Mariner’s Polytechnic CollegesPanganiban Drive, Naga City

Submitted By:

Aragon, Cristy R.Edmalin, Emmy Rose

Submitted To:

Dr. Moises C. Cabida, Jr.

Table of Contents:

I. IntroductionII. Body TopicIII. FindingsIV. ConclusionsV. RecommendationVI. Reference/Source

Chapter 3

Marketing Mix:

The 4P’s of Marketing

“The overriding object of marketing is to attain a sustainable, profitable market share for one’s brand or product line”

By: Vicente DinglasanChairman, JDH Philippines

Introduction:

Insights into: the Real face of Marketing

Marketing, we are now beginning to realize, is not merely a course taught in colleges of Business.-it is a basic human activity.

Like many other basic concepts such as communications, marketing features are perceived differently by different people.

The “manager of marketing” at one business firm might be in charge of sales. At another firm, he might be charge of sales and promotion. At a third firm, he might direct new product planning, physical distribution, sales, advertising, and public relations.

Marketing encompasses all of these activities and more, since it represents the exchange of value for value for the purpose of satisfying human wants.

In Business, the management of marketing is the process of increasing the effectiveness of the firm’s marketing activities. In simplest terms, the marketing manager is involved in matching his organization’s products and/or services to the present and future needs of customers within the constraints imposed by society. Marketing mix strategy is choosing and implementing the best possible course of action to attain the organization’s long-term objectives and gain competitive advantage.

The function of each marketing mix is defined below and will be discussed individually:

1. Product - to satisfy the needs and wants of the target market.-We should think first about what product would be conveniently avail

by the customers. Whether they support or care for the product that might be

produce. Before a company does it they should conduct a survey of what consumers do needed for their everyday lives. A company should also think what product satisfies the needs and wants of the customers. 2. Placement (or Distribution)- to make the product conveniently available to the target market consistent with their purchasing patterns.

-Companies must choose places which people liked to be with. They also put some of their store branch if necessary to a Mall, Plaza, market and etc. where product is nearly located where people wanted to spend their time. Sunday is the best day where people spend their time with their families they go mall, shopping, bonding and they do a lot of things it is the reason why some companies referred their store branch in Malls. 3. Promotions- to build and improve consumer demand. Promotions have four components called the Promotions Mix as follows:

A. Advertising- to effectively inform and persuade the target market.B. Public Relations- to offer a positive image of the company and the

brand.C. Selling- to get the customers to buy immediately.

-To produce and to grow or become better the customer demand and to be able the product would be prominent one they also used advertising-it informs, notify and call public attention especially in order to sell, they used advertisements for the product they broadcast it on radio or television too. Next are Public Relations- they will propose or suggest a certain impression, idea or concept of the fellowship and the product or brand it. -Selling it is the act to transfer product in return for money or something else of value. - Sales promotions-the salesman convince customers to buy immediately their product. I also notice sometimes salesman is over when convincing customers. For their or for that reason sometimes some of the customers get angry to those salesman which however doesn’t even know the mood or attitude of their customers.

D. Sales promotions- the salesman convince customers to buy immediately their product. I also notice sometimes salesman is over when convincing customers. For this or for that reason sometimes some of the customers get angry to that salesman who however doesn’t even know the mood or attitude of their customers.4. Price- to make the product affordable to target market and reflect the value of benefits provided. Product and Placement are considered as the strategic P’s of the marketing mix since they cannot be change overnight. Promotions and Price are

considered as the tactical Ps of the marketing mix because these can be change more easily.

Marketers of consumer packaged goods such as food and personal care products in supermarkets would often add “Merchandising” as another component of the promotions mix. Merchandising aims to extend advertising messages at the point of purchase (POP) by generating superior presence within the store. Examples of merchandising materials used for this purpose are store signs, posters, price tags, shelf takers, and island displays.

To the marketers, the interacting 4Ps attempt to influence the buying decision-making process of customers at a level that maximizes profit. Other factors that must be considered are the 4Ps of competitive brands, customers background, and customers’ previous experience with the product or similar products. All these factors are detailed in exhibit 3-1.

