Marketing Mix

IMPORTANCE OF MARKETING MIX IN

THE DEVELOPMENT OF MARKETING
STRATEGY

PRESENTED BY: ABM - GROUP 1

Marketing Mix
Also known as the four P's broad
levels of marketing decision
namely Product, Price, Place,
and Promotion.
It is defined as the “set of
marketing tools” that the firm
uses to pursue its marketing
objectives in the target market.
 7P’s in Marketing
1. Product
refers to what the business offers
for sale and may include products
or services.
2. Price
refers to the total cost for the
customer to acquire the product.
3. Place
refers either to the physical
location where a business carries
out business or the distribution
channels used to reach markets.
 7P’s in Marketing
4. Promotion
refers to "the marketing
communication used to make the
offer known to potential customers
and persuade them to investigate it
further
5. People
essential in the marketing of any
product or service.
 7P’s in Marketing
6. Process
refers to a "the set of activities that
results in delivery of the product
benefits".
7. Physical Evidence
the lasting proof that the service
has happened, in terms of buying a
physical product, the physical
evidence is the product itself.
 Emergence of the
Marketing Mix: 4 P's
and 7 P's Concepts!
Emergence of the Marketing Mix
The origins of the four Ps can be traced to
the late 1940s. The first known mention of a mix
has been attributed to a Professor of Marketing
at Harvard University, Prof. James Culliton. In
1948, Culliton published an article entitled The
Management of Marketing Costs in which
Culliton describes marketers as mixers of
ingredients.
Emergence of the Marketing Mix
Many years later, Culliton's colleague,
Professor Neil Borden, published a
retrospective article detailing the early history
of the four P's in which he credits Culliton with
coining the original term, and credits himself
with popularising the concept of the
'marketing mix'.
Emergence of the Marketing Mix
The 4 P's, in its modern form, was first
proposed in 1960 by E. Jerome McCarthy in his
text-book, Basic Marketing: A Managerial
Approach. Phillip Kotler, a prolific author,
popularised the managerial approach and,
and with it, spread the concept of the 4 P's.
McCarthy's 4 P's have been widely adopted by
both marketing academics and practitioners.
Emergence of the Marketing Mix
The prospect of expanding or modifying
the marketing mix first took hold at the
inaugural AMA Conference dedicated to
Services Marketing in the early 1980s, and built
on earlier theoretical works pointing to many
important limitations of the 4 P's concept.
Emergence of the Marketing Mix
In 1981, Booms and Bitner proposed a
model of 7 P's, comprising the original 4 P's
plus process, people and physical evidence, as
being more applicable for services marketing.
Since then there have been a number of
different proposals for a service marketing mix
(with various numbers of P's-6 P's, 7 P's, 8 P's, 9
P's and occasionally more).
 Product
7P’S IN MARKETING

PRESENTED BY: ABM - GROUP 1

 Product
a product is anything that can
be offered for satisfaction. It
may be an idea, a physical entity
(a good), a service, or any
combination of the three.
is the bundle of satisfaction
which the buyer receives as the
result of a lease or purchase.
 Product
is anything in the form of good,
service or idea consisting of a
bundle of tangible and
intangible attributes that can
be offered to a market that
might satisfy a want or need
and is received in exchange for
money or something else of
value. (p.195 Principles of
Marketing by Serrano 2016)
Product Strategy
is often called the roadmap of a
product and outlines the end-
to-end vision of the product and
what the product will become.
companies utilize the product
strategy planning and
marketing to identify the
direction of the company's
activities.
Strategies for Mature Products
1. Develop new
2. Develop new
uses or
or add latest
functions and
product
new purposes
features.
for products.
Strategies for Mature Products
3. Find new 4. Find new
classes of classes of
consumers or new consumers for
potential markets modified
for present products.
products.
Strategies for Mature Products
5. Increase 6. Change
product use for marketing
new product policies or
users. strategy.
 Marketers engage in
market segmentation
when they divide the total
market into smaller,
relatively homogeneous
groups or segments that
share similar needs, wants,
or characteristics.
 Marketing
Strategy
To be successful, a firm
must possess one or more
competitive advantages that
it can leverage in the market
in order to meet its
objectives.
Marketing Strategy
Four Principles of Positioning
Strategy (by Jack Trout)
1. Must establish position for firm or
product in minds of customers.
2. Position should be distinctive,
providing one simple, consistent
message.
3. Position must set firm/product apart
from competitors.
4. Firm cannot be all things to all
people-must focus.
 Uses of Positioning in
Creating Competitive
Advantage
Tools to Understand Relationships
between Products and Markets
1. Compare to competition on
specific attributes.
2. Evaluate product's ability to
meet consumer
needs/expectations.
3. Predict demand at specific
prices/performance levels.
 Uses of Positioning in
Creating Competitive
Advantage
Ways to Identify Market
Opportunities
1. Introduce new products.
2. Redesign existing products.
3. Eliminate non-performing
products.
 Uses of Positioning in
Creating Competitive
Advantage
Product Strategies
1. Breadth Strategy is reaching
multiple segments with a single
product.
2. Depth Strategy is serving one
segment with multiple products.
3. Tailored Strategy is customizing
products for each segment.
 Uses of Positioning in
Creating Competitive
Advantage
Positioning (who you are in the
marketplace vis-à-vis the
competition)

