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7 P's Marketing Mix
7 P's Marketing Mix
Four Ps
Marketing Mix
Product Price Promotion Place
Marketing Mix
The concept is simple. Think about another common mix - a cake mix. All cakes contain eggs, milk, flour, and sugar. However, you can alter the final cake by altering the amounts of mix elements contained in it. So for a sweet cake add more sugar!
Marketing Mix
It is the same with the marketing mix. The offer you make to your customer can be altered by varying the mix elements. So for a high profile brand, increase the focus on promotion and desensitize the weight given to price.
Another way to think about the marketing mix is to use the image of an artist's palette.
Marketing Mix
The marketer mixes the prime colours (mix elements) in different quantities to deliver a particular final colour. Every hand painted picture is original in some way, as is every marketing mix.
Product- Consumer
The product part of the Four Ps model is replaced by consumer or consumer models, shifting the focus to satisfying the consumer.
Price- Cost
Pricing is replaced by cost, reflecting the reality of the total cost of ownership.
Place- Convenience
Placement is replaced by the convenience function. With the rise of internet and hybrid models of purchasing, place is no longer as relevant as before. Convenience takes into account the ease to buy a product, find a product, find information about a product, and several other considerations.
Promotion- Communication
Finally, the promotions feature is replaced by communication. Communications represents a broader focus than simply promotions. Communications can include advertising, public relations, personal selling, viral advertising, and any form of communication between the firm and the consumer.
Process procedures, mechanisms and flow of activities which lead to an exchange of value.
Physical evidence the direct sensory experience of a product or service that allows a customer to measure whether he or she has received value. Examples might include the way a customer is treated by a staff member, or the length of time a customer has to wait, or a cover letter from an insurance company, or the environment in which a product or service is delivered
People
People all people who directly or indirectly influence the perceived value of the product or service, including knowledge workers, employees, management and consumers.
Process
Process procedures, mechanisms and flow of activities which lead to an exchange of value.
Physical Evidence
The direct sensory experience of a product or service that allows a customer to measure whether he has received value. Examples might include the way a customer is treated by a staff member, or the length of time a customer has to wait, or a cover letter from an insurance company, or the environment in which a product or service is delivered.
Physical Evidence
Physical evidence is the material part of a service. Strictly speaking there are no physical attributes to a service, so a consumer tends to rely on material cues.
Physical evidence
There are many examples of physical evidence, including some of the following: Packaging. Internet/web pages. Paperwork (such as invoices, tickets and despatch notes). Brochures.
Physical Evidence
Furnishings. Signage (such as those on aircraft and vehicles). Uniforms. Business cards. The building itself (such as prestigious offices or scenic headquarters).
Processes =
Physical Evidence =
Co-ordinated
Confirmation
Fundamental Actions
The term 'marketing mix' however, does not imply that the 4P elements represent options. They are not trade-offs but are fundamental marketing issues that always need to be addressed. They are the fundamental actions that marketing requires whether determined explicitly or by default.
Product
Product: A product, service or idea is that which satisfies the needs & wants of the customers
Product- (Learn)
A tangible object or an intangible service that is mass produced or manufactured on a large scale with a specific volume of units. Intangible products are often service based like the tourism industry & the hotel industry or codes-based products like cell phone load and credits.
Product
Typical examples of a mass produced tangible object are the motor car and the disposable razor. A less obvious but everpresent mass produced service is a computer operating system.
Product
Cars
Cars- Reva
Reva
Product
Variety Quality Design Features Brand Name Packaging Service
Product Variety
Even today, manufacturers of products which are built to customer order, for example, cars, aeroplanes and medical equipment, offer such a large range of combinations of product features that millions of variants of a single product are possible. Commercially available software systems support the automation of many aspects of the engineering process; product databases enable the description of single products and engineering applications can use these product descriptions to carry out their tasks.
Product Quality
A product or process that is reliable, and that performs its intended function is said to be a quality product. Quality in business, has an interpretation as the non-inferiority or superiority of something. Quality is a perceptual, conditional and somewhat subjective attribute and may be understood differently by different people. Consumers may focus on the specification quality of a product/service, or how it compares to competitors in the marketplace.