Company’s 4ps Competitors 4Ps Customer’s Background/ Experience

This means that while each component of the marketing mix need not be superior to the competition, the overall marketing mix of the firm must show superiority over competition if the company intends to gain market shares.

BUYER BEHAVIOR

An important component of the consumer purchase decision-making process,

Target Market Purchase orNo Purchase Decision-Making

Exhibit 3-2: The Factors Influencing Buyer Behavior in Consumer Markets

1. Cultural factors2. Social factors3. Personal factors 4. Psychological factors

Cultural factors

Culture and sub-culture- Many older Chinese like to eat Shark’s fin soup as well as Bird’s nest soup, which environmentalists despise. They also avoid the color black during important celebrations.

Social class- Buying a real estate property is dependent, among others, on the how consumer perceives the quality of their desired neighborhood and the status symbol that comes with a high-end development.

Social Factors

Reference groups- High-end brands like Nike shoes or acquiring Globe cellophane to be a member of their Gen Text Club are examples of how peers can affect a purchase.

Family- demand for products such as PLDT long-distance calls is influenced by the Pinoy’s strong family attachment.

Role and Statutes- Monte Blanc pens are positioned as the pen for presidents of companies, as well as countries. Johnny Walker Black Label is another example of whisky positioned for successful people.

Personal factors

Age and life cycle- Retirees are prime market for many luxury cruises, as it is consistent with the slow, relaxing pace they desire.

Occupation- Pampers Uni is bought by working mothers who cannot afford to rest in the morning. The International School targets children of expatriates.

Economic circumstances-Network marketing offers equal opportunity to those who want to start and grow their own business without the large capital involved in putting up traditional business.

Lifestyle- Kraft imported cheese and Lazy Boy chairs are example of lifestyle products.

Personality and Self-concept- Premium brands like Rolex, cars and even clothes are driven by how the buyer looks at himself or herself.

Psychological factors

Motivation- Many government employees now enroll in graduate schools to gain the competitive advantage versus their peers in aspiring for a promotion.

Perception- In early 2001, no one would touch beef from Europe, the origin of Mad Cow disease. This also affected specialty restaurants offering steaks. Red wine has been experiencing increasing demand, as people perceive it to be good for the heart.

Learning- AMC cookware utilizes demonstration to show the product’s unique ability to fry chicken without oil, boil egg without water and cook food simultaneously without taste transfer using low fire.

Beliefs and Attitudes- Sony is believed to be a brand with a higher quality. Some consumers think that installing chimes can bring in

good luck to homes and offices. A diamond ring is a must in every engagement and wedding.

ASSEMBLING THE MARKETING MIX

Before marketing mix program is informed, there must first be an analysis and definition of target customers.

1. In the macro level, market segmentation answers the question “What are the groupings of similar customers?”

2. In the micro level,

a. Decision Making Unit (DMU) points to “Who purchases the product?”

b. Decision Making Process (DMP) answers the question “How, where, and when is the purchase is made?”

c. Consumer motivation and preferences guides the marketer to answer, “What does the consumers want and why?”

In satisfying customers, marketers must not assume who the decision maker is or the mistake may be costly for firm.

Marketers must consider the more complex DMU’s that are usually involved in the decision making process (DMP) for most products and services.

Marketers must therefore consider the imitation, influencer, decider, buyer and the user for every purchase – not just the user.The general characteristics of the firm’s marketing mix are shaped by the target market’s preparedness to adopt a product.

Marketers usually make use of several market researches to understand their customers better. One of the most popular and widely used market research reports is called Usage, Attitude and Image (UAI) survey.

Product Value

Products may either be superior, at par with (the same), or basic to those of competition. A superior product satisfies more needs and wants of customers while a basic satisfies lesser needs. Party products satisfy the same customers’ needs as competition. While our initial tendency is to think that consumers enjoy superior products all the time, we must realize that products with fewer features may still be desired by the lower income consumer segment.

