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6Ps of Marketing Mix

6Ps of Marketing Mix

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Published by Satyabrata Sahu
6Ps of Marketing Mix
6Ps of Marketing Mix

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Categories:Business/Law
Published by: Satyabrata Sahu on May 16, 2012
Copyright:Attribution Non-commercial

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05/06/2013

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6Ps of Marketing Mix
Marketing mix is one of the major concepts of marketing. According to the traditional base, there are 4Ps ofmarketing. These are referred to as the marketing mix. But in the modern use of the term, many more Ps have beencoined. People have found six, seven even eleven Ps of marketing. In this article we will talk about the 4Ps and 6Ps.
Four Ps
 The four Ps of marketing mix consist of Product, Price, Place and Promotion. Product means the thing that you areselling. It can also be a service like the tourism industry.Price means the rate at which the product is being sold. A number of factors are involved in determining the price of aproduct. These include competition, market share, product identity, material costs and the value customers perceiveof a product. In fact prices are also determined by competitor's products. If the competitors have the same product,then the price of a product will go down.Place refers to the real or virtual place from where a product can be bought by a consumer. Another name used forplace is called "distribution channel". Promotion is the way that a product will be communicated to the general public.There are four distinct ways in which this might be done- 'point of sale', 'word of mouth', public relations andadvertising.Somewhere down the line people felt that four Ps were not enough for marketing mix. It had to face a lot of criticismmainly on the grounds that it was extremely product focused. This was not enough for the economy which is based alot on services as well nowadays.Another criticism that marketing mix has to face is that it does not have a 'purpose'. So it should be looked upon as atool that sets marketing strategy. Another criticism of marketing mix is that it does not discuss customers. This is whythe concept of Six Ps of Marketing mix has achieved relevance.
Six Ps
 The six Ps contain all the four Ps of marketing - product, price, place and promotion. In addition, it contains, two newPs, namely People and Performance.People include the potential and current customers of the business and how they make their purchase decisions.Market segmentation is also a part of this. It contains the features of market segmentation and the most attractivesegments of this market.
 
The next P is Performance. This implies the performance of the business. The financial and strategic objectives of thebusiness are dealt with here. It is also seen whether these objectives are achievable and realistic or not. The metricsof financial performance are also seen and appropriated in this division.The six Ps of marketing mix help to overcome the criticisms of the four Ps. Hence the 6Ps serve to be a betteralternative as compared to the 4Ps of marketing mix.
1. People
A) Who are the current and potential customers? Who are the end users? Who actually makes thepurchase decision?B) What is the basis for their purchase decision? Based on what qualifying and winning criteria?C) How is the market segmented? What common characteristics define the segments (intra-segment homogeneity)? How do segments differ from each other (inter-segmentheterogeneity)? How do buying criteria vary by segment?D) Which segments are potentially the most attractive? On what basis: size, growth, profitability,competitive intensity?
 
 E) How are, or can, the selected target market segments be accessed and attacked?F) How must a brand be positioned
 –
 
i.e. what specific multidimensional offering „package‟ must be
delivered - to capture highly profitable share of the target markets?return to top 
2. Product
A) What exactly is the product of service being offered? Think broadly in terms of the augmentedproduct. What are the benefits being delivered to the customer? How can the benefits beenhanced to create value?B) How important is brand name in the category? Is there a role for off-brands, private labels andgenerics? How much brand equity exists for any existing brands?C) Where are products in the product life cycle? What are the implications of the current stage? Isthere an opportunity to recycle the category?D) How important are new products, currently and prospectively? Can existing products be cost-reduced without sacrificing other benefits, or repositioned by making relatively small modificationsto product attributes?E) How important is packaging? What role does packaging play in product use and brandcommunications?return to top 
3. Price
A) What is the fully loaded (i.e. all things considered) price of the product over the lifetime ofuse? What are the terms and conditions of payment?B) What are the key determinants of value? What makes one product worth more thananother? Are there opportunities to reshape the value function?C) How sensitive is the market to price? What is the elasticity of price movements up ordown? Are there distinct price segments (e.g. good, better, best or consumer, professional)?D) Is the brand gaining or losing share at the current price level? Is the brand profitable versusinternal objectives and external benchmarks?E) How much profit is retained by channel intermediaries (e.g. retailers, distributors)? Are channelmargins comparable to competition and do provide acceptable returns to intermediaries?return to top 

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