Marketing Mix

4p's and 5p's

- Dr. Sourabh Chowdhuri
 Introduction
• This assignment sample discusses the concept of Marketing Mix andthe
various theories associated with it.

• "Marketing mix" is a general phrase used to describe the different kinds of

choices organizations have to make in the whole process of bringing a
product or service to market. The 4Ps is one way – probably the best-known
way – of defining the marketing mix, and was first expressed in 1960 by EJ
McCarthy.

• The 4Ps are:

• Product (or Service).
• Place.
• Price.
• Promotion.
 Introduction

Product Price

Target
Market
Place Promotion
 Introduction
Marketing mix is mainly of twotypes.

1)Product marketing mix – Comprised of Product, price, place and promotions.

This marketing mix is mainly used in case of Tangiblegoods.

2)Service marketing mix – The service marketing mix has three further variables
included which are people, physical evidence and process. They are discussed in
detail in the article on service marketingmix.

• Several strategic analysts over the years believe that the marketing mixcan
make or break the firm.
• Having the right marketing mix at the start of the marketing plan is absolutely
essential. Over time the concept of marketing mix has provided a steady
platform for the launch of a new product or business.
Marketing Mix 4p's and5p's

Product

People Price
Target
Market
Place Promotion
 Marketing Mix 4p's and5p's
Product
• Product is also the first variable in the marketing mix. Product decisions are the first
decisions you need totake before making any marketing plan.

• A product can be divided into three parts. The core product, the augmented product
and the tertiary product.

• Before deciding on the product component there are some questions which you need
to askyourself-

- What product are you selling?

- What would be the quality of your product?
- Which features are different from the market?
- What is the USPof the product?
- Whether the product will be branded as sub brand or completely new?
- What are the secondary products which can be sold along with primary (Warranty,
services)
 Marketing Mix 4p's and5p's
Product
• Based on these questions, several product decisions have to be made. These
product decisions will in turn affect the other variables of the marketing
mix.
For example – You launch a car with is to have the highest quality. Thusthe
pricing, promotions and placing would have to be alteredaccordingly.

• As long as you dont know your product, you cannot decide any other
variable of the marketingmix.
• If the product features are not fitting in the marketing mix, you can alter
the product such that it finds a place for itself in the marketing mix.
 Marketing Mix 4p's and5p's

Pricing
• Pricing of a product depends on a lot of different variables and hence it is
constantly updated.
• Major consideration in pricing is the costing of the product, the
advertising and marketing expenses, any price fluctuations in the market,
distribution costs etc.
• Many of these factors can change separately. Thus the pricing has tobe
such that it can bear the brunt of changes for a certain period of time.
• If all these variables change, then the pricing of a product has to be
increased and decreased accordingly.
 Marketing Mix 4p's and5p's

Pricing
• Along with the above factors, there are also other things which have to be taken in
consideration when deciding on a pricing strategy.
• Competition can be the best example. Similarly, pricing also affects the targeting
and positioning of a product. Pricing is used for sales promotions in the form of
trade discounts.
• Thus based on these factors there are several pricing strategies, one of which is
implemented for the marketing mix.
 Marketing Mix 4p's and5p's

Place
• Place refers to the distribution channel ofa product.
• If a product is a consumer product, itneeds to be available as far and wide
as possible. On the other hand, if the product is a Premium consumer
product, it will be available only in select stores.
• Similarly, if the product is a business product, you need a teamwho
interacts with businesses and makes the product available to them.
• Thus the place where the product is distributed, depends on the product
and pricing decisions, as well as any STPdecisions taken by a firm.

End
Company Distributor Retailers
Customer
 Marketing Mix 4p's and5p's

Place
• Distribution has a huge affect on the profitability of a product. Consider a FMCG
company which has national distribution for its product.
• An increase in petrol rates by 10 rs will in fact bring about drastic changes inthe
profitability of the company.
• Thus supply chain and logistics decisions are considered as very important costing
decisions of the firm.

Bulk End
Company Outlets
Buyers Customer
 Marketing Mix 4p's and5p's

Promotions
• Promotions in the marketing mix includes the complete integrated marketing
communications which in turn includes ATLand BTLadvertising as well as sales
promotions.

• Promotions are dependent a lot on the product and pricingdecision.

- What is the budget for marketing andadvertising?
- What stage is the product in?

• If the product is completely new in the market, it needs brand / product

awareness promotions, whereas if the product is already existing then it will need
brand recall promotions.
 Marketing Mix 4p's and5p's

Promotions
• Promotions also decide the segmentation targeting and positioning of the product.
The right kind of promotions affect all the other three variables
– product,
– price and
– place.

• If the promotions are effective, you might have to increase distributionpoints, you
might get to increase the price because of the rising brand equity of the product,
and the profitability might support you in launching even moreproducts.
• The budget required for extensive promotions is also high. Promotions is
considered as marketing expenses and the same needs to be taken in
consideration while deciding the costing of the product.
 Marketing Mix 4p's and5p's

People
• These are the people that bring your product to your customer and the people
that maintain this relationship after thepurchase.
• This can include sales reps, customer service, receptionists, shipping managers,
etc. People are an essential part of achieving your business’ marketing goals.

Things to consider aboutPeople

• If your product sells, you won’t be able to perform every role in your
business. You’re going to needhelp.
• Your people are an extension of your marketing plan and most often will bethe
people that are dealing directly with yourcustomers.
 Marketing Mix 4p's and5p's
People
• How well have you trained them?
• How do they respond if a customer becomesupset?
• They’ll need to if you expect them to communicate that message to your
customers.
 Conclusion
• The marketing mix is a very important aspect of creatinga
marketing strategy.
• Once the company develops a product or service that will
meet the customer's needs, it will then look into
determining how the consumer is ultimately going to
receive the product.
• It will be either through direct or indirect channels of
distribution and in some cases may have multiple channels.
• The company will then determine how to communicateto
the public about the new product or service.
• Finally, the company will determine a price for theproduct
or service that ensures a profit. Thus, the 5 P's of the
marketing mix.