Prepared by:

Sagun Pokharel

20th batch/Geneva

1. What is Marketing Mix and why it is important? Explain 4P’s of

Marketing Mix in detail with example for each?

❖ Marketing mix can be defined as the set of tools that an organization

utilizes to promote its product or services in the market.

The importance of marketing mix can be explained as:

• It enhances to build up public network
• It helps to introduce new product or brand in the market
• Maintains mutual relationship with the consumers
• Plays a crucial role in the infrastructural development of a place or
nation
• Helps to uplift the living standard of common people

Marketing mix usually refers to the set of 4Ps viz. Product, price, Promotion, Place.
4ps of the marketing mix can be explained as below:
a) Product:
The product is the first thing an organization should consider. It can be
tangible or intangible. Tangible products are all the physical objects such as a
car, cupboard, chair, computer etc. while non-tangible objects are those which
cannot be touched but indirectly pursued such as copyright, trademark, legacy
etc.
For example- Consumer buy a pair of shoes , that is tangible goods and a
consumer book a room in a hotel for which he avail services, that is intangible
services. We cannot touch services but can feel it.
b) Price:
Price is the monetary value that has to be paid by a customer to acquire or
own the product of a company. It is the critical revenue-generating component
of the firm.
For example- If a consumer always buys a xyz brand’s shampoo and price of
that xyz shampoo increases all of a sudden, then consumer will directly switch
to abc brand’s shampoo.

c) Promotion:
Once the product and pricing is done its the time for promotion. Promotion
includes advertising, public relations, social media marketing, email
marketing, search engine marketing and many more.

For example- A local boutique store will promote its product through banners,
advertisement in newspapers, pamphlets etc.

d) Place:
The product has to reach to the people. This element of the market mix
includes the place where the product is sold, how it reaches to the people, and
all the direct and indirect channels required for the same.

For example: If the place of selling is far, then the cost of transportation
would increase the price of the product. In addition, the demand for the
product at the place also increases the price of the product.
3. Illustrate how a hotel or a restaurant can deal with the intangibility,
inseparability, heterogeneity, and perishability of the service it provides.
Give specific examples to illustrate.

As we know that, hospitality industry is the service-based industry. From the

day of check-in through front office, staying in the room, accessing spa,
gym club to the day of check-out from the hotel and overall guests
experience can not be measured neither can be touch. Service industry
undergoes through four factors which are explained below:

a. Intangibility
Intangibility refers to the quality in which the product cannot be seen,
tasted, felt, heard, or smelled before they are purchased. In case of hotel
industry, the ambience, the moods created through various factors like
lighting, music, aroma, etc. create the intangible factors.

For example, a guest booking a hotel room cannot see or feel the room
experience before his check-in.
Therefore, hotel or the restaurants must give their best to make the guest
stay wonderful and memorable.

b. Inseparability
It means that the production and consumption of a service cannot be
separated from the provider of that service. A guest staying in a room
can’t separate himself or herself from other part of the hotel such as
restaurants, front office, housekeeping and so on.
For example, a guest stayed in a beautiful hotel with great food and
good housekeeping services, but the front desk staff was rude and
inconsiderate, then a single word by the staff makes guest
uncomfortable and unsatisfied.
Therefore, the hotel must train all the staffs from each and every
departments to treat the guests well and provide uniform service.

c. Heterogeneity
It refers to the variability of service provided. Even in a same restaurant,
guests may find different service experience due to diverse in
employees. Service quality may differ from person to person. Quality
depends on who provides them and when and where they are provided.
 For example, a guest may find a friendly server with pleasant smile in
a restaurant during breakfast in the morning. However, he/she may be
disappointed during dinner by another server in the same restaurant.

Thus, a hotel could reduce heterogeneity is by having employees go

through on-going training and improve their customer service skills.

d. Perishability
We know that, we cannot store service for future use. If any rooms in a
hotel are vacant tonight, they are not going to generate revenue for
tonight anymore
For example, A restaurant is serving food on a daily basis. One day
there is a strike. Can it serve the same food on the other day? Definitely
No! And hence, the restaurant will have to serve fresh food because the
previous food prepared would have perished.
Therefore, demand forecasting should be done. Along with demand,
creative thinking and capacity utilization is necessary.