Pre Read: Marketing Mix

The term marketing mix was coined in an article written by Neil Borden called “The Concept of the Marketing Mix.” He started teaching the term after he learned about it from an associate, James Culliton, who in 1948 described the role of the marketing manager as a "mixer of ingredients"; The marketer, E. Jerome McCarthy, proposed a four Ps classification in 1960, which has since been used by marketers throughout the world The marketing mix is a business tool used in marketing products. The marketing mix is often crucial when determining a product or brand's unique selling point (the unique quality that differentiates a product from its competitors).

[A] 4 P’s of Marketing
When marketing their products firms need to create a successful mix of:     The right product Sold at the right price In the right place Using the most suitable promotion.

Product may be tangible (goods) or intangible (services). Pricing decision also influence the choice of marketing channels. 1. While formulating the marketing strategy. Product Product is the actual offering by the company to its targeted customers which also includes value added stuff. Below is an illustration for marketing mix. product decisions include: What to offer?          Brand name Packaging Quality Appearance Functionality Accessories Installation After sale services Warranty 2. How much customer should pay for a product? Pricing strategy not only related to the profit margins but also helps in finding target customers. Price decisions include:      Pricing Strategy (Penetration. Price Price includes the pricing strategy of the company for its products. McCarthy classified all these marketing tools under four broad categories:     Product Price Place Promotion These four elements are the basic components of a marketing plan and are collectively called 4 P’s of marketing.Marketing Mix is a combination of marketing tools that a company uses to satisfy their target customers and achieving organizational goals. etc) List Price payment period Discounts Financing . Skim. 4 P’s pertain more to physical products than services.

So it’s good to perform a break-even analysis before allocating the budget. You should not depend on one mix always try new mixes. at the right time and in the right quantity is crucial in placement decisions. but it’s risky too. Promotion decisions include:         Advertising Media Types Message Budgets Sales promotion Personal selling Public relations Direct marketing As these costs are huge as compared to product price. Promotion Promotion includes all communication and selling activities to persuade future prospects to buy the product. Availability of the product at the right place. Place (Placement) It not only includes the place where the product is placed. Don’t confuse your customers by just changing one variable and keeping the rest same. 3. It helps in determining whether the new customers are worth of promotion cost or not. It often takes time and requires market research to develop a successful marketing mix. make changes to all mixes in such a way that all conveys the same message. Consumers are often sensitive for price. While designing the mix. all those activities performed by the company to ensure the availability of the product tot he targeted customers. Another aspect of pricing is that expensive products are considered of good quality. . discounts and additional offers. Credit terms Using price as a weapon for rivals is as old as mankind.         Placement decisions include: Placement Distribution channels Logistics Inventory Order processing Market coverage selection of channel members 4.

But the foundation of Marketing Mix still stands on the basic 4P’s. Example with respect to Maruti's SWIFT Product: Initial launch version with basic features in Lxi/Vxi/Zxi formats Price: At 4.Limitation of Marketing Mix Marketing mix (4 P’s) was more useful in early 19′s when production concept was in and physical products were in larger proportion. Process). Place: Selective distribution initially based on order-booking only in select cities and only through company dealerships. Packaging. So.84 lacs (on road Mumbai) much lower than other competitors in the B + segment. Today. in order to extend the usefulness of marketing mix. Dealers carry no inventory. some authors introduced a fifth P and then seven P’s (People. marketing environment has become more integrated. Long delivery cycle time [B] Extended P’s of marketing Booms and Bitner included three additional 'Ps' to accommodate trends towards a service or knowledge based economy: People Process Physical Evidence . with latest marketing concepts.The campaign emphasized the curvy sports car hatchback design targeting sport lover youth segment. Promotion: High decibel campaign kicked-off during the Football Worldcup 2006.

or the environment in which a product or service is delivered [C] 4 C’s of Marketing Robert F. including knowledge workers. Process Procedures. mechanisms and flow of activities which lead to an exchange of value. 6. management and consumers. Examples might include the way a customer is treated by a staff member. 7. employees. Lauterborn proposed a four Cs classification in 1993[5] which is more consumeroriented version of the four Ps that attempts to better fit the movement from mass marketing to niche marketing: . or the length of time a customer has to wait. Physical evidence The direct sensory experience of a product or service that allows a customer to measure whether he or she has received value. People All people who directly or indirectly influence the perceived value of the product or service.5. or a cover letter from an insurance company.

