An outline and explanation of the Marketing Mix Strategy.

1. The MAANZ MXpress Program
The Marketing Mix
Developing Value Offers
Dr Brian Monger
Copyright May 2013.
This Power Point program and the associated documents remain the intellectual property and the
copyright of the author and of The Marketing Association of Australia and New Zealand Inc. These
notes may be used only for personal study associated with in the above referenced course and not in any
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should contact MAANZ for written permission.

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3. Dr. Brian Monger
• Brian Monger is the CEO of MAANZ International and a
Professional marketer and consultant with over 40 years
experience.
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4. MAANZ International
The marketing mix strategy
• To achieve the goal of developing desirable marketing
exchanges, marketing managers are responsible for
developing and managing an effective marketing strategy
or business development plan.
• A marketing strategy sets out a plan for the best use of the
organisations activities and resources to meet its
objectives. Specifically, this strategy will encompass
selecting target segments, understanding their value
perceptions and creating an appropriate marketing mix of
value offer elements Product, Price, Promotion and
Placement (create/configure value; communicate value and
deliver value) that will satisfy those target groups.

5. MAANZ International
The marketing mix strategy
• The marketing mix which is the core of the
marketing strategy consists of four major decision
variables the most common version being:
Product, Price Promotion, and Placement
(distribution). The newer version is:
Create/Configure Value; Communicate Value and
Deliver Value (see topic 1) Both are very similar
in their approach. These components are called
marketing mix decision variables because a
marketing manager decides what focus on each
component to use and in what amount.

6. MAANZ International
The marketing mix strategy
• The marketing mix represents the parameters
that a marketing manager can control,
(subject to the constraints of the
operating/marketing environment).
• The objective is to create a proposition or
offer to customers in the target segment of
the best perceived value and generate a
positive response.

7. MAANZ International
The Variables of a Marketing Mix
• Achieving marketing objectives requires a
strategy that includes a number of different
elements ‐ the various parts of a management
model called the marketing mix or 4 P’s.
Calling it a mix reminds us to create the right
balance of the different elements that will be
used.

8. MAANZ International
The concept of the marketing mix
• The concept of the "marketing mix" became popular after Neil H.
Borden published his 1964 article, The Concept of the Marketing
Mix. Borden began using the term in his teaching in the late 1940's
after James Culliton had described the marketing manager as a
"mixer of ingredients".
• The ingredients in Borden's marketing mix included product
planning, pricing, branding, distribution channels, personal selling,
advertising, promotions, packaging, display, servicing, physical
handling, and fact finding and analysis.
• Eugene McCarthy later grouped these ingredients into the four
categories that today are known as the 4 P's of marketing. The
marketing mix decision variables ‐ product, distribution, promotion,
and price‐are factors over which an organisation has control.

9. MAANZ International
The four P's of the traditional
marketing mix
1. Product ‐ A product can be anything a
prospective customer considers to be of value, a
good, a service, a person a place or an idea.
2. The product variable is the aspect of the
marketing mix that deals with satisfying a buyers
wants and designing a value offering with the
desired characteristics. It also involves the
creation or alteration of packages and brand
names and may include decisions about
guarantees and repair services.

10. MAANZ International
2. Price
• Price is a critical component of the marketing mix
because consumers are concerned about the value
obtained in an exchange. Price often is used as a
competitive tool; in fact, extremely intense price
competition sometimes leads to price wars.
• Price can also help to establish a product's image.
Deciding on a pricing strategy. A more useful concept is
to focus on the markets view of Payment or Cost to the
user. The price variable relates to activities associated
with establishing pricing policies and determining
product prices.

11. MAANZ International
3. Promotion
• Promotion is usually composed of a "promotional mix, which
includes Advertising Personal Selling Sales Promotion and Publicity
(Marketing Public Relations). Some time Direct marketing is also
singled out as a separate element.
• The modern approach to promotion is to see it as Communicating
Value and incorporating it in the concept of Integrated Marketing
Communications. The promotion variable relates to activities used
to inform one or more groups of people about an organisation and
its products. Promotion can be aimed at increasing public
awareness of an organisation and of new or existing products. In
addition, promotion can serve to educate consumers about product
features or to urge people to take a particular stance on a political
or social issue. It may also be used to keep interest strong in an
established product that has been available for decades.

