MARKETING

MIX
At the end of the lesson, you should be able to :
✓ Define word/s related to the topic;
✓ describe the Marketing Mix (7P’s) in relation to the business
opportunity vis-à-vis:
Product;
Place;
Price;
Promotion;
People;
Packaging; and
Positioning
✓ appraise the concepts learned in managing a small business.

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 Marketing defined
as the performance of
business activities
directed toward the
flow of goods and
services from the
producer to the
consumer.
(American Marketing Association)
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 - Philip Kotler
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Marketing
Conceptual
Framework
The Production
Concept
Focusing on this concept
concentrate on achieving high
production efficiency, low
costs, and mass distribution.
The Product
Concept
Making superior
products and
improving them over
time.
The Selling
Concept
Assumes that the
company has a whole
battery of effective selling
and promotional tools to
stimulate more buying.
The Marketing
Concept
Company being more effective
than competitors in creating,
delivering, and communicating
customer value to its selected
target customers.
The Social
Marketing
Concept The Societal Marketing
Concept puts Human
welfare on top before profits
and satisfying the wants.
 Marketing
Functions

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To convert
light users to
heavy users

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 To convert
infrequent
purchasers to
frequent purchasers

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 To convert
non-users to
users

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 To induce brand
switching in the
markets of
competitors

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 To build
brand
loyalty

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 To establish
favorable
attitudes towards
the company and
its goods and
services
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 To ensure
profitability

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 Marketing
Mix
(Ps of Marketing)

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4 P’s of Marketing (Marketing Mix) 20
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 The Ps of marketing are a set of recognized marketing
tactics, which you can use in any combination to satisfy
customers in your target market. The Ps are
controllable, but subject to your internal and external
marketing environments. Combining these
different marketing tactics to meet your
customers' needs and wants is known as
using a 'tactical marketing mix'.

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 Product
Product refers to what you are selling,
including all of the features, advantages
and benefits that your customers can enjoy
from buying your goods or services. When
marketing your product, you need to think
about the key features and benefits your
customers want or need, including (but not
limited to) styling, quality, repairs, and
accessories.
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 Price
This refers to your pricing strategy for
your products and services and how it will
affect your customers. You should identify
how much your customers are prepared
to pay, how much mark-up you need to
cater for overheads, your profit margins
and payment methods, and other costs.
To attract customers and retain your
competitive advantage, you may also
wish to consider the possibility of
discounts and seasonal pricing.
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 Price
Setting the right price for your products,
services or experiences helps you maximize
profits while maintaining a good
relationship with your customers. Effective
pricing can help you avoid serious financial
problems that may occur if your prices are
too high or low – if you charge too much
you may price yourself out of the market,
but if you charge too little you may not be
able to cover your costs.

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 Price
Pricing your products or services does not have to be a
stressful process. Remember:
•you are in business to make a profit
•it is much easier to lower your prices than to raise them
•thorough research will help you to establish the right
price.
The right price is fair to your customers (i.e. they are
willing to pay it) and your business (i.e. you cover costs and
make a profit).

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 Promotion
These are the promotional activities
you use to make your customers
aware of your products and
services, including advertising,
sales tactics, promotions and direct
marketing. Generally, these are
referred to as marketing tactics.
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 Promotion
Types of promotional activities
• advertising — you can advertise your
product, service or brand in
newspapers, radio, television,
magazines, outdoor signage and
online.
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 Promotion
•personal selling or telemarketing —
effective personal selling relies on good
interpersonal and communication skills,
excellent product and service knowledge
and the ability to sell product benefits to
prospective customers.

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 Promotion
• publicity — created by sending media
releases to print and broadcasting
media, giving interviews to the media
and from word-of-mouth.

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 Promotion
• short-term sales promotions —
market your product or service using
coupons, competitions and contests.

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 Promotion
• direct marketing — involves sending
letters, emails, pamphlets and
brochures to individual target clients,
often followed by personal selling or
telemarketing

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 Promotion
Online marketing
Online marketing is often cost-effective
and is becoming increasingly important
to businesses. Developing a separate
online marketing plan to evaluate your
options and help implement your
strategy is vital in the modern
marketplace.

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 Place
Place is where your products
and services are seen, made,
sold or distributed. Access for
customers to your products is
key and it is important to ensure
that customers can find you.
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 Place
You can set yourself apart from your
competition through the design of your
retail space and by using effective visual
merchandising techniques. If you are not
a retail business, place is still an important
part of your marketing. Your customers
may need a quick delivery turnaround or
want to buy locally manufactured
products.
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 Place
If you are starting a
new business, finding
the right business
location will be a key
marketing tactic

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 People
People refer to the staff and salespeople who work
for your business, including yourself.
When you provide excellent customer service, you
create a positive experience for your customers, and
in doing so market your brand to them. In turn,
existing customers may spread the word about your
excellent service, and you can win referrals.

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 People
Give your business a competitive advantage by
recruiting the right people, training your staff to
develop their skills, and retaining good staff.

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 Process
Process refers to the
processes involved in
delivering your products
and services to the
customer. It is also about
being 'easy to do business
with'.
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 Process
Having good process in place
ensures that you:
•repeatedly deliver the same
standard of service to your
customers
•save time and money by
increasing efficiency.
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 Physical evidence
Physical evidence
refers to everything
your customers see
when interacting with
your business.

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 Physical evidence
This includes:
•the physical environment where you
provide the product or service
•the layout or interior design
•your packaging
•your branding.

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Thank you

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