The 4 C’s model generally plans on the basis of Customers and not products. Convenience – Convenience is equivalent of distribution or placement of the traditional marketing mix. On the other hand. the traditional marketing mix can be used. Thus the companies which follow this model believe in making products which satisfy their customers. As said before. Off course. the primary focus is on the customer. just like the traditional marketing mix. If you are targeting a SEC A segment. When you have a niche customer base. it can also be used for mass markets. Unlike the traditional marketing mix where the primary focus is on Products. the 4 C’s of marketing are generally used for Niche products. the 4 C’s model is mainly used for Niche Marketing. if your product is for the SEC B and SEC C classes. They are generally ready to offer customizable products and because they have a general set of target customers. in the 4 C’s model. However. The four variables in the 4 C’s model are     Consumer Cost Convenience Communication Consumer – The principle of four C’s of marketing states that your customer should be your prime focus. the marketing communications for a company following the 4 C’s of marketing is completely different as it needs a completely different Segmentation. Communication – The concept of communication remains same for both. For mass markets. A niche marketing company might use more of BTL rather than ATL whereas in a mass marketing company. then it needs to have a lower costing. costing of the product depends on the customer. And hence they have to plan the cost of the product on the basis of their customer. the traditional marketing mix as well as for the 4 C’s of marketing. Take a niche product like Heavy machinery as an example or even products like television and air conditioners. What if the companies who sell these products do not give you delivery and installation. this principle is only applicable for smaller market segments and not for mass markets. The 4 C’s model of marketing on the other hand is more consumer oriented. You will be looking out for your own convenience. like distribution. Thus convinience. The media vehicles used for marketing communications for a mass product and that for a niche product are different. plays a critical role. You will not buy the product as you wont be ready to pick up the machine and install it yourself. targeting and positioning. Thus over here. The customer will not buy your product if it is not convenient to him. the convenience of the customer in acquiring your product plays a critical role. then the costing of the product needs to be premium to have proper psychological positioning. the cost variable is given special attention. Cost is a very important consideration during consumer decision making and hence in the 4 C’s principle.The traditional Marketing mix is a 4 P’s model and is business oriented. . Cost – Cost is equivalent to Pricing in the traditional marketing mix. Because of its focus on consumers. ATL communications are very important.

(For example. Taken together. Rajendra Sisodia. the traditional marketing mix model helps a company define its strategy more efficiently. Accessibility and Awareness. although not much different. Acceptability. [D] 4 A’s of Marketing The 4 A’s of marketing has been coined by Prof.) That means not only ensuring that customers are aware of the product. these attributes are called the "4A’s. accessible and acceptable to them. the 4 C’s model. Affordability. as well as by uncovering new wants and needs. The 4A framework helps companies create value for customers by identifying exactly what they want and need. selectors. it must achieve high marks on all four A’s. none of us knew we "needed" an iPad until Apple created it. Awareness Affordability Acceptability Accessibility ." The 4A framework derives from a customer-value perspective based on the four distinct roles that customers play in the market: seekers. using a blend of marketing and non-marketing resources. For a marketing campaign to succeed. However. Prof Jagdish Sheth. but also ensuring that the product is affordable. payers and users.All in all. really helps if you are a customer oriented firm.

Promotion . Communication: Ways the company will use to get their message about the product across to the customer. direct mail etc. Affordability: The product should be available at a price that the customer can affort to pay. such as telemarketing. Price Convenience: Making the product available to customers without their having to make an effort. 4 A and 4 o’s of Marketing Four Cs Customer Needs: Identifying customers' problems and how the company can solve them by developing the product. determining Place the destribution methods to be used.[D] Comparison of 4 p. Four Os Four Ps Objects: The way the product is manufactured as well as its level of quality. 4 c . Objectives: Considerations about the revenue the company should generate and the price at which this revenue objective should be met. Organization: Sale and distribution of the product. Four As Acceptability: The product should be socially and legally accetable as well as attractive and fashionable. Operations: Promotional operations that most suit the product. Product Cost to Customer: Determining the cost of the product that the customer will perceive as fair. Accessibility: The product should be conveniently accessible even for people with disabilities. Awareness: As many people should know about the product as possible.

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