“Putting the right product in the right place, at the right price, at the right time.

It's simple! You just need to create a product that a particularly group of people
want, put it on sale some place that those same people visit regularly, and price it
at a level which matches the value they feel they get out of it; and do all that at a
time they want to buy. Then you've got it made!

"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 4 Ps is one way - probably the best-known way - of defining the
marketing mix.

The 4Ps are:

 Product (or Service)

 Place
 Price
 Promotion

Product/Service

 What does the customer want from the product/service? What needs does it
satisfy?
 What features does it have to meet these needs?
 Are there any features you've missed out?
 Are you including costly features that the customer won't actually
use?
 How and where will the customer use it?
 What does it look like? How will customers experience it?
 What size(s), color(s), and so on, should it be?
 What is it to be called?
 How is it branded?
 How is it differentiated versus your competitors?
 What is the most it can cost to provide, and still be sold sufficiently
profitably?
Place

 Where do buyers look for your product or service?

 If they look in a store, what kind? A specialist boutique or in a supermarket,
or both? Or online? Or direct, via a catalogue?
 How can you access the right distribution channels?
 Do you need to use a sales force? Or attend trade fairs? Or make online
submissions? Or send samples to catalogue companies?
 What do you competitors do, and how can you learn from that and/or
differentiate?

Price

 What is the value of the product or service to the buyer?

 Are there established price points for products or services in this area?
 Is the customer price sensitive? Will a small decrease in price gain you extra
market share? Or will a small increase be indiscernible, and so gain you
extra profit margin?
 What discounts should be offered to trade customers, or to other specific
segments of your market?
 How will your price compare with your competitors?

Promotion

 Where and when can you get across your marketing messages to your target
market?
 Will you reach your audience by advertising in the press, or on TV, or radio,
or on billboards? By using direct marketing mailshot? Through PR? On the
Internet?
 When is the best time to promote? Is there seasonality in the market? Are
there any wider environmental issues that suggest or dictate the timing of
your market launch, or the timing of subsequent promotions?
 How do your competitors do their promotions? And how does that influence
your choice of promotional activity?
4p’s Marketing Strategy at Regional, National &
International Level:
MARKETING REGIONALLY
Think small, think locally and capture the customer cash that is the easiest to
reach.

Marketing a product regionally/locally always comes with an advantage;and the

advantage is one know the market situations , one have better PR ,better
understanding of the people’s mind set,wants and expectations and
geography,polity of the region ,etc The neighborhood-first mantra suggests a
heavy dose of community involvement in our local marketing efforts.

PRODUCT

Effective product strategies for a regional business may include concentrating on a

narrow product line, developing a highly specialized product or service or
providing a product/service package containing an unusual amount of service.
Develop an information packet to offer for free to educate your prospects

PRICE

As a regional business that offers an unique product/service one can command a

higher price on ones specialized product/service. Determining price levels, pricing
policies, and a credit policy are the major factor affecting total revenue.

PROMOTION

This marketing area includes advertising, marketing, salesmanship and other

public relation and promotional activities. Always relate back to ones marketing
plan when drafting a marketing piece to have a consistent tone of your message.
You will need to decided on what marketing campaigns you will initiate which will
decrease those 'quick decision' marketing offers. For a regional business high
quality salesmanship, personalized messages and interaction will create the desired
perception.
PLACE

The nature of business is an important factor in deciding the distribution process.

Are you strictly working on the internet; Do you need a warehouse & distribution
channels?; Are you setting up in your home and will mail your product?; or Are
you providing a service and you go to your customers? The successful
implementation of the delivery of your product/service increases the trust your
customers instill in you.

Additional points to be taken into consideration while going regional with your
business

 Word of mouth can be your biggest deal-spinner. Make sure that every
client walks away happy. There's nothing better than a satisfied client
who refers their colleagues, friends or family to you.
 Keep a database of all your clients, so you can e-mail them seasonal
greetings, special offers and anything else that will keep you top-of-mind,
without becoming a nuisance.
 Network online: Online networking groups aren't just a social thing. Look at
groups like facebook, Twitter or LinkedIn and establish a profile where
appropriate. Search for websites relevant to you area of business or
customer base. Many of these have free business directories where you can
list your business
 Be visible in the community: Are there charities or organisations in your
community you can provide services for free? You'd be amazed how many
contacts you can make this way and you'll have the added warm and fuzzy
feelings of doing some good
 Special offers: Depending on your type of business, think about having
season specials, group discounts or something extra for new customers.
Something like this might just put you one step ahead of your competitors.
  Advertise: It may sound like you're headed into expensive territory, go
small, like classified ads in your local newspaper, community notice-board,
pamphlets in post-boxes and so on.

MARKETING NATIONALLY
Marketing Nationally requires harder work than marketing locally, In taking a
business to a higher level, marketing a product nationally. One should have great
confidence in their product first before taking this step.  Once we have that great
product, targeting the whole country as customers would be the next step.

