MarketingMix Info.... for students

2. • The term 'marketing mix' was first
used in 1953 when Neil Borden, in his
American Marketing Association
presidential address, took the recipe
idea one step further and coined the
term "marketing-mix". A prominent
marketer, E. Jerome McCarthy,
proposed a 4 P’s classification in 1960,
which has seen wide use.

3. • Marketing Mix is a combination of marketing
tools that a company uses to satisfy their target
customers, and achieving organizational goals.
McCarthy classified all these marketing tools
under four broad categories:
• Product
• Price
• Place
• Promotion
• These four elements are the basic
components of a marketing plan and are
collectively called 4 P’s of marketing.

4. • All marketing decision-making can be
classified into four strategy elements,
sometimes referred to as the marketing mix
or the four P’s.
• Product: What are the benefits of this
product and service to its customers?
• Price: Should a price be charged to cover
costs only? Should the price allow for a
profit?
• Place: What can be done to make this
product and service more accessible and
available?
• Promotion: What can be done to increase
the visibility of this product and service?
What can be done to increase its usage or
exposure?

5. Value perceivedValue perceived
in the mind ofin the mind of
the consumerthe consumer
Cover location,Cover location,
distribution, channelsdistribution, channels
and logisticsand logistics
MarketingMarketing
communicationscommunications
Collection of featuresCollection of features
and benefits thatand benefits that
provide customerprovide customer
satisfactionsatisfaction

6.  Product is the actually offering by the company to its targeted customers
which also includes value added stuff. Product may be tangible (goods) or
intangible (services).
 For many a product is simply the tangible, physical entity that they may be
buying or selling.
 While formulating the marketing strategy, product decisions include:
 What to offer?
 Brand name
 Packaging
 Quality
 Appearance
 Functionality
 Accessories
 Installation
 After sale services
 Warranty

7. • Price includes the pricing strategy of the company for its
products. How much customer should pay for a product? Pricing
strategy is not only related to the profit margins but also helps in
finding target customers. Pricing decision also influence the
choice of marketing channels.
• Price decisions include:
• Pricing Strategy (Penetration, Skim, etc)
• List Price
• Payment period
• Discounts
• Financing
• Credit terms
• Using price as a weapon for rivals is as old as mankind, but it’s
risky too. Consumers are often sensitive for price, discounts and
additional offers. Another aspect of pricing is that expensive
products are considered of good quality.

8. • It not only includes the place where the product is placed, all
those activities performed by the company to ensure the
availability of the product tot he targeted customers. Availability
of the product at the right place, at the right time and in the
right quantity is crucial in placement decisions.
• Placement decisions include:
• Placement
• Distribution channels
• Logistics
• Inventory
• Order processing
• Market coverage
• selection of channel members
• There are many types of intermediaries such as wholesalers,
agents, retailers, the Internet, overseas distributors, direct
marketing (from manufacturer to user without an intermediary),
and many others.

9. • Promotion includes all communication and selling activities to
pursuade future prospects to buy the product. Promotion decisions
include:
• Advertising
• Media Types
• Message
• Budgets
• Sales promotion
• Personal selling
• Public relations/publicity
• Direct marketing
• Sponsorship
• The elements of the promotions mix are integrated to form a
coherent campaign. As with all forms of communication.
• As these costs are huge as compared to product price, So it’s good to
perform a break-even analysis before allocating the budget. It helps
in determining whether the new customers are worth of promotion
cost or not.

10. • Marketing mix (4 P’s) was more useful in
early 19’s when production concept was in and
physical products were in larger proportion.
Today, with latest marketing concepts,
marketing environment has become more
integrated.
• So, in order to extend the usefulness of
marketing mix, some authors introduced a
fifth P’s and then seven P’s (People,
Packaging, Process).
• But the foundation of Marketing Mix still
stands on the basic 4P’s.