- Here in our country Philippines maybe almost a half or more than or greater than a half population belongs to the lower income so they cannot afford to buy expensive and luxurious things or products and these customers are looking forward for a very basic product such as affordable to buy and satisfied their needs and wants also the benefits as well.

The new definition of “Quality” is that which confirms to the customer’s specifications, measured through indicators of customer’s satisfaction, rather than indicators of self-gratification. It is the customer who decides on quality and not the company. The company simply produces products catering to the needs and wants of their chosen market segments. To be able to complete worldwide, however, higher quality products must be produced at competitive prices.

Marketers will not depend to the customer which buys affordable products such as those customers which belongs to a lower economic class. Marketers also observe their profit, the growth of their entity.

Rebisco formulated an attractive product value when they launched their Stick-O Super sticks chocolate with longer sticks and lower price targeting the middle and lower class segment.

A brand of 100% pure royal jelly was test marketed in the Philippines in 1998 but was never officially launched. While the purity of the product in powder form enables the body to absorb its

nutrients faster, its better taste did not encourage repeat purchase for the Filipinos who tried the product.

Marketing Program

Marketing programs are then assembled by identifying which of the marketing mix components should logically be the main weapon and which should be the support strategy.

Distribution-driven

Some companies are distribution- driven, meaning, their products must be available when and where customers expect them to be. Their locations are single most important factor in their business.

Andok’s and Baliwag lechon manok are distribution-driven. They have small stalls spread over several locations to achieve economies of scale.Gasoline stations of Shell, Caltex and Petron have to be strategically located.

Selling-driven

PRODUCTVALUE

(Competitiveness)

PROGRAM(Marketing)

Some companies are selling driven especially when products are only available through the salesman Member –companies of the Direct Selling Association of the Philippines (DSAP) like Avon Cosmetics, Waters Philippines, Nu Skin, Amway, Tupperware, Sara Lee and Sunrider are all selling-driven companies.

Selling-driven strategy

Example: Waters Philippines

Price (Deferred Payment)Selling Advertising (Trade Shows)

Sales Promotion (Salesman’s Incentives)

Sales promo-driven

The new classic “Pepsi Number-Fever” promotion is an example of a sales promotions-driven strategy. Launched in February of 1992, the consumer promotions not only aimed to attract consumers to consume Pepsi instead of competing brands but also to increase distribution.

Other companies that are sales promotion driven are fast food parlors like Jollibee and McDonalds which have at least eight major promo campaign yearly to bring back consumers to the stores as often as possible.

Sales Promotion-driven Strategy

Example: Pepsi Number Fever Promotion

Advertising (Media and Outdoor)Sales Promotion Distribution (retail channels)

Pricing

Price-driven

Makro is a price-driven brand. Without any fancy displaying, Makro boast of rock-bottom prices everyday, which attract people to visit the hypermarket. It is mainly supported with mailers to its members ( later converted to print advertisement attracting new members) emphasizing on everyday low prices.

Talk n Text and Burger Machine are similar examples of companies with a price-driven strategy.

Example: Makro

Advertising (Print)Price Consumer Promotions

Distribution

Advertising-driven

Coke is advertising-driven. It intends to be top –of mind in the soft drinks industry as it constantly reminds consumers of the different usage occasions for Coke. Its ad-driven strategy is supported with a heavy distribution effort, sales promo support, and parity pricing with competition.

Example:

Globe and Smart are also advertising-driven as they try to increase demand and expand the market base by media advertising. In fact Globe and Smart have daily print advertising placements in several newspapers.

Exhibit 3-6: Advertising-driven StrategyExample: Coke

DistributionAdvertising Consumer Promotion

Pricing

Diagnostic Marketing Mix

Diagnostic marketing mix entails the matching of correctly defined marketing problems with the proper marketing solutions.

