8/3/2019 Marketing Mix and the 4Ps of Marketing
1/31
A report of BSBA 1 students
Group 1
Principles of Marketing 1
Marketing Mix and the 4Ps of
Marketing
8/3/2019 Marketing Mix and the 4Ps of Marketing
2/31
Objectives:
At the end of the discussion, you should be able to:
Define what is MARKETING MIX
Give the four Ps needed for a successful business ventureRealize the importance of considering the 4 Ps in establishing
a business
Differentiate 4 Ps from 4 Cs in Marketing
8/3/2019 Marketing Mix and the 4Ps of Marketing
3/31
MARKETING MIX
y Marketing mix is a broad concept which includes several
aspects of marketing which is related to creating awareness
and customer loyalty. The term is often summarized as
referring to the "four P's": price, promotion, product, and
placement.
when these are effectively blended, they form a marketing
program that provides want-satisfying goods and services for
the companys market.
-http://en.wikipedia.org/wiki/Marketing_mix
8/3/2019 Marketing Mix and the 4Ps of Marketing
4/31
MARKETING MIX
y A planned mix of the controllable elements of a product's
marketing plan commonly termed as 4Ps: product, price,
place, and promotion.
These four elements are adjusted until the rightcombination is found that serves the needs of the
product's customers, while generating optimum income.
Sometimes the first P (Product) is substituted by
presentation.
-http://www.businessdictionary.com/definition/marketing-mix.html
8/3/2019 Marketing Mix and the 4Ps of Marketing
5/31
MARKETING MIX
y The levels and interplay of the elements of a product's or
service's marketing efforts, including product features,
pricing, packaging, advertising, merchandising, distribution,
and marketing budget; especially as these elements affect
sales results.
-http://marketing.about.com/od/marketingglossary/g/mrktmixdef.htm
8/3/2019 Marketing Mix and the 4Ps of Marketing
6/31
HISTORY of Marketing Mixy The term "marketing mix" was coined in 1953 by Neil Borden in
his American Marketing Association presidential address. However, thiswas actually a reformulation of an earlier idea by his associate, JamesCulliton, who in 1948 described the role of the marketing manager as a"mixerof ingredients", who sometimes follows recipes prepared by
others, sometimes prepares his own recipe as he goes along, sometimesadapts a recipe from immediately available ingredients, and at othertimes invents new ingredients no one else has tried.
The term became popular in the article written by Niel Borden calledThe Concept of the Marketing Mix. He started teaching the term afterhe learned about it with an associate.
The prominent marketer, E. Jerome McCarthy, proposed a FourP classification in 1960, which has seen wide use.
8/3/2019 Marketing Mix and the 4Ps of Marketing
7/31
The 4 Ps
What about??
The 4 Ps is one way probably the best-known way of
defining the marketing mix, and was first expressed in 1960
by E J McCarthy.The 4Ps are:
y Product (or Service)
y Price
y Place
y Promotion
8/3/2019 Marketing Mix and the 4Ps of Marketing
8/31
4 PsElements of the marketing mix are often referred to as the
"Four 'P's", a phrase used since the 1960's
y Product - It is a tangible good or an intangible service thatis mass produced or manufactured on a large scale with a
specific volume of units. Intangible products are servicebased like the tourism industry & the hotel industry orcodes-based products like cellphone load and credits. Typicalexamples of a mass produced tangible object are the motorcar and the disposable razor. A less obvious but ubiquitousmass produced service is a computer operating system.
8/3/2019 Marketing Mix and the 4Ps of Marketing
9/31
PRODUCTSy What does the customer want from the product/service?What needs does it
satisfy?
y What features does it have to meet these needs?
y Are there any features you've missed out?
y
Are you including costly features that the customer won't actually use?y How and where will the customer use it?
y What does it look like? How will customers experience it?
y What size(s), color(s), and so on, should it be?
y What is it to be called?
y How is it branded?
y How is it differentiated versus your competitors?
y What is the most it can cost to provide, and still be sold sufficiently profitably?
8/3/2019 Marketing Mix and the 4Ps of Marketing
10/31
4 Psy Price The price is the amount a customer pays for the
product. The business may increase or decrease the price ofproduct if other stores have the same product.
y Pricing is one of the most important elements of the
marketing mix, as it is the only mix, which generates aturnover for the organisation. The remaining 3ps are thevariable cost for the organisation. It costs to produce anddesigna product, it costs todistribute a product and costs to promote it.Price must support these elements of the mix
8/3/2019 Marketing Mix and the 4Ps of Marketing
11/31
PRICE
Pricing is difficult and must reflect supply and
demand relationship. Pricing a product too high or too low
could mean a loss of sales for the organisation. Pricing should
take into account the following factors:
y Fixed and variable costs.
y Competition
y Company objectives
y Proposed positioning strategies.y Target group and willingness to pay.
