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Marketing Mix

The document discusses the marketing mix, which are the tools available to a business to gain reaction from its target market in relation to its marketing objectives. It discusses the traditional 4Ps of marketing (Product, Price, Promotion, Place) and extends it to the 7Ps to better cope with today's changing environment, adding People, Process, and Physical Environment.

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Rachit Agarwal
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77 views34 pages

Marketing Mix

The document discusses the marketing mix, which are the tools available to a business to gain reaction from its target market in relation to its marketing objectives. It discusses the traditional 4Ps of marketing (Product, Price, Promotion, Place) and extends it to the 7Ps to better cope with today's changing environment, adding People, Process, and Physical Environment.

Uploaded by

Rachit Agarwal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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The Marketing Mix

 The tools available to a business to


gain the reaction it is seeking from
its target market in relation to its
marketing objectives
 7Ps – Price, Product, Promotion,
Place, People, Process, Physical
Environment
 Traditional 4Ps extended to cope
with today's changing environment
The Marketing Mix
Product
Product
 The firm must come up with a product or service that people will
want to buy.

 It must fulfil some need


or want.

 It must be (or at least seem) unique.


Core product

-Indicate core benefit or service


- Explains what the buyer really buys
- Basic step in designing products
- Defines problem solving benefits/
services that consumers seek
- Standardization of technology does not
lead to much of difference from
competing firms
Basic Product

• At this level, the core benefit is turned


into a basic product.
• Basic step in designing products
• Unbranded, plainly packaged, less
expensive
Expected product
• Expected/ formal/ tangible product
- Represents basic requirements, a customer finds
essential to buy a product
- Attributes & conditions required by the customers
– identified-built into products
- Includes brand name, features, design,
packaging, quality level, styling, styling,
attributes, instructions manual
- As interfirm rivalry intensifies, differentiation on
basis of formal product ceases (ceiling fans)
- Marketer searches for a possible differentiation
e.g. Sony camcorder ( name, parts, styling,
features, packaging – deliver core benefit-
convenient, high quality way to capture important
moments)
Augmented product

• Marketer prepares an augmented


product that exceeds customer
expectations.
• Intangible component of the product
along with formal & core components
• Product built by adding consumer
services & benefits
Augmented product
• Product augmentation leads the marketer to look
at the user’s total consumption system.
• Attributes extended beyond customer expectations, includes
1. After sales services
2. Delivery points & systems
3. Installation ( bulky products)
4. Customer education & training
5. Customer complaint management
6. Payment options (high end products)
7. Replacement/return policy
8. Guarantees/ warranties
9. Toll free number, etc
Potential

Potential/Future product
- Includes all possible improvements under given
technological, economical, competitive conditions
- Helps to attract & retain customers
- These offerings differ from 1 market to another
because of varying competitive conditions
- Driving force- to retain competitive advantage.
Types of Products

1. Consumer Products:
- Bought by final consumers for personal consumption
- Categorized as…
a. Convenience products ;
- Bought frequently, immediately with minimum
comparison and buying effort.
- Are low priced
- Available in many locations
e.g. Soap, candy, newspapers, fast food
b. Shopping Product;
- Characteristically compared on the basis of
suitability, quality, price and style while selection and
purchase.
- Distributed through fewer outlets
e.g. Furniture, clothing, used cars, major appliances,
hotel and airline services.
c. Specialty Product;
- Has unique characteristics or brand identification for
which a significant group of buyer is willing to make a
special purchase effort
- People travel even long distances to buy them
(Lamborghini)
- No comparison is involved in buying.
e.g. Specific brands, types of cars, high priced
photographic equipment's, designer clothes, services of
medical/ legal specialists
d. Unsought Product;
- Consumer either does not know about/ knows about
but does not normally think of buying it.
- Require a lot of advertising, personal selling and
marketing efforts.
e.g. Life insurance, pre planned funeral services and
blood donations.
2. Industrial Products:
- Distinguished from consumer products on the basis of
usage
e.g. A lawn mower.
1. Materials & parts
i. Raw materials & parts:
- Farm products, (wheat, cotton, livestock, fruits,
vegetables)
- Natural products (fish, lumber, crude oils, iron ore)
ii. Manufactured materials & parts:
- component materials (iron yarn, cement, wires)
- Component parts ( small motors, tires, castings)
b. Capital items
- Aid in buyer’s production or operations
i. Installations:
- Major purchases (factories, offices)
- fixed equipment ( generators, elevators,
computer systems)
ii. Accessory equipment's:
- Portable factory equipment's and tools (hand
tools, lift trucks)
- Office equipments ( computers, fax machines, desks)
c. Supplies and Services:
- Are convenience products
i. Supplies
- Operating supplies (Lubricants, coal,
paper, pencil)
- Repair and maintenance (paint, nails,
brooms)
ii. Services
- Maintenance and repair services (window clearing,
computer repair)
- Business advisory services ( legal, management,
consulting, advertising)
Price
Price

• The price must be one that


the customer thinks is good
value for money.
• This is not the same as
being cheap!
• Prices have a great
psychological effect on
 Pricing Strategy customers.
- International
 Comparative
 Cost plus
Price

 Pricing Strategy
 Importance of:
 knowing the market
 elasticity

 keeping an eye
on rivals
Image copyright: www.freeimages.co.uk
Promotion
Promotion

 Strategies
to make the consumer aware of
the existence of a product
or service
 NOT just advertising
The promotional message should

Grab Attention

Stimulate Interest

Create Desire

Promote Action
Place
Place

 The means by which products and services get from


producer
to consumer and where they can be accessed by the
consumer
 The more places to buy the product and the easier it is
made to buy it, the better for the business (and the
consumer?)
People
People

 People represent the business


 The image they present can be important
 First contact often human – what is the
lasting image they provide to the
customer?
 Extent of training and knowledge
of the product/service concerned
 Do staff represent the desired culture
of the business?
People

 People represent the business


 The image they present can be important
 First contact often human – what is the
lasting image they provide to the
customer?
 Extent of training and knowledge
of the product/service concerned
 Mission statement – how relevant?
 Do staff represent the desired culture
of the business?
Process
Process
 How do people consume services?
 What processes do they have to go through
to acquire the services?
 Where do they find the availability
of the service?
 Contact
 Reminders
 Registration
 Subscription
 Form filling
 Degree of technology
Physical Environment
Physical Environment

 The ambience, mood or physical presentation of


the environment
 Packaging.
 Internet/web pages.
 Paperwork (such as invoices, tickets,…..).
 Brochures.
 Furnishings.
 Uniforms.
 Business cards.
 The building itself (such as prestigious offices or
scenic headquarters).

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