MARKETING

MIX
PRINCIPLES OF MARKETING
Marketing Mix
Marketing Mix is a combination of
marketing tools that a company uses to
satisfy their target customers and
achieving organizational goals.
McCarthy classified all these marketing
tools under four broad categories:
>> Product , >> Price ,
>> Place , >> Promotion
The Marketing Mix
 The tools available to a business to gain the reaction
it is seeking from its target market in relation to its
marketing objectives
 7Ps – Price, Product, Promotion, Place, People,
Process, Physical Environment
 Traditional 4Ps extended to encompass growth of
service industry
Marketing’s
first task:
discovering
consumer
needs
Marketing’s second task: satisfying consumer needs
 Marketing Mix – 4Ps
The marketing mix elements that make up an
organization’s marketing program:

1. Product
2. Promotion
3. Price
4. Place
These are management decisions,
controllable factors
1. PRODUCT
Product
What is a Product?
There are 4 general categories
of ‘products’:
Can you think of
an example for
 Good each category?
 Service
 Place
 Person
Product
Product refers to the goods and services offered by
the organization.
A pair of shoes, a plate of rice, a lipstick, all are
products.
All these are purchased because they satisfy one or
more of our needs. We are paying not for the
tangible product but for the benefit it will provide.
So, in simple words, product can be described as a
bundle of benefits which a marketer offers to the
consumer for a price.
Product
It is important to note that people generally want
to acquire the benefits of the product, rather than
its features. For example for buying a motor car a
person is buying such thing as luxury or speed or
economy or status. The facts that these benefits
are achieved by differences in engine size
suspension design or paintwork is really of
secondary interest. All the organizations are
selling benefits of the product to their customers.
 goods are materials that
satisfy human wants
Goods and provide utility
Services
-activities, benefits and satisfactions
which are offered for sale or are provided
in connection with the sale of goods.
Place
Person
Tangible & Intangible!
What is the
difference
between
TANGIBLE &
INTANGIBLE?
Tangible
refers to things that are physical,
that is, items that can be
touched, seen, heard or smelled.
 gives your customers a concrete
object to hold in their hands.
Intangible
 An intangible good is a good that does not
have a physical nature, as opposed to a
physical good (an object).
 In ordinary sense, an intangible good should
not be confused with a service, since a good
is an object, whereas a service is an activity
or labor. So a haircut is a service, not an
intangible good.
 Product Decisions

Branding Quality Features

Benefits offered

We must remember that Marketing is fundamentally

about providing the correct bundle of benefits to the end
user, hence the saying ‘Marketing is not about providing
products or services it is essentially about providing
changing benefits to the changing needs and demands of
the customer’ (P.Tailor 7/00)
Tangible & Intangible
Products
Tangible Intangible
 Is more quantitative…
 Is more qualitative…
 Can be measured
specifically & see the  Cannot be
actual results scientifically measured.

 E.g. Car speed, safety  Focuses on how people

standards, efficiency feel or the image or
(mpg) pleasure gained…
2. PRICE
Price
 Pricing Strategy

 Importance of:
 knowing the market
 elasticity
 keeping an eye
on rivals
3. Promotion
Promotion
 Strategies
to make the consumer
aware of the existence
of a product
or service
 NOT just advertising
Trade Promotion
Trade Promotion refers to
marketing activities that
are executed in retail
between manufacturers
and retailers.
4. Place
 What is place?
Place is the term that we give to distribution.
Distribution is the process of getting the firm’s
product to the market. It can come in a variety
of forms.
This is a crucial element of the marketing mix –
a firm might have the best products in the
market but if the market cannot access the
products then the firm will not be successful.
2.18 Place
Manufacturer
a person or company that makes
goods for sale.
Wholesaler
 Act as a link between
producer and retailer

 Buy in bulk and break

down to smaller units to
retailer

 They act as a storage

place.
Examples of Wholesalers
Retailer
 a person or business that sells goods to
the public in relatively small quantities for
use or consumption rather than for
resale.
Physical Environment
 The ambience, mood or physical presentation of the
environment
 Trendy/retro/modern/old fashioned
 Light/dark/bright/subdued
 Romantic/chic/loud
 Clean/dirty/messy/neat
 Music
 Smell
The Marketing Mix
Blend of the mix depends upon:
 Marketing objectives
 Type of product
 Target market
 Market structure
 Rivals’ behaviour
 Global issues – culture/religion, etc.
 Marketing position
 Product portfolio
 Product lifecycle
 Boston Matrix
END