors big events and provides financial support to non-profit organisations, schools, and libraries.

 

Summary of the marketing mix of Best Buy

To sum-up, Best Buy has an integrated marketing communications strategy. It uses both traditional and digital media. It also uses royalty programs, discounts, and public relations activities. However, its physical presence is somewhat limited, and some elements of its product strategies needs re-evaluation.

 

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Last update: 22 July 2022

References:

Best Buy (2022) About Best Buy, available at: https://corporate.bestbuy.com/about-best-buy/ (accessed 22 July 2022)

Kim, T. (2022) Best Buy’s offerings look too much ike Amazon’s, available at: https://www.bloomberg.com/opinion/articles/2022-03-03/best-buy-s-offerings-look-too-much-like-amazon-s (accessed 21 July 2022)

Loeb, W. (2022) Best Buy’s challenges abound – will sales rebound? https://www.forbes.com/sites/walterloeb/2022/07/08/best-buys-challenges-aboundwill-sales-rebound/?sh=19870c5ca2af (accessed 20 July 2022)

Author: Joe David

Joe David has years of teaching experience both in the UK and abroad. He writes regularly online on a variety of topics. He has a keen interest in business, hospitality, and tourism management. He holds a Postgraduate Diploma in Management Studies and a Post Graduate Diploma in Marketing Management.