Marketing mix

1. Marketing Mix:
The 7P’s of
Marketing

2. • Marketing Mix
• Buyer Behavior
• Assembling the Marketing
Mix
• Diagnostic Marketing Mix
• Marketing Plan
• 4S’s in Marketing Plan

3. Marketing Mix
• The Marketing Mix, more popularly referred to as the
7Ps of Marketing is a set of controllable and interrelated
variables composed of product, place, price and
promotions, people, process & physical environment
that a company assembles to satisfy a target group
better than it’s competitor.
• Marketing Mix strategy is choosing and implementing
the best possible course of action to attain the
organization’s long-term objectives and gain
competitive edge.

4. THE MARKETING MIX

5. 7Ps & 7Cs
The 7 Ps The 7 Cs
Organisation
Facing
Customer Facing
Product = Customer/ Consumer
Price = Cost
Place = Convenience
Promotion = Communication
People = Caring
Processes = Co-ordinated
Physical Evidence = Confirmation

6. Product
To satisfy the needs and wants of the target
market.

7. PRODUCT

8. PRODUCT
• There is no point in
developing a product or
service that no one wants to
buy, yet many businesses
decide what to offer first,
and then hope to find a
market fit it afterwards. In
contrast, the successful
company will find out what
customers need or want
and then develop the right
product with the right level
of quality to meet those
needs now and in the
future.

9. PRODUCT
• Methods used to
improve/differentiate
the product and increase
sales or target sales more
effectively to gain
a competitive advantage e.g.
• Extension strategies
• Specialised versions
• New editions
• Improvements
• Changed packaging
• Technology, etc.

10. Price
To make the product affordable to the target
market and reflect the value of benefits provided.

11. PRICE

12. DIFFERENT PARTS OF PRICING
• Price Skimming – An approach under which
a producer sets a high price for a new high-
end product (such as an expensive
perfumes) or a uniquely differentiated
technical product. Its objective is to obtain
maximum revenue from the market before
substitutes products appear. After that is
accomplished, the producer can lower the
price drastically to capture the low-end
buyers.

13. DIFFERENT PARTS OF PRICING
• Penetration pricing - A marketing strategy
used by firms to attract customers to a new
product or service. Penetration pricing is the
practice of offering a low price for a new
product or service during its initial offering in
order to attract customers away from
competitors. The reason behind this
marketing strategy is that customers will buy
and become aware of the new product due to
its lower price in the marketplace relative to
rivals.

14. DIFFERENT PARTS OF PRICING
• Psychological pricing- Setting prices
according to the psychographics of the
aimed-at market segment.
• Cost-plus pricing- One method used by
businesses to determine how to price goods
and services. This type of pricing includes
the variables costs associated with the
goods, as well as a portion of the fixed costs
of operating the business.

15. Place
To make the product conveniently available to the target
market consistent with their purchasing pattern.

16. PLACE

17. PLACE
• The place where customers buy a product, and the
means of distributing your product to that place, must be
appropriate and convenient for the customer. The
product must be available in the right place, at the right
time and in the right quantity, while keeping storage,
inventory and distribution costs to an acceptable level.
• Customer surveys have shown that delivery performance
is one of the most important criteria when choosing a
supplier.

18. 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)

19. PLACE
• Retail - A business or person that sells goods to the
consumer, as opposed to a wholesaler or supplier, who
normally sell their goods to another business. Or we can
say that selling directly to consumers.
• Wholesaler - Person or firm that buys large quantity of
goods from various producers or vendors, warehouses
them, and resells to retailers. Wholesalers who carry
only non-competing goods or lines are called
distributors.

20. PLACE
• Direct selling - Face to face presentation, demonstration,
and sale of products or services, usually at the home or
office of a prospect by the independent direct sales
representatives. Employed by firms such as Avon, Mary
Kay, and Tupperware, direct selling differs from network
marketing in that it offers little or no incentives for
recruiting ever increasing number of sales
representatives.

