General Electric Company (doing business as GE Aerospace) maintains a stable and growing customer base through a marketing mix that incorporates strategies for market penetration. General Electric’s generic competitive strategy and intensive growth strategies influence this marketing mix. The company’s marketing mix (4Ps) is the set of strategies and tactics implemented for a marketing plan and marketing strategy. These strategies pertain to the company’s product, price, place, and promotion (4P). In the case of GE, the target market is composed of customers in the aerospace industry. GE’s marketing mix applies to market conditions relevant to the multinational business. For example, the conditions of the aviation market are significant to General Electric’s management. Market trends influence GE’s marketing success, considering the dynamics of the aerospace industry. Responsiveness to industry trends is necessary in General Electric’s marketing mix success.
In applying the strategies and tactics of its marketing mix or 4Ps, General Electric addresses the needs of its industry, with consideration for external factors. The PESTEL/PESTLE analysis of General Electric Company shows how these factors affect the business and its remote or macro-environment. For example, product characteristics, place selection, promotion strategies, and price points are based on market conditions and the dynamics of GE’s competitors, like Pratt & Whitney and Rolls-Royce. For competitiveness, General Electric’s marketing mix suits industry and market trends.
General Electric’s Products
Products or business outputs offered to target customers are in this component of General Electric Company’s marketing mix or 4P. Strategies for marketing facilitate GE’s long-term business growth. This marketing strategy aligns with the goals of General Electric’s mission and vision related to product design and innovation. General Electric’s marketing mix includes the following products:
- Turbojet engines
- Turbofan engines
- Turboprop engines
- Turboshaft engines
- Propfan engines
- Industrial and marine turbine engines
- Avionics systems, software as a service, and others
General Electric’s product mix reflects business focus on the aerospace industry. For example, most of GE’s products are for aircraft. This marketing mix involves strategic product variation representing market demand. Such variation influences General Electric’s organizational structure (company structure) and associated strategic management approaches. Changes in the company’s business strategies refine its product mix. Product development is an aspect of this component of General Electric’s marketing mix or 4Ps.
Place/Distribution in GE’s Marketing Mix
The place component of this marketing mix refers to the venues or locations for distributing General Electric’s products and reaching target customers. In this case, GE’s strategic management adjusts to the different characteristics of various locations in the global market. For example, the company’s marketing approach for distribution considers the characteristics of the avionics market in the United States, Canada, Australia, and other countries. General Electric’s marketing mix involves the following places:
- Authorized sales representatives
- GE Aerospace website
Authorized sales representatives are the main places that General Electric Company uses to distribute its products. Different market segments require different management tactics for selling GE products. The company’s marketing strategy ensures business competitiveness through appropriate authorized sales representatives as distribution channels. The GE Aerospace website also allows interested parties to access information and contact the company, such as for support services. The distribution approach in General Electric’s marketing mix indicates dependence on effective business-to-business communication.
General Electric’s Promotion
The promotion component of General Electric’s marketing mix or 4P sets the tactics for marketing communications to reach and persuade target customers. In this case, these tactics prioritize direct marketing, such as with customers in the avionics market. GE’s promotional mix uses its promotional tactics to varying extents, depending on market dynamics. The following are applied for promotion in General Electric Company’s marketing mix:
- Direct marketing (primary)
- Advertising
- Public relations
General Electric applies direct marketing in promoting products in target markets and market segments. In this marketing mix, direct marketing is used to promote GE’s engines and avionics systems to business organizations, such as airline operators, like Southwest, as well as aircraft manufacturers, including Boeing and Airbus. On the other hand, GE Aerospace uses advertising to promote and strengthen its brands and products in its target markets. Also, public relations promote General Electric and its products through goodwill for the target market and other stakeholders. In applying public relations, the corresponding tactics align with General Electric’s corporate social responsibility (CSR) and ESG strategy for sustainability and stakeholder management. These promotional activities are dependent on and contribute to brand strength, which is one of the strengths of the business shown in the SWOT analysis of General Electric Company. Thus, this component of GE’s marketing mix accounts for the nature of aerospace business transactions with other firms in various market segments and industries.
Price in GE’s 4Ps
This component of the marketing mix or 4P determines the price points and price ranges for General Electric’s products. For example, prices are set for GE aircraft engines by evaluating competition, supply, and demand conditions in target markets, such as the jet airliner market. This strategic approach ensures that the aerospace business remains strong against competitors. General Electric’s marketing mix applies the following pricing strategies:
- Market-oriented pricing strategy
- Value-based pricing strategy
In the market-oriented pricing strategy, prices are set after an evaluation of prevailing market conditions. For example, General Electric’s prices for its aircraft engines are adjusted with consideration for the prices of competing products. This pricing strategy supports the competitiveness of GE engines, avionics, and related products. On the other hand, in the value-based pricing strategy, General Electric’s focus is on the uniqueness and value of its products. For instance, the company sets relatively high prices for some of its avionics products and jet engines. In value-based pricing, customers are willing to pay higher for products that have higher perceived value. The combination of these pricing strategies influences the ability to withstand competitive rivalry, which is a business concern shown in the Five Forces analysis of General Electric Company. Overall, this component of General Electric’s marketing mix or 4Ps responds to competitive challenges.
References
- Garg, R., Chhikara, R., Agrawal, G., Rathi, R., & Arya, Y. (2024). Sustainable marketing mix and supply chain integration: A systematic review and research agenda. Sustainable Futures, 100269.
- GE Aerospace Avionics Systems.
- GE Aerospace Commercial Engines & Services.
- GE Aerospace Customer Support.
- GE Aerospace Defense Engines & Services.
- GE Aerospace Software as a Service.
- General Electric Company Form 10-K.
- Léonard, P. L., Hallstedt, S. I., Nylander, J. W., & Isaksson, O. (2024). An Introductory Study of the Sustainability Transition for the Aerospace Manufacturing Industry. In Sustainable Production through Advanced Manufacturing, Intelligent Automation and Work Integrated Learning (pp. 577-588). IOS Press.
- U.S. Department of Commerce – International Trade Administration – Aerospace Industry.
- Wang, X. S., Bendle, N., & Pan, Y. (2024). Beyond text: Marketing strategy in a world turned upside down. Journal of the Academy of Marketing Science, 1-16.