7 marketing mix

Four Ps

• Four Ps

Marketing Mix

• Product

• Price

• Promotion

• Place

Marketing Mix

• The concept is simple. Think about another common mix - a cake mix. All cakes contain eggs, milk, flour, and sugar. However, you can alter the final cake by altering the amounts of mix elements contained in it. So for a sweet cake add more sugar!

Marketing Mix

• It is the same with the marketing mix.

• The offer you make to your customer can be altered by varying the mix elements.

• So for a high profile brand, increase the focus on promotion and desensitize the weight given to price.

Marketing Mix

• The marketer mixes the prime colours (mix elements) in different quantities to deliver a particular final colour.

• Every hand painted picture is original in some way, as is every marketing mix.

Target Market is the key

• Competition

History• The term marketing mix was coined in an article written by Neil

Borden called “The Concept of the Marketing Mix.”

• He started teaching the term after he learned about it from an

associate, James Culliton, who in 1948 described the role of the

marketing manager as a "mixer of ingredients"; one who sometimes

follows recipes prepared by others, sometimes prepares his own

recipe as he goes along, sometimes adapts a recipe from

immediately available ingredients, and at other times invents new

ingredients no one else has tried.

Four Ps: the producer-oriented model

• The marketer, E. Jerome McCarthy, proposed a four Ps

classification in 1960, which has since been used by

marketers throughout the world. 4 P’s classification is

• Product

• Price

• Promotion

• Place

Designing the right marketing mix

• The most creative & challenging step in marketing is designing the right marketing mix

• The marketing mix is the specific collection of actions & associated instruments employed by an organisation to stimulate acceptance of its ideas, products & services

Total Offer to the Customer

• First, the firm chooses the product to meet the identified need of the target segment

• Second, the right distribution channel is used to make the product available

• Third, the firm undertakes eye catching promotion

• Fourth, the price platform is acceptable to the customer & firm

4Ps & 4Cs

• Product- Customer /Consumer

• Price- Customer cost

• Place- Convenience

• Promotion- Communication

4Ps & 4Cs

• Four Cs

• The Four Ps is also being replaced by the Four Cs model, consisting of consumer, cost, convenience, and communication.

• The Four Cs model is more consumer-oriented and fits better in the movement from mass marketing to niche marketing.

Extended- Marketing Mix

Extended Marketing Mix

• Booms and Bitner included three additional 'Ps' to accommodate trends towards a service or knowledge based economy:

• People

• Process

• Physical Evidence

Extended Marketing Mix

People

• People – all people who directly or indirectly influence the perceived value of the product or service, including knowledge workers, employees, management and consumers.

Process

• Process – procedures, mechanisms and flow of activities which lead to an exchange of value.

Physical Evidence

• The direct sensory experience of a product or service that allows a customer to measure whether he has received value.

• Examples might include the way a customer is treated by a staff member, or the length of time a customer has to wait, or a cover letter from an insurance company, or the environment in which a product or service is delivered.

Physical Evidence

• Physical evidence is the material part of a service.

• Strictly speaking there are no physical attributes to a service, so a consumer tends to rely on material cues.

Physical evidence

• There are many examples of physical evidence, including some of the following:

• Packaging.

• Internet/web pages.

• Paperwork (such as invoices, tickets and despatch notes).

• Brochures.

Physical Evidence

• Furnishings.

• Signage (such as those on aircraft and vehicles).

• Uniforms.

• Business cards.

• The building itself (such as prestigious offices or scenic headquarters).

7Ps & 7Cs

The 7 Ps The 7 Cs

Organisation Facing Customer Facing

Product = Customer/ Consumer

Price = Cost

Place = Convenience

Promotion = Communication

People = Caring

Processes = Co-ordinated

Physical Evidence = Confirmation

Product• Product:• A product, service or idea is that which satisfies the needs

& wants of the customers

• A tangible object or an intangible service that is mass produced or manufactured on a large scale with a specific volume of units.

• Intangible products are often service based like the tourism industry & the hotel industry or codes-based products like cell phone load and credits.