21. Promotions
To build and improve consumer
demand. Promotions has four
components called the Promotions
Mix as follows:
•Advertising – to effectively inform
and persuade the target market
•Public Relations – to offer a positive
image of the company and the brand
•Personal Selling – to get the
customers buy
•Sales Promotions – to convince
customers to buy immediately

22. PROMOTION

23. PROMOTION
Promotion is the way a company communicates what it
does and what it can offer customers. It includes
activities such as branding, advertising , PR, corporate
identity, sales management, special offers and
exhibitions. Promotion must gain attention, be appealing,
tell a consistent message and above all else give the
customer a reason to choose your product rather than
someone else’s.

24. PROMOTION
• Good promotion is not one-way communication, It paves
the way for dialogue with customers.
• Promotion should communicate the benefits that a
customer obtains from a product, and not just the feature
of that product.
• Whether your promotional material is a single sheet or a
complex brochure, folder or catalogue, it must grab the
attention of your customers. It should be easy to read
and enable the customer to identify why they should buy
your products.

25. PROMOTION
1. Advertising - The activity or profession of producing
information for promoting the sale of commercial
products or services.
2. Branding - An identifying symbol, words, or mark that
distinguishes a product or company from its competitors.
Usually brands are registered (trademarked) with a
regulatory authority and so cannot be used freely by
other parties. For many products and companies,
branding is an essential part of marketing.

26. PROMOTION
• Endorsement - A written or public statement by a
celebrity, business or professional group extolling the
virtues of a product and recommending the use of the
product to the public. A product endorsement from an
authoritative figure is a key element in business
advertising and marketing campaigns.
• Competitive advantage – promotion differentiate your
product with your competitors. And provide edge in
business.

27. PROMOTIONS
• A brochure isn’t necessarily the best way of promoting
your business, the problem being that once a brochure
has been printed, the information is fixed. You can’t
change or remove anything should the need arise. A
more cost effective and flexible option might be a folder
with a professionally designed sheet inside, over a series
of your own information sheets can be customized by
varying them to suit the target customers and/or
changing them as required.

28. PROMOTIONS
• Promotion does not just mean communicating to your
customers. It is just as important to ensure your internal
stakeholder are aware of the value and attributes of your
products. This mean communicating effectively to your
staff/fellow employees and share expertise with their
customers.

29. People
They are the target consumers of the company.
They are the ones who are the consumers

30. PEOPLE

31. 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?

32. Process
The process of the product is essential in marketing. This
determines the capability of the product to supply the
demand of the consumers.

33. PROCESS

34. 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

35. Physical Appearance
Physical appearance is the first distinction of a product. A
product could be easily recognized by it’s appearance.

36. PHYSICAL EVIDENCE

37. PHYSICAL EVIDENCE
• The ambience, mood or physical presentation of
the environment
• Smart/shabby?
• Trendy/retro/modern/old fashioned?
• Light/dark/bright/subdued?
• Romantic/chic/loud?
• Clean/dirty/unkempt/neat?
• Music?
• Smell?

38. •Product, place and people are
considered as the strategic Ps of
marketing mix since they cannot be
changed overnight.
•Promotions, price, process and
physical appearance are considered
as the tactical Ps of marketing mix
because these can be changed
more easily.

39. •Marketers of consumer packaged goods such as food and
personal care products sold in supermarkets would often add
“Merchandising” as another component of the marketing mix.
•Merchandising aims to extend advertising message at the
point of purchase (POP) by generating superior presence
within the store.
•Many companies uses store signs, posters, price tags, shelf
takers and island displays.
•Companies spend a significant 1% of their sales on
merchandizing.

