Marketing Mix:

The 7P’s of
Marketing
• Marketing Mix
• Buyer Behavior
• Assembling the Marketing
Mix
• Diagnostic Marketing Mix
• Marketing Plan
• 4S’s 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 it’s
competitor.
•Marketing Mix strategy is choosing and
implementing the best possible course of
action to attain the organization’s long-
term 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 it’s 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 Shark’s fin soup as well as Bird’s 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 Pinoy’s 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
product’s 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 DMU’s 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 firm’s marketing mix is
shaped by the target market’s 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 consumer’s specification, measured
through indicators of customers satisfaction,
rather than indicators of self-gratification.
•It is consumers who decides on quality not the
company.
•After product quality is defined, it’s 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 didn’t 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 company’s 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
4S’s 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-à-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.