2. CONTENTS-
• INTRODUCTION
• HISTORY OF MARKETING MIX
• CHARACTERISTICS OF MARKETING MIX
• MARKETING MIX ELEMENTS
• EXTENTED P’s OF MARKETING MIX
• THE C’s CONCEPT
• REFERENCES
3. INTRODUCTION-
• Marketing mix refers to the accumulation and fusion of different
marketing resources in an effective way to attain the organisational
goals and maximum customer satisfaction.
OR
• A combination of factors that can be controlled by a company to
influence consumers to purchase its products.
4. HISTORY OF MARKETING MIX-
• The marketing mix concept gained popularity following an article titled “The
Concept of the Marketing Mix” by Neil Borden published in 1964.
• Borden explained how he started using the term inspired by James Culliton who
in the 1940s described the marketing manager as a ‘mixer of ingredients.’
• Borden’s article detailed these ingredients as product, planning, price, branding,
distribution, display, packaging, advertising, promotions, personal selling among
many others.
• Eventually E. Jerome McCarthy clustered these multiple items into four high level
categories that we now know as the 4 P’s of marketing.
• According to Stanton, Marketing Mix is the term used to describe the
combination of the four inputs which constitute the core of a company’s
marketing system- the product, the price structure, the promotion activities and
the distribution system.
5. CHARACTERISTICS OF MARKETING MIX-
1. CORE OF MARKETING PROCESS-
In marketing process, marketing mix is the key component. Marketing
mix influences important decisions related to different elements of the
mix. Consequently, effective and efficient use of marketing mix
elements brings out the best outcomes for the success of the
organisation.
2. MARKETING MIX REVISED CONSTANTLY TO MEET CHANGING
REQUIREMENTS-
The changing market conditions and trends affect the marketing mix.
Hence, it is very important for marketing managers to persistently
review the market and apply necessary changes in the marketing mix.
6. 3. EXTERNAL ENVIRONMENT INFLUENCES MARKETING MIX-
Changes are inevitable in the external environment and customers are
the most fluctuating variable of environment. The tastes and
preferences, brand loyalty and purchasing power affect the marketing
mix extensively.
4. INTERNAL ENVIRONMENT INFLUENCES MARKETING MIX-
The internal changes such as technological advances, new product
lines, or different production scale affect the organisation. These
changes also directly impact the marketing mix.
7. MARKETING MIX ELEMENTS-
• All the decisions related to the product, the pricing policy, the
promotion plans, and the distribution strategy, constitute to form
marketing mix. The four elements of marketing mix are as follows-
1. PRODUCT
2. PRICE
3. PLACE(DISTRIBUTION)
4. PROMOTION
8.
9. PRODUCT-
• Product is the simplest element of marketing mix. This element
accompanies the attributes, benefits and competitive advantage which it
presents to customers. The main aim of a product is customer satisfaction.
Before marketing the product, marketer must have a clear understanding
of his product.
• For instance, when you are buying a computer from Dell, you are also
buying their delivery services, packaging, warranty and the convenience
online ordering experience.
10. • The product is the physical product or service offered to the consumer.
• Product decisions include aspects such as
- function,
- appearance,
- packaging,
- service,
- warranty, etc.
• Products are the goods and services that your business provides for sale to
your target market.
• When developing a product you should consider quality, design, features,
packaging, customer service and any subsequent after sales service.
11. PRICE-
• The next element of marketing mix is price.
• Price is the money value of a product or service paid by the customer.
It is the most crucial element as it determines the sale volume and
profit of the organisation. Variation in price largely affects the price
elasticity and marketing strategy of a product.
• It also influences the demand and supply of products in the market.
The price determination should be in accordance with other elements
of market mix.
12. • To set the ideal pricing scheme, you need to study your internal cost,
know how much your customers are willing to buy and your
competitor’s offerings.
• Ask yourself the objective of your pricing strategies. Is it about profit
maximization? Or, is to about market share?
• Know how much your customers are willing to pay and the
competitive environment. Are you the only player in ground? How
lightly will your customer switch to your current or potential
competitor?
13. PLACE(DISTRIBUTION)-
• Place is the third vital element of marketing mix. Place is defined as a
state of providing the right product, in the right place at the right time
for the consumers. For this purpose, middleman are appointed who
are also known as channels of distribution. These channels consist of
wholesalers, retailers and manufacturers. The entire process involves
an effective distribution system which assists logistical, transactional
and facilitating services.
