EXTENDED MARKETING MIX

INTRODUCTION

A market is a group of existing and potential buyers or users of a product or service. Marketing is all about identifying a need, producing a product or service to meet that need, and then providing that service or product to people as efficiently as possible. Marketing involves researching, promoting, selling, and distributing your products or services.

MARKETING MIX:DEFINITION

The 'marketing mix' is a set of controllable, tactical marketing tools that work together to achieve company's objectives The marketing mix is the combination of marketing activities that an organization engages in so as to best meet the needs of its target market. It is defined as the particular group of variables offered to the market at a particular point of time, depending on which the market behaves.

The term ‘marketing mix’ becomes popularized after Neil.H.Borden published his 1964 article, The Concept of the Marketing Mix. The ingredients in Borden’s marketing mix included product planning, pricing, branding, distribution channels, personal selling, advertising, promotions, packaging, display, servicing, physical handling, and fact finding and analysis. E.JeromeMcCarthy later grouped these ingredients into the 4 categories that today are known as the 4P’s of marketing

MARKETING MIX:4 P’S

1.PRODUCT

A tangible object or an intangible service that is mass produced or manufactured on a large scale with a specific volume of units.

Product Decisions

Branding

Quality

Features

2.PRICE
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The price is a characteristic of a product. The key objective of using a price is obviously to generate and maximize revenues. Price = Cost the customer is prepared to pay. Price also must reflect the relationship of supply and demand within the marketplace

Penetration Skimming

Pricing Strategies

Competition Product Line Bundle
Psychological

3.PROMOTION

Promotion represents all of the communications that a marketer may use in the marketplace
Advertising Public Relations

Promotional Mix

Sales Promotion Personal Selling Direct Marketing Internet/ E-commerce

4.PLACE

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Place represents the location where a product can be purchased. Refers to how an organisation will distribute the product or service they are offering to the end user. What channel of distribution will they use? Two types of channel of distribution methods are available. Channel design should take into account Cost and Convenience for the customer.

INDIRECT DISTRIBUTION

DIRECT DISTRIBUTION

CRITICISM OF 4P’S

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It is too product focused and doesn't translate well into the growing service based economy we live in. An equally relevant criticism is the internal focus The traditional marketing mix is pushing product into the marketplace and not pulling products out of the potential suppliers based on these needs and wants through market research. So there have been attempts to develop an 'extended marketing mix' to better accommodate specific aspects of marketing.

in the 1970s, Nickels and Jolson suggested the inclusion of packaging. In the 1980s Kotler proposed public opinion and political power While, Booms and Bitner included three additional 'Ps' to accommodate trends towards a service or knowledge based economy, altogether they form the Extended Marketing Mix

EXTENDED MARKETING MIX

5.PEOPLE

People are the most important element of any service or experience. Services are performed by people whose performance influences the quality of the service delivered and perceived to be delivered. Recruiting the right staff and training them appropriately in the delivery of their service is essential if the organisation wants to obtain a form of competitive advantage.

Consumers make judgments and deliver perceptions of the service based on the employees they interact with. Staff should have the appropriate interpersonal skills, aptititude, and service knowledge to provide the service that consumers are paying for. Some ways in which people add value to an experience, as part of the marketing mix - training, personal selling and customer service.

6.PROCESS

Refers to the systems used to assist the organisation in delivering the service All Processes are concerned with the consistent creation and delivery of Customer Value

The Customer’s experience is affected directly at those points at which s/he interacts with the Organisation Processes should be continuously reviewed and coordinated to improve the customer experience and demonstrate Customer Consideration

7.PHYSICAL EVIDENCE
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Provides Physical Evidence of delivered Quality The ambience, mood or physical presentation of the environment  Smart/shabby?  Trendy/retro/modern/old fashioned?  Light/dark/bright/subdued?  Clean/dirty/unkempt/neat?  Music?Smell? Especially important where customer is purchasing an intangible (service) Provides Confirmation of Customers’ expectations

CONCLUSION
The 7 Ps < Organisation Facing Product= Price= Place= Promotion= People= Processes= Physical Evidence= Cost Convenience Communication Caring Co-ordinated Confirmation The 7 Cs Customer Facing > Customer Value

REFERENCES
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www.NetMBA.com www.bized.co.uk www.slideshare.net/extendedmarketing mix Barlon, Kimuli. (2006) "The concept of the marketing mix" Presentation on marketing management Borden, N. H. (1964), “The Concept of the Marketing Mix”, Journal of Advertising Research

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