DEVELOPING THE

MARKET MIX (2)

Ms. Cherry Ann M. Malabanan
Content of the Module

1. Distribution
2. Promotion
Distribution
 Distribution means the process by which we make the goods or the service
available to the end consumer. Usually, the place of production is not the
same as the place of consumption and the goods must be distributed to
overcome the barrier of place.
 Now the distribution of the products can be done by the organization itself
which is direct distribution. Or it can hire agents and form distributions
channel like the indirect distributions. The plan will depend on several factors
such as:
 Product -
 Market
 Company
 Marketing Environment
 Cost
Types of Intermediaries
 These are the middlemen that ensure smooth and effective distribution of
goods over your chosen geographical market. Middlemen are a very valuable
factor in the distribution process. Below are examples of middlemen:
Types of Intermediaries
1. Agents -middlemen who represent the produces to the customer. They are only an
extension of the company, but the company is generally bound by the actions of its
agents. They get paid on fees and commissions.
2. Wholesalers -Wholesalers buy the goods from the producers directly. One important
characteristic of wholesalers is that they buy in bulk at a lower rate than retail price.
They store and warehouse huge quantities of the products and sell them to other
intermediaries in smaller quantities for a profit.
3. Distributors -Distributors are similar to wholesalers in their function. Except they have
a contract to carry goods from only one producer or company. They do not stock a
variety of products from various brands. They are under contract to deal in particular
products of only one parent company.
4. Retailers -Retailers are basically shop owners. Whether it is your local grocery store or
the mall in your area they are all retailers. The only difference is in their sizes.
Retailers will procure the goods from wholesaler or distributors and sell it to the final
consumers. They will sell these products at a profit margin to their customers.
Promotion - The promotion mix is a way for the company to communicate customer value
and build customer relationships based on a blend of promotional tools including advertising, sales
promotion, personal selling, public relations, and direct marketing (Kotler & Armstrong, 2014).

 Personal selling is one to one selling from the worker to the potential buyer. This is the most
expensive forms of promotion but creates a direct contact to the buyer. An example of this
promotional tool is telemarketing. A worker calls a potential buyer and explains the offerings of
the product personally.
 Advertising is a nonpersonal, paid promotional tool to promote ideas, goods, or services. This
tool would include billboards and magazine advertisements.
 Sales promotion are incentives to stimulate purchasing. An example would be McDonald’s
monopoly game that is only offered on occasions. Consumers are stimulated to buy items from
McDonalds in order gain more property pieces for a chance to win a prize.
 Public relation is a tool for the company to create a favorable image for them, their products
and services, and as well as their operations.
 Direct Marketing is advertising directly to a specific audience rather than a mass audience. This
allows companies to engage in a one way conversation with potential buyers and create lasting
relationships. An example of direct marketing is sending promotions through the mail to their
consumers or potential buyers.
What is the marketing mix?
 The marketing mix is a key foundation on which most modern marketing
strategies and business activities are based.
 The concept of the ‘Marketing Mix’ came about in the 1960s when 
Neil H. Borden, professor and academic, elaborated on James Culliton’s
concept of the marketing mix. Culliton described business executives as
‘mixers of ingredients’: the ingredients being different marketing concepts,
aspects, and procedures. 
 However, it’s now widely accepted that Jerome McCarthy founded the
concept. After all, it was McCarthy who offered the marketing mix as we
know it today; in the form of ‘The 4Ps of Marketing’: Product, Place, Price, &
Promotion.
The 7Ps

 The 4Ps then paved the way for two modern academics, Booms and Bitner,
who, in 1981, brought us the extended version of the marketing mix: the
‘7Ps’. The 7Ps comprise McCarthy’s 4 original elements, and extend to
include a further 3 factors: Physical Evidence, People, & Processes. 
 The 7Ps
1. Product. This could refer to a physical product, a service or an experience. Basically... anything that’s
being sold. 
2. Place. It signifies where you choose to distribute or allow access to your product or service. It could
refer to anything from a warehouse or a high-street store to an e-commerce shop or cloud-based
platform.
3. Price. How much does your product or service cost? The price you set should reflect your customer’s
perceived value of your product and should correlate with your budget.
4. Promotion. It refers to your advertising, marketing, and sales techniques. This could mean traditional
advertising, via TV, radio, billboards, etc., or more modern methods, like ads within web content, ads
on a podcast, email marketing or push notifications.
5. When we get down to the brass tacks, it’s important for consumers to know that the brand they’re
purchasing from or interacting with, are legitimate and, well, actually exist in real life. No Catfishing
 here, thank-you. That’s where physical evidence comes in. 
6. People. Those who are involved in selling a product or service, designing it, managing teams,
representing customers... the list goes on. The ‘people’ element of the 7Ps involves anyone directly, or
indirectly, involved in the business-side of the enterprise. 
7. Performance/ Productivity. This argued, elusive, eighth ‘P’ accounts for your ability to deliver to your
customers what you’ve promised. ‘Performance’ also involves things like quality, how you compete in
the marketplace and whether or not your goals are being achieved i.e. are your financial targets being
met?
Activity 1

 In this exercise you are required to select the most appropriate marketing strategy (from a list of four
presented) and then develop a suitable marketing mix to implement that strategy.  This activity will be
focused on the strategy and marketing mix for a proposed new chain of Italian and pizza restaurants.
The four possible strategies currently being considered by the firm’s investors are listed below.
Possible Strategy A
 Offer a unique range of high quality pizzas
 Use unusual ingredients (with choices such as oysters, kangaroo, avocado)
 Create innovative and unique pizza tastes
 Set new standards for pizza restaurants

Possible Strategy B
 Create a fun and exciting dining experience
 The restaurant should look and feel like a café in Italy
 Employ fun, outgoing and energetic staff
 Probably have a large outdoor dining area as well

Possible Strategy C
 Offer a very convenient service
 Aim to become the “McDonald’s” of pizza by offering very fast service (pizzas ready in 5 minutes and
home-delivered inside 20 minutes)
 Mainly take-away and delivery options

Possible Strategy D
 Become the discounters of pizza
 Focus on operating a very lean and efficient business and compete mainly on price and always undercut
the competition
 Have a ‘value’ based positioning focus
QUESTIONS:
1. Which of the four strategic options suggested would be the most effective in
competing in this market?

2. For the strategy that you selected in Q1, develop an appropriate marketing
mix (for example, what products should they offer, at what quality, with
what ingredient choices, and so on). You should either use the 4Ps or the 7Ps,
whichever one you believe is more suitable, (but ensure that your marketing
mix will effectively deliver the proposed strategy).

3. Do you think that this new pizza chain, as you have constructed it, will be
successful? Why?
Sources:

 FNB LMS
 https://blog.hurree.co/blog/marketing-mix-7ps
 https://www.greatideasforteachingmarketing.com/developing-a-marketing-m
ix/