Marketing Mix:

The 7Ps of
Marketing

 Marketing Mix
Buyer Behavior
Assembling the
Marketing Mix
Diagnostic Marketing
Mix
Marketing Plan
4Ss in Marketing Plan

Marketing Mix
The Marketing Mix is one of two
interrelated components of strategy
The Marketing Mix, more popularly
referred to as the 7Ps of Marketing is a
set of controllable and interrelated
variables composed of product, place,
price and promotions that a company
assembles to satisfy a target group
better than its competitor.
Marketing Mix strategy is choosing and
implementing the best possible course of
action to attain the organizations longterm objectives and gain competitive
edge.

Product
Place
Promotions
Price
People
Physical Appearance
Process

Product
To satisfy the needs and wants of the
target market.

Place
To make the product conveniently
available to the target market consistent
with their purchasing pattern.

Promotions
To build and improve consumer
demand. Promotions has four
components called the Promotions Mix
as follows:
Advertising to effectively inform and
persuade the target market
Public Relations to offer a positive
image of the company and the brand
Selling to get the customers buy
Sales Promotions to convince
customers to buy immediately

Price
To make the product affordable to the
target market and reflect the value of
benefits provided.

People
They are the target consumers of the company. They are
the ones who are the consumers

Physical
Appearance
Physical appearance is the first distinction of a product. A
product could be easily recognized by its appearance.

Process
The process of the product is essential in marketing. This
determines the capability of the product to supply the
demand of the consumers.

 Product, place and people are

considered as the strategic Ps of
marketing mix since they cannot
be changed overnight.
Promotions, price, process and
physical appearance are
considered as the tactical Ps of
marketing mix because these can
be changed more easily.

 Marketers of consumer packaged goods such as food and

personal care products sold in supermarkets would often add
Merchandising as another component of the marketing mix.
Merchandising aims to extend advertising message at the
point of purchase (POP) by generating superior presence
within the store.
Many companies uses store signs, posters, price tags, shelf
takers and island displays.
Companies spend a significant 1% of their sales on
merchandizing.

Buyer Behavior
An important component of the consumer purchase
decision-making process.

The Factors Influencing Buyer

Behavior in Consumer Markets
Cultural Factors
Social Factors
Personal Factors
Psychological Factors

Cultural Factors
Culture and sub-culture Many older Chinese like to
eat Sharks fin soup as well as Birds nest soup,
which environmentalist despise.
Social class Buying a real estate property is
dependent, among others, on the how consumer
perceive the quality of their desired neighborhood
and the status symbol that comes with a high-end
development.

Social Factors
Reference Group High-end brands like Nike shoes or
acquiring a Globe celphone to be a member of their Gen Txt
Club are examples of how peers can affect a purchase
Family demand for products such as PLDT long-distance
calls is influenced by the Pinoys strong family attachment
Role and statutes Mont Blanc pens are positioned as the
pen for presidents of companies, as well as countries.
Johnny Walker Label is another example of whiskey
positioned for successful people.

Personal Factors
Age and life cycle Retirees are the prime market for many
luxury cruises, as it is consistent with the slow, relaxing pace
they desire.
Occupation Pamper Uni are bought by working mothers who
cannot afford to rest in the morning. The International School
targets children of expatriates.
Economic Circumstances Network marketing offers equal
opportunity to those who want to start and grow their own
business without the large capital involved in putting up
traditional businesses.
Lifestyle Kraft imported cheese and Lazy Boy chairs are
examples of lifestyle products.
Personality and Self-concept Premium brands like Rolex,
cars and even clothes are driven by how the buyer looks at
himself of herself

Psychological Factors
Motivation Many government employees now enroll in
graduate school to gain the competitive advantage versus
their peers in aspiring for a promotion.
Learning AMC cookware utilizes demonstration to show
the products unique ability to fry chicken without oil, boil
egg without water and cook food simultaneously without
taste transfer using low fire.
Beliefs and Attitudes Sony is believed to be a brand with a
higher quality. Some consumers think that installing chimes
can bring in good luck to homes and offices. A diamond ring
is a must in every engagement and wedding.

Assembling the Marketing Mix

Before a marketing mix is formed, there must be an analysis
and definition of target customers.
1. In the Macro level, market segmentation answers the
question What are the groupings of similar
customers?
2. In Micro level,
. Decision Making Unit (DMU) points to Who
purchases the product?
. Decision Making Process (DMP) answers the question
How, where, and when is the purchase made?
. Consumer motivation and preferences guides the
marketer to answer, What does the consumers want
and why?

 In satisfying customers, marketers must not assume who

the decision maker is or the mistake may be costly for the
firm.
Marketers must consider the more complex DMUs that are
usually involved in the decision making process (DMP) for
most products and services.
Marketers must therefore consider the initiator, influencer,
decider, buyer and the user for every purchase not just
the user.
The general characteristics of the firms marketing mix is
shaped by the target markets preparedness to adopt a
product.
Marketers usually make use of several market researches
to understand their customers better. One of the most
popular and widely used market research report is called
Usage, Attitude and Image (UAI) survey.

