Marketing Mix (Marketing)

‘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”.
1953
The term ‘marketing mix’ was first used in ____ when Neil Borden, in his American Marketing Association presidential address, took the recipe idea one step further and coined the term “marketing-mix”.
Neil Borden
The term ‘marketing mix’ was first used in 1953 when _______, in his American Marketing Association presidential address, took the recipe idea one step further and coined the term “marketing-mix”.
American Marketing Association
The term ‘marketing mix’ was first used in 1953 when Neil Borden, in his __________________ presidential address, took the recipe idea one step further and coined the term “marketing-mix”.
E. Jerome McCarthy
A prominent marketer, ______________, proposed a 4 P’s classification in 1960, which has seen wide use.
4 P’s classification
A prominent marketer, E. Jerome McCarthy, proposed a ___________ in 1960, which has seen wide use.
1960
A prominent marketer, E. Jerome McCarthy, proposed a 4 P’s classification in _____, which has seen wide use.
Product
Price
Place
Promotion
McCarthy classified all these marketing tools under four broad categories:
Product
Price
Place
Promotion
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?
Promotion
What can be done to increase its usage or exposure?
Price
Value perceived in the mind of the consumer
Promotion
Marketing communications
Place
Cover location, distribution, channels and logistics
Product
Collection of features and benefits that provide customer satisfaction
Product
is the actual offering by the company to its targeted customers which also includes value added stuff
Product
may be tangible (goods) or intangible (services).
Price
includes the pricing strategy of the company for its products.
Price
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.
Pricing Strategy (Penetration, Skim, etc)
List Price
Payment period
Discounts
Financing
Credit terms
Price decisions include: (6)
Place
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.
Place
Availability of the product at the right place, at the right time and in the right quantity is crucial in placement decisions.
Placement
Distribution channels
Logistics
Inventory
Order processing
Market coverage
Selection of channel members
Placement decisions include: (7)
wholesalers, agents, retailers, the Internet, overseas distributors, direct marketing (from manufacturer to user without an intermediary), and many others.
There are many types of intermediaries such as (7)
Place decisions
relate to distribution, how the library plans to make products and services available and accessible to customers.
Place
adds value by making services available at convenient times and locations; by creating a pleasant environment in terms of location size, lighting, staff; by allowing for multiple types of distribution: Electronic, mail or walk-in
Place and distribution
are ways to differentiate your services, making them more responsive to your customers’ needs.
Promotion
includes all communication and selling activities to pursuade future prospects to buy the product.
Advertising
Media Types
Message
Budgets
Sales promotion
Personal selling
Public relations/publicity
Direct marketing
Sponsorship
Promotion decisions include: (9)
Promotion
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.
The elements of the promotions mix
are integrated to form a coherent campaign.
Planning
is the key to any promotional program.
Adequate planning
also saves you money in the long run.
Marketing mix (4 P’s)
was more useful in early 19’s when production concept was in and physical products were in larger proportion.
People, Packaging, Process
New addition to 4 P’s
10% Allocated to:
Place
Price
Packaging
Product

90% Allocated to Promotion:
Positioning
Advertising
Sales Promotion
PR

Packaged Goods Concept of 5 P’s of Marketing
50% Allocated to Product

25% Allocated to Price:
Pricing
Incentives
Re-pricing

8% Allocated to Packaging:
In-store Environment
Total Ownership Experience
Warranties

8% Allocated to Place:
Dealers
Distribution

8% Allocated to Promotion

Automotive Concept of 5 P’s of Marketing
Globalization of Competition
Revolution in Technology
Revolution in Management
Revolution in Economy
NATURE of REVOLUTION (4)
Paradox
Perspective
Paradigm
Persuasion
Passion
New 5 P’s of Marketing (Tom Patty, 2010)
Paradox
A statement or proposition which, on the face of it, seems self-contradictory, absurd, or at variance with common sense. Though, upon investigation or when explained, it may prove to be well founded or essentially true.’
Paradox
Exploit the differentiation
Paradox
Create unique identity
‘first of something’
Use the paradox to become the
Perspective
The relation or proportion in which the parts of a subject are viewed by the mind.’
– What consumer need does my product or service satisfy?
– How does it satisfy differently and better than competitors?
How To Master Perspective (2)
Paradigm
‘A pattern example, a model way of doing things.
Identify the proper paradigm and position yourself accordingly.
How To Master Paradigm
Model Advertising
Brand Advertising
Advertising Paradigms (2)
Model Advertising
Communicate product features & benefits
Brand Advertising
Communicate who & what you are
Persuasion
‘To induce someone to think or do something
Credibility of the Speaker
Content of the Message
Involvement of the Audience
Elements of Persuasion (3)
Passion
‘An eager outreaching of the mind towards something.’
Passion
‘An aim or object pursued with zeal or enthusiasm