Marketing Mix: The marketing mix is the set of marketing tools the firm uses to pursue its marketing

objectives in the target market. McCarthy classified these tools into four
broad groups that he called the four P’s of marketing: product, price, place and promotion.

Product refers to a good or service that meets a customer's needs. Here, companies focus on features that differentiate it from its competitors. An organization may also
consider complementary products that fit within its suite of product or service offerings.

Price represents the price point or price range for the product or service. Ultimately, the goal is to maximize profit margins and return on investment while considering the
price that customers are willing to pay.
Placement refers to distribution channels. Specifically, where is this product being promoted, and how can you get it in front of your target audience?
Promotion focuses on creating brand awareness around your product or service. Importantly, it looks at how utilizing certain channels can drive sales.
Holistic Concept: this is the most recent concept of marketing which is based on the development, design and implementation of marketing programs processes and activities
from a broad integrated perspective. It is the integration of internal marketing, integrated marketing, relationship marketing and performance marketing concept
Societal Marketing Concept: It holds the idea that the organization should determine the needs, wants and interests of target markets and deliver the desired satisfactions more
effectively and efficiently than do competitors in a way that maintains or improves the consumer’s and society’s well being. This concept calls on marketers to balance three
considerations in setting their marketing policies: company profits, consumer wants and society’s interests. It emphasizes on both the short run wants and long run welfare of
consumers.
Marketing Environment: Marketing activities are influenced by several factors inside and outside a business firm. These factors or forces influencing marketing decision
making are collectively called marketing environment. It comprises all those forces which have an impact on market and marketing efforts of the enterprise. According to Philip
Kotler “Marketing environment refers to external factors and forces that affect the company’s ability to develop and maintain successful transaction and relationship with its
target customers.”
External Micro Factors:
Suppliers: They are the people who provide necessary resources needed to produce goods & services. Policies of the suppliers have a significant influence over the marketing
manager’s decisions because , it is labourer’s, etc. A company must build cordial & long-term relationship with suppliers.
Marketing Intermediaries: They are the people who assist the flow of products from the producers to the consumers; they include wholesalers, retailers, agents, etc. These
people create place & time utility. A company must select an effective chain of middlemen, so as to make the goods reach the market in time.
Consumers: The main aim of production is to meet the demands of the consumers. Hence, the consumers are the center point of all marketing activities. If they are not taken into
consideration, before taking the decisions, the company is bound to fail in achieving its objectives. A company’s marketing strategy is influenced by its target consumer
Competitors: A prudent marketing manager has to be in constant touch regarding the information relating to the competitor’s strategies. He has to identify his competitor’s
strategies, build his plans to overtake them in the market to attract competitor’s consumers towards his products.
External Macro Environment:
These are the factors/forces on which the company has no control. Hence, it has to frame its policies within the limits set by these forces:
.Demography: It is defined as the statistical study of the human population & its distribution. This is one of the most influencing factors because it deals with the people who
form the market. A company should study the population, its distribution, age composition, etc before deciding the marketing strategies. Each group of population behaves
differently depending upon various factors such as age, status, etc. if these factors are considered, a company can produce only those products which suits the requirement of the
consumers
Economic Environment: A company can successfully sell its products only when people have enough money to spend. The economic environment affects a consumer’s
purchasing behavior either by increasing his disposable income or by reducing it. Eg: During the time of inflation, the value of money comes down. Hence, it is difficult for
them to purchase more products. Income of the consumer must also be taken into account.
Physical Environment or Natural Forces: A company has to adopt its policies within the limits set by nature. A man can improve the nature but cannot find an alternative for it.
Nature offers resources, but in a limited manner. A product manager utilizes it efficiently. Companies must find the best combination of production for the sake of efficient
utilization of the available resources. Otherwise, they may face acute shortage of resources. Eg: Petroleum products, power, water, etc.
Technological Factors: From customer’s point of view, improvement in technology means improvement in the standard of living. In this regard, it is said that “Technologies
shape a Person’s Life”. Every new invention builds a new market & a new group of customers. A new technology improves our lifestyle & at the same time creates many
problems. Eg: Invention of various consumer comforts like washing machines, mixers, etc have 29 resulted in improving our lifestyle but it has created severe problems like
power shortage.
