Chapter-3

MARKETING MIX
 MARKETING MIX
• Marketing mix refers to the primary elements that must
be attended to in order to properly market a product or
service.

• Marketing mix is the combination four elements: Product,

Place, Price and Promotion. They are called the “Four Ps
of the marketing mix”.

• Marketing Mix is a term describing the key elements

used by an organization to help meet its marketing
objectives
Components
 Product Price
Value at which marketer
Goods, Services ,Idea or
offers
a combination of these Product/Services/idea to
offered to satisfy needs a customer. Supplier or
of a customer marketer determines
price =Actual cost
+Margins
Promotions
Traditional Marketing
Place
Mix

Communicating product Distribution of

features & its benefits
to target customers
through different
medium
Goods/Services from
point of production to
the target customer
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 Product
Price
Attributes includes:
List Price, Discounts,
Variety, Quality,
Allowances, Credit
Features, Brand Name,
Period, Credit Terms
Packaging, Services

Traditional
Marketing Mix
Promotions Place
Advertising, Sales Channels, Coverage,
Promotion, Public Assortments,
Relation, Publicity, Locations, Inventory,
Personal Selling Transportation
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7 P’s OF MARKETING
 Traditional 4P’s People
Product, Price, Employees or Human
Promotions & Place resources

Modern
Process Marketing Mix

Such as Quality
processes, Office Physical Evidence
processes, Information Test marketing, Trail
processes,(i.e. set of before actual decision
guidelines) making
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 To create the right marketing mix, businesses have to
meet the following conditions:

• The product has to have the right features – e.g. it

should look good and work well.
• The price should be right.
• The goods must be in the right place at the right
time. Making sure that the goods arrive when and
where they are wanted is an important operation.
• The target group needs to be made aware of the
existence and availability of the product through
promotion. Successful promotion helps a firm to
spread costs over a larger output.
 PRODUCT
• To find out what customers want & need & then develop
a product to meet the need of the potential customers.
• Suppose now: The competitors products offer the same
benefits, same quality, same price. You have then to
differentiate your product with the following:

• Design
• Technology
• Usefulness
• Convenience
• Quality
• Packaging
• Accessories
• Warranty
 PRICE

A product is only worth what a customer is prepared to pay for it.

 Premium Pricing.
Use of high pricing where there is a uniqueness about the
product or service. This approach is used where a substantial
competitive advantage exists. Such high prices are charge for
luxuries such as Cruises, Luxury Hotel rooms, Designer
products.

 Penetration Pricing.
It is the strategy of entering the market with a low initial price
to capture greater market share.
 Price Skimming. The practice of ‘price skimming’ involves
charging a relatively high price for a short time where a new,
innovative, or much-improved product is launched into a market.

 The prices are set high in order to attract least price sensitive
customers to generate high profits.

 Competitive pricing: If your product is sold at the lowest price

regarding all your competitors, you are practicing competitive
pricing. Sometimes, competitive pricing is essential. For instance,
when the products are basically the same, this strategy will usually
succeed.
• This is the way in which you communicate to your potential customers about your
product.
• It includes the various ways of communicating to the customers of what the company has
to offer. It is about communicating the features/ benefits of using a particular product or
service.

• Advertisement: It takes many forms like TV, radio, internet, newspapers, yellow pages,
Leaflets, Posters etc.
• Sales Promotion: Buy One Get One Free. Others include couponing, money-off
promotions, free accessories (such as free blades with a new razor), introductory
offers (such as buy digital TV and get free installation) and so on.
• Personal Selling: It is an effective way to manage personal customer relationships.
The sales person acts on behalf of the organization.
 PLACE

It refers to the place where the customers can buy the product
and how the product reaches out to that place. This is done
through different channels like:

• Retails
• Wholesale
• Internet
• Mail orders
• Direct Sales
 PEOPLE
➢ An essential ingredient to any service provision is the use of appropriate
staff and people. Recruiting the right staff and training them appropriately
in the delivery of their service is essential if the organization wants to
obtain a form of competitive advantage. Staff should have the
appropriate interpersonal skills, attitude, and service knowledge to
provide the service that consumers are paying for.