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Figure 1 ‐ the four P's (variables) of the marketing mix
Promotion Price
Place Product

13. MAANZ International
Figure 2 Three different marketing mixes (one for each target segment)
Promotion
Price
Product
Place
Promotion
Price
Product
Place
Place
Product
Price
Promotion

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4. Place or Placement
• This is about Delivering Value and focuses on distribution. It looks
primarily at logistics, and channels of distribution and achieving
convenience or accessibility value for the customer. To satisfy
consumers, products must be available at the right time and in a
convenient location.
• In dealing with the distribution variable, (also known as Place or
Placement) a marketing manager seeks to make products available
in the quantities desired to as many customers as possible and to
keep the total inventory, transport, and storage costs as low as
possible. A marketing manager may become involved in selecting
and motivating intermediaries (wholesalers and retailers),
establishing and maintaining inventory control procedures, and
developing and managing transport and storage systems.

15. Perhaps we need more P’s?
• Over the past four decades, many folk have tried
to add in more “P’s”
• Most do not seem to actually understand what a
Marketing Mix Strategy is about
• None appreciate that a good working model does
not need to get bigger to make it better
• The 4 P’s model has very effectively stood the test
of time. It works well
• Certainly each element of the marketing mix can
be extended in the areas (such as those which
follow) to give emphasis
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16. MAANZ International
Perhaps we need more P’s?
• A number of writers have suggested the possible extension
of the 4 P's. For example the fairly common 7 P's approach
which includes:
• People: ‐ Particularly in service centre value offerings,
people (Employees, Management) as well as the
participating consumers often add significant value to the
total offering.
• Process: Procedure, mechanisms and flow of activities by
which services are consumed (customer management
processes) are an essential element of the marketing
strategy.

17. MAANZ International
Perhaps we need more P’s?
• Physical Evidence: The tangible elements of the
environment in which the value offer is delivered. It is
about the tangible aspects (things that can be seen and
touched) that communicate and deliver the intangible
value (the service experience of customers).
• While acknowledging that these additional 3 elements
can be useful concepts, they are in fact already
accommodated in the existing, simpler 4 P’s marketing
mix model. There have even been suggestions of a 17
P model and the Jefkins model had 20 elements:
(Jefkins F "Modern Marketing" ISBN 0 7121 0853 X).

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Another approach ‐ the 4 Cs
• Place becomes Convenience
• Price becomes Cost to the user
• Promotion becomes Communication
• Product becomes Customer motivation
• These C's perhaps reflect a more client‐oriented
marketing philosophy. The C's are also not nearly
as memorable as the P‐words.

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Figure 3 The Marketing Mix
Product Price/Payment
Delivering Value
Place(ment)
Communicate Value
Promotion
Environment Influences
Environment Influences
Constraints Constraints
The Value Offer
The Marketing
Mix
Target
Segment

20. MAANZ International
More Ps for a Social Marketing Mix?
• Publics
• To be most effective when planning and managing a social
marketing campaign, one must take into account all of the people
who can affect the success of the program. This includes the
external publics—the target audience, groups that influence the
target audience, policymakers, the media, and others outside the
organisation. Just as importantly, not‐for‐profit social marketers
must involve their internal publics in the development and
preparation for the program implementation.
• These are the people within the organisation—everyone from the
Board members and management staff who must approve the
plans, down to the receptionist who answers the phones and needs
to know what to do when someone calls in response to the
campaign.

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Partnerships
• Many social marketing issues are so big that
one organisation cannot address them alone.
Potential partners include organisations (other
not‐for‐profits, government agencies and
businesses) that have one or more of the
following attributes: similar goals to yours,
access to the target audience, credibility with
the target audience, interest in sponsorship of
the program, or resources that fill gaps in the
organisation's capabilities.

22. MAANZ International
Policy
• Governmental or organisational policies can act
as a catalyst for social change on a large scale.
When policies are put into place that provide an
environment of support for a particular
behaviour, individuals are much more likely to
sustain that behaviour change.
• For example, workplace non‐smoking policies
make it easier for smokers to quit by ensuring
that they do not see others lighting up around
them and removing those social cues to smoking.

23. MAANZ International
Figure 4 Combining the Marketing Mix with the Buyer/User Perspective
Product
Promotion
Price
Place
Solution/
Value
Convenience Communication
Cost/Investment
Value
Marketing
Mix

24. MAANZ International
Developing marketing mixes
• A marketing mix is specific to each target segment.
That is, since each segment is different to the others it
will need a Value offer that is different for each
segment. If it is possible to use exactly the same mix
for two segments, the likelihood is that either the
segmentation parameters have gotten confused or that
they are in fact not separate segments.
• The marketing mix is the combination of elements that
make up the entire marketing process. It requires the
right combination, so be careful when putting it
together.

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