Product design
Product design can be defined as the idea generation, concept development, testing and manufacturing or implementation of a physical object or service
Brand Name
The brand name is often used interchangeably within "brand", although it is more correctly used to specifically denote written or spoken linguistic elements of any product. In this context a "brand name" constitutes a type of trademark, if the brand name exclusively identifies the brand owner as the commercial source of products or services
Product
Instruments that aim at satisfaction of the prospective exchange partys needs Examples: Product characteristics, options, assortments, packaging, guarantees, quality, features, style, brand name, size & packaging, services, warranties/guarantees, returns & replacements
Product
Titan introduces quartz watches 24 Hour banking & ATMs by banks Tetra pack cartons for milk, juices Indoor coolers 7 year warranty on refrigerators- Allwyn
FMCG
Product
Consumer durable products
Products
Increase in mobile services in India
Product- Durable
Washing machines
Product
Camera
Product
Products
Latest Gadgets
Services
Courier Aviation
Services
Despatch
Modern gadgets
ipod
Aviation
Place
Place represents the location where a product can be purchased. It is often referred to as the distribution channel. It can include any physical store as well as virtual stores on the Internet.
Place
Physical distribution are activities involved in transporting products from the producer to the consumer: Mode of transport Warehousing & Storage Order processing Inventory control
Place
Channels of distribution are the routes through which the ownership of goods flow on its way from the producer to the customer Distributor Super-stockist Wholesalers Retailers
Place
Instruments that determine the intensity & manner in which goods or services will be made available Types of channels, density of distribution, trade-relation mix, merchandising advise
Place
Channels Coverage Locations Inventory Transportation Logistics
Hypermart-Store Signage's
Availability- Place
Large Format stores
Retail brands
Stores
Nokia Store
Place
Global Players in India
Place
Markets
Place
Stores
Local stores
Local kirana stores
Price
The price is the amount a customer pays for the product. It is determined by a number of factors including market share, competition, material costs, product identity and the customer's perceived value of the product. The business may increase or decrease the price of product if other stores have the same product.
Price
List Price Discounts Allowances Payment Period Credit Terms
List Price
In retail, price regularly quoted to customers before applying discounts. List prices are usually the prices printed on dealer lists, invoices, price tags, catalogs, or dealer purchase orders.
Price Lists
Price
Bills
Price
Price is the amount a consumer pays in exchange for the product or service. Marketers must consider the following in setting prices:
Price
Target segment- How much the target segment is willing to pay at different price levels- price elasticity of demand Cost- How much it costs the firm to produce & market the product Competition- Prices of competitors Society & Law- Within legal framework
Price
Marketers have to determine prices to consumers & channel partners Prices across models & geographic regions have to be established Policies on discounts have to be framed These decisions are vital to enhance sales volumes
Innovative Discounts
Discount sales in shopping malls Off season sales Closing down sales Festival sales Credit points Exchange offers mobiles, cookers, cars
Festive Sales
Christmas & Diwali Sales
Innovative discounts
Discounts
Special Sales
Sales
Discount Rush
Promotion
Promotion activities are meant to communicate & persuade the target market to buy the companys products This is done by:-
Promotion
Advertising Personal selling Sales promotion- POS Public Relations Word of mouth Viral advertising
Promotion
Promotion represents all of the communications that a marketer may use in the marketplace. Promotion has five distinct elements advertising, personal selling, public relations, word of mouth and point of sale. A certain amount of crossover occurs when promotion uses the five principal elements together Advertising covers any communication that is paid for, from and cinema commercials, radio and Internet adverts through print media and billboards.
