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• Four Ps
• • • • Product Price Promotion Place
• The concept is simple. Think about another common mix - a cake mix. All cakes contain eggs, milk, flour, and sugar. However, you can alter the final cake by altering the amounts of mix elements contained in it. So for a sweet cake add more sugar!
Marketing Mix • It is the same with the marketing mix. • So for a high profile brand. . • The offer you make to your customer can be altered by varying the mix elements. increase the focus on promotion and desensitize the weight given to price.
• Another way to think about the marketing mix is to use the image of an artist's palette. .
as is every marketing mix. .Marketing Mix • The marketer mixes the prime colours (mix elements) in different quantities to deliver a particular final colour. • Every hand painted picture is original in some way.
Target Market is the key • Competition .
products & services .Designing the right marketing mix • The most creative & challenging step in marketing is designing the right marketing mix • The marketing mix is the specific collection of actions & associated instruments employed by an organisation to stimulate acceptance of its ideas.
the right distribution channel is used to make the product available • Third.Total Offer to the Customer • First. the firm undertakes eye catching promotion • Fourth. the firm chooses the product to meet the identified need of the target segment • Second. the price platform is acceptable to the customer & firm .
Customer cost Place.4Ps & 4Cs • • • • Product.Communication .Convenience Promotion.Customer /Consumer Price.
. convenience. and communication.4Ps & 4Cs • Four Cs • The Four Ps is also being replaced by the Four Cs model. cost. • The Four Cs model is more consumeroriented and fits better in the movement from mass marketing to niche marketing. consisting of consumer.
shifting the focus to satisfying the consumer.Consumer • The product part of the Four Ps model is replaced by consumer or consumer models.Product. .
reflecting the reality of the total cost of ownership.Cost • Pricing is replaced by cost.Price. .
• With the rise of internet and hybrid models of purchasing. . place is no longer as relevant as before.Place. • Convenience takes into account the ease to buy a product.Convenience • Placement is replaced by the convenience function. and several other considerations. find a product. find information about a product.
and any form of communication between the firm and the consumer. • Communications can include advertising. public relations. viral advertising. • Communications represents a broader focus than simply promotions.Promotion.Communication • Finally. . personal selling. the promotions feature is replaced by communication.
• In the 1980s Kotler proposed public opinion and political power . Nickels and Jolson suggested the inclusion of packaging. • For example.Extended Marketing Mix • There have been attempts to develop an 'extended marketing mix' to better accommodate specific aspects of marketing. in the 1970s.
management and consumers. mechanisms and flow of activities which lead to an exchange of value. • Process – procedures. or the length of time a customer has to wait.Booms & Bithner • Booms and Bitner included three additional 'Ps' to accommodate trends towards a service or knowledge based economy: • People – all people who directly or indirectly influence the perceived value of the product or service. or a cover letter from an insurance company. • Physical evidence – the direct sensory experience of a product or service that allows a customer to measure whether he or she has received value. including knowledge workers. Examples might include the way a customer is treated by a staff member. employees. or the environment in which a product or service is delivered .
Extended.Marketing Mix .
Extended Marketing Mix • Booms and Bitner included three additional 'Ps' to accommodate trends towards a service or knowledge based economy: • People • Process • Physical Evidence .
Extended Marketing Mix .
management and consumers. including knowledge workers.People • People – all people who directly or indirectly influence the perceived value of the product or service. employees. .
.Process • Process – procedures. mechanisms and flow of activities which lead to an exchange of value.
or the environment in which a product or service is delivered.Physical Evidence • The direct sensory experience of a product or service that allows a customer to measure whether he has received value. . • Examples might include the way a customer is treated by a staff member. or the length of time a customer has to wait. or a cover letter from an insurance company.
• Strictly speaking there are no physical attributes to a service. so a consumer tends to rely on material cues.Physical Evidence • Physical evidence is the material part of a service. .
• Paperwork (such as invoices. including some of the following: • Packaging. tickets and despatch notes). • Internet/web pages. .Physical evidence • There are many examples of physical evidence. • Brochures.
• The building itself (such as prestigious offices or scenic headquarters). • Signage (such as those on aircraft and vehicles).Physical Evidence • Furnishings. . • Business cards. • Uniforms.