41. Buyer Behavior
•An important component of the consumer purchase
decision-making process.
The Factors Influencing Buyer
Behavior in Consumer Markets
•Cultural Factors
•Social Factors
•Personal Factors
•Psychological Factors

42. Cultural Factors
•Culture and sub-culture – Many older Chinese like to
eat Shark’s fin soup as well as Bird’s nest soup, which
environmentalist despise.
•Social class – Buying a real estate property is
dependent, among others, on the how consumer
perceive the quality of their desired neighborhood and
the status symbol that comes with a high-end
development.

43. Social Factors
•Reference Group – High-end brands like Nike shoes or
acquiring a Globe celphone to be a member of their Gen Txt
Club are examples of how peers can affect a purchase
•Family – demand for products such as PLDT long-distance
calls is influenced by the Pinoy’s strong family attachment
•Role and statutes – Mont Blanc pens are positioned as the
pen for presidents of companies, as well as countries. Johnny
Walker Label is another example of whiskey positioned for
successful people.

44. Personal Factors
•Age and life cycle – Retirees are the prime market for many
luxury cruises, as it is consistent with the slow, relaxing pace
they desire.
•Occupation – Pamper Uni are bought by working mothers who
cannot afford to rest in the morning. The International School
targets children of expatriates.
•Economic Circumstances – Network marketing offers equal
opportunity to those who want to start and grow their own
business without the large capital involved in putting up
traditional businesses.
•Lifestyle – Kraft imported cheese and Lazy Boy chairs are
examples of lifestyle products.
•Personality and Self-concept – Premium brands like Rolex,
cars and even clothes are driven by how the buyer looks at
himself of herself

45. Psychological Factors
•Motivation – Many government employees now enroll in
graduate school to gain the competitive advantage versus
their peers in aspiring for a promotion.
•Learning – AMC cookware utilizes demonstration to show the
product’s unique ability to fry chicken without oil, boil egg
without water and cook food simultaneously without taste
transfer using low fire.
•Beliefs and Attitudes – Sony is believed to be a brand with a
higher quality. Some consumers think that installing chimes
can bring in good luck to homes and offices. A diamond ring is
a must in every engagement and wedding.

46. Assembling the Marketing Mix
Before a marketing mix is formed, there must be an analysis
and definition of target customers.
1. In the Macro level, market segmentation answers the
question “What are the groupings of similar
customers?”
2. In Micro level,
• Decision Making Unit (DMU) points to “Who
purchases the product?”
• Decision Making Process (DMP) answers the
question “How, where, and when is the purchase
made?”
• Consumer motivation and preferences guides the
marketer to answer, “What does the consumers want
and why?”

47. •In satisfying customers, marketers must not assume who the
decision maker is or the mistake may be costly for the firm.
•Marketers must consider the more complex DMU’s that are
usually involved in the decision making process (DMP) for
most products and services.
•Marketers must therefore consider the initiator, influencer,
decider, buyer and the user for every purchase – not just the
user.
•The general characteristics of the firm’s marketing mix is
shaped by the target market’s preparedness to adopt a
product.
•Marketers usually make use of several market researches to
understand their customers better. One of the most popular
and widely used market research report is called Usage,
Attitude and Image (UAI) survey.

48. Product Value
•Products may either be superior, at par with
(the same), or basic to those competition.
•A superior product satisfies more needs and
wants of customers while a basic product
satisfies lesser needs.
•While our initial tendency is to think that
consumers enjoy superior products all the
time, we must realize that products with less
features may still be desired by the lower
income consumer segment.

49. •In the Philippines for instance, some 92% of our
nationwide population belongs to the lower
income D and E class and these “consumers”
may be looking for very basic products.
•The new definition of “Quality” is that which
conforms to consumer’s specification, measured
through indicators of customers satisfaction,
rather than indicators of self-gratification.
•It is consumers who decides on quality not the
company.
•After product quality is defined, it’s inseparable
twin, price, is defined to ensure an appropriate
product value.

