This document discusses the marketing mix, which consists of the "four Ps" of product, price, place, and promotion. It also discusses the expanded "seven Ps" for services, which include physical evidence, people, and process. Each P is defined, with product discussing the product life cycle and mix, and the other Ps outlining key considerations for that element of the marketing mix. The marketing mix is presented as a crucial tool for marketers to determine how to position offerings and ensure each element complements the others.
This document discusses the marketing mix, which consists of the "four Ps" of product, price, place, and promotion. It also discusses the expanded "seven Ps" for services, which include physical evidence, people, and process. Each P is defined, with product discussing the product life cycle and mix, and the other Ps outlining key considerations for that element of the marketing mix. The marketing mix is presented as a crucial tool for marketers to determine how to position offerings and ensure each element complements the others.
This document discusses the marketing mix, which consists of the "four Ps" of product, price, place, and promotion. It also discusses the expanded "seven Ps" for services, which include physical evidence, people, and process. Each P is defined, with product discussing the product life cycle and mix, and the other Ps outlining key considerations for that element of the marketing mix. The marketing mix is presented as a crucial tool for marketers to determine how to position offerings and ensure each element complements the others.
This document discusses the marketing mix, which consists of the "four Ps" of product, price, place, and promotion. It also discusses the expanded "seven Ps" for services, which include physical evidence, people, and process. Each P is defined, with product discussing the product life cycle and mix, and the other Ps outlining key considerations for that element of the marketing mix. The marketing mix is presented as a crucial tool for marketers to determine how to position offerings and ensure each element complements the others.
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Marketing Management
Process and Marketing Mix
The Marketing Mix The Marketing Mix The term was coined by James Culliton. It is the sole vehicle for creating and delivering customer value. The marketing mix is a business tool used in marketing and by marketing professionals. The marketing mix is often crucial when determining a product or brand's offer, and is often synonymous with the four Ps: price, product, promotion, and place; in service marketing, however, the four Ps have been expanded to the Seven Ps to address the different nature of services. The other three P’s are: Physical Evidence, People and Process Product A product is seen as an item that satisfies what a consumer demands. It is a tangible good or an intangible service. Tangible products are those that have an independent physical existence. Every product is subject to a life-cycle including a growth phase followed by a maturity phase and finally an eventual period of decline as sales falls. Marketers must do careful research on how long the life cycle of the product they are marketing is likely to be and focus their attention on different challenges that arise as the product move.
The marketer must also consider the product mix. Marketers
can expand the current product mix by increasing a certain product line's depth or by increasing the number of product lines. Marketers should consider how to position the product, how to exploit the brand, how to exploit the company's resources and how to configure the product mix so that each product complements the other. Product • Refers to the benefits of buying a product – What need does the service/product fulfill – Quality • What will the quality of your service/product be? – Features • How will your product/service differ from the competition • What will you do differently? – Design • How is it going to look? • Consumers often will purchase because “it looks cool” Packaging – if your selling a product what image will the packaging communicate? If a service – how will the appearance of your operation communicate an image about your business Range of Products – what complimentary products may you offer If service: Will you offer other products with your service Price The amount a customer pays for the product. The price is very important as it determines the company's profit and hence, survival. Adjusting the price has a profound impact on the marketing strategy, and depending on the price elasticity of the product, often it will affect the demand and sales as well. The marketer should set a price that complements the other elements of the marketing mix When setting a price, the marketer must be aware of the customer perceived value for the product. Three basic pricing strategies are: market skimming pricing market penetration pricing and neutral pricing.
The 'reference value' (where the consumer
refers to the prices of competing products) and the 'differential value' (the consumer's view of this product's attributes versus the attributes of other products) must be taken into account Place Refers to providing the product at a place which is convenient for consumers to access. Various strategies such as intensive distribution, selective distribution, exclusive distribution and franchising can be used by the marketer to complement the other aspects of the marketing mix. Promotion All of the methods of communication that a marketer may use to provide information to different parties about the product. Promotion comprises elements such as: advertising, public relations, sales organisation and sales promotion Promotion Advertising covers any communication that is paid for, from cinema commercials, radio and Internet advertisements through print media and billboards. Public relations is where the communication is not directly paid for and includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events. Word-of-mouth is any apparently informal communication about the product by ordinary individuals, satisfied customers or people specifically engaged to create word of mouth momentum. Sales staff often plays an important role in word of mouth and public relations People People are an essential ingredient in service provision; recruiting and training the right staff is required to create a competitive advantage. Customers make judgments about service provision and delivery based on the people representing your organisation. This is because people are one of the few elements of the service that customers can see and interact with. Process This element of the marketing mix looks at the systems used to deliver the service. All services need to be underpinned by clearly defined and efficient processes. This will avoid confusion and promote a consistent service. In other words processes mean that everybody knows what to do and how to do it. Physical Evidence Physical evidence is about where the service is being delivered from. It is particularly relevant to retailers operating out of shops. This element of the marketing mix will distinguish a company from its competitors. Physical evidence can be used to charge a premium price for a service and establish a positive experience. For example all hotels provide a bed to sleep on but one of the things affecting the price charged, is the condition of the room (physical evidence) holding the bed. Customers will make judgments about the organisation based on the physical evidence. For example if you walk into a restaurant you expect a clean and friendly environment, if the restaurant is smelly or dirty, customers are likely to walk out. This is before they have even received the service. Summary Marketing Mix involves Product, Price, Place, Promotion, People, Process and Physical Evidence. Firms marketing a product or service need to get each of these elements correct.