Four Ps

Four Ps
 Marketing Mix
Product
Price
Promotion
Place
 Marketing Mix
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.
The offer you make to your customer can
be altered by varying the mix elements.
So for a high profile brand, 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.
 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, as is every marketing mix.
 Target Market is the key
Competition
 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, products &
services
 Total Offer to the Customer

First, the firm chooses the product to meet

the identified need of the target segment
Second, the right distribution channel is
used to make the product available
Third, the firm undertakes eye catching
promotion
Fourth, the price platform is acceptable to
the customer & firm
 4Ps & 4Cs
Product- Customer /Consumer
Price- Customer cost
Place- Convenience
Promotion- Communication
 4Ps & 4Cs
Four Cs
The Four Ps is also being replaced by the
Four Cs model, consisting of consumer,
cost, convenience, and communication.
The Four Cs model is more consumer-
oriented and fits better in the movement
from mass marketing to niche marketing.
 Product- Consumer
The product part of the Four Ps model is
replaced by consumer or consumer
models, shifting the focus to satisfying the
consumer.
 Price- Cost
Pricing is replaced by cost, reflecting the
reality of the total cost of ownership.
 Place- Convenience
Placement is replaced by the convenience
function.
With the rise of internet and hybrid models
of purchasing, place is no longer as
relevant as before.
Convenience takes into account the ease
to buy a product, find a product, find
information about a product, and several
other considerations.
 Promotion- Communication
Finally, the promotions feature is replaced
by communication.
Communications represents a broader
focus than simply promotions.
Communications can include advertising,
public relations, personal selling, viral
advertising, and any form of
communication between the firm and the
consumer.
 Extended Marketing Mix
There have been attempts to develop an
'extended marketing mix' to better
accommodate specific aspects of
marketing.
For example, in the 1970s, Nickels and
Jolson suggested the inclusion of
packaging.
In the 1980s Kotler proposed public
opinion and political power
 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, including knowledge workers,
employees, management and consumers.

Process procedures, mechanisms and flow of activities which

lead to an exchange of value.

