2 G R O U P

RECOGNIZING THE
IMPORTANCE OF
MARKETING MIX IN THE
DEVELOPMENT OF
MARKETING STRATEGY

M A R K E T I N G S T R A T E G Y
 MARKETING MIX DEFINED
Marketing Mix has been defined as the "set of marketing tools that the firm
uses to pursue its marketing objectives in the target market".

Marketing may refer to the process of value exchange that is facilitated by

the 4P's. The term marketing mix is a foundation model for business,
historically centered around the product, price, place and promotion.

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 LET US DEFINE THE
4P's OF MARKETING
MIX

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PRODUCT PRICE

TARGET
MARKET

PLACE PROMOTION

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PRODUCT

Is a tangible or intangible item that is built

or produced to satisfy the needs of a certain
group of people.

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 IN DEVELOPING THE RIGHT PRODUCT FOR YOUR BUSINESS,
YOU MUST ANSWER THE FOLLOWING QUESTIONS:

1. WHAT DOES THE CLIENT WANT FROM THE SERVICE OR PRODUCT?

2. HOW WILL THE CUSTOMER USE IT? OR WHERE WILL THE CLIENT USE IT?
3. WHAT FEATURES MUST THE PRODUCT HAVE TO MEET THE CLIENT'S NEEDS?
4. WHAT'S THE NAME OF THE PRODUCT?
5. WHAT ARE THE SIZES OR COLORS AVAILABLE?
6. HOW IS THE PRODUCT DIFFERENT FROM THE PRODUCTS OF YOUR
COMPETITORS?
7. WHAT DOES THE PRODUCT LOOK LIKE?

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 PRICE

The product price is the amount that the

customer pays for them to satisfy.

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 OTHER PROPERTIES OF PRICE

1. MARKET PENETRATION PRICING- IS A PRICING STRATEGY WHERE THE PRICE

OF A PRODUCT IS INITIALLY SENT LOW TO RAPIDLY REACH A WIDE FRACTION
OF THE MARKET AND INITIATE WORD OF MOUTH.
2. MARKET SKIMMING PRICING- IS A PRICING STRATEGY IN WHICH A
MARKETER SETS A RELATIVELY HIGH INITIAL PRICE FOR A PRODUCT OR
SERVICE AT FIRST, THEN LOWERS THE PRICE OVER TIME.
3. NEUTRAL PRICING- GENERALLY A DEFAULT STRATEGY TO MINIMIZE THE
ROLE OF PRICING IN THE MARKETING MIX, NOT UTILIZING PRICE TO GAIN OR
RESTRICT MARKET SHARE.

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HERE ARE SOME OF THE IMPORTANT QUESTIONS THAT YOU SHOULD
ASK YOURSELF WHEN YOU ARE SETTING THE PRODUCT PRICE:

1. HOW MUCH DID IT COST YOU TO PRODUCE THE PRODUCT?

2. WHAT IS THE CUSTOMERS' PERCIEVED PRODUCT VALUE?
3. DO YOU THINK THE SLIGHT PRICE DECREASE COULD SIGNIFICANTLY
INCREASE YOUR MARKET SHARE?
4. CAN THE CURRENT PRICE OF THE PRODUCT KEEP UP WITH THE
PRICE OF THE PRODUCT'S COMPETITORS?

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 Is the location and distribution channel of
the product to make it accessible to the
potential buyers.

PLACE

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 OTHER PROPERTIES OF PLACE
1. Intensive Distribution- It mainly means a distribution on a large-scale and displaying
the product in as many ways and places as possible so that the customer sells in high
volume due to large scale distribution.
2. Exclusive Distribution- It is an agreement between supplier and retailer that grants
the exclusive rights within a specific geographic area to carry the supplier's product.
3. Selective Distribution- It is a retail strategy that involves making a product or group
of products available only in certain markets.
4. Franchising- An agreement where one party (the franchiser) grants another party (the
Franchisee) the right to use its trademark or trade-name as well as certain business
system and processes, to produce and market a good or service according to certain
specifications Here are some of the questions that you should answer in developing
your distribution.

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HERE ARE SOME OF THE QUESTIONS THAT YOU SHOULD ANSWER IN
DEVELOPING YOUR DISTRIBUTION STRATEGY:

1. WHERE DO YOUR CLIENTS LOOK FOR YOUR SERVICE OR

PRODUCT?
2. WHAT KIND OF STORES DO POTENTIAL CLIENTS GO TO? DO THEY
SHOP IN A MALL, IN A REGULAR BRICK AND MORTAR STORE, IN
THE SUPERMARKET, OR ONLINE?
3. HOW DO YOU ACCESS THE DIFFERENT DISTRIBUTION CHANNELS?
4. HOW IS YOUR DISTRIBUTION STRATEGY DIFFERENT FROM YOUR
COMPETITORS?
5. DO YOU NEED A STRONG SALES FORCE?
6. DO YOU NEED TO ATTEND TRADE FAIRS?
7. DO YOU NEED TO SELL IN AN ONLINE STORE?

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is a very important component of
marketing as it can boost brand
recognition and sales.

PROMOTION

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 OTHER PROPERTIES OF PROMOTION
1. Sales Organization- is a part of the total business organization of a firm. This unit of the firm is
concerned with distribution of goods or services. It may be produced by the organization itself
or may be purchased from manufacturers for resale.
2. Public relation- It is the practice of deliberately managing the release and spread of
information between an individual or an organization and the public to generate awareness and
positive responses to products and services of the hones
3. Advertising- It is the activity or profession of producing advertisement for commercial products
or services. It is a marketing tactic involving paying for space to promote a product, service, or
a cause. The goal of advertising is to reach out people most likely to be willing tur pay for a
company's product or services and entice them to buy.
4. Sales promotion- It is the process of persuading a potential buyer to buy the product designed
to be used as a short-term tactic to boost sales.

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IN CREATING AN EFFECTIVE PRODUCT PROMOTION STRATEGY, YOU
NEED TO ANSWER THE FOLLOWING QUESTIONS:

1. HOW CAN YOU SEND MARKETING MESSAGES TO YOUR

POTENTIAL BUYERS WHEN IS THE BEST TIME TO PROMOTE YOUR
PRODUCT?
2. WILL YOU REACH YOUR POTENTIAL AUDIENCE AND BUYERS
THROUGH TELEVISION ADS?
3. IS IT BEST TO USE THE SOCIAL MEDIA IN PROMOTING THE
PRODUCT?
4. WHAT IS THE PROMOTIONS STRATEGY OF YOUR COMPETITORS?

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