Marketing Mix

1. Marketing Management
Subject Expert
S. Afrin Sulthana

2. Concept of Customer Value
• Customer Satisfaction : Customer satisfaction, a term frequently used in
marketing, is a measure of how products and services supplied by a company
meet or surpass customer expectation. Customer satisfaction is defined as
"the number of customers, or percentage of total customers, whose reported
experience with a firm, its products, or its services (ratings) exceeds specified
satisfaction goals. "Customer satisfaction provides a leading indicator of
consumer purchase intentions and loyalty." [1] "Customer satisfaction data
are among the most frequently collected indicators of market perceptions.

3. • Customer Delight: The very favorable experience of the client of a
business when they have received a good or service that significantly
surpasses what they had initially anticipated. A marketing department can use
instances of customer delight to a company's advantage by requesting
referrals and obtaining testimonials from delighted customers that can help
attract new customers.

4. • Customer loyalty: Likelihood of previous customers to continue to buy
from a specific organization. Great attention is given to marketing and
customer service to retain current customers by increasing their customer
loyalty. Organizations employ loyalty programs which reward customers for
repeat business.

6. Marketing Environment
• Market Places: Markets of physical goods and products is known as Market places.
The market places has presence of companies which manufacture their own
products.
• The market is the arena for potential exchange . A market is the physical size of
buyers and sellers who have some need or want have resources and are also willing
to participate in the transaction .
• There are various types of markets such as the resource markets (raw materials
market, labor market, and money market ) the manufacturer market , the
intermediary market (wholesale and retail market) the consumer market ,and the
government market

7. • Market Space: Market space—an information- and communication-based
electronic exchange environment—is a relatively new concept in marketing.
Since physical boundaries no longer interfere with buy/sell decisions, the
world has grown into several industry specific market spaces which are
integration of marketplaces through sophisticated computer and
telecommunication technologies.

8. • The term market space was introduced by Jeffrey_Rayport and John J. Sviokla in 1994 in
their article "Managing in the Market space" that appeared in Harvard Business Review. In
the article the authors distinguished between electronic and conventional markets. In a
market space, information and/or physical goods are exchanged, and transactions take place
through computers and networks. These networks consist of blogs, forum threads, and
micro- blogging services like Twitter.
• www.amazon.com
• www.ebay.com
• www.flipcart.com
• www.tradus.com

9. • Meta Market Northwestern University’s Mohan Sawhney has proposed the
concept of a meta market to describe a clusters of complementary products
and services that are closely related in the mind of consumers, but spread
across a set of industries. The automobile meta market consist of
automobiles manufactures, new car and use car dealers, financing companies,
insurance companies, machines, spare parts dealer, service shops, auto
magazines, classified auto ads in Newspaper, and auto site in the internet.

10. • In purchasing a car, a buyer will get involved in many parts of this meta
market, and these create and opportunities for meta mediaries to assist buyer
in moving seamlessly through these groups, although they are disconnected
in physical space. One example is Edmond’s(www.edmunds.com) a website
where a car buyer can find the stated features and prices of different
automobiles and easily click to other sites to search for the lowest price
dealer for financing, for car accessories, and for used car at bargain price.
Meta mediatories also serve other meta market, such as the home ownership
market, the parenting and baby care markets, and wedding markets.

11. • The Marketing Myopia Marketing myopia was initially described as a firm's
shortsightedness or narrowness when attempting to define its business.
The key question – “what business are you in?”
The Marketing Myopia Levitt cites the railroads and Hollywood as examples
of "industries that have been and are now endangering their futures by
improperly defining their purposes." Their problem, he says, is they were
"product-oriented instead of customer-oriented.“

12. • According to Levitt, "the organization must learn to think of itself not as producing goods
or services but as buying customers, as doing the things that will make people want to do
business with it."
• Since its publication, corporate leaders have moved from product-orientation toward
market-orientation.
• The Marketing Myopia Customer orientation has also been considered as a type of
marketing myopia.
• Firms overemphasize the satisfaction of customer wants and needs and as a result ignore
competition.
• Competitor orientation has been proposed as a replacement for the customer orientation;
with this orientation, a firm's strategy is influenced by its competitors (Oxenfeldt and
Moore, 1978).
• The marketing myopia described by Levitt has also evolved into a planning myopia…
• Businesses need to take Levitt's idea to its ultimate end – do not just sell a product, sell
the solution to a problem.

13. Marketing Mix
• The term marketing mix was coined in an article written by Neil Borden called “The
Concept of the Marketing Mix.” He started teaching the term after he learned about
it from an associate, James Culliton, who in 1948 described the role of the
marketing manager as a "mixer of ingredients"; one who sometimes follows recipes
prepared by others, sometimes prepares his own recipe as he goes along, sometimes
adapts a recipe from immediately available ingredients, and at other times invents
new ingredients no one else has tried
• MARKETING MIX IS THE SET OF MARKETING TOOLS THAT THE
FIRM USES TO PURSUE ITS MARKETING OBJECTIVES IN THE TARGET
MARKET

14. Marketing Mix

15. Marketing Mix

18. 7P’s of Marketing
Extended Marketing Mix
1. PRODUCT Variety Quality Design Features Brand name Packaging Sizes Add-ons Warranties Returns
2. PRICE List price Discounts Allowances Settlement and credit terms
3. PLACE for customer service Channels Coverage Locations Inventory Logistics management
4. PROMOTION Advertising Sales Promotion Personal selling Direct marketing Public relations
5. PEOPLE People interacting with people is how many service situations might be described. Relationships
are important in marketing
6. PROCESS In the case of ‘high-contact’ services, customers are involved in the process. Technology is also
important in conversion operations and service delivery
7. PHYSICAL EVIDENCE Services are mostly intangible. Thus the meaning of other tools and techniques
used in measures of satisfaction are important TARGET CUSTOMERS INTENDED POSITIONING

19. Marketing Challenges
• Technological advances, rapid globalization, and continuing social and economic
shifts are causing marketplace changes.
• Major marketing developments can be grouped under the theme of Connecting.
• Via technology With customers With marketing partners With the world
Advances in computers, telecommunications, video-conferencing, etc. are major
forces. Databases allow for customization of products, messages and analysis of
needs. The Internet Facilitates anytime, anywhere connections Facilitates
CRM Creates marketspaces Connecting

20. • Selective relationship management is key.
• Customer profitability analysis separates winners from losers.
• Growing “share of customer”
• Cross-selling and up- selling are helpful.
• Direct sales to buyers are growing.
Partner relationship management involves:
• Connecting inside the company
• Connecting with outside partners
• Supply chain management
• Strategic alliances

21. • Globalization
• Competition
• New opportunities
• Greater concern for environmental and social responsibility
• Increased marketing by nonprofit and public- sector entities
• Social marketing campaigns