8/3/2019 Marketing Mix and the 4Ps of Marketing
12/31
PRICEy What is the value of the product or service to the buyer?
y Are there established price points for products or services in this
area?
y Is the customer price sensitive?Will a small decrease in price gain
you extra market share? Or will a small increase be indiscernible,
and so gain you extra profit margin?
y What discounts should be offered to trade customers, or to other
specific segments of your market?
y How will your price compare with your competitors?
8/3/2019 Marketing Mix and the 4Ps of Marketing
13/31
4 Ps
y Placement A way of getting the product to the consumer
and/or how easily accessible it is to consumers.
y Just like with pricing, the places where your product is
available say a lot about both the quality and "status" of the
product.
8/3/2019 Marketing Mix and the 4Ps of Marketing
14/31
PLACE
y What isPlace Marketing?
Place Marketing (aka Place Branding, Territorial Marketing)
is the practice of applying marketing and branding strategies
to regions, states, cities and nations. As place marketing
teams (i.e. city councils, tourism departments) compete to
attract residents, tourists, businesses and ultimately tax
revenue they have consulted branding tactics to turn their
places into destinations.
8/3/2019 Marketing Mix and the 4Ps of Marketing
15/31
PLACEy Where do buyers look for your product or service?
y If they look in a store, what kind? A specialist boutique or in a
supermarket, or both? Or online? Or direct, via a catalogue?
y How can you access the right distribution channels?
y Do you need to use a sales force? Or attend trade fairs? Or make
online submissions? Or send samples to catalogue companies?
y What do you competitors do, and how can you learn from that
and/or differentiate?
8/3/2019 Marketing Mix and the 4Ps of Marketing
16/31
4 PsPromotion represents all of the communications that a
marketer may use in the marketplace. Promotion has fourdistinct elements: advertising, publicrelations,personal selling and sales promotion. A
certain amount of crossover occurs when promotion uses thefour principal elements together, which is common in filmpromotion.
y Advertising- covers any communication that is paid for, fromcinema commercials, radio and Internet adverts throughprint media and billboards.
8/3/2019 Marketing Mix and the 4Ps of Marketing
17/31
PROMOTIONy Public relations- are where the communication is not directly paid
for and includes press releases, sponsorship deals, exhibitions,
conferences, seminars or trade fairs and events.Word of mouth is
any apparently informal communication about the product by
ordinary individuals, satisfied customers or people specificallyengaged to create word of mouth momentum. Sales staff often
plays an important role in word of mouth and Public Relations.
y Personal Selling- Face-to-face selling in which a seller attempts to
persuade a buyer to make a purchase.
8/3/2019 Marketing Mix and the 4Ps of Marketing
18/31
PROMOTION
y Sales Promotion- Activities, materials, devices, andtechniques used to supplement the advertising and marketingefforts and help coordinate the advertising with the personalselling effort. Sweepstakes are among the most well-knownsales promotion tools, but other examples include specialdisplays, coupons, promotional discounts, contests, and gift
offers.
8/3/2019 Marketing Mix and the 4Ps of Marketing
19/31
PROMOTIONy Where and when can you get across your marketing messages to
your target market?
y Will you reach your audience by advertising in the press, or on TV,or radio, or on billboards? By using direct marketing mailshot?Through PR? On the Internet?
y When is the best time to promote? Is there seasonality in themarket? Are there any wider environmental issues that suggest ordictate the timing of your market launch, or the timing ofsubsequent promotions?
y How do your competitors do their promotions? And how does
that influence your choice of promotional activity?
8/3/2019 Marketing Mix and the 4Ps of Marketing
20/31
MARKETING MIX DIAGRAM
8/3/2019 Marketing Mix and the 4Ps of Marketing
21/31
4Cs of Marketing??y Robert F. Lauterborn proposed a four Cs classification in
1993.The Four Cs model is more consumer-oriented andattempts to better fit the movement from mass marketing to nichemarketing.