Personal selling
Personal Selling: Face to face personal communication- Eureka Forbes In person selling, tele-marketing Advertising- Mass communication efforts through media Sales Promotion- Communication through contests, OOH, trade shows, free samples, yellow pages, call helplines
Personal Selling
Personal Selling
Discount coupons
Discount coupons
Promotion-2
Publicity- Communicating with an audience by personal or non-personal media that are not paid for delivering the message Print media news, broadcast media newsUTI,PTI, Reuters, annual reports, speeches by employees
Branding
Signages
Known companies
Recognizable companies
Nokia
Nokia
Messages
Fly High
Chips
Competition
Celebrity endorsement
Using famous people to attract target segment
TV Channels
TV Channels
TV Channels
TVC
TV Channels
TV Channels
Print Media
Print- Newspapers & Magazines
Newspapers
Print Media
Newspapers & Magazines
Read everywhere
Omnipresent
Radio
Growing radio stations in India
Radio Stations
Numerous- FM
Radio channels
Meow targets at women
Public Relations
Public relations are where the communication is not directly paid for and includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events. Word of mouth is any apparently informal communication about the product by ordinary individuals, satisfied customers or people specifically engaged to create word of mouth momentum.
Press Release
Press Release
Public Relations
Press Conferences
Media Entertainment
PR Material
Press kit to be given to press with all info.
Press Conference
Spokesperson of the company talks to the press
Client Meetings
Word of mouth publicity
Competitors
Responding to competitor activity & messages You may have seen similar activity in cola ad wars
Reports in media
Cola war shifts to a new turf The famous cola wars have found a new battleground the Indian fields. The worlds largest beverage company CocaCola, like its rival PepsiCo, is finalising plans for sourcing fruit from India for its juice brands.
OOH
Cola vans act as OOH
OOH
Pepsi van
OOH
Cola signages
Vending Machines
Vending machine- Note both brands
Recognizable logos
Coke vs Pepsi
Sales Promotion
Yeh Dil Maange More!!!
Point of Sales
Point of sales (POS) or checkout refers to both a checkout counter in a shop, and the location where a transaction occurs
POS Display
Cola Ads-Promotion
Cola drinks- Thums Up, Coca Cola
Vodafone vs Airtel
Airtel
Signages
Celebrity endorsement
Reliance Telecom
Reliance
Reliance Mobile
Hritik Roshan
Idea Cellular
IDEAs ad campaigns based on the theme of Democracy; Championing a world without caste; Championing a world in which no one suffers from the disability to communicate; and Education for All, have been a huge success amongst all categories of audience.
Effectiveness of Campaign
The testimony of the success of the campaign is reflected from the rapid growth of IDEAs subscriber base in the country. The Aditya Birla Group company has grown to become the 3rd largest private GSM operator with over 43 million subscribers across 16 service areas, nationally.
Bus shelters
Same message across all media
Outdoor
Hoarding/Billboard
OOH
Signages & Gates
Websites
Airline Ad Wars
Marketers should be ready to face communication challenges Jet Airways- Weve Changed Kingfisher- We made them change Go Air- Weve not changed; we are still the smartest way to fly
Ad wars
In Mumbai- Same location on Nariman Point
Viral Marketing
Word of mouth
On the internet
On the Internet, viral marketing is any marketing technique that induces Web sites or users to pass on a marketing message to other sites or users, creating a potentially exponential growth in the message's visibility and effect.
www.hotmail.com
Cadburys in UK
Cadbury's Dairy Milk 2007 Gorilla advertising campaign was heavily popularised on YouTube and Facebook.
Gorilla
Gorilla is a British advertising campaign launched by Cadbury Schweppes in 2007 to promote Cadbury Dairy Milk-brand chocolate. The 90-second television and cinema advertisement, which formed the centrepiece of the 6.2 million campaign, was created and directed by Juan Cabral and starred actor Garon Michael. The campaign itself, which comprised appearances on billboards, print newspapers and magazines, television and cinema spots, event sponsorships and an internet presence, was handled by advertising agency Fallon London, with the online segment contracted out to Hyper.
Gorilla Ad Campaign
Gorilla Campaign
Going Viral
Funny Helpful & Unique Controversial Amazing & Spectacular Schematic
Word of Mouth
Word of Mouth
T-Shirts
T-Shirts with company & Logo message
Inflated Balloons
Scooter covers