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Marketing mix

Basics

A concept first introduced by Jerome McCarthy in 1960

The variables through which a firm carries out its marketing strategy It provides a recipe for effective marketing

Effective marketing is based on the right balance of marketing

elements and processes depending on the nature of the product

,service or idea being marketed The set of marketing decisions that management make to implement

their positioning strategy and achieve the organisations objectives

The set of marketing tools that the firm uses to pursue its marketing

objectives in the target market (Kotler) It is often referred to as the 4 Ps

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Marketing Mix

The four Ps

Product - collection of features and benefits that provide customer

satisfaction

Price - value perceived in the mind of the consumer

Promotion - marketing communications

Place - covers location ,distribution, channels and logistics

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Marketing Mix

4Ps - Product

A product is anything that is

capable of satisfying customer

needs

A package of benefits

Products are designed to

match needs

Physical god

Quality

Style

Packaging

Durability

Installation After sales

Branding

Warranty

Features

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Marketing Mix

4Ps - Price

Basic price

Discounts

Pricing policy

Price variations

Price discrimination

Trade-in terms Payment terms

Credit terms

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Marketing Mix

4Ps - Promotion

Marketing communications - how the product is communicated tothe market

Advertising - message and media

Personal selling

Sales promotion

Public relations/publicity

Sponsorship

Direct marketing

The chosen combination of promotional activities is known as thepromotional mix

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Marketing Mix

4Ps - Place

Choice of channels and outlets

Channel of distribution

Market coverage

Channel variety

Dealer support

Long and short channels

Role of the intermediary

Physical distribution/logistics

Location

Pushing and pulling through the channels

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Marketing Mix

The marketing mix varies

As a product moves through its life cycle the marketing mix will

change

An appropriate and individual marketing mix should be developed

for each product.

The mix should be developed with the target market or target

segment in mind.

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Marketing Mix

An effective marketing mix

Achieves marketing objectives

Meets customer needs

Is balanced and consistent

Creates a competitive advantage

Matches corporate resources

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Marketing Mix

Blending the mix

The marketing mix is more than a checklist of the 4Ps but the means

by which firms blend together the elements of a marketing strategy.

There must be internal consistency within the mix.

The pricing, promotional and distribution strategy must be consistent

with the product and its target market

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Alternatives to the 4 Ps

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Marketing Mix

The 7 Ps

The 4 Ps of product, price, promotion and place PLUS

People

Process

Physical evidence.

The 7Ps are more appropriate than the 4 Ps in the marketing of

services.

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Marketing Mix

7Ps people

People deliver services

People promote and sell products

Service quality is a key source of customer retention and brand

differentiation

Hence skills, manner and appearance are important, especially in

the marketing of services.

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Marketing Mix

7Ps process

How customers are handled from first to last point of contact.

Process covers:

Procedures

Controls

Accessibility

Information flows

Payments

Booking

Speed and timing of delivery.

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Marketing Mix

The fours Cs

Kotler argues that the 4 Ps is essentially a sellers mix rather than a

buyers mix.

More attention should be paid to the buyers marketing mix.

This is summarised in the 4 Cs of

Customer needs and wants

Cost to the customer Convenience

Communication

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Marketing Mix

Two perspectives on the mix

Customer wants

Product offered

Convenience to the customer

Place- distribution

Communications

Promotion

Cost to the customer

Price charged by the seller

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Marketing Mix

Lessons Learned

What is marketing mix?

Explain the 4 Ps of marketing mix.

What makes an effective marketing mix?

What are the 7 Ps ?

What are the 4 Cs?