Physical evidence the direct sensory experience of a product or

service that allows a customer to measure whether he or she 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, 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
 People
People all people who directly or
indirectly influence the perceived value of
the product or service, including
knowledge workers, employees,
management and consumers.
 Process
Process procedures, mechanisms and
flow of activities which lead to an
exchange of value.
 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, or the environment in which
a product or service is delivered.
 Physical Evidence
Physical evidence is the material part of
a service.
Strictly speaking there are no physical
attributes to a service, so a consumer
tends to rely on material cues.
 Physical evidence
There are many examples of physical
evidence, including some of the following:
Packaging.
Internet/web pages.
Paperwork (such as invoices, tickets and
despatch notes).
Brochures.
 Physical Evidence
Furnishings.
Signage (such as those on aircraft and
vehicles).
Uniforms.
Business cards.
The building itself (such as prestigious
offices or scenic headquarters).
 7Ps & 7Cs
The 7 Ps The 7 Cs
Organisation Facing Customer Facing
Product = Customer/ Consumer
Price = Cost
Place = Convenience
Promotion = Communication
People = Caring
Processes = Co-ordinated
Physical Evidence = Confirmation
 Fundamental Actions
The term 'marketing mix' however, does
not imply that the 4P elements represent
options.
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.
 Product
Product:
A product, service or idea is that which
satisfies the needs & wants of the
customers
 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
Typical examples of a mass produced
tangible object are the motor car and the
disposable razor. A less obvious but ever-
present mass produced service is a
computer operating system.
 Product
Cars
 Cars- Reva
Reva
 Car- Maruti 800
Maruti
 Product
Variety
Quality
Design
Features
Brand Name
Packaging
Service
 Product Variety
Even today, manufacturers of products which
are built to customer order, for example, cars,
aeroplanes and medical equipment, offer such a
large range of combinations of product features
that millions of variants of a single product are
possible.
Commercially available software systems
support the automation of many aspects of the
engineering process; product databases enable
the description of single products and
engineering applications can use these product
descriptions to carry out their tasks.
 Product Quality
A product or process that is reliable, and that
performs its intended function is said to be a
quality product.
Quality in business, has an interpretation as the
non-inferiority or superiority of something.
Quality is a perceptual, 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.
 Product design
Product design can be defined as the
idea generation, concept development,
testing and manufacturing or
implementation of a physical object or
service
 Brand Name
The brand name is often used interchangeably
within "brand", although it is more correctly used
to specifically denote written or spoken linguistic
elements of any product.
In this context a "brand name" constitutes a type
of trademark, if the brand name exclusively
identifies the brand owner as the commercial
source of products or services
 Product
Instruments that aim at satisfaction of the
prospective exchange partys needs
Examples: Product characteristics,
options, assortments, packaging,
guarantees, quality, features, style, brand
name, size & packaging, services,
warranties/guarantees, returns &
replacements
 Product
Titan introduces quartz watches
24 Hour banking & ATMs by banks
Tetra pack cartons for milk, juices
Indoor coolers
7 year warranty on refrigerators- Allwyn
Product & Packaging
FMCG
 Product
Consumer durable products
 Products
Increase in mobile services in India
 Product- Durable
Washing machines
 Product
Camera
Product
 Products
Latest Gadgets
 New generation products
Ipod, & walkman mobile
 Services
Courier Aviation
 Services
Despatch
 Modern gadgets
ipod
Aviation
 Place
Place represents the location where a
product can be purchased.
It is often referred to as the distribution
channel. It can include any physical store
as well as virtual stores on the Internet.
 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
 Place
Instruments that determine the intensity &
manner in which goods or services will be
made available
Types of channels, density of distribution,
trade-relation mix, merchandising advise
 Place
Channels
Coverage
Locations
Inventory
Transportation
Logistics
Duty Free Stores - Airports
Hypermart-Store Signage's
 Availability- Place
Large Format stores
 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, competition,
material costs, product identity and the
customer's perceived value of the product.
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
 List Price
In retail, price regularly quoted to
customers before applying discounts. List
prices are usually the prices printed on
dealer lists, invoices, price tags, catalogs,
or dealer purchase orders.
Price Lists
 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
Bills
 Price
Price is the amount a consumer pays in
exchange for the product or service.
Marketers must consider the following in
setting prices:
 Price
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.
Two words are important here.
The word "measure" means that elasticity results
are reported as numbers, or elasticity
coefficients.
The word "responsiveness" means that there is
a stimulus-reaction involved.
Some change or stimulus causes people to react
by changing their behavior, and elasticity
measures the extent to which people react.
 Price elasticity of demand-2
The most common elasticity measurement is
that of price elasticity of demand.
It measures how much consumers respond in
their buying decisions to a change in price.
The basic formula used to determine price
elasticity is
e= (percentage change in quantity) /
(percentage change in price).
(Read that as elasticity is the percentage
change in quantity divided by the percentage
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, cookers, cars
 Festive Sales
Christmas & Diwali Sales
 Innovative discounts
Discounts
End of season sale
 Special Sales
Sales
 Gold Sale- Impact
Festive season revives gold demand,
premiums steady
 Report- Gold Sales
Wednesday August 12, 01:40 PM Festive
season revives gold demand, premiums steady

