BSBA MARKETING MANAGEMENT 1-3

CHAPTER III
MARKETING MIX: THE 4Ps OF MARKETING

Group 2

MKTG 2001
Essentials In Marketing Next ➡
Contents
Please pay attention to the presentation as questions will be
asked later and ask questions for parts you do not
understand.

1. Marketing Functions Of The 4 Ps 5. Marketing Plan

Factors Influencing Customers
6. 4Ss In Marketing Planning
Purchase Decision-Making
2. Buyer Behavior 7. 'M' Framework For Formulating
Marketing Strategy
3. Assembling The Marketing Mix
Product Value
Marketing Program

4. Diagnostic Marketing Mix Next ➡

 I. Marketing Functions
Of The 4Ps

Marketing mix strategy is choosing and implementing the best possible

course of action to attain the organization’s long-term objectives and
gain customer bonding and competitive advantage. A company may
succeed in one year but may not necessarily succeed in year two due to
changes in the competitive situation or competitive dynamics. Each of
the 4Ps must be relevant up-to-date and coherent.

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 4 Ps Of Marketing
Product: what a business offers consumers to satisfy their needs & wants. When offering a
product, consider who is the target market, its size & how it will benefit them, product
category, competition & what quality of product are they seeking.
Placement (or Distribution): Place determines product distribution. Choose a place that is
conveniently available to the target market that’s consistent with their purchasing patterns.
Promotions: focus on the how &where of getting your product in front of your audience. This is
necessary to build & improve consumer demand. It has 4 components called the Promotions
Mix:
- Advertising: to effectively inform, persuade & remind the target market
- Public Relations: to offer a positive image of the company
- Selling: to get the customers to buy
- Sales Promotion: to convince customers to buy immediately.
Price: make the product affordable to the target market and reflect the value of benefits
provided. Regardless of your approach, you must understand what your target buyer is willing
to pay instead of pricing your product on guesswork.
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 Product Price
Nike designs, Nike uses a value-
manufactures, and based and premium
sells athletic shoes, pricing system for its
apparel, accessories, products.
and other sporting
equipment.

Placement Promotions
Customers can shop for Nike promote its products
Nike’s products at through TV & social media
Nike’s online store, in ads. Nike also sponsors
Nike’s retail outlets, and many sports teams &
in third-party retail influential professional
stores. athletes. Next ➡
 Factors Influencing Customer's Purchase Decisions
To marketers, the interacting 4Ps attempt to influence in the buying decision-making
process of customers at a level that maximizes profit. Other factors that must be
considered are the 4Ps of competitive brands, customers' background & customers'
previous experience with the product or similar products.

Competitor's
Customer's Background/
Company's 4Ps 4Ps
Experience

TARGET MARKET PURCHASE OR

NO PURCHASE DECISON-MAKING

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 II. Buyer Behavior

Simply means the decision and acts pursued by any buyer while
purchasing any product or service for personal consumption and in order to
satisfy their needs and wants. Another term for buyer behavior that is
majorly used in the market of digital monetization is “consumer buying
behavior”.
Why is buyer behaviour important in Marketing? - By understanding how
buyers think, feel, and decide, businesses can determine how best to market
their products and service. This helps marketers to predict how their
consumers act, which aids in marketing existing products and services.
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Five (5) Categories Of Factors That Influence Buyer Behavior
Personal Factors - This factor include what you personally think about any product or
service, it is based upon Age, Income, Occupation & Lifestyle of the consumer.

Social Factors - A consumer’s behavior is influenced by such social factors as

reference groups, family, social and statuses.
Psychological Factors – a person's buying choices that are influenced by the
psychological factors of motivation, perception, learning, beliefs, and attitudes.
Cultural Factors - Cultural factors exert the broadest and deepest influence on
consumer behavior. People belonging to the same culture usually hold common
values, needs, wants, preferences, perceptions, and behaviors.
Economic Factors – talks about the level of sales in the market and the financial
position of the consumer. These are Personal Income, Family Income, Consumer Credit,
Liquid Assets & Savings.
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 Maslow’s Theory of Motivation

Sought to explain why people are driven by particular

needs at a particular time. Maslow’s hierarchy of
needs consists of physiological needs, safety needs,
social needs, esteem needs, and self-actualization
needs. A person will try to satisfy the most important
needs first.

Physiological Needs - Those that are vital to survival.

Food, Water, clothing, Shelter
Security and Safety Needs - People want
control and order in their lives. Some of the
basic security and safety needs include:
Financial security, Health and wellness, Safety
against accidents and injury.
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Social Needs - The social needs in Maslow’s hierarchy include
love, acceptance, and belonging. At this level, the need for
emotional relationships drives human behavior.

Esteem Needs - need for appreciation and respect.

Once the needs at the bottom three levels have been
satisfied, the esteem needs begin to play a more
prominent role in motivating behavior.