Product

Take note of the wants and needs of the potential customers. As the product has
to be marketed nationally it is easy to understand the what the customers want;
as the company is familiar with the behavior pattern of the customers. In
marketing process, various decisions regarding the product are required to be
taken. Marketing will be easy and quick if the decisions taken on various aspects
of a product are appropriate. AU such decisions need to be taken by the
marketing division of the Organisation. Such decisions should be based on current
marketing environment, nature of market competition, consumer expectations,
information available through marketing research and so on. Cooperation of
other departments is also necessary in marketing decision-making.

Physical distribution (place mix) includes the following variables:

a. Types of intermediaries available for distribution,

b. Distribution marketing channels available for distribution, and
c. Transportation, warehousing and inventory control for making the product
available to consumers easily and economically.

For large-scale distribution, the services of wholesalers, retailers and other

marketing intermediaries are required. For instance, large numbers of
outlets are required for the distribution of products of mass consumption
such as soaps and oils. On the other hand, for the marketing of speciality
products like refrigerators and TV sets, selective distribution through
 authorized dealers is quite convenient. Which is not much difficult as the
company is marketing nationally.

Promotion

Promotion is the persuasive communication about the product offered by the

manufacturer to the prospect.

Promotion mix includes the following variables:

a. Advertising and publicity of the product,

b. Personal selling techniques used,
c. Sales promotion measures introduced at different levels,
d. Public relations techniques used for keeping cordial relations with dealers
and consumers,
e. Display of goods for sales promotion.

Promotional activities are necessary for large scale marketing and also for facing
market competition effectively. Such activities are varied in nature and are useful
for establishing reasonably good rapport with the consumers.

In addition to advertising and personal selling, a manufacturer has to use other

sales promotion techniques at the consumer level and at the dealer level. The
techniques at consumer level include displays, exhibitions, discount coupons,
small gifts and free samples, attractive container and consumer contests.
Consumer psychology is favorable for extensive use of such sales promotion
techniques. After-sales services are also useful for promoting sales of durable
good and is lot easier if have to be provided nationally.

Place

Physical distribution is the delivery of goods at the right time and at the right
place to consumers. Physical distribution of product is possible through channels
of distribution which are many and varied in character.
Physical distribution (place mix) includes the following variables:

a. Types of intermediaries available for distribution,

b. Distribution marketing channels available for distribution, and
c. Transportation, warehousing and inventory control for making the product
available to consumers easily and economically.

For large-scale distribution, the services of wholesalers, retailers and other

marketing intermediaries are required. A marketing manager has to select a
channel which is convenient, economical and suitable for the distribution of a
specific product. For instance, large numbers of outlets are required for the
distribution of products of mass consumption such as soaps and oils. On the other
hand, for the marketing of speciality products like refrigerators and TV sets,
selective distribution through authorized dealers is quite convenien

Price

Price is one more critical component of marketing mix. It is the valuation of the
product mentioned by the seller on the product.

Price mix includes the following variables:

a. Pricing policies,
b. Discounts and other concessions offered for capturing market,
c. Terms of credit sale,
d. Terms of delivery, and
e. Pricing strategy selected and used.

Pricing has an important bearing on the competitive position of a product. Pricing

can also be used for capturing market and also for facing market competition
effectively. Pricing decisions and policies have direct influence on the sales
volume and profits of the firm. Market price of a product also needs periodical
review and adjustments. The price charged should be high enough to give
adequate profit to the company but low enough to motivate consumers to
purchase product. It should also be suitable to face market competition
effectively.
While marketing nationally the company is well aware about the market
situations, government policies, consumer behavior, culture, language of the land.

MARKETING INTERNATIONALLY

Getting involved in international marketing has several potential advantages. The

export market may provide expansion opportunities that are simply not available in
the domestic market. Export marketing can have a diversifying impact on revenues
without adding product lines significantly different from what you currently
produce. The international market offers a unique challenge, and improving your
international marketing skills can have a positive impact on your entire operation.
Finally, with the changes that are currently taking place regarding free trade,
competing on the international market may be a fact of life for all businesses. The
best defense may be to develop an active global offense.

Product
Your product (which includes the package) will probably need some modification
for the export market.Shipping products overseas with no modification may be
viewed as a surplus disposal program and may not succeed over the long term.
Some products can be introduced into foreign markets without modification
(cameras, battery-operated consumer electronics,machine tools, for example), but
other products need major modification or are specifically designed and developed
for the international market to begin with. Even if the product doesn’t need
modification, the package will have to be specifically designed. Brand names don’t
always translate appropriately, information must be printed in the customer’s
language, and packages may need metric units of measure.

Promotion
Much like product and its package, modification in advertising and promotion
should be expected.It is possible to maintain your domestic theme in your foreign
message, but be sure the message is translated by a native speaker who is also
familiar with the target market. Mistakes in translation can be major, leaving a
lasting negative or humorous impression that is expensive to change. Color
schemes are also a consideration.Colors suggest particular images in all
cultures,and this varies from country to country. Acquire enough understanding of
the culture to avoid word sand colors that attach an inappropriate image to your
product.What media to use also varies by country. Some countries don’t have
commercial television or radio time, or restrict commercial access to these media.
Thus,what is considered the most effective media nationally;may be unavailable or
ineffective in overseas markets. Use of consumer promotional mechanisms will
also vary. Coupons or contests involving games of chance,for example, are not
allowed in some countries. If advertising and promotion are going to be an
important part of your overseas marketing program, get input from individuals or
groups within the target market. Government agencies and trade associations
sponsor trade shows in foreign countries. Trade shows offer a
relatively inexpensive way to promote your product in a targeted international
market.