SINGAPORE/MUMBAI (Reuters) - Gold trading

picked up in India, the world's largest consumer,
as jewellers took advantage of a price drop to
replenish stocks during the festive season, while
premiums for kilobars were mostly steady in
Asia in the past week.
Discount Rush
 Promotion
Promotion activities are meant to
communicate & persuade the target
market to buy the companys products
This is done by:-
 Promotion
Advertising
Personal selling
Sales promotion- POS
Public Relations
Word of mouth Viral advertising
 Promotion
Promotion represents all of the communications
that a marketer may use in the marketplace.
Promotion has five distinct elements
advertising, personal selling, public relations,
word of mouth and point of sale.
A certain amount of crossover occurs when
promotion uses the five principal elements
together
Advertising covers any communication that is
paid for, from and cinema commercials, radio
and Internet adverts through print media and
billboards.
 ATL & BTL
Above the line (ATL) is an advertising technique using
mass media to promote brands.
Major above-the-line techniques include TV and radio
advertising, print advertising and internet banner ads.
This type of communication is conventional in nature and
is considered impersonal to customers.
The ATL strategy makes use of current traditional media:
television, newspapers, magazines, radio, outdoor, and
internet.
It differs from BTL (Below the line), that believes in
unconventional brand-building strategies, such as direct
mail.
 BTL- Below the line
The terms "below the line" promotion or
communications, refers to forms of non-
media communication, even non-media
advertising.
Below the line promotions are becoming
increasingly important within the
communications mix of many companies,
not only those involved in FMCG products,
but also for industrial products.
 ATL & BTL
Whats the difference between Above the line and
below the line advertising?

Below the line (BTL) is an advertising technique.

It uses less conventional methods than the usual specific
channels of advertising to promote products, services,
etc. than ATL (Above the line) strategy.
These may include activities such as direct mail, public
relations and sales promotion for which a fee is agreed
upon and charged up front.
 Below the Line
Below the line advertising typically focuses on direct
means of communication, most commonly direct mail
and e-mail, 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. Those consumer items where the customer will
rely on immediate information than previously
researched items.
BTL techniques ensures recall of the brand while at the
same time highlighting the features of the product.
 Integrated Communication
Approach
Definition: A management concept that is
designed to make all aspects of marketing
communication such as advertising, sales
promotion, public relations, and direct
marketing work together as a unified force,
rather than permitting each to work in
isolation.
 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".
An example would be a TV commercial that says 'come
into the store to sample XYZ product'.
In this example, the TV commercial is a form of "above
the line" advertising and once in the store, the target
customer is presented with "below the line" promotional
material such as store banners, competition entry forms,
etc
 Personal selling
Personal Selling: Face to face personal
communication- Eureka Forbes
In person selling, tele-marketing
Advertising- Mass communication efforts
through media
Sales Promotion- Communication through
contests, OOH, trade shows, free samples,
yellow pages, call helplines
 Personal Selling
Personal Selling
 Discount coupons
Discount coupons
 Promotion-2
Publicity- Communicating with an
audience by personal or non-personal
media that are not paid for delivering the
message
Print media news, broadcast media news-
UTI,PTI, Reuters, annual reports,
speeches by employees
 Branding
Signages
 Known companies
Recognizable companies
 Nokia
Nokia
 Messages
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
 Print Media
Print- Newspapers & Magazines
Newspapers
 Print Media
Newspapers & Magazines
 Read everywhere
Omnipresent
 Newspapers you could read
Economic Times The Hindu
Business Standard
Mint
Hindu Businessline
Business News in
daily newspapers
 Radio
Growing radio stations in India
 Radio Stations
Numerous- FM
 Radio channels
Meow targets at women
Bajaate Raho- Red FM
 Radio on the internet
On the internet
 Videos can be uploaded
Companies upload their corporate films
www.youtube.com
 Sales Staff & PR
Sales staff often plays an important role in
word of mouth and Public Relations
 Public Relations
Public relations are where the communication is
not directly paid for and includes press releases,
sponsorship deals, exhibitions, conferences,
seminars or trade fairs and events.
Word of mouth is any apparently informal
communication about the product by ordinary
individuals, satisfied customers or people
specifically engaged to create word of mouth
momentum.
 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, such as face to face,
telephone, email, and text messaging
 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
 Reports in media
Cola war shifts to a new turf