Self-Actualization Needs - At the very peak

of Maslow’s hierarchy are the self-
actualization needs. Self-actualizing people
are self-aware, concerned with personal
growth and interested in fulfilling their
potential. Next ➡
 III. Assembling The
Marketing Mix
Before a marketing mix program is formed, there must first be an analysis and definition of
target customer.
1. In the macro level, market segmentation answers the question "What are the groupings
of similar customers?"
2. In the micro level,
a. Decision Making Unit (DMU) points to "who purchases the product?"
b. Decision Making Process (DMP) answers the question "How, where and when is the
purchase made?"
c. Consumer motivation and preferences guide the marketer to answer "What do the
consumers want and why?"
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In satisfying customer, marketers must not assume who the decision maker is or the
mistake may be costly for the firm.
Marketers must consider more complex DMU's that are usually involved in the decision
making process (DMP) for most products and services.
EX: The choice of the specific brand and model may be decided jointly by the
husband and wife taking into consideration the car distributor's promotions effort
such as no-interest installment payment plan that matches their budget.
Marketers must therefore consider consider the initiator, influencer, decider, buyer, user
and the beneficiary for every purchase- not just the user.
Marketers usually make use of several market research to understand their customers
better. One of the most popular and widely used market research reports to understand
the served market is called "Usage, Attitude and Image"(UAI) survey.

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 Product Value
Product value must be in sync with what consumers need, therefore, it must be able to
close the gap between what the customers have at the moment and what they really
need.
Products may either be superior, at par with or basic to those competition.
- A superior product satisfies more needs & wants of customers while a basic
product satisfies lesser needs.
The new definition of "quality" is that which conforms to consumer's specification,
measured through indicators of customer's satisfaction rather than indicators of self-
gratification
It is consumers who decide on quality not the company. After product quality is defines,
it's inseparable twin, price, is defined to ensure an appropriate product value.

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 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 & which should be the support strategy.

Distribution Driven: companies' product must be available when & where customers expect
them to be. Their location is the single most important factor in their business.
Selling-Driven: Some companies are selling-driven especially when products are only
available through the salesman.
Sales Promo-Driven: when companies regularly or continuously offer marketing activities
to achieve short term objectives such to increase volume or long term objectives like brand
building.
Price-Driven: Some companies choose to offer low prices to attract the most number of
price-conscious customers.

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 IV. 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 Promotion

Low Repeat Purchase Product and/or Service Quality

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The marketing mix a company seldom stays the same.
Marketers must therefore have 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 costumer, 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
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 Goals Of The Marketing Diagnostic
The goals of the marketing diagnostic are to help you make business decisions,
such as whether your market is still profitable, whether you need to innovate
and introduce new products, whether your investment strategy is still
competitive, whether you need to invest in communication, and how your sales
organization is doing.

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 V. Marketing Plan

Marketing plan is a report that outlines your marketing strategy for your products or
services, which could be applicable for the coming year, quarter or month.

Typically, a marketing plan includes:

An overview of your business’s marketing
and advertising goals
A description of your business’s current
marketing position
A timeline of when tasks within your
strategy will be completed
Key performance indicators (KPIs) you will
be tracking
A description of your business’s target
market and customer needs
A description of how you will measure the
performance of the strategy

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 Types of Marketing Plans

New Product Launch: This marketing strategy describes the market entry strategy, target
market, and advertising tactics for a new product.

Social Media: A social media marketing strategy focuses on the usage of various social
media platforms for advertising and how to interact with their users.

Time-Based: Time-based marketing plans, such as those carried out quarterly or yearly,
concentrate on the time of the year, the state of the company at that time, and the most
effective methods for that time frame.

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 Marketing Plan vs. Marketing Strategy
Although often used interchangeably, the terms “marketing plan” and “marketing
strategy” do have some differences. Simply speaking, a marketing strategy
presents what the business will do in order to reach a certain goal. A marketing
plan outlines the specific daily, weekly, monthly or yearly activities that the
marketing strategy calls for.

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 Marketing Plan Outline

A typical outline of a marketing plan includes:

Executive Aummary
Goals and Abjectives
User Personas Competitor Analysis/SWOT Analysis
Baseline Metrics
Marketing Strategy
Tracking Guidelines

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 VI. 4Ss In
Marketing Plan

SERVICE DOMINANT SOCIAL INTERACTION

CUSTOMER

SUPERIOR KNOWLEDGE SALES ENGAGEMENT

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SERVICE DOMINANT
A realization that goods, service logic is being enhanced by a service-dominant logic.
That service elements of a product offering are far greater and more profitable product
element.
SOCIAL INTERACTION
Social interaction is the foundation of society without interaction there would be no
group life
For instance, interaction is the major process for the socialization of an individual from
birth to death , which exists in every culture.