Product Value
Products may either be superior, at par with
(the same), or basic to those competition.
A superior product satisfies more needs and
wants of customers while a basic product
satisfies lesser needs.
While our initial tendency is to think that
consumers enjoy superior products all the
time, we must realize that products with less
features may still be desired by the lower
income consumer segment.

 In the Philippines for instance, some 92% of our

nationwide population belongs to the lower
income D and E class and these consumers
may be looking for very basic products.
The new definition of Quality is that which
conforms to consumers specification,
measured through indicators of customers
satisfaction, rather than indicators of selfgratification.
It is consumers who decides on quality not the
company.
After product quality is defined, its inseparable
twin, price, is defined to ensure an appropriate
product value.

Marketing Program
After product value is formulated and accepted to
the target customers, marketing programs are
then assembled by identifying which of the
marketing mix component should logically be the
main weapon and which should be the support
strategy.
Product

Program

Value

(Marketing)

(Competitiveness)

1.Distribution Driven
Some companies are distribution-driven, meaning,
their product must be available when and where
customers expect them to be. Their location are the
single most important factor in their business.

2. Selling Driven
Some companies are selling driven especially when
products are only available through the salesman.

3. Sales Promo Driven

Other companies that are sales promo driven are fast
food parlors like Jolibee and Mc Donalds which have at
least eight major promo campaign yearly to bring back
consumers to the store as often as possible.

4. Price Driven
Makro is a price driven brand. Without any fancy display,
Makro boasts of rock-bottom prices everyday, which
attract people to visit the hypermarket.

5. Advertising Driven
Coke is advertising-driven. It intends to be top-of-mind in the soft
drinks industry as it constantly reminds consumers of the
different usage occasions for Coke. Its ad-driven strategy is
supported with a heavy distribution effort, sales promo support
and parity pricing with competition.

Diagnostic Marketing
Mix Diagnostic marketing mix entails the matching of correctly
defined marketing problems with the proper marketing
solution.
Marketing Problem

Marketing Solution

Low awareness level

Advertising

Low Availability

Placement

Low Trial Rate

Pricing and/or
Promotions

Low Repeat Purchase

Product and/or Service

Quality

 The marketing mix of a company seldom stays the same.

Marketers must therefore have a systematic way of reviewing what
worked and why, what didnt work and why.
Answering these queries are a prerequisite before planning what
should be added or what should be dropped in order to attain,
enhance or maintain competitive edge.

 Competitive advantage is secured by providing better or best value

in the perception of the customer, relative to all your competitors.
A companys capabilities can become a true competitive
advantage if the following 5 criteria are met:
1. It is valuable in the marketplace
2. It is superior in the marketplace
3. It is difficult to match or imitate
4. It is difficult to substitute
5. It is difficult to trade and gain

Marketing Plan
The marketing mix is actually the heart of an important
company document called the marketing plan, which
outlines how the company intends to grow in the
marketplace and win against competition.
The marketing plan is usually formulated annually, but
results are reviewed monthly.

Format of a Marketing Plan

Executive Summary
Business Review (performance of the previous years)
Environmental Analysis
Key Factors for Success
Strengths and Weaknesses Analysis
Threats and Opportunities Analysis
Market Segmentation
Marketing Objectives and Goals
Marketing Strategy
Product Positioning
Customer Satisfaction Strategy
Preferred Brand Strategy
Contingency Plan
Marketing Budget
Marketing Implementation Guide
Appendix

4Ss in Marketing Plan

The marketing mix can change over time.
However, all marketing programs must be able
to meet the 4 basic criteria to be considered a
diligently through-out campaign

1. Sufficiency the marketing mix must be

able to adequately meet the defined
marketing objectives. This means ambitious
growth objectives would naturally need the
corresponding heavier investment in
marketing support programs.

2. Selective the marketer must be able to consider

all potential alternatives of each marketing mix before
short-listing all possible combinations of the marketing
mix that can meet their marketing objectives. The one
that can provide the best profitability is the one logically
to be chosen. This is not easy as there are literally
millions of combinations. But the least the marketing
man can do is to short list the more obvious one and
apply due diligence in planning each possible option.

3. Synchronize when the marketing mix is selected,

the different elements must combine harmoniously for
the brand become successful. For example, a marketer
cannot choose to invest in heavy advertising of a low
quality product sold on a high price. In such a case, the
elements of the marketing mix is not logically
synchronized.

4. Sustainability the marketing mix that is finally

chosen must be able to last in the long term vis--vis
competition. For instance, a lower price strategy not only
risks a price war but is not sustainable unless the firm is
the cost leader in the industry.