14. PROMOTION-
Promotion is the last element of the marketing mix. It is the technique
to communicate and inform customers about the product. These
techniques may include advertising, sale promotion, personal selling,
direct marketing, public relations, word of mouth communication etc.
Promotion is the ability of marketing managers to attract customers
towards the offered product.
15. • Inform and persuade your customers to buy your product.
• There are three major types:
1) Personal selling-which involves a group of sales representatives to
contact the customers directly via phone or face-to-face meeting.
2) Mass selling- which include the typical advertising, editorials or
publicity to inform a large group of customers all at once.
3) Sales promotion- such as discounts and trials to speed up your
customers purchasing decisions.
16. SUMMARY OF MARKETING MIX-
Product Price Place Promotion
Functionality
Appearance
Quality
Packaging
Brand
Warranty
Service/Support
List price
Discounts
Allowances
Financing
Leasing options
Channel members
Channel motivation
Market coverage
Locations
Logistics
Service levels
Advertising
Personal selling
Public relations
Message
Media
Budget
17. • With the increasing importance of service products offered by
different service companies, the existing marketing mix has been
extended. The additional elements of marketing mix include people
(employees involved in the service delivery system), process (method
of transaction, flow of information, and delivery of services), and
physical evidence (the physical environment associated with the
service and customer). These elements combine with the basic 4P’s
and constitute the 7P’s of the services marketing mix.
18. EXTENDED P’S OF MARKETING MIX-
• There are three extended P’s of marketing mix, which are as follows:
1. People-
In services marketing mix, people is the first additional element. People refers to
the employees providing service delivery and also play the role of end users or
final consumers. Many times, customers are the key component of the service
delivery process For example, educational service is not possible without the
students. Hence, customers along with employees are crucial in the service
delivery .
2. Process-
Another element of extended marketing mix is process. It is an important
marketing function and part of value chain in comparison with other functions.
19. • The marketer develops only those processes which add value to the
services delivered having no cost associated issues and are beneficial
for both the customers and the service organisation.
3. Physical Evidence-
• Physical evidence of service marketing mix can be of different types
and appearances. The evidence of physical aspects comprise of
service delivery location like the aesthetics design and functionality of
the particular place. Company portrays all the physical attributes of a
place to the customer. These attributes involve the exteriors,
interiors, all tangible things such as furniture, vehicles, machinery,
service personnel, signboards, receipts, etc.
20. THE 4C’S CONCEPT-
• The traditional Marketing mix is a 4 P’s model and is business
oriented.
• The 4 C’s model of marketing on the other hand is more consumer
oriented.
• Because of its focus on consumers, the 4 C’s model is mainly used for
Niche Marketing.
• However, just like the traditional marketing mix, it can also be used
for mass markets.
21. • In the 1990s, the concept of four C's was introduced as a more
customer-driven replacement of four P's.
• There are two theories based on four C’s:
1. Lauterborn's four C’s (consumer, cost, communication,
convenience), and
2. Shimizu's four Cs (commodity, cost, communication, channel).
22. 1. Consumer Value-
• We don’t just sell products or services anymore.
• We sell solutions that fulfill our customer’s need. This means that it is of
the utmost importance to understand how much value a customer gives to
your solution.
Because customer needs are getting more and more specific, you will
have to target your customers more individually.
2. Cost to the User-
• “Price” is only one aspect of the cost to satisfy.
• Potentially, there are other costs like the cost to go to a store, or even
possibly a cost of conscience.
• Take all relevant factors into account when you decide on price levels,
because your customer will do exactly the same.
23. 3. Convenience to Buy-
• Instead of thinking in terms of location (place), turn it around and think how your
customers want to buy.
• This could be a store, but it could also be that they prefer a webshop or a
catalogue for your type of product.
• They might even expect you to come to them instead of the other way around.
All these factors are less incorporated in the old “place” part of the marketing
mix.
4. Communication-
• Promotion used to be one way traffic.
• We used to publish print ads, send people flyers and so on.
• Today, with the success of social media, marketing is all about talking to your
customers.
• Therefore, marketers have to become conversation managers instead of
publishers.
• Communication is all about two way traffic and does a better job at
encompassing what customers expect today.