1. Determine who you are in the

market
2. Then decide who you want to be
3. It involves all of the marketing
mix variables.
 Place
7P’S IN MARKETING

PRESENTED BY: ABM - GROUP 1

 Place
is making the
products available in
the right quantities
and locations where
customers want
them.
Distribution
Strategy
refers to the process of
moving goods and
services from the
company to the customer.
Common Distribution Channels
2. Original
1. Direct Sale equipment
is when the company/ manufacturer
firm plans are to move sales involve selling a
goods directly to the manufactured product
ultimate users. This is and which is later sold as
the most effective a finished product to the
channel. end user.
Common Distribution Channels
3. Manufacturer's 4. Wholesalers
representative
are channel members
is a wholesaler employed that sell to retailers or
by one or several other agents for further
producers and paid on distribution through the
commission basis channel until they reach
according to quantity the final users.
sold.
Common Distribution Channels
5. Brokers 6. Retailers
are the ones who sell
are distributors who buy
directly to customers in
directly from distributor
the store. They buy
or wholesaler and
product without any
sell to retailers or end
intermediaries or
users.
middlemen.
Common Distribution Channels
7. Direct mail
includes printed
materials used in a
targeted campaign to
consumers. These are
sent directly to
consumers.
Channel of
Distribution
is made up of people or
organizations involved in
the distribution process.
Channel of
Distribution
is made up of people or
organizations involved in
the distribution process.
Channel Distribution
Basic Types of Channel
Distribution
1. Direct channel distribution
- is the transfer or movement of
goods and services from
manufacturer to final user or
customer without the intervention of
independent middleman.
Channel Distribution
Basic Types of Channel
Distribution
2. Indirect channel distribution
- is the transfer or movement of
goods or tangible products and
services or intangible goods from
manufacturer or producer to
independent intermediaries to
customer.
Channel Distribution
Intensity of Channel Coverage

1. Exclusive distribution
- is the limited number of middleman
used in a geographic area. It is also
organized in a particular region or
provinces to handle the sales and
distribution of the product.
Channel Distribution
Intensity of Channel Coverage

2. Selective distribution
- is organizing a moderate number of
wholesalers or retailers. The
entrepreneur uses and tries to
combine some channel controls and
image with good sales volumes and
profits.
Channel Distribution
Intensity of Channel Coverage

3. Intensive distribution
- is organizing a large number of
middlemen that are used to obtain
widespread market coverage and
channel acceptance. The objective is
high sales volume and profit.
Physical Distribution
covers the broad range of
activities in connection with
the efficient delivery of raw
materials, parts, semi-
finished items, and finished
products to designated
places and designated
times and in proper
conditions.
Physical Distribution
Ways
Transportation is railroads, motor
carriers, waterways, pipelines and
airways.

Inventory Management consists of

a continuous flow of goods or
tangible products to match the
quantity of goods kept in inventory
as closely as possible with sales
demand.
Physical Distribution
Ways

Warehousing carries the physical

facilities used primarily for the
storage of goods held in
anticipation of sales and transfers
within a distribution channel.
Physical Distribution
Ways

Retailing refers to those business

activities involved with the sales of
goods and services to the final
consumer for personal, family or
household use. It is the final stage
in a channel of distribution.
Physical Distribution
Ways

Scrambled merchandising takes

place when a retailer adds goods
and services that are unrelated to
each other or the original business
of the retailer.
Physical Distribution
Ways

Wholesaling is buying or handling

of merchandise and its subsequent
resale to organizational users,
retailers and/or other wholesalers
but not the sale of significant
volume to final consumers.