-Diagnostic marketing mix include or involve as a necessary step or result to make right an error, mistake or fault to reprove or to clarify in outline or character a defined problems involve in Marketing and an action or process of solving a problem, an answer to a problem. Companies also encounters marketing problems example about the awareness of the product a marketing solution for that is advertising endorse their product, advertise and broadcast it through media. The first in a marketing campaign is to make the consumers aware of your brand and product. When the advertising campaign is effective, consumers look for what is being promoted. Hopefully, the products are available in the stores, initial product trail will be generated, and repeat purchase will follow when consumers are satisfied with the product consumed as well as the purchase experience. Customer loyalty is attained when consumers purchase the same brand repeatedly.

-Companies have their strategy and plans on how the product would be popular. It always starts in a campaign for the purpose to make the consumers, customer and clients to have perception or knowledge, conscious and informed about the brand and product. Of course when the advertising

campaign is truly effective, impressive and striking consumers or customers look for what is being promoted. Then if customers totally agreed about the product, in a hopeful manner, the products are accessible in the stores, incipient product affliction will be originate or create, and repeat, purchase will follow when consumers are satisfied and gratify with the product consumed as well as the purchase experience. Customer loyalty is attained when consumers purchase the same brand repeatedly.

Exhibit 3-7 Diagnostic Marketing Mix

Marketing Problem Marketing Solution

Low Awareness Level AdvertisingLow Availability PlacementLow Trial Rate Pricing and/ or PromotionLow Repeat Purchase Product and/ or Service Quality

Marketing Plan

The marketing mix is actually the heart of an important company document called the Marketing plan, which outlines how the company intends to grow in the marketplace and win against competition.

-We all know that every company has its marketing plan. As stated that it is an important document that a company would have which summary, synopsis or plan how the company have in mind as a purpose or aim to have an increasing influence in the marketplace and to get possession of especially by effort: gain also to obtain by work: earn in opposition to or as defense from or yearly or a publication appearing once a year, but the results or findings reexamine monthly.

Exhibit 3-8: Format of a Marketing PlanExecutive SummaryBusiness Review (performance of the previous years)Environmental Analysis

Key Factors for Success

Strengths and Weaknesses AnalysisOpportunities and Threats Analysis

Market SegmentationMarketing Objectives and GoalsMarketing Strategy

Product PositioningCustomer Satisfaction StrategyPreferred Brand StrategyContingency Plan

Marketing BudgetMarketing Implementation GuideAppendix

4S’s in Marketing Planning

The marketing mix can change over time.

1. SUFFICIENCY- the marketing mix must be able to adequately meet the defined marketing objectives. This means ambitious growth objectives would naturally need the corresponding heavier investment in marketing support programs.

2. SELECTIVE- the marketer must be able to consider all potential alternatives of each marketing mix before short-listing all possible combinations of the marketing mix that can meet their marketing objectives. The one that can provide the best profitability is the one logically to be chosen. This is not easy as there are literally millions of combinations.

3. SYNCHRONIZE- when the marketing mix is selected, the different elements must combine harmoniously for the brand become successful.

4. SUSTAINABILITY- the marketing mix that is finally chosen must be able to last in the long term vis-à-vis competition.

FINDINGS:

We found out that 4P’s of marketing is very important. Because of the following reasons: It is stated that marketing mix strategy is choosing and implementing the best possible course of action to attain the organizations long-term objectives and gain competitive advantage. 4P’s of marketing is the best way to interact with customers or consumers. Many firms, companies, organizations may be use this kind of strategy to attract people to buy their product. Sometimes or somehow companies or firms fails to comply their objectives because of its unplanned decisions and misinterpret its strategy and also failure of its employees. A company may succeed in year but may not necessarily succeed in year 2 due to changes in the competitive situation or market dynamics. Each of the 4P’s must therefore be relevant, up-to-date, and coherent. No single element of the marketing mix is one of two interrelated components of a strategy. The marketing mix, more popularly referred to as the 4P’s of Marketing, which defined, is a set of controllable and interrelated variables composed of product, place, price, and promotions that a company assembles or congregate to satisfy a target group better than its competition. Customers may not privy to the internal workings of companies they deal with, such as how top management analyzes the industry; but customers are nevertheless exposed to what companies offer in the market by observing the firm’s 4P’s. For the security of a company’s success they have the marketing plan which is the key to analyze, survey conclude customers about their opinions about the products they will produce. Marketing plan is actually the heart of an important company’s document. This document is the first step of their success but without an effort and best decisions this step will not be successful. It is also define that marketing plan outlines how the company intends to grow in the marketplace and win against competition, meaning it is their strategy to compete its competitors. In every company, firm, organizations, associations, and etc. we cannot change the truth behind that each of them wants to be the best among the best. So that they plan the things to be done and change the things