• Typical examples of a mass produced tangible object are the motor car and the disposable razor. A less obvious but ever-present mass produced service is a computer operating system.

Product• Cars

Cars- Reva

• Reva

Car- Maruti 800

• Maruti

Product

• Variety

• Quality

• Design

• Features

• Brand Name

• Packaging

• Service

Product Variety

• Even today, manufacturers of products which are built to customer order, for example, cars, aeroplanes and medical equipment, offer such a large range of combinations of product features that millions of variants of a single product are possible.

• Commercially available software systems support the automation of many aspects of the engineering process; product databases enable the description of single products and engineering applications can use these product descriptions to carry out their tasks.

Product Quality

• A product or process that is reliable, and that performs its intended function is said to be a quality product. 

• Quality in business, has an interpretation as the non-inferiority or superiority of something.

• Quality is a perceptual, conditional and somewhat subjective attribute and may be understood differently by different people.

• Consumers may focus on the specification quality of a product/service, or how it compares to competitors in the marketplace.

Product design

• Product design can be defined as the idea generation, concept development, testing and manufacturing or implementation of a physical object or service

Brand Name

• The brand name is often used interchangeably within "brand", although it is more correctly used to specifically denote written or spoken linguistic elements of any product.

• In this context a "brand name" constitutes a type of trademark, if the brand name exclusively identifies the brand owner as the commercial source of products or services

Product

• Titan introduces quartz watches

• 24 Hour banking & ATMs by banks

• Tetra pack cartons for milk, juices

• 7 year warranty on refrigerators- Allwyn

Product & Packaging

FMCG

Product- Durable

• Washing machines

Products

• Latest Gadgets

New generation products

• Ipod, & walkman mobile

Services

• Courier Aviation

Services

• Despatch

Aviation

Place

• Place represents the location where a product can be purchased.

• It is often referred to as the distribution channel. It can include any physical store as well as virtual stores on the Internet.

Place

• Physical distribution are activities involved in transporting products from the producer to the consumer:

• Mode of transport

• Warehousing & Storage

• Inventory control

Place

• Channels of distribution are the routes through which the ownership of goods flow on its way from the producer to the customer

• Distributor

• Super-stockist

• Wholesalers

• Retailers

Duty Free Stores - Airports

Hypermart-Store Signage's

Large Format Stores

• Lifestyle

• Westside

• Shoppers Stop

• Pantaloons

• Big Bazaar

Retail brands

• Stores

Nokia Store

Place

• Global Players in India

Place

• Markets

Place

• Stores

Modern Grocery Store

Local stores

• Local kirana stores

Price

• The price is the amount a customer pays for the product.

• It is determined by a number of factors including market share, competition, material costs, product identity and the customer's perceived value of the product.

• The business may increase or decrease the price of product if other stores have the same product.

Price

• List Price

• Discounts

• Allowances

• Payment Period

• Credit Terms

List Price

• In retail, price regularly quoted to customers before applying discounts. List prices are usually the prices printed on dealer lists, invoices, price tags, catalogs, or dealer purchase orders.

Price Lists

Discounts & Allowances

• Discounting is a financial mechanism in which a debtor obtains the right to delay payments to a creditor, for a defined period of time, in exchange for a charge or fee

• Discounts and allowances are reductions to a basic price of goods or services.

Payment Period & Credit Terms

• The stipulation by a business as to when it should be paid for goods or services supplied, for example, cash with order, payment on delivery, or within a particular number of days of the invoice date

Price

• Bills

Price

• Price is the amount a consumer pays in exchange for the product or service.

