Marketing Mix: The 7P's of Marketing

Marketing
Mix:
The 7P’s of
Marketing
Marketing Mix
•The Marketing Mix is one of two interrelated
components of strategy
•The Marketing Mix, more popularly referred to as
the 7Ps of Marketing is a set of controllable and
interrelated variables composed of product, place,
price and promotions that a company assembles to
satisfy a target group better than it’s competitor.
•Marketing Mix strategy is choosing and
implementing the best possible course of action to
attain the organization’s long- term objectives and
gain competitive edge.
Product, PACKAGING, Place
,PHYSICAL Appearance,
Promotions , Price , People
Product
To satisfy the needs and wants of the
target market.
Place
To make the product conveniently
available to the target market consistent
with their purchasing pattern.
Promotions
To build and improve consumer demand.
Promotions has four components called the
Promotions Mix as follows:
•Advertising – to effectively inform and

persuade the target market
•A Public Relations – to offer a positive
image of the company and the brand
•Selling – to get the customers buy
•Sales Promotions – to convince
customers to buy immediately
Price
To make the product affordable to the
target market and reflect the value of
benefits provided.
People
They are the target consumers of the company.
They are the ones who are the consumers
Physical Appearance
Physical appearance is the first distinction of a product. A
product could be easily recognized by it’s appearance.
Process
The process of the product is essential in marketing. This
determines the capability of the product to supply the
demand of the consumers.
•Product, place and people are
considered as the strategic Ps
of marketing mix since they
cannot be changed overnight.
•Promotions, price, process and

physical appearance are
considered as the tactical Ps of
marketing mix because these
can be changed more easily.
Buyer Behavior
•An important component of the consumer purchase decision-making process.
The Factors Influencing

Buyer Behavior in
Consumer Markets
•Cultural Factors
•Social Factors
•Personal Factors
•Psychological Factors
Cultural Factors
•Culture and sub-culture – Many older

Chinese like to eat Shark’s fin soup as
well as Bird’s nest soup, which
environmentalist despise.
Social Factors
•Reference Group – High-end brands like Nike shoes or
acquiring a Globe celphone to be a member of their Gen Txt
Club are examples of how peers can affect a purchase
•Family – demand for products such as PLDT long-distance

calls is influenced by the Pinoy’s strong family attachment
•Role and statutes – Mont Blanc pens are positioned as the pen
for presidents of companies, as well as countries. Johnny Walker
Label is another example of whiskey positioned for successful
people.
Personal Factors
•Age and life cycle – Retirees are the prime market for
many luxury cruises, as it is consistent with the slow,
relaxing pace they desire.
•Occupation – Pamper Uni are bought by working mothers
who cannot afford to rest in the morning. The International
School targets children of expatriates.
•Economic Circumstances – Network marketing offers
equal opportunity to those who want to start and grow their
own business without the large capital involved in putting
up traditional businesses.
•Lifestyle – Kraft imported cheese and Lazy Boy chairs
are examples of lifestyle products.
•Personality and Self-concept – Premium brands like
Rolex, cars and even clothes are driven by how the buyer
looks at himself of herself
Psychological Factors
Motivation – Many government employees now
enroll in graduate school to gain the
competitive advantage versus their peers in
aspiring for a promotion.
Learning – AMC cookware utilizes demonstration to
show the product’s unique ability to fry chicken
without oil, boil egg without water and cook food
simultaneously without taste transfer using low
fire. .
Beliefs and Attitudes – Sony is believed to be a

brand with a higher quality. Some consumers think
that installing chimes can bring in good luck to
homes and offices. A diamond ring is a must in
every engagement and wedding
Product Value
•Products may either be superior, at par with (the