to be change to step-up and more successful among its competitors. Also we cannot altered or modified the truth that a company have its own strategies and secret weapon to take an advantage, we all known that a company, or firm doesn’t want to fail. Because fail, down and in marketing planning it is stated that marketing mix can change over time. However, all marketing programs must be able to meet the 4 basic criteria to be considered a diligently though-out campaign: 1 st

sufficiency comes from the word sufficient and a sufficient quantity to meet the one’s needs or adequacy, adequate to accomplish a purpose or meet a need. 2nd is selecting comes from the word select meaning to pick out, choose or thing chosen. 3rd one is synchronize, from the word itself to cause to agree in time. And the last one is sustainability from the word sustain. For instance; a lower prize strategy not only risk a price war but is not sustainable unless the firm is the cost leader in the industry. Those mentioned above are the findings we found important and every companies must observed for the reason that 4p’s of marketing plan and the 4s’s in marketing planning is the key for their success and compete its key competitors without this 3 important things company might fail to obtain its objectives and goals.

CONCLUSIONS:

The 4Ps of marketing states that choosing and implementing the best possible course of action to attain the organization’s long-term objectives and gain competitive advantage. The 4ps of marketing which the product, place, promotions and price might be the basic step to build a marketing plan strategy. Product, placement, promotions and price are already discussed in the foregoing paragraphs. Yet as an additional information, it is important because customers finds a product which are affordable to buy and how its quality service, and will give the best benefits to them. And if a customer satisfied enough about the product, the customers will bought it again and again.

Our conclusion, are the following that a marketing strategy is very important in every companies objectives. A strategy may be a key of a company’s success, and sometimes that strategy fails due to its incomplete participation of the employees and unplanned decisions. Planning may take

a long journey to pass by yet if this planning strategy might finish this will be the key to take an advantage against its competitions. Planning Marketing Strategy. A strategy is a plan for an organization that sets the overall direction to be taken. It is broad in scope and takes a long-term perspective. Within this strategy there has to be flexibility to adopt short-term plans to deal with unforeseen circumstances. In marketing strategy involves direction all of a company’s resources to meet customers’ needs. This is achieved through market analysis, an understanding of competitor actions, government actions and the global business environment, together with the implications of technological and environmental changes. Today, strategic planning needs also to consider the ethical and ecological implications of the companies’ actions and to be flexible enough to adapt to rapid changes in the business and social environment.

Recommendation:

Our recommendation based from the findings we have the first one I mentioned the 4Ps of marketing, I find important because without these product, placement (or distribution), promotions and price a company may not succeed because they cannot predict a customers. Customers will buy their basic needs and the cheapest price that will have a benefit and can convince the customers or consumers to buy the product again. Our recommendation is a company must plan the best strategy to comply the standards of a customer to satisfy their wants and to give a quality service. Second is the marketing plan which outlines how the company intends to grow in the market place and win against competition, meaning it is their strategy to complete. Marketing plan must properly do for their success and to take the advantage among its competitors. The last one is the 4Ps in marketing planning which is the basic criteria to be considered a diligently thought out campaign. Our recommendation about those that we have mentioned about is a company or a firm must observe 100% effort, plans, and decisions and implement possible techniques/strategies to attain the organizations long-term objectives and gain competitive advantage.

Reference/Source:

- Book: Fundamentals of Marketing by Josiah Go- Merriam Webster’s Dictionary- www.google.com - Www. Wikipedia.com- Marketing by Victor T.C Middleton- Marketing Fundamentals