TOPIC 3

MARKETING MIX: THE 4Ps of MARKETING

Introduction

Putting the right product, in the proper place, at the right price and at a right
time is simply what marketing practitioners do in order to advance in business. It may
appear simple and easy but such is not the case, it requires plenty of effort and
research activities to make it successful. All aspects should be considered because if
one element is off the mark, a potential and promising product or service can fail totally
and end up costing the company substantially.

Using the principles of marketing mix is an exceptional way to help that “putting
the right product in the right place” will take place. The marketing mix is a crucial tool
to help understand what the product or services can offer and how to plan for a
successful product offering for it is a set of marketing tools that a business uses to sell
products or services to its target consumers. The marketing mix is usually executed
through the 4Ps of marketing: product, place, promotion and price.

Using different marketing tools to promote sales have been technically used all
the time however; marketing mix was coined in the mid-20 th century. Marketing mix is
also used in outlining successful marketing plan. Categorizing and arranging the
elements of its marketing mix allows a business to make profitable marketing decision
at every level, such decision helps a business:
▪ Improve its strength and limit its weaknesses;
▪ Become more competitive and flexible in its market; and
▪ Develop profitable collaboration between departments and partners

The marketing mix as a tool has been constantly revolving in response to new
technology, trends and other changes in marketing best practices. Studying marketing
mix is a must to students who wants to engage in business.

At the end of the day, the students are expected to:

1. Memorize the components of a marketing mix;
2. Classify the factors influencing customer’s purchase decision making;
3. Discovers ways in diagnosing marketing mix;
4. Illustrate the different marketing program using marketing mix as the base;
 5. Prioritize the importance of marketing mix in preparing marketing plan; and
6. Create a marketing plan.

MARKETING MIX: THE 4Ps OF MARKETING

Also known as the 4Ps of marketing, the marketing mix is one of the two
interrelated components of a marketing strategy aside from target market. Marketing
mix is a set of controllable and interrelated variables composed of product, place, price
and promotions that a firm assembles to satisfy a target group better than its
competitors. Marketing mix strategy is selecting the best possible course of action to
reach the company’s long term objectives and gain market and competitive advantage.

The function of each marketing mix is discussed below:

A. Product – to satisfy the needs and wants of the target market.
B. Placement (or distribution) – to make the product conveniently available to the
target market consistent with their purchasing pattern.
C. Promotion – to build and improve consumer demand. Promotions have four
components called the promotion mix, as follows:
● Advertising – to effectively inform, persuade and remind the target
customers.
● Public Relation – to offer a positive image of the company and brand.
● Selling – to get the customer to buy.
● Sales Promotion – to convince the customer to buy immediately.
D. Price – to make the product affordable to the target market and reflect the value
of benefits provided
For the service industries, there are three additional Ps and these are as follows
E. Physical Environment – refers to the place where service is performed, including
all touch points leading to the place (Parking lot, exits).
F. Process – refers to procedures, flow of activities, and other mechanisms that
deliver the intended experience.
G. People – refers to all members of the team who contribute to the delivery of the
service and its brand promise whether in the front line or in the back office, on
site or off site.
Product and placement are considered as the strategic Ps since changing them
would be difficult while promotion and price are considered tactical Ps since it is easier
to adjust its strategy.

Factors influencing customer’s purchase decision making

Company’s 4Ps Competitor’s 4Ps Customer’s Background/Experience

Target Market Purchase or No Purchase Decision – Making

Buyer Behavior

The consumer background is an important component of the purchase decision

making process. Discussed below are additional inputs before assembling a marketing
program:
1. Cultural Factors – these are the most basic purchasing driving of a consumer.
Culture is a set of values and way of life which greatly influence attitudes and
behaviors as well as preferences of a specific great of people (Go, 2010).
▪ Culture and subculture of a country, region, province, city, municipality,
barangay, purok, etch.
▪ Social class
2. Social Factors – involves peer or reference groups, one’s roles or status as well
as family that influence a person’s decision-making process in the context of the
people around him and who he is in the group.
▪ Reference groups
▪ Family
▪ Role and Status
3. Personal Factors – include many individual poin s such as lifestyle, economic
situation, occupation, age and even activities that would dictate one’s buying
behaviour.
▪ Age and Life cycle
▪ Occupation
▪ Economic circumstances
▪ Lifestyle
▪ Personality and Self Concept
4. Psychological Factors – these focussed on how consumer relate to a brand
depends on what is meaningful, necessary and interesting to them.
▪ Motivation
▪ Perception
▪ Learning
 ▪ Beliefs and attitudes

Participants in the Buying Process

When an individual purchase something, there are a lot of factors to consider

and one of the factors are the different participants in the buying process. Go, (2010)
emphasizes that marketers must consider the participants of the buying process not
just the end users of the products.

Webster and Wind named the decision – making unit of a buying organization
the buying center. It includes all individuals and groups who takes part in the purchase
decision making process, who share some common goals and the danger arising from
the decisions. The following are the so called participants of the buying process.
(https://ebrary.net/80521/management/participants_business_buying_process)

✔ Initiator – they are the one who initiates or made mention of the need of a particular product.
✔ Influencer – they help define specifications and providing information for evaluating alternatives.
✔ Decider – they decide or has the authority to decide whether to but a certain product or not.
✔ Buyer – they help shape product specification and select vendors and negotiate things.
✔ Approvers – they approve the deciders decision to buy a certain product
✔ User – they are the usual end user of the product.
✔ Gatekeeper – they serve as the guardian in the buying process.

