Chapter - 9

The Marketing Mix Elements

Objectives of the Session

To understand Marketing mix in traditional marketing Inadequacy of four Ps Expanded Marketing Mix

Marketing-mix in Traditional Marketing

Product
Price

Place
Promotion

Inadequacy of Four Ps
Intangibility of services Promotion while consumption Standardized and subsidized price Dual role played by consumer in services like co-producer and end-consumer Production and consumption at same time Difficult to perceive quality standards

Expanded Marketing Mix

Product Pricing Promotion Place People

Process
Physical evidence
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Product
Core level Tangible level Augmented level The pricing of services is very different from pricing of goods.

Pricing
The pricing of services is very different from pricing of
goods

Higher price - Better Quality High Fixed Cost - Low Variable Cost Prices depends on Demands
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Promotion
Promotion of services cannot be carried out in isolation. High level of perceived risk for service consumer as compared to product consumer. Service personnel & customer participation

Place
Physical location Physical appearance & ambience of place Decision to use particular types of intermediaries.

People
Co-producer in designing the service. Service organizations involve their personnel at frontline delivery & production process Perception of a service by a customer also depends on the other customers receiving the same service
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Process
Production, Delivery and Consumption of Services take place simultaneously Customer Service Encounters Mechanization of Service Processes

Physical Evidence

Attachment of an element of tangibility

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Summary
Marketing mix in traditional marketing
Product Price Place Promotion

Inadequacy of four Ps

Expanding marketing mix

Product Pricing Promotion Place People Process Physical evidence
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Thank you
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