INTRODUCTION TO MARKETING

MARKETING MIX

4P
INTRODUCTION TO MARKETING

A QUICK

OVERVIEW

Product
Price
Place
Promotion

THE MARKETING MIX | 4P

INTRODUCTION TO MARKETING

CASE STUDY

APPLE
Apple Inc. (Apple) designs, manufactures, and markets
mobile communication and media devices,
personal computers (PCs), and portable digital music
players, and sells a variety of related software,
services, accessories, networking solutions, and third-party
digital content and applications.

THE MARKETING MIX | 4P

INTRODUCTION TO MARKETING

WHAT IS A 

PRODUCT?
Anything that can be offered to a market for
attention, acquisition, use or consumption and
that might satisfy a want or need

THE MARKETING MIX | 4P

INTRODUCTION TO MARKETING

WHAT IS A 

SERVICE?
A form of product that consists of activities,
benefits, or satisfactions offered for sale that are
essentially intangible and do not result in the
ownership of anything

THE MARKETING MIX | 4P

INTRODUCTION TO MARKETING
LEVELS OF A
PRODUCT
A product has three levels and
product planners need to think
about products and services on
these three levels. Each level adds
more customer value
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CORE BENEFIT
What the consumer is really
buying
ACTUAL PRODUCT
Includes the brand name,
features, design, packaging,
quality level
AUGMENTED
Additional services and
benefits such as delivery and
credit, instructions,
installation, warranty, service
INTRODUCTION TO MARKETING

CONVENIENCE
TYPES OF CONSUMER

PRODUCTS SHOPPING

Consumer products are products

and services bought by final SPECIALTY
consumers for personal
consumption. There are four
categories of consumer products
UNSOUGHT

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INTRODUCTION TO MARKETING

CONSUMER PRODUCTS

CONVENIE
NCE
These products are purchased 
frequently with little planning, little
comparison or shopping effort. They
are usually low priced, mass
advertised, and is available in many
locations

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INTRODUCTION TO MARKETING

CONSUMER PRODUCTS

SHOPPING
These products are purchased  less
frequently with much planning, and
shopping effort. Brands are usually
compared in terms of price and
quality. They are usually higher
priced, and has fewer purchase
locations

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INTRODUCTION TO MARKETING

CONSUMER PRODUCTS

SPECIALTY
These are products with unique
characteristics or brand
identification for which a significant
group of buyers is willing to make a
special purchase effort

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INTRODUCTION TO MARKETING

CONSUMER PRODUCTS

UNSOUGHT
These products are either unknown
to the consumer or knows about it
but does not normally think of
buying

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INTRODUCTION TO MARKETING

INTANGIBILITY
Cannot be seen, tasted, felt,
NATURE AND CHARACTERISTICS heard or smelled before

SERVICE
purchase
INSEPARABILITY
Cannot be separated from
their providers

VARIABILITY
A company that plans to provide Quality varies on who
services must consider four special provides them and when,
characteristics of service when where and how
designing marketing programs PERISHABILITY
Cannot be stored for later
sale or use

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 INTRODUCTION TO MARKETING

HOW DO
MARKETERS
OVERCOME THESE
SPECIAL
CHARACTERISTICS?

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INTRODUCTION TO MARKETING

INDIVIDUAL PRODUCT

DECISIONS

Product Attributes
Branding
Packaging
Labeling
Product support Services

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INTRODUCTION TO MARKETING
ATTRIBUTES
PRODUCT
Developing a product or service
involves defining the benefits that it
will offer. These benefits are
communicated and delivered by
these product attributes
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QUALITY
Performance and satisfaction.
Includes level and consistency
FEATURES
Differentiates a product from
the competition; assesed
based on value and cost
STYLE & DESIGN
Style = Appearance
Design = Product's usefulness
as well as its looks
INTRODUCTION TO MARKETING

PRODUCT DECISION

BRANDING
A brand is a name, term, symbol, or design, or a
combination of these, that identifies the maker or
seller of a product or service. It tells the buyer
something about the quality of the product -
buyers expect consistency from the same brand

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INTRODUCTION TO MARKETING

PRODUCT DECISION

PACKAGING
Designing and producing the container or
wrapper of a product in order to not only contain
and protect the product but also to attract
attention, describe the product and to make a
sale

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INTRODUCTION TO MARKETING

PRODUCT DECISION

LABELING
It is the printed information appearing on or with
the package. It identifies the product or brand. It
describes several things about the product and it
promotes the product through attractive graphics

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INTRODUCTION TO MARKETING

PRODUCT DECISION

PRODUCT SUPPORT
SERVICES
It involves putting together a package of services
that delights the customers and yields profits for
the company ie. customer service

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INTRODUCTION TO MARKETING

WHAT IS A 

PRICE?
It is the sum of all the values that consumers
exchange for the benefits of having or using the
product or service

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INTRODUCTION TO MARKETING

FACTORS
AFFECTING PRICING
DECISIONS
INTERNAL AND EXTERNAL FACTORS

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INTRODUCTION TO MARKETING

FACTORS AFFECTING PRICE

INTERNAL

Marketing objectives
Marketing mix strategy
Costs
Organizational considerations

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INTRODUCTION TO MARKETING
MARKETING
OBJECTIVES
A company that plans to provide
services must consider four special
characteristics of service when
designing marketing programs
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SURVIVAL
Low prices hoping to increase
demand
CURRENT PROFIT
MAXIMIZATION
Choose the price that
produces the maximum profit
MARKET SHARE
LEADERSHIP
Price lower than competitors
to draw customers in
QUALITY LEADERSHIP
Higher prices to cover higher
performance quality and R&D
INTRODUCTION TO MARKETING

INTERNAL FACTORS

MARKETING MIX
Price decisions must be coordinated with product
design, distribution, and promotion decisions to
form a consistent and effective marketing program

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INTRODUCTION TO MARKETING

INTERNAL FACTORS

COSTS
Costs set the floor for the price that the company
can charge. The company wants to charge a price
that covers all its costs for producing, distributing,
and selling the product and delivers a fair rate of
return for its effort and risk. Fixed costs and
Variable costs

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INTRODUCTION TO MARKETING

INTERNAL FACTORS

ORGANIZATIONAL
CONSIDERATIONS
Management must decide who within the
organization should set prices

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INTRODUCTION TO MARKETING

FACTORS AFFECTING PRICE

EXTERNAL

Nature of the Market and Demand

Competition
Other environmental factors (economy,
government, social concerns, etc.)

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INTRODUCTION TO MARKETING

EXTERNAL FACTORS

MARKET & DEMAND

Costs set the lower limit of prices while the market
and demand set the upper limit. How much is the
demand for the product and how much are
consumers willing to pay for the product

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INTRODUCTION TO MARKETING

EXTERNAL FACTORS

COMPETITION
Competitor's pricing should be used as a
benchmark to set own prices. Prices have to be set
competitively.

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INTRODUCTION TO MARKETING

EXTERNAL FACTORS

ENVIRONMENTAL
Recessions or boom affects the customers' ability to
spend. Government affects pricing due to taxes,
regulations and duties. In terms of social concern,
the seller considers the social impact of their pricing

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