same), or basic to those competition.
•A superior product satisfies more needs and
wants of customers while a basic product satisfies
lesser needs.
•While our initial tendency is to think that
consumers enjoy superior products all the time, we
must realize that products with less features may
still be desired by the lower income consumer
segment.
Marketing Program
•After product value is formulated and accepted to the
target customers, marketing programs are then
assembled by identifying which of the marketing mix
component should logically be the main weapon and
which should be the support strategy.
Product Program
Value (Marketing)
(Competitiveness
)
1.Distribution Driven
• Some companies are distribution-driven, meaning,
their product must be available when and where
customers expect them to be. Their location are
the single most important factor in their business.
2. Selling – Driven
• Some companies are selling driven especially
when products are only available through the
salesman.
3. Sales Promo – Driven
•Other companies that are sales promo driven are fast
food parlors like Jolibee and Mc Donalds which have
at least eight major promo campaign yearly to bring
back consumers to the store as often as possible.
4. Price – Driven
•Makro is a price driven brand. Without any fancy display,
Makro boasts of rock-bottom prices everyday, which
attract people to visit the hypermarket.
5. Advertising – Driven
•Coke is advertising-driven. It intends to be top-of-mind in the soft drinks
industry as it constantly reminds consumers of the different usage
occasions for Coke. Its ad-driven strategy is supported with a heavy
distribution effort, sales promo support and parity pricing with competition.
Diagnostic Marketing Mix
•Diagnostic marketing mix entails the matching of correctly
defined marketing problems with the proper marketing solution.
Marketing Problem Marketing Solution
Low awareness level Advertising
Low Availability Placement
Low Trial Rate Pricing and/or

Promotions
Low Repeat Purchase Product and/or Service
Quality
•The marketing mix of a company seldom stays the same.
•Marketers must therefore have a systematic way of reviewing
what worked and why, what didn’t work and why.
•Answering these queries are a prerequisite before planning
what should be added or what should be dropped in order to
attain, enhance or maintain competitive edge.
• Competitive advantage is secured by providing better or best
value in the perception of the customer, relative to all your
competitors.
• A company’s capabilities can become a true competitive
advantage if the following 5 criteria are met:
1. It is valuable in the marketplace

2. It is superior in the marketplace
3. It is difficult to match or imitate
4. It is difficult to substitute
5. It is difficult to trade and gain
Marketing Plan
•The marketing mix is actually the heart of an
important company document called the
marketing plan, which outlines how the company
intends to grow in the marketplace and win
against competition.
•The marketing plan is usually formulated
annually, but results are reviewed monthly.
4S’s in Marketing Plan
• The marketing mix can change over time.
However, all marketing programs must be able
to meet the 4 basic criteria to be considered a
diligently through-out campaign
1. Sufficiency – the marketing mix must be

able to adequately meet the defined
marketing objectives. This means ambitious
growth objectives would naturally need the
corresponding heavier investment in
marketing support programs.
2. Selective – the marketer must be able to consider
all potential alternatives of each marketing mix before
short-listing all possible combinations of the marketing
mix that can meet their marketing objectives. The one
that can provide the best profitability is the one logically
to be chosen. This is not easy as there are literally
millions of combinations. But the least the marketing
man can do is to short list the more obvious one and
apply due diligence in planning each possible option.
3.Synchronize – when the marketing mix is selected,
the different elements must combine harmoniously for
the brand become successful. For example, a marketer
cannot choose to invest in heavy advertising of a low
quality product sold on a high price. In such a case, the
elements of the marketing mix is not logically
synchronized.
4.Sustainability – the marketing mix that is finally

chosen must be able to last in the long term vis-à-vis
competition. For instance, a lower price strategy not only
risks a price war but is not sustainable unless the firm is
the cost leader in the industry.

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Marketing

•Advertising – to effectively inform and

•Promotions, price, process and

The Factors Influencing

•Culture and sub-culture – Many older

•Family – demand for products such as PLDT long-distance

Beliefs and Attitudes – Sony is believed to be a

•Products may either be superior, at par with (the

Marketing Problem Marketing Solution

Low awareness level Advertising

Low Availability Placement

Low Trial Rate Pricing and/or

1. It is valuable in the marketplace

1. Sufficiency – the marketing mix must be

4.Sustainability – the marketing mix that is finally

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