MARKETING

CHAPTER 6
MARKETING MIX
)
PRODUCT

 A good product makes its marketing by itself

because it gives benefits to the customer.

 Differentiate your product with design,

features, packaging, services, warranties,
return and so on. In general, differentiation is
mainly related to:
What is the product?

 Product -a physical product or a service is

your "product". The product and it’s benefits
are in a constant rotation of the product life-
cycle and need help from the other “P’s” to
compete in this hyper-competitive
environment.
of the packaging:

 Think about a product that comes to your

mind because of the packaging:
MARKET SEGMENTATION

 Market segmentation is a marketing strategy

that involves dividing a broad target market
into subsets of consumers who have common
needs (and/or common desires) as well as
common applications for the relevant goods
and services.
 Depending on the specific characteristics of the
product, these subsets may be divided by
criteria such as age and gender, or other
distinctions, such as location or income
GEOGRAPHIC SEGMENTATION

The market is segmented according to

geographic criteria—nations, states, regions,
countries, cities, neighborhoods, or zip codes.

 With respect to region, in rainy regions you

can sell things like raincoats, umbrellas and
gumboots. In hot regions you can sell
summer wear. In cold regions you can sell
warm clothes.
DEMOGRAPHIC SEGMENTATION

Demographic segmentation consists of dividing the market

into groups based on variables such as age, gender, family size,
income, occupation, education, religion, race and nationality.
As one might expect, demographic segmentation variables
are amongst the most popular bases for segmenting customer
groups.
This is partly because customer wants are closely linked to
variables such as income and age.
Also, for practical reasons, there is often much more data
available to help with the demographic segmentation process.
PSYCHOGRAPHIC SEGMENTATION

Psychographics is the science of using

psychology and demographics to better
understand consumers.
Psychographic segmentation: consumer are
divided according to their lifestyle,
personality, values and social class.
People within the same demographic group
can exhibit very different psychographic
profiles
BEHAVIORAL SEGMENTATION

 In behavioral segmentation, consumers are divided into

groups according to their knowledge of, attitude towards, use
of or response to a product. It is actually based on the
behavior of the consumer.
Occasions
 Segmentation according to occasions. We segment the
market according to the occasions of use. For example,
whether the product will be used alone or in a group, or
whether it is being purchased as a present or for personal use.
Benefits
Segmentations according to benefits sought by the consumer.
PLACE

" HOW TO REACH THE CUSTOMER"

The place is where you can expect to fi nd
your customer and consequently,
where the sale is realized. Knowing
this place, you have to look for a
distribution channel in order to reach
your customer.
  Place is where you sell your product,
distribution channels, and now the internet
(not part of the thought process in the
original 1960’s model).
 How long will it take to get a item, or
complete a job.
 Where are you based, and how is the item to
be delivered.
 Speed is of the essence in the modern world
IMPORTANT:
The place is not where is located your
business but where your customers are.
PRICE

 Never assume that a low price will mean higher

profits.

 If you are selling quality then the price should and

will be higher than the average.

 Too lower price and effect the overall view of your

company.
 Add-ons and extras that could be included in your
deals.
PROMOTION

 This very much ties in with the first P, what

need is there for your product.

 How can you educate your customer to

understand its worth.

Why they should buy the product at all.

why from you?
PROCESS

 The buying experience is becoming more and more

important as the public learns to expect better service.
 A poor process will lead to a poor user experience.

 Some of the questions covered by Process within the

components of the marketing mix are not
only where and how customers will do business with you but
what added value you provide and how you can develop
relationships and provide an interactive experience.
 In cultivating long term relationships with
your customers, Process within the new
marketing mix will come to include not only
how you promote and deliver the value you
create but also how you educate
and support customers on an ongoing basis.
PHYSICAL EVIDENCE

 User can make a good use of it?

 Are your offices or shop present looking
appropriately smart and well kept? (Clean,
organised, pleasant surroundings will have a
really good impact on your customers’ view
of your service)
 Within the new marketing mix structure this
refers to whatever your customers
can see before purchasing. This can include
the physical environment, packaging,
supporting collateral and anything else that
helps in presentation.
 Physical Evidence as one of the components
of the marketing mix is most useful in selling
and marketing services and intangible
products. Whenever your customer can't feel
or see your end product, then supporting
physical evidence they can see and feel
becomes important.
 Physical Evidence within the marketing mix
structure should once be tied into trying to
understand your customer's perspective.

 What experience are you providing them

during the purchase process itself?

 Is it pleasant and rewarding doing business

with you?
PEOPLE

 Your front-line staff also strongly impact on

the perceptions and experiences of your
customers.
 In what way is your offering a good deal for
the customer?

 Productivity always needs to be tied with

quality; you supply the best, and use the best
products, procured fairly at the lowest cost.
DISTRIBUTION CHANNEL

The choice of your distribution channel heavily

depends on your product and place:
MANUFACTURER

WHOLESALER

RETAILER

CONSUMER
PRICE

Pricing strategies:

a) Competitive Pricing: If your product is sold

at the lowest price regarding all your
competitors, you are practicing competitive
pricing.
Remember that the success of competitive
pricing strategy depends on achieving high
volume and low costs.
 -Value pricing: It means that you base your
prices on the value you deliver to customers.
For example, when a new technology has a
very large success, you can charge high prices
to the customer. This practice is also called
skimming.
 It is easy when you are in the introductory
phase of the product life cycle.
 The higher the price, the more you sell
 Of course value pricing is limited by the price
elasticity
PROMOTION

 -Definition: The function of promotion is to

affect the customer behavior in order to
close a sale.
 Advertisement
 Public relations
 Sales promotions.
Advertisement:
TV, radio, internet, newspapers, yellow pages, and
so on. You have to take notice about three
important notions: Must be exposed to it 7 times.
Some magical words
Your-You--I-Me-My--Now-Today
-Fast-Easy-Cool-New-Fun-Updated-Free-Exciting-
Astonishing
-Success-Love-Money-Comfort-Protection-
Freedom-Luck.
Public relations:
 Public relations are more subtle and rely
mainly on your own personality.
Sales promotion:
 It includes fair trades, coupons, discounts and
are linked to the sales strategy.
Summary:

Product. This is “the thing” that will fulfill the needs of

your customer. If your product is faulty, every thing else
fails.
Price has a lot of impact on the service buyer’s
satisfaction level. Often, paying a higher price makes a
customer more satisfied
. What is important to note that services being all the
more intangible, the price becomes an important factor
for the actual service consumption to happen, after
service awareness and service acknowledgement.
 .
 Promotion plays a role in the perception the
possible target audience may have about
your service.

 Place refers to providing the product at a

place which is convenient for consumers to
access. Place is synonymous with
distribution.
 People is crucial in service delivery. The best food may not
seem equally palatable if the waitress is in a sour mood.

 A smile always helps. Intensive training for your human

resources on how to handle customers and how to deal with
contingencies, is crucial for your success.

 Processes are important to deliver a quality service. Services

being intangible, processes become all the more crucial to
ensure standards are met with. Process mapping ensures
that your service is perceived as being dependable by your
target segment.
 Physical evidence affects the customer’s satisfaction.
Often, services being intangible, customers depend
on other cues to judge the offering.

 EXAMPLE: This is where physical evidence plays a

part. Would you like eating at a joint where the table
is greasy or the waitresses and cooks look untidy and
wear a stained apron? Surely you would evaluate the
quality of your experience through proxies such as
these.