Marketing Management-II

KMB-208

Unit-1
 Marketing Mix

Introduction

 The marketing mix concept gained popularity following an article titled “The
Concept of the Marketing Mix” by Neil Borden published in 1964.

 Borden explained how he started using the term inspired by James Culliton who in
the 1940s described the marketing manager as a ‘mixer of ingredients’.

 Borden’s marketing mix comprised of 12 elements – product planning, pricing,

branding, distribution, personal selling, advertising, promotion, display, packaging,
servicing, physical finding, and analysis and research.

 E. Jerome McCarthy (1964) refined Borden’s idea and defined the marketing mix
as a combination of four factors, known today as the 4 ‘Ps’ of marketing – product,
price, place, and promotion.

Unit-1 KMB208 Dr. Harit Kumar

 Following McCarthy’s definition, many theorists have added more ‘Ps’ to the concept
of marketing mix:

 Judd (1987) proposed another ‘P’ – people – to the idea of marketing.

 Booms and Bitner (1980) applied the concept of marketing mix to services, adding 3
‘Ps’ – participants, physical evidence, and process.

 Kotler (1986) added political power, and public opinion.

 The basic purpose of determining the marketing mix is to satisfy the needs and
wants of the customer in the most effective manner.

 As the needs of customers and environmental factors change, the marketing mix will
also be changed. Thus marketing mix is a dynamic concept.

Unit-1 KMB208 Dr. Harit Kumar

 Definitions
Marketing Mix

 The marketing mix refers to the apportionment of the effort, the combination, the designing
and integration of the elements of marketing into a programme or mix which on the basis of
an appraisal of the market force will best achieve the objectives of an enterprise at a given
time.”
Prof. N.H. Borden

 The marketing mix is the set of controllable tactical marketing tools – product, price, place,
and promotion – that the firm blends to produce the response it wants in the target market.
Kotler and Armstrong (2010)

 Kotler and Armstrong define marketing mix as the “tactical marketing tools” companies
implement to increase product demand and create positioning in the market.
(2014)

Unit-1 KMB208 Dr. Harit Kumar

 Marketing Mix 4Ps

Unit-1 KMB208 Dr. Harit Kumar

Unit-1 KMB208 Dr. Harit Kumar
 4C’s of the Marketing Mix
 Traditionally, the marketing mix is a combination of 4P’s and is more business oriented.

 In 1993 Robert Lauterborn suggested the 4C’s which are a 4P’s substitute in the
marketing mix.

Customer Solution

Unit-1 KMB208 Dr. Harit Kumar

 Marketing Mix

E. Jerome McCarthy - 1960 Robert Lauterborn, Supply side

model -
Professor North Carolina Chekitan Dev
and Don Schultz

4P’s 4C’s SIVA Model 4V’s

Product Consumer wants and Solution Validity

needs

Promotion Communication Information Vogue

Price Cost to satisfy Value Value

Place Convenience to buy Access Venue

product

Unit-1 KMB208 Dr. Harit Kumar

 Service Marketing Mix (7 P’s)

 In 1981, Bernard H. Booms and Mary J. Bitner developed the extended marketing
mix or services marketing mix.

 The 7 Ps model, also known as the services marketing mix, goes beyond the four
basic marketing principles for product marketing.

 In addition to the four traditional factors, three important factors have been added:
People, Process and Physical Evidence, that make the services marketing mix.

Unit-1 KMB208 Dr. Harit Kumar

Unit-1 KMB208 Dr. Harit Kumar
Unit-1 KMB208 Dr. Harit Kumar
 Developing/ Designing of an Effective Marketing Mix

 The marketing mix is the marketer’s tool for playing the ‘value game’. He delivers
value through each of the P.
 The effort is to give the customers the value they want, the way they want it, via
the marketing mix.
 The market tries to ensure that the customers get the best value-cost balance, he
becomes a winner in the market.
 Marketing mix is developed with a view to maximize customer value.

Unit-1 KMB208 Dr. Harit Kumar

 Developing the marketing mix means making the best combination of 4 P’s. It delivers
best possible value to the target market and in turn brings the best possible value back
into the firm’s kitty.

 Different marketing mixes with varying levels of expenditure assigned to each

marketing activity and tries to figure out the effectiveness of different combinations in
terms of possible sales and profits.

 Following steps are required for developing effective marketing mix:

 In the Macro level, market segmentation answers the question “What are the
groupings of similar customers?”

 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?”

Unit-1 KMB208 Dr. Harit Kumar

 Consumer motivation and preferences guides the marketer to answer, “What does the
consumers want and why?”

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.

Unit-1 KMB208 Dr. Harit Kumar

 Managing Marketing Mix
 Selecting the optimum combination, the key

 Marketing Mix Elements have to be Harmonized and Synthesized

 Marketing Mix has to take its cue from customers

 Marketing Mix can not be static, Needs shuffling as required

 Change in environment warrants the mix to be shuffled

 Change in PLC stage too demands change in the mix

 Changes with in the firm too necessitate modifications in the mix

 Marketing Mix has to be fixed separate for each brand

 Marketing Mix the visible part of marketing strategy

 Both quantitative analysis and judgment have a role in finalizing Marketing Mix

Unit-1 KMB208 Dr. Harit Kumar