Place (distribution)
International marketing uses three distribution channels.The first is nationally . and
involves shipping from the production location to an export facility. Special
packaging and documentation are required, so this operation will be different than
our domestic distribution activities.The second is distribution between nations.
This involves different organizations, documentation, and transportation modes
than your domestic distribution activities. Services of a freight forwarder are often
necessary, at least initially. The third is distribution within the country you are
exporting to. Many foreign countries have distribution channels much different.
Most are more complex, involving a larger number of firms and a higher total
markup.In export marketing the principles of efficient distribution still apply.
Different methods of packing, documentation, shipping modes, and a more
complex internal distribution system are typically associated with entering an
overseas market.
Price
You should keep your pricing method simple at the beginning. A basic cost-plus
procedure is probably the easiest to implement. To your production cost, add an
acceptable profit margin and the costs of getting the product to the destination
(transportation, documentation, duties, etc.) and you have established your price.
This pricing process ignores competition and the willingness or ability to pay in the
destination market. As your experience and abilities in international marketing
increase, you may want to consider more complex pricing strategies to improve
your competitive position or expand your market, but the cost-plus method is a
good starting point. An easy way to implement a cost-plus pricing procedure is to
use a pro forma invoice. The term “pro forma” indicates the invoice is a quotation,
although it looks identical to an invoice that would be used in the case of a real
sale. The invoice contains information about the product, prices, shipping methods
and costs, means of payment, insurance, and delivery instructions. A properly
designed pro forma invoice form can be helpful in developing a price quotation
procedure when using the cost-plus method. Since a pro forma invoice is viewed as
a legal offer to sell, it is important that information on the invoice be correct. Keep
in mind that certain terms are used in international trade that contractually create
an obligation for the seller. Your pro forma invoice must use the terms correctly to
be an effective price quotation mechanism.
Effect of BDI & CDI on CRM programs:

BDI and CDI are two of the most useful tools available in evaluating sales potential of a
product category or brand in a geographic market so that the markets where the
product is distributed can be ranked by their relative sales potential.

Category Development Index (CDI)

The CDI compares the percentage of total sales of a product category in a specific
market with the proportion of the total population base that lives in that same market.

Brand Development Index (BDI)

The BDI is calculated much like the CDI, with one major exception. The BDI is based on
the percent of a brand's total sales in a market rather than the sales of the product
category.

Customer Relationship Management (CRM)

The emphasis today is to get more business from the same customer or
concentrate on those customers who can deliver
life-long value. Marketers talk of customer retention and customer
life time value than customer acquisition. An increasing exposure to traditional
loyalty programs based on rewards for spending more, have
led to an increase in customer’s expectations. Customers can no longer be ‘lured’
with rewards or discounts. They seek a relationship that goes beyond these
Traditional programs.
Since companies can no longer distinguish themselves on the
basis of their products, what sets them apart is the perceived value that they
provide to their customers. Companies are trying to make customers loyal to their
products through an ongoing marketing process that focuses on value-creation
and improved quality of service; and CRM these days is all about this- Making
customers loyal.
The assumption behind a loyalty program is that ‘loyal’ customers need to be
rewarded or recognized in some form. These programs are the
first step in gaining more information about customers so that
companies can move up the value chain.

BDI CDI RESULT

HIGH HIGH Good sales potential for

brand and category.

HIGH LOW Brand is doing better than

category,
People don’t
buy a ton of category, but
seem to love your brand

LOW HIGH Category is doing better

than brand. There is
potential for growth.
People like category but
aren’t buying your brand.

LOW LOW Brand and category are low

so advertising presents a
risk. Could be advertising
product in category no one
is interested in. (i.e.) air
conditioning for people that
live in Iceland.)

The above table gives an idea how BDI & CDI are related to the sales;
also we can get an idea that how it helps in planning and promoting a brand or
category and making improvements.

BDI & CDI can play a role when formulating a Loyalty Program. If it can be
determined what do people prefer? , Is the Brand is liked more or does the
Category of the Brand is doing better than the Brand itself an estimation can me
made such that when Loyalty program is forwarded to the customer he is
provided what he wants. The design of the loyalty program
will depend on what the customers require and what companies
consider is a break-even point.BDI & CDI can be used to determine usage pattern.

Which in turn helps to analyise are the customers more loyal towards
the Brand or towards the Category leaving much room to understand
When (time), Where (place), & for What (product-brand or category)
the incentives, rewards should be given. Typically, companies identify their
best customers using the RFM formula, which stands for Recency, Frequency, and
Monetary
value. A high RFM value is used to denote customers who have bought most
recently, bought most frequently in a given period of time and have also
purchased high-value goods.