• Marketers must consider the following in setting prices:

Price

• Target segment- How much the target segment is willing to pay at different price levels- price elasticity of demand

• Cost- How much it costs the firm to produce & market the product

• Competition- Prices of competitors

• Society & Law- Within legal framework

Price

• Marketers have to determine prices to consumers & channel partners

• Prices across models & geographic regions have to be established

• Policies on discounts have to be framed

• These decisions are vital to enhance sales volumes

Innovative Discounts

• Discount sales in shopping malls

• Off season sales

• Closing down sales

• Festival sales

• Credit points

• Exchange offers – mobiles, cookers, cars

Festive Sales

• Christmas & Diwali Sales

Innovative discounts

• Discounts

End of season sale

Special Sales

• Sales

Gold Sale- Impact

• Festive season revives gold demand, premiums steady

Discount Rush

Promotion

• Promotion activities are meant to communicate & persuade the target market to buy the company’s products

• This is done by:-

Promotion

• Advertising

• Personal selling

• Sales promotion- POS

• Public Relations

• Word of mouth – Viral advertising

Promotion

• Promotion represents all of the communications that a marketer may use in the marketplace.

• Promotion has five distinct elements – advertising, personal selling, public relations, word of mouth and point of sale.

• A certain amount of crossover occurs when promotion uses the five principal elements together

• Advertising covers any communication that is paid for, from and cinema commercials, radio and Internet adverts through print media and billboards.

ATL & BTL

• Above the line (ATL) is an advertising technique using mass media to promote brands.

• Major above-the-line techniques include TV and radio advertising, print advertising and internet banner ads.

• This type of communication is conventional in nature and is considered impersonal to customers.

• The ATL strategy makes use of current traditional media: television, newspapers, magazines, radio, outdoor, and internet.

• It differs from BTL (Below the line), that believes in unconventional brand-building strategies, such as direct mail.

BTL- Below the line

• The terms "below the line" promotion or communications, refers to forms of non-media communication, even non-media advertising.

• Below the line promotions are becoming increasingly important within the communications mix of many companies, not only those involved in FMCG products, but also for industrial products.

ATL & BTL

• What’s the difference between ‘Above the line’ and ‘below the line’ advertising?

• Below the line (BTL) is an advertising technique. • It uses less conventional methods than the usual specific

channels of advertising to promote products, services, etc. than ATL (Above the line) strategy.

• These may include activities such as direct mail, public relations and sales promotion for which a fee is agreed upon and charged up front.

Below the Line

• Below the line advertising typically focuses on direct means of communication, most commonly direct mail and e-mail, often using highly targeted lists of names to maximize response rates

• The term "Below the Line" is rapidly going out of fashion in advertising circles as agencies and clients switch to an 'Integrated Communication Approach.'

• BTL is a common technique used for touch and feel products. Those consumer items where the customer will rely on immediate information than previously researched items.

• BTL techniques ensures recall of the brand while at the same time highlighting the features of the product.

Integrated Communication Approach

• Definition: A management concept that is designed to make all aspects of marketing communication such as advertising, sales promotion, public relations, and direct marketing work together as a unified force, rather than permitting each to work in isolation.

Through the line-TTL

• Through the line" refers to an advertising strategy involving both above and below the line communications in which one form of advertising points the target to another form of advertising thereby crossing the "line".

• An example would be a TV commercial that says 'come into the store to sample XYZ product'.

• In this example, the TV commercial is a form of "above the line" advertising and once in the store, the target customer is presented with "below the line" promotional material such as store banners, competition entry forms, etc

Personal selling

• Personal Selling: Face to face personal communication- Eureka Forbes

• In person selling, tele-marketing• Advertising- Mass communication efforts

through media• Sales Promotion- Communication through

contests, OOH, trade shows, free samples, yellow pages, call helplines

Personal Selling

• Personal Selling

Discount coupons

• Discount coupons

Promotion-2

• Publicity- Communicating with an audience by personal or non-personal media that are not paid for delivering the message

• Print media news, broadcast media news

TV Channels

TV Channels

More than just news

• Entertaining information to add spice

Print Media

• Print- Newspapers & Magazines

Newspapers

Print Media

• Newspapers & Magazines

Newspapers you could read

• Economic Times• Business Standard• Mint• Hindu Businessline• Business News in

daily newspapers

• The Hindu

Radio

• Growing radio stations in India

Radio Stations

• Numerous- FM

Radio channels

• Meow targets at women