7Ps & 7Cs The 7 Ps Organisation Facing Product = Price = Place = Promotion = People = Cost Convenience Communication Caring The 7 Cs Customer Facing Customer/ Consumer Processes = Physical Evidence = Co-ordinated Confirmation .
Fundamental Actions • The term 'marketing mix' however. • They are not trade-offs but are fundamental marketing issues that always need to be addressed. • They are the fundamental actions that marketing requires whether determined explicitly or by default. does not imply that the 4P elements represent options. .
service or idea is that which satisfies the needs & wants of the customers .Product • Product: • A product.
(Learn) • A tangible object or an intangible service that is mass produced or manufactured on a large scale with a specific volume of units. . • Intangible products are often service based like the tourism industry & the hotel industry or codes-based products like cell phone load and credits.Product.
.Product • Typical examples of a mass produced tangible object are the motor car and the disposable razor. A less obvious but everpresent mass produced service is a computer operating system.
Product • Cars .
Reva • Reva .Cars.
Maruti 800 • Maruti .Car.
Product • • • • • • • Variety Quality Design Features Brand Name Packaging Service .
. for example. cars. • Commercially available software systems support the automation of many aspects of the engineering process. offer such a large range of combinations of product features that millions of variants of a single product are possible. product databases enable the description of single products and engineering applications can use these product descriptions to carry out their tasks. manufacturers of products which are built to customer order. aeroplanes and medical equipment.Product Variety • Even today.
and that performs its intended function is said to be a quality product. • Quality in business. conditional and somewhat subjective attribute and may be understood differently by different people. • Consumers may focus on the specification quality of a product/service. or how it compares to competitors in the marketplace. • Quality is a perceptual. .Product Quality • A product or process that is reliable. has an interpretation as the non-inferiority or superiority of something.
concept development.Product design • Product design can be defined as the idea generation. testing and manufacturing or implementation of a physical object or service .
if the brand name exclusively identifies the brand owner as the commercial source of products or services . • In this context a "brand name" constitutes a type of trademark. although it is more correctly used to specifically denote written or spoken linguistic elements of any product.Brand Name • The brand name is often used interchangeably within "brand".
guarantees. style. size & packaging. warranties/guarantees.Product • Instruments that aim at satisfaction of the prospective exchange party’s needs • Examples: Product characteristics. options. services. quality. returns & replacements . assortments. brand name. features. packaging.
juices Indoor coolers 7 year warranty on refrigerators.Product • • • • • Titan introduces quartz watches 24 Hour banking & ATMs by banks Tetra pack cartons for milk.Allwyn .
Product & Packaging .
Product • Consumer durable products .
Products • Increase in mobile services in India .
Product.Durable • Washing machines .
Product • Camera .
Products • Latest Gadgets .
& walkman mobile .New generation products • Ipod.
Services • Courier Aviation .
Services • Despatch .
Modern gadgets • ipod .
. It can include any physical store as well as virtual stores on the Internet.Place • Place represents the location where a product can be purchased. • It is often referred to as the distribution channel.
Place • Physical distribution are activities involved in transporting products from the producer to the consumer: • Mode of transport • Warehousing & Storage • Order processing • Inventory control .
Place • Channels of distribution are the routes through which the ownership of goods flow on its way from the producer to the customer • Distributor • Super-stockist • Wholesalers • Retailers .
merchandising advise . trade-relation mix.Place • Instruments that determine the intensity & manner in which goods or services will be made available • Types of channels. density of distribution.
Place • • • • • • Channels Coverage Locations Inventory Transportation Logistics .
Airports .Duty Free Stores .
Hypermart-Store Signage's .
Place • Large Format stores .Availability.
Large Format Stores • • • • • Lifestyle Westside Shoppers Stop Pantaloons Big Bazaar .
Retail brands • Stores .
Nokia Store .
Place • Global Players in India .
Place • Markets .
Place • Stores .
Modern Grocery Store .
Local stores • Local kirana stores .
Price • The price is the amount a customer pays for the product. • It is determined by a number of factors including market share. . material costs. product identity and the customer's perceived value of the product. competition. • The business may increase or decrease the price of product if other stores have the same product.
Price • • • • • List Price Discounts Allowances Payment Period Credit Terms .
price tags. . catalogs. List prices are usually the prices printed on dealer lists.List Price • In retail. price regularly quoted to customers before applying discounts. invoices. or dealer purchase orders.