50. Marketing Program
•After product value is formulated and accepted to
the target customers, marketing programs are then
assembled by identifying which of the marketing mix
component should logically be the main weapon and
which should be the support strategy.
Product
Value
(Competitiveness)
Program
(Marketing)

51. 1.Distribution Driven
• Some companies are distribution-driven, meaning,
their product must be available when and where
customers expect them to be. Their location are the
single most important factor in their business.

52. 2. Selling – Driven
• Some companies are selling driven especially when
products are only available through the salesman.

53. 3. Sales Promo – Driven
•Other companies that are sales promo driven are fast
food parlors like Jolibee and Mc Donalds which have at
least eight major promo campaign yearly to bring back
consumers to the store as often as possible.

54. 4. Price – Driven
•Makro is a price driven brand. Without any fancy display,
Makro boasts of rock-bottom prices everyday, which
attract people to visit the hypermarket.

55. 5. Advertising – Driven
•Coke is advertising-driven. It intends to be top-of-mind in the
soft drinks industry as it constantly reminds consumers of the
different usage occasions for Coke. Its ad-driven strategy is
supported with a heavy distribution effort, sales promo support
and parity pricing with competition.

56. Diagnostic Marketing Mix
•Diagnostic marketing mix entails the matching of correctly
defined marketing problems with the proper marketing
solution.
Marketing Problem Marketing Solution
Low awareness level Advertising
Low Availability Placement
Low Trial Rate Pricing and/or Promotions
Low Repeat Purchase Product and/or Service
Quality

57. •The marketing mix of a company seldom stays the same.
•Marketers must therefore have a systematic way of reviewing what
worked and why, what didn’t work and why.
•Answering these queries are a prerequisite before planning what
should be added or what should be dropped in order to attain,
enhance or maintain competitive edge.

58. • Competitive advantage is secured by providing better or best value
in the perception of the customer, relative to all your competitors.
• A company’s capabilities can become a true competitive advantage
if the following 5 criteria are met:
1. It is valuable in the marketplace
2. It is superior in the marketplace
3. It is difficult to match or imitate
4. It is difficult to substitute
5. It is difficult to trade and gain

59. Marketing Plan
•The marketing mix is actually the heart of an important
company document called the marketing plan, which outlines
how the company intends to grow in the marketplace and win
against competition.
•The marketing plan is usually formulated annually, but results
are reviewed monthly.

60. Format of a Marketing Plan
Executive Summary
Business Review (performance of the previous years)
Environmental Analysis
Key Factors for Success
Strengths and Weaknesses Analysis
Threats and Opportunities Analysis
Market Segmentation
Marketing Objectives and Goals
Marketing Strategy
Product Positioning
Customer Satisfaction Strategy
Preferred Brand Strategy
Contingency Plan
Marketing Budget
Marketing Implementation Guide
Appendix

61. 4S’s in Marketing Plan
• The marketing mix can change over time.
However, all marketing programs must be able
to meet the 4 basic criteria to be considered a
diligently through-out campaign
1.Sufficiency – the marketing mix must be
able to adequately meet the defined
marketing objectives. This means ambitious
growth objectives would naturally need the
corresponding heavier investment in
marketing support programs.

62. 2. Selective – the marketer must be able to consider
all potential alternatives of each marketing mix before
short-listing all possible combinations of the marketing
mix that can meet their marketing objectives. The one
that can provide the best profitability is the one logically
to be chosen. This is not easy as there are literally
millions of combinations. But the least the marketing
man can do is to short list the more obvious one and
apply due diligence in planning each possible option.

63. 3. Synchronize – when the marketing mix is selected,
the different elements must combine harmoniously for
the brand become successful. For example, a marketer
cannot choose to invest in heavy advertising of a low
quality product sold on a high price. In such a case, the
elements of the marketing mix is not logically
synchronized.
4. Sustainability – the marketing mix that is finally
chosen must be able to last in the long term vis-à-vis
competition. For instance, a lower price strategy not only
risks a price war but is not sustainable unless the firm is
the cost leader in the industry.