PROCESS

➢ It refers to the methods and process of providing a service Processes

must help the customers get what they want. Always keep customers
informed. This can be done at the store or through faxes and emails.
PHYSICAL EVIDENCE
• This is particularly important in services marketing as it is the only physical item that a
customer will see and so it must reflect the image that the service is trying to project including
some of the following:

• Internet/web pages.
• Brochures.
• Furnishings.
• Signage (such as those on aircraft and vehicles).
• Uniforms.
• Business cards.
• The building itself (such as prestigious offices or scenic headquarters).

Example:
If you walk into a restaurant your expectations are of a clean, friendly, hygienic environment
which will want you to visit again.
Marketing Mix of McDonalds
• Product :- McDonald’s places considerable emphasis on
developing a menu which customers want.
• Market research establishes exactly what this is. However,
customers’ requirements change over time. In order to meet
these changes, McDonald’s has introduced new products and
phased out old ones, and will continue to do so.
• Care is taken not to adversely affect the sales of one choice by
introducing a new choice, which will cannibalise sales from
the existing one (trade off).
• McDonald’s knows that items on its menu will vary in
popularity.
• Their ability to generate profits will vary at different points in
their cycle.
• In India McDonalds has a diversified product range focussing
more on the vegetarian products as most consumers in India
are primarily vegetarian.
• The happy meal for the children is a great seller among
others.
• Price :- The customer’s perception of value is an
important determinant of the price charged.
Customers draw their own mental picture of what
a product is worth.
• A product is more than a physical item, it also has
psychological connotations for the customer.
• The danger of using low price as a marketing tool
is that the customer may feel that quality is being
compromised.
• It is important when deciding on price to be fully
aware of the brand and its integrity.
• In India McDonalds classifies its products into 2 categories
namely the branded affordability (BA) and branded core
value products (BCV).
• The BCV products mainly include the McVeggie and
McChicken and the BA products include McAloo tikki and
Chicken McGrill burgers.
• This has been done to satisfy consumers which different
price perceptions.
• Promotion :- The promotions aspect of the marketing
mix covers all types of marketing communications One of
the methods employed is advertising, Advertising is
conducted on TV, radio, in cinema, online, using poster
sites and in the press for example in newspapers and
magazines.
• Other promotional methods include sales promotions,
point of sale display, merchandising, direct mail, loyalty
schemes, door drops, etc.
• The skill in marketing communications is to develop a
campaign which uses several of these methods in a way
that provides the most effective results.
• For example, TV advertising makes people aware of a
food item and press advertising provides more detail.
• This may be supported by in-store promotions to get
people to try the product and a collectable promotional
device to encourage them to keep on buying the item.
• At McDonalds the prime focus is on
targeting children.
• In happy meals too which are targeted
at children small toys are given along
with the meal.
• Apart from this, various schemes for
winning prices by way of lucky draws
and also scratch cards are given when
an order is placed on the various mean
combos.
• Place :- Place, as an element of the marketing mix, is not
just about the physical location or distribution points for
products.
• It encompasses the management of a range of processes
involved in bringing products to the end consumer.
McDonald’s outlets are very evenly spread throughout
the cities making them very accessible.
• Drive in and drive through options make McDonald’s
products further convenient to the consumers.
• People :-
• The employees in Mc Donalds have a
standard uniform and Mc Donalds
specially focuses on friendly and prompt
service to its customers from their
employees.
• Process :-The food manufacturing process at
Mc Donald's is completely transparent i.e.
the whole process is visible to the
customers.
• In fact, the fast food joint allows its
customers to view and judge the hygienic
standards at Mc Donald's by allowing them
to enter the area where the process takes
place.
• The customers are invited to check the
ingredients used in food.
• Physical evidence :- McDonald’s focuses on
clean and hygienic interiors of is outlets and
at the same time the interiors are attractive
and the fast food joint maintains a proper
decorum at its joints.
Thank You