Discounts & Allowances
• Discounting is a financial mechanism in which a debtor obtains the right to delay payments to a creditor, for a defined period of time, in exchange for a charge or fee • Discounts and allowances are reductions to a basic price of goods or services.
Payment Period & Credit Terms
• The stipulation by a business as to when it should be paid for goods or services supplied, for example, cash with order, payment on delivery, or within a particular number of days of the invoice date
• Price is the amount a consumer pays in exchange for the product or service. • Marketers must consider the following in setting prices:
• Target segment- How much the target segment is willing to pay at different price levels- price elasticity of demand • Cost- How much it costs the firm to produce & market the product • Competition- Prices of competitors • Society & Law- Within legal framework
Price elasticity of demand-1 • Elasticity is a measure of responsiveness. and elasticity measures the extent to which people react. Two words are important here. . • Some change or stimulus causes people to react by changing their behavior. or elasticity coefficients. • The word "responsiveness" means that there is a stimulus-reaction involved. • The word "measure" means that elasticity results are reported as numbers.
Price elasticity of demand-2 • The most common elasticity measurement is that of price elasticity of demand.) . (Read that as elasticity is the percentage change in quantity divided by the percentage change in price. • The basic formula used to determine price elasticity is • e= (percentage change in quantity) / (percentage change in price). • It measures how much consumers respond in their buying decisions to a change in price.
Price • Marketers have to determine prices to consumers & channel partners • Prices across models & geographic regions have to be established • Policies on discounts have to be framed • These decisions are vital to enhance sales volumes .
Innovative Discounts • • • • • • Discount sales in shopping malls Off season sales Closing down sales Festival sales Credit points Exchange offers – mobiles. cars . cookers.
Festive Sales • Christmas & Diwali Sales .
Innovative discounts • Discounts .
End of season sale .
Special Sales • Sales .
Gold Sale. premiums steady .Impact • Festive season revives gold demand.
as jewellers took advantage of a price drop to replenish stocks during the festive season. 01:40 PM Festive season revives gold demand.Report. the world's largest consumer.Gold trading picked up in India. . while premiums for kilobars were mostly steady in Asia in the past week.Gold Sales • Wednesday August 12. premiums steady • SINGAPORE/MUMBAI (Reuters) .
• Promotion activities are meant to communicate & persuade the target market to buy the company’s products • This is done by:-
• • • • • Advertising Personal selling Sales promotion- POS Public Relations Word of mouth – Viral advertising
radio and Internet adverts through print media and billboards. .Promotion • Promotion represents all of the communications that a marketer may use in the marketplace. word of mouth and point of sale. from and cinema commercials. • Promotion has five distinct elements – advertising. • A certain amount of crossover occurs when promotion uses the five principal elements together • Advertising covers any communication that is paid for. public relations. personal selling.
. and internet. • The ATL strategy makes use of current traditional media: television. outdoor. newspapers. • It differs from BTL (Below the line). radio. magazines. that believes in unconventional brand-building strategies. • Major above-the-line techniques include TV and radio advertising.ATL & BTL • Above the line (ATL) is an advertising technique using mass media to promote brands. such as direct mail. print advertising and internet banner ads. • This type of communication is conventional in nature and is considered impersonal to customers.
refers to forms of nonmedia communication.Below the line • The terms "below the line" promotion or communications. . but also for industrial products. even non-media advertising.BTL. • Below the line promotions are becoming increasingly important within the communications mix of many companies. not only those involved in FMCG products.
. services. • These may include activities such as direct mail. etc. public relations and sales promotion for which a fee is agreed upon and charged up front.ATL & BTL • What’s the difference between ‘Above the line’ and ‘below the line’ advertising? • Below the line (BTL) is an advertising technique. than ATL (Above the line) strategy. • It uses less conventional methods than the usual specific channels of advertising to promote products.
