4Ps of Marketing Mix

Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
In this session, we will be discussing:

The Concept of Marketing Mix

The Building Blocks of Product mix

Importance of Price in Marketing

Role of Place in Marketing Mix

Importance of Promotion

Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
The Concept of Marketing Mix

Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
Marketing Mix

Most Popular Concept in Marketing Management

The elements of Marketing Mix considered as the pillars of marketing strategies.
Marketing mix is designed from ‘SELLERS POINT OF VIEW’

Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
Coined by Neil Borden in 1949.
Popularized by E. Jerome McCarthy introducing 4Ps of Marketing Mix during 1960s.

According to McCarthy, marketer can design marketing plan considering 4Ps.

Promotion Product

Place Price

Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
Meaning

Marketing Mix refers to the set of arrangements, or strategies, that a business uses to
promote its product or services in the market.

A marketing mix is a group of marketing tools that a business customs to sell products
or services to fulfil the needs of its Target Customers.

Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
The effective implementation of 4Ps brings a series of benefits to the organisation.

Higher Maximum Brand

Positioning
Sales Revenue Building

Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
The Building Blocks of Product Mix

Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
Product Mix

• Also termed as Product Assortment

• Starting point/Core for Marketing Mix
Product
• Most critical for a business Promotion

Place Price

Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
What is Product?

Product is anything that can be offered to a customer. Necessarily that should be

something of monetary value. The product must be able to satisfy the needs of
consumers.

Product is a bundle of utilities satisfies the psychological and physiological needs of an

individual or group of individuals
A bundle of perceived benefits packaged to fulfil the DEMAND.

Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
 Desire

Need

Ability

Demand

Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
 Tangible Products

Types of
Product
Intangible Services

Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
Need for a product may be different. For example mobile phone:

• Individual
• Organisations

Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
Levels of Product

Core : Transportation
Potential Product
Basic :4 wheels, Engine, Steering, Break
Expected : Comfort, Speed
Augmented: Intelligent, Connectivity
Augmented Product
Potential : Voice Recognition, Face Recognition

Expected Product

Core : Space for stay and rest

Basic Product Basic : Bed & Bedsheets
Expected : Cleanliness, Towels
Augmented : Customized service, Travel Guide
Potential :Healthcare, Entertainment

Core Product

Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
Elements of Product Mix

The four dimensions of a company’s product mix may include:

Width

Consistency Product Mix Length

Depth

Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
1. Width

• Total Number of product lines that company has during the period.
• Products with similar characteristics are listed under each line of products offered by
the client.

Foods & Industrial Home Mobile

Home Care Automobiles
Refreshment Goods Appliances Phones

Beauty & Food Computer Entertainme

Life Telecom
Personal Products Products nt
Essentials
Care

Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
1. Width

Those who do not have width in product?

• Small companies
• Start-ups

Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
2. Length

• It is length of one product line

• For example HUL has 63 products overall. It has been adding and removing products
from its bucket. As on 29-11-2020 @21:25:00, the HUL’s website shows the
availability of 63 products in the market.

Foods &
Home Care
Refreshment

Beauty &
Personal Life
Care Essentials

Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
3. Depth

• Total number of variants available in one product offering

• Depth of the product can be understood by visiting the website of company’s website.
This will be keep changing based on the market demand.

Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
Procter & Gamble
Vicks Inhaler

Vicks Action
500Advance
d

Personal Vicks Action

Health Care 500

Vicks Cough
Oral Care Drops

Vicks Baby
Hairs Care Rub

P&G Products Home Care

Fabric Care

Skin Care

Baby Care
Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
4. Consistency

Understand the pattern and focus of the products. For example, most of the
HUL products are household related. Most of the products are in ready-to use
format.
1. Dairy products(More Consistent)
2. Electronic manufacturers

• GE
• Nandini

Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
Strategies to Improve Business by Changing Product Mix

• Adding new products to the product lines

• Changing the product variants
• Customization
• Standardization
• Strengthening product consistency

Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
Strategies to Improve Business by Changing Product Mix

• Short run- Can not be altered and it should not be altered

• Long Run- 4Ps can be altered

Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
Product Standardization v/s Product Customization

Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
Product Standardization

Product standardization is a process through which business attempts to maintain

uniformity in the products being manufactured and the services being offered.

Best examples:
• Chain of Restaurants
• Nuts and Bolts Manufacturers
• Piston Manufacturers
• Global Fast Food Joints

Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
Examples:

• Gift Industry
• Fashion Industry
• Nike
• Bluesky

Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
Products sell mostly when customized

• Clothes
• Cakes
• Keychains
• Bags
• Labels
• Jewelry
• Gifts
• Stationary
• FMCG goods

Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
Advantages of Advantages of Standardization to
Standardization to the the Consumers
Business Exact products available
High quality product and services
Better Living Standards
• Reduce Costs
• Increase Quality
• Increased Production
• Streamline Distribution
• Decrease raw material costs
• Standardizing the basic components
• Widening global sales

Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
Advantages of Customization Disadvantages of Customization
• Standing out from the crowd of competitors • Costly
• Impact on manufacturing efficiency
• Customer needs it
• Managing the expectations of
• To build brand loyalty customers
• Tough to manage enough required
• Improve sales inventory
• Personalized experience • Difficult to plan the demand
• Customers need not pay for what they don’t • Wait time would be longer than usual
want in a product • Requires specialized skills
• Face the competition • Rising complexity
• Substantial investment on market
• Customer retention study
• Attract millennials

Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
Disadvantages to the Business
• Market Research
• Failure to adapt
• Limited Choices for consumers
• Limited Alternatives
• Cultural differences
• Changing needs and preferences

Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
Quick Recap

• A marketing mix is a group of marketing tools that a business customs to sell products
or services to fulfil the needs of its target customers
• Product is a bundle of utilities satisfies the psychological and physical needs of an
individual or group of individuals
• Levels of Product: Core product, Basic Product, Expected product, Augmented
Product, Potential Product
• Elements of Product Mix: Width, Length, Depth and Consistency

Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
Importance of Price in Marketing

Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
Price Mix

Price
Product

Place Promotion

Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
 Price Mix

• Important Element in marketing mix

• Price is the presumed value of a product decided by the producer
• It can be an economic value of the product or service generally expressed in terms of
money
• It brings revenue which is the fuel for running the engine of business
• Price is a complicated element

Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
Objectives of Pricing
Survival

Recovery of Cost

Objectives of Pricing
Profit

Market Share

Positioning

Entering New
Markets

Handle Competition
Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
“Price is a Double Edged Sword”

Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
Types of Pricing
Cost + Profit

Premium Value Based

Market
Types of Skimming
Pricing

Penetration Dumping

Psychological

Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
 Factors Affecting
Pricing Decision

Internal Factors External Factors

Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
Factors affecting Pricing Decisions

Internal Factors External Factors

• Cost • Demand and Supply level
• Branding • Economic conditions
• Number of alternatives • Government Policies
• Margins expectation • Competitors
• Pricing Policy
• Product Life cycle
• Product features
• Advertisement cost
• Uniqueness of the product

Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
Role of Place in Marketing Mix

Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
Place Mix

Place
Price

Product Promotion

Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
Products are sold in two platforms
• Brick and Mortar environment
• Virtual Environment

Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
• Distribution Mix
• Moving products and servicers from the point of production to the point of consumption

Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
Channel Partners

Distributors Agents Wholesalers

Dealers Stockist Retailers

Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
Types of Distribution Channels

• Producer...Distributors...Wholesaler...Retailer...Consumer
• Producer...Wholesaler...Retailer...Consumer
• Producer...Retailer...Consumer
• Producer...Consumer

Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
Importance of Promotion

Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
Promotion Mix

Promotion
Place

Price Product

Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
Promotion Mix

The Promotion mix is simply the basket of promotional tools used by the company to
generate product awareness to increase the demand for product and services.

Common questions answered

• What?
• Why?
• When?
• How?
• To Whom?

Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
Promotional Strategies

Personal
Advertising
Selling

Sales Public
Promotion Relation

Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
A.Advertising

• Information sharing
• Aiding Decisions
• Pull Strategy
• Free/Paid
• Forms of Advertising

Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
Basic Functions of Advertising

• Awareness
• Information
• Persuasion
• Trigger
• Reminder
• Advise

Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
How to Design an Effective Advertisement

• Define your target audience

• Determine the platform
• How to design the advertising plan
• Create your advertising strategy
• Craft right content

Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
B.Personal Selling

• Face-to-Face Selling
• Skills and abilities
• Drug Companies

Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
The Most Common Personal Selling Techniques

Presentation

Reference Demonstration

Personal Selling
Techniques

Consultative Retail Selling

Door to Door

Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
The AIDA Theory

Attention

Action

Interest Desire

Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
 C. Sales Promotion

• Sales promotion is an effort involved to secure maximum rewards for the

advertisements and other sales related activities.
• Keeping competition at bay

Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
Sales Promotion

• Incentives
• Discounts
• Freebies
• Coupons
• Free Samples
• Consumer Contests
• Buyback Allowance
• Refunds

Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
Benefits of Sales Promotion

• To Producers
• To Intermediaries
• To Consumers

Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
D. Public Relation(PR)

• Public Relation(PR) is the positive communication of a company or brand's message to all

its target audiences.

• The target audience may be those who are interested in the business or those who are
connected with the business directly or indirectly.

Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
Public Relation(PR)

• Prospective Clients
• Customers
• Investors
• Employees
• Suppliers
• Governments
• Tax Authorities
• Partners
• Social media networks
• Media

Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
 Summary

• The Promotion mix is simply the basket of promotional tools used by the company to
generate product awareness to increase the demand for product and services
• Sales promotion is an effort involved to secure maximum rewards for the
advertisements and other sales related activities
• Public Relation(PR) is the positive communication of a company or brand's message to
all its target audiences
• Promotional Strategies: Advertising, Personal Selling, Sales Promotion, Public Relation

Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
Quick Recap

• Marketing Mix is pillar for designing any marketing strategies

• 4Ps of Marketing Mix
• Concept of Product
• Elements of Product
• Levels of Product
• Standardisation and Customisation
• Importance of Price
• Price is a doubled edged sword
• Pricing Strategies
• Channel Partners
• Promotional Strategies

Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
 Thank You!

Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.