The famous cola wars have found a new

battleground the Indian fields.
The worlds largest beverage company Coca-
Cola, like its rival PepsiCo, 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!!!
 Point of Sales
Point of sales (POS) or checkout refers to both a
checkout counter in a shop, and the location where a
transaction occurs
POS Display
 Cola Ads-Promotion
Cola drinks- Thums Up, Coca Cola
Vodafone vs Airtel
Airtel
 Telecom Ad- Messages
Airtel- Now Airtel removes distances
across India.
Vodafone- Happy to Help
Spice- Faltoo callers ki No Entry
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
IDEAs ad campaigns based on the theme
of Democracy; Championing a world
without caste; Championing a world in
which no one suffers from the disability to
communicate; and Education for All,
have been a huge success amongst all
categories of audience.
 Effectiveness of Campaign
The testimony of the success of the
campaign is reflected from the rapid
growth of IDEAs subscriber base in the
country.
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.
 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
Websites
 Airline Ad Wars
Marketers should be ready to face
communication challenges
Jet Airways- Weve Changed
Kingfisher- We made them change
Go Air- Weve not changed; we are still the
smartest way to fly
 Ad wars
In Mumbai- Same
location on Nariman
Point
Viral Marketing- Word of mouth
Viral marketing depends on a high pass-
along rate from person to person.
If a large percentage of recipients forward
something to a large number of friends,
the overall growth snowballs very quickly.
If the pass-along numbers get too low, the
overall growth quickly fizzles.
 Viral Marketing
Word of mouth
Word of Mouth Publicity
 On the internet
On the Internet, viral marketing is any
marketing technique that induces Web
sites or users to pass on a marketing
message to other sites or users, creating a
potentially exponential growth in the
message's visibility and effect.
 Hotmail- Excellent Viral Marketing
Hotmail--One example of successful viral
marketing is Hotmail, a company, now
owned by Microsoft, that promotes its
service and its own advertisers' messages
in every user's e-mail notes.
www.hotmail.com
 Hotmail- Viral Marketing
In 1996, Hotmail was a particularly unique email service
in that it was free, could be accessed anywhere, and
would allow the user to have multiple accounts.
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.
Once the receiving user clicked on the word "Hotmail"
they were taken to Hotmail's homepage where the free
email service was further explained.
The plan, original at the time, worked. By 1998, Hotmail
had accumulated 12 million subscribers. Hotmail
eventually sold to Microsoft for a cool $400 million.
 Cadburys in UK
Cadbury's Dairy Milk 2007 Gorilla
advertising campaign was heavily
popularised on YouTube and Facebook.
 Gorilla
Gorilla is a British advertising campaign launched by
Cadbury Schweppes in 2007 to promote Cadbury Dairy
Milk-brand chocolate. The 90-second television and
cinema advertisement, which formed the centrepiece of
the 6.2 million campaign, was created and directed by
Juan Cabral and starred actor Garon Michael. The
campaign itself, which comprised appearances on
billboards, print newspapers and magazines, television
and cinema spots, event sponsorships and an internet
presence, was handled by advertising agency Fallon
London, with the online segment contracted out to
Hyper.
 Gorilla Ad Campaign
Gorilla Campaign
 Definition- 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, analogous
to the spread of pathological and computer viruses.
It can be word-of-mouth delivered or enhanced by the
network effects of the Internet.
Viral promotions may take the form of video clips,
interactive Flash games, advergames, ebooks,
brandable software, images, or even text messages.
The basic form of viral marketing is not infinitely
sustainable.
 Going Viral
Funny Schematic
Helpful & Unique
Controversial
Amazing &
Spectacular
 Word of Mouth
Word of Mouth
 Viral Marketing- Internet
Social Networking sites
Close to 35 million internet users in
India
According to Internet market research firm
comScore Inc. India had 34.6 million Internet
users (who access the Web from their
homes/offices) in June, of which at least 65%, or
22.61 million, accessed social networking sites.
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.
 T-Shirts
T-Shirts with company & Logo message
Inflated Balloons
Scooter covers