Social & Cultural Factors: Most of us purchase because of the influence of social & cultural factors. The lifestyle, values, believes, etc are determined among other things by the
society in which we live. Each society has its own culture. Culture is a combination of various factors which are transferred from older generations & which are acquired. Our
behaviour is guided by our culture, family, educational institutions, languages, etc.
Importance of Segmentation: Market segmentation being customer-oriented is resemblance with the marketing concept philosophy. In market segmentation, a company first
identifies the needs of consumers within a segment and then decides if it is practical to develop a product and marketing mix to satisfy those needs. By practicing market
segmentation and a company may obtain the following advantages and benefits.
 By tailoring marketing programs to each market segment, a company can do a better marketing job and can make more efficient use of its marketing resources.
 A small company with limited resources may be in a better position to compete more effectively in one or two small market segments, whereas the same company would be
overwhelmed by the competition from bigger companies if it aimed for a major segment.
 A company with effective market segmentation strategy can create a more finetuned product or service offering and price it appropriately for the target segment.
 The company can more easily select the most appropriate distribution network and communication strategy, and it will be able to understand its competitors in a better way,
which are serving the same segment.
 By developing strong position in a specialized market segments, a mediumsized company can grow rapidly.
 Even very large companies with the vast resources at their disposal are abandoning mass marketing strategies and embracing market segmentation 44 as more effective
strategy to reach various market segments in broad product market
Segmentation, Target market and Positioning: Segmentation is the breaking down of large markets into sub markets or segments of consumers that are similar in terms of
needs wants ad buying habits. The first method of segmenting a market is demographic segmentation. In demographic segmentation factors like age, gender, income, education,
occupation, marital status family cycle and ownership of durables are used for determining consumer segments. Market Segmentation means dividing a market into smaller
groups of buyers on the basis of different needs, characteristics or behavior. Market segments can be identified by examining geographic, demographic, psychographic and
behavioral differences. The marketer then decides which segments present the greatest opportunity which is its target market. For each chosen target market, the firm develops a
market offering. The offering is positioned in the minds of the target buyers as delivering some central benefits. Thus, product positioning is the way a product occupies a place
in the minds of the customers relative to competing products. Like, Volvo, positions its car as the safest a customer can buy, where Ford positioned on economy and Mercedes
and Cadillac positioned on Luxury
The target Market: After having divided the market into various segments, the retailer now needs to decide on whom he is going to cater to. The consumer segment that he
decides to cater to is known as the target market. While selecting a target market he needs to look at the ability of the retail organization to meet the needs of the segment, the
size and the future growth potential of the segment the kind of investment that would be required and the kind of profits that could be earned.
Consumer behaviour: Consumer behaviour is helpful in understanding the purchase behaviour and preferences of different consumers. As consumers, we differ in terms of our
sex, age, education, occupation, income, family set-up, religion, nationality and social status. Because of these different background factors we have different needs and we only
buy those products and services which we think will satisfy our needs. In marketing terminology, specific types or group of consumers buying different products (or variation of
the same basic product) represent different market segments.
Factors Influencing Consumer Behaviour: Consumer behaviour is affected by a host of variables, ranging from personal motivations, needs, attitudes and values, personality
characteristics, socio- economic and cultural background, age, sex, professional status to social influences of various kinds exerted by family, friends, colleagues and society as
a whole.
Psychological factors such as individual consumer needs and motivations, perceptions, attitudes, the learning process and personality characteristics are the similarities which
operate across different types of people and influence their behaviour.
Amongst the social influences affecting behaviour, we can classify the influences of family, friends, leaders and the social class to which the 'consumer belongs. Figure II
exhibits a detailed model of factors influencing consumer behaviour. We shall discuss these factors one by one and see how they influence the individual's behaviour as a
consumer
Distribution: Distribution is fundamentally concerned with ensuring that products reach target customers in the most direct and cost efficient manner. In the case of services,
distribution is principally concerned with access. Although distribution, as a concept, is relatively simple, in practice distribution management may involve a diverse range of
activities and disciplines including: detailed logistics, transportation, warehousing, storage, inventory management as well as channel management including selection of
channel members and rewarding distributors.
