The 4 P’s of Marketing mix

• Marketing management is “the art and science of choosing target markets and
building profitable relationships with them.” – Creating, delivering and communicating
superior customer value is key. Marketing Management • Customer Management:
– Marketers select customers that can be served well and profitably. • Demand
Management: – Marketers must deal with different demand states ranging from no
demand to too much demand. The 4 P’s of Marketing mix – 1.Product • Refers to
the benefits of buying a product – What need does the service/product fulfill – Quality
• What will the quality of your service/product be? • Some people really want quality
vs. others that don’t really matter – Features • How will your product/service differ from
the competition • What will you do differently? Packaging – if your selling a product
what image will the packaging communicate? • If a service – how will the appearance
of your operation communicate an image about your business – Range of Products –
what complimentary products may you offer • If service: Will you offer other products
with your service • E.g. Think of range of products that apple has.2.Price • Marketing
is responsible for establishing the price of their service/product • Must consider the
costs of all the inputs (materials, labour, etc) • Mark-up Price – How much profit do
you want to make on every product/customer • Example: Selling Cupcakes – Every
cupcake uses $1 of materials and labour roughly costs $0.25 to make one muffin –
You must charge at least $1.25 to break-even .The price of your product or service
tells the customer a lot about your product 2000 Rs. 5000 Rs. • Different Pricing
Strategies – Competition – basing your prices on those of the competition –
Penetration – making your price low while new just to get some business – Bundle –
putting the product/service with another item and bundling the prices – Psychological
– making the price say something about the quality of your product .3.Place • Simply
refers to how & where you are going to sell the product to the consumer • Direct
Distribution – selling your product directly to the consumer – Brick & Mortar vs. Virtual
Store • Indirect Distribution – sold through a 3rd party – What retailers are the best for
reaching your Target Market? – Example: Selling protein powder – where do I sell? •
For a service : where are you going to locate in order to best reach your target market
• You want to be in an area that – your target market frequents – Says something
about your business • Notice how car dealerships are always on the outskirts of town
or close to a highway? 4.Promotion • A successful product or service means nothing
unless the benefit of that product/service can be communicated to the Target Market .
Where and when can you get your marketing messages across to your target
market?Will you reach your audience by advertising online, in the press, on TV, on
radio, or on billboards? By using direct marketing mailshots? Through PR? On the
internet?When is the best time to promote? Is there seasonality in the market? Are
there any wider environmental issues that suggest or dictate the timing of your market
launch or subsequent promotions?
Different Concept of Marketing The marketing concept has suffered in two
ways: • First, it has been established as optimal management philosophy when it is not
necessarily so in all instances • Second, we can see many examples of poor marketing
practice that have been adopted in the name of the marketing concept. Production
concepts •A firm focusing on a production orientation specializes in producing as much as
possible of a given product or service. •Thus, this signifies a firm exploiting economies of
scale until the minimum efficient scale is reached. •A production orientation may be deployed
when a high demand for a product or service exists, coupled with a good certainty that
consumer tastes will not rapidly alter . SELLING CONCEPTSELLING CONCEPT •A firm
using a sales orientation focuses primarily on the selling/promotion of a particular product,
and not determining new consumer desires as such. Consequently, this entails simply selling
an already existing product, and using promotion techniques to attain the highest sales
possible. •Such an orientation may suit scenarios in which a firm holds dead stock, or
otherwise sells a product that is in high demand, with little likelihood of changes in consumer
tastes that would diminish demand.'marketing orientation' is perhaps the most common
orientation used in contemporary marketing. • It involves a firm essentially basing its
marketing plans around the marketing concept, and thus supplying products to suit new
consumer tastes. •E.g. a firm would employ market research to gauge consumer desires ,
use R&D to develop a product attuned to the revealed information, and then utilize promotion
techniques to ensure persons know the product exists.HOLISTIC CONCEPTHOLISTIC
CONCEPT •The holistic marketing concept looks at marketing as a complex activity and
acknowledges that everything matters in marketing - and that a broad and integrated
perspective is necessary in developing, designing and implementing marketing programs and
activities. •The four components that characterize holistic marketing are relationship
marketing, internal marketing, integrated marketing, and socially responsive
marketing.SOCIETAL CONCEPTSOCIETAL CONCEPT •Societal marketing emerged in the
1960s. •The societal marketing concept deals with the needs, wants and demands of
customers: how to satisfy them by producing superior value that should satisfy the customers
and promote the well-being of society. •The producer should not produce products deemed
hazardous to society. •Societal marketing developed into sustainable marketing.