Marketing Mix

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					Marketing – Marketing Mix
                            Marketing mix

  • 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
Marketing – Marketing Mix
                            Marketing mix

  • The set of marketing decisions that
    management make to implement their
    positioning strategy and achieve the
    organisation’s 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


Marketing – 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


Marketing – Marketing Mix
                            4Ps - Product

  • A product is anything that     •   Physical god
    is capable of satisfying       •   Quality
    customer needs                 •   Style
  • A package of benefits          •   Packaging
  • Products are designed to       •   Durability
    match needs
                                   •   Installation
                                   •   After sales
                                   •   Branding
                                   •   Warranty
                                   •   Features


Marketing – Marketing Mix
                            4Ps - Price

  •   Basic price
  •   Discounts
  •   Pricing policy
  •   Price variations
  •   Price discrimination
  •   Trade-in terms
  •   Payment terms
  •   Credit terms
Marketing – Marketing Mix
                            4Ps - Promotion

  • Marketing communications - how the product is
    communicated to the market
  • Advertising - message and media
  • Personal selling
  • Sales promotion
  • Public relations/publicity
  • Sponsorship
  • Direct marketing
  • The chosen combination of promotional activities
    is known as the promotional mix

Marketing – 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

Marketing – Marketing Mix
                The marketing mix varies

  • As a product moves through its life cycle the
    marketing mix will change
  • Marketing strategies in terms of the mix will
    change as the product moves through its
    product life cycle.
  • 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.
Marketing – Marketing Mix
            An effective marketing mix…

  •   Achieves marketing objectives
  •   Meets customer needs
  •   Is balanced and consistent
  •   Creates a competitive advantage
  •   Matches corporate resources




Marketing – 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
Marketing – Marketing Mix
                            The blend

  • Product and price - cost must be taken into
    account when setting price
  • Promotion and price - cost of promotion is taken
    into account when setting price
  • Product life cycle and price - price set in relation
    to stage in the product life cycle
  • Product and promotion - the promotional mix
    should be varied in relation to product
  • Product and place - the nature of the product is a
    major factor in distribution strategy

Marketing – Marketing Mix
                 Differences in emphasis

  • Emphasising price- no frills airlines such as
    Easy Jet, Ryan Air. Cut price supermarkets.
  • Emphasising place- Tie Rack located at train
    stations. Convenience stores.
  • Emphasising quality and performance of the
    product–BMW, Rolex.
  • Emphasis on promotion- soap products and
    beer.

Marketing – Marketing Mix
                  Alternatives to the 4 Ps




Marketing – 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.


Marketing – 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.


Marketing – 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.

Marketing – Marketing Mix
                   7Ps physical evidence

  • The tangible form of the service e.g. bank
    statement, train ticket.
  • Place of availability
  • Facilities
  • Ambience
  • Layout
  • Décor


Marketing – Marketing Mix
                            The fours Cs

  • Kotler argues that the 4 Ps is essentially a
    sellers mix rather than a buyer’s mix.
  • More attention should be paid to the buyer’s
    marketing mix.
  • This is summarised in the 4 Cs of
      – Customer needs and wants
      – Cost to the customer
      – Convenience
      – Communication
Marketing – Marketing Mix
            Two perspectives on the mix

    Cost to the customer    Communications

    Price charged by the    Promotion
    seller

    Convenience to the      Customer wants
    customer

    Place- distribution     Product offered

Marketing – Marketing Mix

				
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posted:5/19/2012
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