Those consumer items where the customer will rely on immediate information than previously researched items.Below the Line • Below the line advertising typically focuses on direct means of communication. often using highly targeted lists of names to maximize response rates • The term "Below the Line" is rapidly going out of fashion in advertising circles as agencies and clients switch to an 'Integrated Communication Approach.' • BTL is a common technique used for touch and feel products. most commonly direct mail and e-mail. . • BTL techniques ensures recall of the brand while at the same time highlighting the features of the product.
public relations.Integrated Communication Approach • Definition: A management concept that is designed to make all aspects of marketing communication such as advertising. rather than permitting each to work in isolation. and direct marketing work together as a unified force. . sales promotion.
competition entry forms. etc . the target customer is presented with "below the line" promotional material such as store banners.Through the line-TTL • Through the line" refers to an advertising strategy involving both above and below the line communications in which one form of advertising points the target to another form of advertising thereby crossing the "line". • In this example. • An example would be a TV commercial that says 'come into the store to sample XYZ product'. the TV commercial is a form of "above the line" advertising and once in the store.
tele-marketing • Advertising. trade shows. OOH.Communication through contests. free samples.Personal selling • Personal Selling: Face to face personal communication. yellow pages.Eureka Forbes • In person selling. call helplines .Mass communication efforts through media • Sales Promotion.
Personal Selling • Personal Selling .
Discount coupons • Discount coupons .
Reuters.Communicating with an audience by personal or non-personal media that are not paid for delivering the message • Print media news.PTI. annual reports.Promotion-2 • Publicity. speeches by employees . broadcast media newsUTI.
Branding • Signages .
Known companies • Recognizable companies .
• Fly High
Examples-Lux Same theme over the years
Chips • Competition .
Celebrity endorsement • Using famous people to attract target segment .
ICICI Bank.Print Ad .
Brand Ambassador Star Power .
TV Channels .
TV Channels .
TV Channels • TVC .
TV Channels .
TV Channels .
More than just news • Entertaining information to add spice .
First thing in the morning .
Newspapers & Magazines .Print Media • Print.
Print Media • Newspapers & Magazines .
Read everywhere • Omnipresent .
Newspapers you could read • • • • • Economic Times Business Standard Mint Hindu Businessline Business News in daily newspapers • The Hindu .
Radio • Growing radio stations in India .
FM .Radio Stations • Numerous.
Radio channels • Meow targets at women .
Bajaate Raho.Red FM .
Radio on the internet • On the internet .
com .youtube.Videos can be uploaded • Companies upload their corporate films • www.
Sales Staff & PR • Sales staff often plays an important role in word of mouth and Public Relations .
• Word of mouth is any apparently informal communication about the product by ordinary individuals. seminars or trade fairs and events.Public Relations • Public relations are where the communication is not directly paid for and includes press releases. conferences. satisfied customers or people specifically engaged to create word of mouth momentum. exhibitions. . sponsorship deals.
Press Release • Press Release .
Public Relations • Press Conferences .
Media Entertainment .
PR Material • Press kit to be given to press with all info. .
Press Conference • Spokesperson of the company talks to the press .
Client Meetings • Word of mouth publicity .
Word of mouth publicity • Word of mouth is a reference to the passing of information from person to person. Originally the term referred specifically to oral communication but now includes any type of human communication. email. and text messaging . telephone. such as face to face.
Word of mouth publicity • Salespersons .
Word of mouth publicity • At meetings .
Competitors • Responding to competitor activity & messages • You may have seen similar activity in cola ad wars .
• The world’s largest beverage company CocaCola. like its rival PepsiCo.Reports in media • Cola war shifts to a new turf • The famous cola wars have found a new battleground — the Indian fields. is finalising plans for sourcing fruit from India for its juice brands. .
OOH • Cola vans act as OOH .
OOH • Pepsi van .
OOH • Cola signages .
Vending Machines • Vending machine.Note both brands .
Recognizable logos • Coke vs Pepsi .
Sales Promotion • Yeh Dil Maange More!!! .
and the location where a transaction occurs .Point of Sales • Point of sales (POS) or checkout refers to both a checkout counter in a shop.
POS Display .
Coca Cola .Cola Ads-Promotion • Cola drinks.Thums Up.
Vodafone vs Airtel .
• Vodafone.Messages • Airtel.Happy to Help • Spice.Now Airtel removes distances across India.Faltoo callers ki No Entry .Telecom Ad.
Vodafone vs Airtel Ads .
Signages • Celebrity endorsement .
Reliance Telecom • Reliance .
Reliance Mobile.Hritik .
Reliance Mobile • Hritik Roshan .
