Lockheed Martin Marketing Mix (4Ps) & Marketing Strategy
Marketing strategy of Lockheed Martin through marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion).
Lockheed Martin Product Strategy:
Lockheed Martin is a global aerospace and technologies company based out of USA. The marketing mix product portfolio of Lockheed Martin consists of the following. ATC Systems, Ballistic Missiles, Precision-guided munitions, Missile Defense Elements, Directed-energy weapons, Combat Systems, Armoured fighting vehicles, Combat aircraft, Radar Technologies etc. Lockheed Martin also consists of Electronic Warfare Systems, Multi-Function Sensor Systems, Satellites, Energy Management, Storage Systems etc. In order to stay in the market, they need to focus on what is expected and what kind of products are they going to sell. Their innovations should be in parallel with the requirements of the defense of the country. Lockheed Martin is mainly into product development and innovation. They are trying to focus on these aspects and in order to do that, they either have to be unique and differentiable or need to make more profits when they enter the market. They can gain that by setting their target customers. Since they are a major supplier of defense equipment to the U.S. government, they should sustain and maintain their position in the market and continually improve so that their competitors don’t replace them.
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This concludes the product strategy in Lockheed Martin marketing mix & strategy.
Lockheed Martin Price/Pricing Strategy:
Below is the pricing strategy in Lockheed Martin marketing mix strategy:
Lockheed Martin’s largest competitor is Boeing which has a huge market cap. The next competitor is Northrup Grumman.
Both of them are very well known and majorly used in defense aircrafts. Lockheed Martin follows a competitive pricing strategy. The company first needs to cover all its costs and then set a price according to what the competitors are charging. After covering all the costs it would estimate a certain amount of profit that it would need to incur and based on the market prices it sets its price at par with the competitors. The price is set high enough that they don’t lose their profit margin and low enough that their customers don’t switch to other manufacturers for their needs. With the recent reduction in the defense budget, it has to reduce its costs and they had even had over 300 employee layoffs. Their main revenue is through government contracts and negotiation. The defense department has a budget and the company has to stay within the budget in order to gain subsequent contracts.
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Lockheed Martin Place & Distribution Strategy:
Following is the distribution strategy in the Lockheed Martin marketing mix:
Lockheed Martin follows a discrete distribution strategy. Since defense is a delicate subject for the country, it is of paramount importance that the data be safe and secure. They take utmost care of the customer privacy and code their products with anti-theft and anti-fraud systems.
Logistics and Supply Chain Management plays a very important role in the distribution strategy of Lockheed Martin.
Lockheed Martin Promotion & Advertising Strategy:
The promotional and advertising strategy in the Lockheed Martin marketing mix is as follows:
They engage in various media to attract their customers and gain contracts. They use the traditional and digital media. But, they have to connect with their clients to promote its products. Lockheed Martin is one of the top defense contractors of the U.S. It needs to keep improving and proving its credibility and needs to advertise itself so that it gains a similar market share and builds the same image in a few other countries as well. Since its only customer is the U.S. government at the moment, it has to focus on being at par or above the competitors to keep the contract. It has various awards and accolades to prove its credibility and earn future contracts. Lockheed Martin have continuously improved their processes and are operating at low cost, less risk and cycle time.
Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of Lockheed Martin.
Physical Evidence:
Lockheed Martin operates in over 70 countries and has more than 400 facilities worldwide. Out of total 97,000 employees, 7000 employees work internationally. It has different headquarters for different functions like Rotary and Mission Systems in Washington, D.C.; Space in Denver, Colorado; Aeronautics in Fort Worth, Texas; Missiles and Fire Control in Grand Prairie, Texas.
Process:
Since Lockheed Martin is an aerospace industry, quality is of utmost importance to them and they want a minimum error to be present in their product and services. For that reason, they follow six-sigma strategies in their processes. The managers and leaders are expected to facilitate the functioning of this principle which aids in improving efficiency. Lockheed Martin consists of IPT teams to maintain product quality.
People:
Lockheed Martin has over 97,000 employees worldwide. It has CEO, COO, CFO and Executive Vice Presidents (EVPs), who are responsible for managing major operations. It follows a hierarchical management which includes Program Manager, Functional teams, Integrated Product teams, and detailed product development. From the top management to the floor shop employees, everyone is expected to follow the Six Sigma principles in the production. The major stakeholders in the company are Institutional investors, customers, Non-governmental organizations, research partners, and suppliers. This concludes the Lockheed Martin marketing mix.
About Lockheed Martin:
Lockheed Martin is a global aerospace, defense, information security, and advanced technologies company. It was founded in 1995 by a merger between Lockheed Corporation and Martin Marietta. Lockheed Martin has its headquarters in Bethesda, Maryland, United States. Its President and CEO is Marillyn Hewson.
It is a public company and is listed on the New York Stock Exchange with the name LMT. Its shares are held by State Street Corporation, Capital Group Companies, Vanguard Group, BlackRock, etc.
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