1. Product part of the Four Ps model is replaced by Consumer orConsumer Models, shifting the focus to satisfying the consumerneeds. Another C replacement for Product is Capable. By definingofferings as individual capabilities that when combined and
focused to a specific industry, creates a custom solution ratherthan pigeon-holing a customer into a product.
8/3/2019 Marketing Mix and the 4Ps of Marketing
22/31
4 Cs vs. 4 Ps
y Consumer wants and needs (vs.Products)
You can't develop products and then try to sell them to a
mass market.Y
ou have to study consumer wants and needsand then attract consumers one by one with something each
one wants. Author of the movie Field ofDreams, J.P. Cancilla
may have exclusive rights to the phrase "build it and they will
come". In most cases, you have to find out what people want
and then "build" it for them, their way.
8/3/2019 Marketing Mix and the 4Ps of Marketing
23/31
4Cs of Marketing
2. Pricing is replaced by Cost reflecting the total cost of
ownership. Many factors affect Cost, including but notlimited to the customer's cost to change or implement the
new product or service and the customer's cost for not
selecting a competitor's product or service.
8/3/2019 Marketing Mix and the 4Ps of Marketing
24/31
4 Cs vs. 4 Ps
y Cost to satisfy (vs.Price)
You have to realize that price - measured in dollars - is one
part of the cost to satisfy. If you sell hamburgers, for
example, you have to consider the cost of driving to your
restaurant, the cost of conscience of eating meat, etc. One of
the most difficult places to be in the business world is the
retailer selling at the lowest price. If you rely strictly on price
to compete you are vulnerable to competition - in the long
term.
8/3/2019 Marketing Mix and the 4Ps of Marketing
25/31
4 Cs of Marketing
3. Promotions feature is replaced by Communication which
represents a broader focus than simply Promotions.
Communications can include advertising, public relations,personal selling, viral advertising, and any form of
communication between the firm and the consumer.
8/3/2019 Marketing Mix and the 4Ps of Marketing
26/31
4 Cs vs. 4 Ps
y Communication (vs.Promotion)
You have to consider the communication instead of
promotion. Promotion is manipulative (ouch!) - its from theseller. Communication requires a give and take between the
buyer and seller (that's nicer). Be creative and you can make
any advertising "interactive". Use phone numbers, your web
site address, etc. to help here. And listen to your customers
when they are "with" you.
8/3/2019 Marketing Mix and the 4Ps of Marketing
27/31
4 Cs of Marketing
4. Placement is replaced by Convenience.With the rise of
internet and hybrid models of purchasing, Place is becomingless relevant. Convenience takes into account the ease of
buying the product, finding the product, finding information
about the product, and several other factors.
8/3/2019 Marketing Mix and the 4Ps of Marketing
28/31
4 Cs vs. 4 Ps
y Convenience to buy (vs.Place)
You must think of convenience to buy instead of place.You
have to know how each subset of the market prefers to buy -
on the Internet, from a catalogue, on the phone, using credit
cards, etc. Lands End clothing, Amazon Books and Dell
Computers are just a few businesses who do very well over
the Internet.
8/3/2019 Marketing Mix and the 4Ps of Marketing
29/31
8/3/2019 Marketing Mix and the 4Ps of Marketing
30/31
LESSONS IN MARKETING
You see a gorgeous girl at a party.You went up to her and say I am very rich. Marry me.Thats DIRECT MARKETING
You are at a party with a bunch offriends and see a gorgeous girl. One ofyour friends goes up to herand pointing at you says,He is very rich. Marry him.Thats ADVERTISING
You see a gorgeous girl at a party.You go up to her and get her telephone number.The next day youcalledher and say,Hi, I am very rich. Marry me.ThatsTELEMARKETING.
You are at a party and see a beautiful girl.You get up and straighten your tie, you walk up to her andpour her a drink.You open the door for her, pick up her bag after she drops it, offer her a ride, and
then say, By the way, Im very rich.Will you marry me?.ThatsPUBLIC RELATIONS.
You are at a party and see a gorgeous girl. She walks up to you and says,You are very rich.Thats BRAND RECOGNITION.
You see a gorgeous girl at a party.You go up to her and say,I am very rich. Marry me.She gives you a nice hard slap on your face.ThatsCUSTOMER FEEDBACK.
- Unknown
8/3/2019 Marketing Mix and the 4Ps of Marketing
31/31
Doing business without advertising is like winking at
a girl in the dark. You know what you are doing,
but nobody else does.-Steuart Henderson Britt
ThankYou Very Much!!!
From: GROUP 1
Top Related