What an idea. Sirji • Walk when you talk .
OOH.Idea Cellular .
Idea Cellular • IDEA’s ad campaigns based on the theme of ‘Democracy’. ‘Championing a world in which no one suffers from the disability to communicate’. . ‘Championing a world without caste’. and ‘Education for All’. have been a huge success amongst all categories of audience.
• The Aditya Birla Group company has grown to become the 3rd largest private GSM operator with over 43 million subscribers across 16 service areas. nationally.Effectiveness of Campaign • The testimony of the success of the campaign is reflected from the rapid growth of IDEA’s subscriber base in the country. .
Bus shelters • Same message across all media .
Outdoor • Hoarding/Billboard .
OOH • Signages & Gates .
Brands using OOH • Amul .
Mobile truck.OOH • Outdoor trucks with billboard .
Trade Shows & Events • Trade Shows • Events .
Wall paintings.Shutters .
We’ve Changed • Kingfisher.We made them change • Go Air.We’ve not changed. we are still the smartest way to fly .Airline Ad Wars • Marketers should be ready to face communication challenges • Jet Airways.
Same location on Nariman Point .Ad wars • In Mumbai.
Word of mouth • Viral marketing depends on a high passalong rate from person to person. • If a large percentage of recipients forward something to a large number of friends. . the overall growth quickly fizzles. • If the pass-along numbers get too low.Viral Marketing. the overall growth snowballs very quickly.
Viral Marketing • Word of mouth .
Word of Mouth Publicity .
. creating a potentially exponential growth in the message's visibility and effect. viral marketing is any marketing technique that induces Web sites or users to pass on a marketing message to other sites or users.On the internet • On the Internet.
that promotes its service and its own advertisers' messages in every user's e-mail notes. .Excellent Viral Marketing • Hotmail--One example of successful viral marketing is Hotmail. now owned by Microsoft. a company.Hotmail.
. Hotmail had accumulated 12 million subscribers. and would allow the user to have multiple accounts. • Once the receiving user clicked on the word "Hotmail" they were taken to Hotmail's homepage where the free email service was further explained. could be accessed anywhere. original at the time.Hotmail. • One of the interesting things Hotmail did was it would attach the message "Get your free email at Hotmail" at the bottom of every email sent by a Hotmail user.Viral Marketing • In 1996. Hotmail was a particularly unique email service in that it was free. Hotmail eventually sold to Microsoft for a cool $400 million. worked. • The plan. By 1998.
.Cadbury’s in UK • Cadbury's Dairy Milk 2007 Gorilla advertising campaign was heavily popularised on YouTube and Facebook.
television and cinema spots.Gorilla • Gorilla is a British advertising campaign launched by Cadbury Schweppes in 2007 to promote Cadbury Dairy Milk-brand chocolate. was handled by advertising agency Fallon London. event sponsorships and an internet presence. with the online segment contracted out to Hyper. which comprised appearances on billboards.2 million campaign. which formed the centrepiece of the £6. The campaign itself. print newspapers and magazines. The 90-second television and cinema advertisement. was created and directed by Juan Cabral and starred actor Garon Michael. .
Gorilla Ad Campaign • Gorilla Campaign .
• The basic form of viral marketing is not infinitely sustainable. images. • Viral promotions may take the form of video clips. advergames.Definition. ebooks. analogous to the spread of pathological and computer viruses.Viral Marketing • The buzzwords viral marketing and viral advertising refer to marketing techniques that use pre-existing social networks to produce increases in brand awareness or to achieve other marketing objectives (such as product sales) through self-replicating viral processes. • It can be word-of-mouth delivered or enhanced by the network effects of the Internet. brandable software. . or even text messages. interactive Flash games.
Going Viral • • • • Funny Helpful & Unique Controversial Amazing & Spectacular • Schematic .
Word of Mouth • Word of Mouth .
Viral Marketing.Internet • Social Networking sites .
6 million Internet users (who access the Web from their homes/offices) in June. • These figures have meant that people have kept launching new social sites in India fuelled by the hype but success is still far for them.Close to 35 million internet users in India • According to Internet market research firm comScore Inc. of which at least 65%.61 million. accessed social networking sites. India had 34. or 22. .
T-Shirts • T-Shirts with company & Logo message .
Inflated Balloons .
Scooter covers .
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