Several people can occupy a given role such as user or influencer, and one
person may play multiple roles. 50 A purchasing manager, for example, is often buyer,
influencer, and gatekeeper simultaneously, deciding which sales reps can call on others
in the organization, what budget and other constraints to place on the purchase, and
which firm will actually get the business. The general characteristic of the firm’s
marketing mix are shaped by the target market’s preparedness to adopt a product.

Marketing Programs

These are assembled by identifying which of the marketing mix components

should logically be the main weapon and which should be the support strategy.

A. Distribution Driven – location is the single most important factor in the business.
● Gasoline Station have to be strategically located along busy streets and
highways.
 B. Selling Driven – products are usually only available a salesman
● Life insurance are selling driven for they use thousands of independent
insurance agents to push their different products or services.
C. Sales Promo Driven – they regularly or continuously offer marketing activities to
achieve short term objectives like to increase volume or long term objectives like
brand building.
● Fast food parlors like Jollibee and Mcdonald which have about eight major
promo campaigns yearly to bring consumer back to the stores as often as
possible.
D. Price Driven – firms offer low prices to attract the most number of price
conscious customers.
● Sun cellular, Cebu Pacific Air, and Minute Burger are examples for this
strategy.
E. Advertising driven - to maintain their desired awareness, some companies
continuously pay for time and space for advertising.
● Globe and smart so is coke, as they try to increase demand aand expand
the market base by media advertising.

DIAGNOSTIC MARKETING MIX

Diagnostic marketing mix entails the matching of correctly defined marketing

problems with the proper marketing solutions. The first step in the marketing campaign
is to make the consumer aware of your brand and product. If the penetration strategy
is effective, market will look for what is promoted, then a repeat purchase will follow
when consumers are satisfied with the product consumed as well as the purchased
experience. Customer loyalty is attained when consumers purchase the same brand
repeatedly.
MARKETING PROBLEM MARKETING SOLUTION

Low Awareness level Advertising

Low Availability Placement

Low Trial Rate Pricing/Promotion

Low Repeat Purchase Product/Service Quality

COMPETITIVE ADVANTAGE

Competitive advantage is secured by providing better or best value in the

perception of the customer, relative to all your competitors. The following criteria are
considered as basis for a firm to have a competitive advantage.
1. It is available in the market place.
2. It is superior in the market place.
3. It is difficult to match or imitate.
4. It is difficult to substitute.
5. It is difficult to trade and gain.

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 ggrow in the
marketplace and win against competition.

4S in Marketing Planning

1. Sufficiency – must be able to define adequately the marketing objectives.

2. Selectivity – consider all potential alternatives of each marketing mix before
short-listing all possible combinations of the marketing mix that can meet the
marketing objectives.
3. Synchronicity – different element must be combined harmoniously for the brand
to become successful.
4. Sustainability - must be able to last in the long term vis-a vis competition.

Activity 1. This activity is taken from the book authored by Josiah Go. (Trends and
marketing). The list below are trends that can be noticed and observe once a market
research is conducted. Classify each into cultural, social, personal or psychological
factors? What does it each mean to the marketers?

1. The addictive habit of texting.

2. The rise of the number of single parents.
3. The trend towards late marriages and smaller families.
4. The growing popularity of network marketing
5. The frequent visit to malls as an instant “escape”
 6. The vanishing breed known as housemaid.
7. The rise of stay home “housebands” looking after children and house needs.
8. The upgrading role of music as surrogate companion.
9. The desire to take care of self.
10. The shifts towards deliveries.
Used the matrix below, for better presentation and uniformity among the class.

Different Trends Factors What it meant to marketers

Activity 2. (4Ps for Miss Saigon). This caselet is taken from the author Gosiah Go.
The “Miss Saigon” musical stage play premiered in 1991 with the highest advanced
ticket sales ever. By end 2000, over 70 million people from 10 countries have seen the
show which earned some US$1.3 billion. Miss Saigon then came to the Philippines on
October 2000 for a six month run at the Cultural Center of the Philippines casting the
original female lead actress, Ms Lea Salonga playing the role of KIM in the original
show. In the Philippine run, Lea Salongga was the main attraction. Those who have
never seen the show and even those who watched the play abroad came to watch her.
Lea Salonga performed to a full house until Christmas eve of 2000 when the alternated
Ces Campus and understudy Ima Castro took over the role of KIM.
Early on, it was acknowledge that the alternates of Miss Salonga are not well
known and may have tough time living up to the public’s expectations. Thus, ticket
sales may suffer. In the past shows abroad without Miss SAlonga were able to stand
on their own. Skeptics however, were saying the situation is different for the
Philippines is Lea’s home country.
You are tasked with Marketing Saigon. What exactly will you do to ensure an
equally filled main theatre of the Cultural Center of the Philippines during the time when
the alternates take over the lead role. Use the 4Ps as your guide by comparing the
original and proposed plan.

4P With Leah Salongga Alternates of Lea

Salonga

Product

Placement
Promotion

Price