FORM OF THE SOCIAL INTERACTION

1. Between individuals and Individuals (ex: doctor & patient, customer & vendor)
2. Between individuals and groups (ex: teacher & students, singer & audience)
3. Between groups and groups (Pakistan vs India cricket team, political parties)
4. Between individuals and culture
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SALES ENGAGEMENT
Sales are the connector and sculptor of business relationships.
That offline and online gaining and retention of customers is crucial
Need to identify new market segments of blue ocean are important.

SUPERIOR KNOWLEDGE
Knowledge is the defining competitive advantage today for sales and marketing
professionals.
It encompasses
- critical thinking
- brainstorming
- creativity
- calculated risk taking
- entrepreneurship
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THE SOCIAL MARKETING MIX

The 4Ss enable a more contemporary look at business marketing today.

Embedded is service dominant logic, co-creation and relationship
Interaction with your customer.
It is customer centric view of sales and marketing.
The social marketing mix works together to reinforce your value proposition and grow
your business.

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 VII. 'M' Framework For
Formulating Marketing Strategy

The marketing strategy training company, Mansmith and Fielders, Inc. has the “M Model”
(Go, 1992) for formulating marketing strategy.

Framework For Formulating Marketing Strategies

3Cs Input KRAs Performance

1 2

4Ps
4 3
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In the framework, which look like the letter “M”, Mansmith noted that the marketing strategy
is a continuing cycle. It takes the following steps into consideration:

1. Analysis of the customers, competition and company or the 3C’s are the starting points
used as inputs in marketing strategy formulation. This includes an assumption of political,
economic, social and technological forces that may influence the 3C’s. Customer’s analysis
includes understanding buyer behavior.
2. A marketing mix program (or 4P’s) is formulated consistent with the 4Ss guidelines with
two interrelated parts:
2.1. Constructing an attractive product value (product and price).
2.2. Preparing a viable marketing plan to include place (distribution)
and promotion mix (advertising, sales promotions, public relations,
selling).
A third component , people, is to be incorporated in the indispensable execution portion of
the plan.
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3. The key result areas (KRAs) are then monitored and reviewed periodically.
3.1 What worked and why.
3.2 What didn’t work and why.

4. A review of the marketing mix is objectively done by asking why the firm is doing what
they are doing.
4.1 Should they still continue what they are
4.2 Should some things be done in a different way?

Back to step 1:
1. The analysis of the customers, competitors and company as well as the assumption of its
external forces (political, economic, social and technological) and buyer behavior are
revisited.

Key issues are defined and answered from the result of this analysis. After thorough
reflection of the results, the firm’s marketing mix is updated and the cycle continues.
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Short Quiz
Enumeration
1. What are the 5 categories of factors that influence buyer behavior?
2. What are the 4Ps of marketing?
3. Provide at least one marketing problem and a resolution.
4. What are the 4Ss?

Multiple Choice
5. What is Marketing Strategy?
A. The marketing strategy is the development of the SWOT analysis
B. The marketing strategy presents what the business will do in order to reach a
certain goal
C. The marketing strategy only applies to companies
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Short Quiz
6. What is the most important point in a Marketing Plan?
A. Adaption B. The environment C. Set objectives
7. What are the 4 components of Promotions Mix?
A. Branding, Marketing, Advertising, Public Relations
B. Brand Strategy, Brand Loyalty, Customer Loyalty, Customer Satisfaction
C. Sales, Digital Marketing, Conscious Consumerism, Customer Service
D. Advertising, Public Relations, Selling, Sales Promotion
Give the meaning of each abbreviation.
8. DMU
9. DMP
Analysis/ Explanation (1 sentence)
10. Why do you think buyer behavior is important in marketing?
11. Why is having a diagnostic marketing mix important?
12. What do you think is the main target of the 4Ss?
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Answers
1. Personal Factors, Social Factors, Psychological Orders, Cultural Factors, Economic
Factors
2. Product, Placement, Price, Promotion
3.
Marketing Problem Marketing Solution

Low Awareness Level Advertising

Low Availability Placement

Low Trial Rate Pricing and/or Promotion

Low Repeat Purchase Product and/or Service Quality

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Answers
4. Service Dominant, Superior Knowledge, Social Interaction, Sales Engagement
5. B
6. C
7. D
8. Decision-making Unit
9. Decision Making Process

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References
Go, J. Go-Escareal, C. (2001). Fundamentals of Marketing : In The Philippine Setting

https://aeroleads.com/blog/buyer-behaviour/
https://businessjargons.com/economic-factors-influencing-consumer-behavior.html
https://www.verywellmind.com/what-is-maslows-hierarchy-of-needs-4136760
https://www.slideshare.net/deepu2000/marketing-mix-69710723
https://venngage.com/blog/marketing-plan/
https://coschedule.com/marketing/marketing-mix/marketing-mix-examples#12--nike-
marketing-mix-example
https://coschedule.com/marketing/marketing-mix/marketing-mix-examples