Types of Channels Normally goods and services pass through several hands before they come to the hands of the consumer for use. But in some cases producers sell goods and
services directly to the consumers without involving any middlemen in between them, which can be called as direct channel. So there are two types of channels, one direct
channel and the other, indirect channel. From the above diagram it can be found that there is just one direct channel i.e. from producer to the consumer. There are many indirect
channels like:
Typical intermediaries involved in distribution include: Wholesaler: A merchant intermediary who sells chiefly to retailers, other merchants, or industrial, institutional, and
commercial users mainly for resale or business use. The transactions are B2B (Business to Business). Wholesalers typically sell in large quantities. (Wholesalers, by definition,
do not deal directly with the public).
Retailer: A merchant intermediary who sells direct to the public. There are many different types of retail outlet - from hypermarts and supermarkets to small, independent stores.
The transactions in this case are B2C (Business to Customer).
Agent: An intermediary who is authorized to act for a principal in order to facilitate exchange. Unlike merchant wholesalers and retailers, agents do not take title to goods, but
simply put buyers and sellers together. Agents are typically paid via commissions by the principal. For example, travel agents are paid a commission of around 15% for each
booking made with an airline or hotel operator.s
Jobber: A special type of wholesaler, typically one who operates on a small scale and sells only to retailers or institutions. For example, rack jobbers are small independent
wholesalers who operate from a truck, supplying convenience stores with snack foods and drinks on a regular basis.
Marketing Communication: Marketing communications uses different marketing channels and tools in combination: Marketing communication channels focuses on any way a
business communicates a message to its desired market, or the market in general. A marketing communication tool can be anything from: advertising, personal selling, direct
marketing, sponsorship, communication, promotion and public relations. Marketing communications are made up of the marketing mix which is made up of 4P's: Price,
Promotion, Place and Product, for a business selling goods, and made up of 7P's: Price, Promotion, Place, Product, People, Physical evidence and Process, for a service based
business.
Elements of promotion mix
The Promotion Mix is the integration of Advertising, Personal Selling, Sales Promotion, Public Relations and Direct Marketing. The marketers need to view the following
questions in order to have a balanced blend of these promotional tools
1.ADVERTISING : The use of paid media by a seller to communicate persuasive information about its products, services, or organization—is a potent promotional tool.
Advertising takes on many forms (national, regional, local, consumer, industrial, retail, product, brand, institutional, etc.) designed to achieve a variety of objectives (awareness,
interest, preference, brand recognition, brand insistence). Advertising decision-making consists of objectives setting, budget decision, message decision, media decision, and ad
effectiveness evaluation.
2.SALES PROMOTION: Sales promotion covers those marketing activities other than advertising, publicity, and personal selling that stimulate consumer purchasing and dealer
effectiveness. Sales promotion mainly involves short-term and non-routine incentives, offered to dealers as well consumers. The popular methods used for sales promotion are
demonstration, trade show, exhibition, exchange offer, seasonal discount, free service, gifts, contests, etc. These Promotional tools include sales promotion which further
contains a broad assortment of elements like  Coupons  Cent-off Deals  Premiums  Other Tools
3.PERSONAL SELLING: Personal selling includes face-to-face personal communication and presentation with prospects (potential and actual customers) for the purpose of
selling the products. It involves personal conversation and presentation of products with customers. It is considered as a highly effective and costly tool of market promotion.
127 At certain stages of the buying process, personal selling is the most effective promotion tool in creating customer’s preferences, convictions and actions. In personal selling,
personal interactions between two or more people take place that can allow both parties to understand the characteristics and needs of one another and take immediate
adjustments
4.PUBLIC RELATION: Public relations are much different from the ads and they are more influential than these ads. Public relations consist of news stories, events and
features that are considered as more real and therefore the readers also consider them more believe able. Many prospects avoid advertisements and personal selling, but they can
also be influenced by public relations. The real message in public relations is considered to be “news” by the customers rather than as a sales centered communication.