By: Bindu Malik

12/07/21 1
 Four Ps

12/07/21 2
 Product
 Place
 Price
 Promotion

12/07/21 3
 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!

12/07/21 4
 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.

12/07/21 5
 Another way to think about the marketing
mix is to use the image of an artist's palette.

12/07/21 6
 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.

12/07/21 7
 Competition

12/07/21 8
 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

12/07/21 9
 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

12/07/21 10
 A prominent marketer, E. Jerome McCarthy,
proposed a 4 P classification in 1960, which
has seen wide use.

12/07/21 11
 Product- Customer /Consumer
 Price- Customer cost
 Place- Convenience
 Promotion- Communication

12/07/21 12
 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.

12/07/21 13
 The product part of the Four Ps model is
replaced by consumer or consumer models,
shifting the focus to satisfying the consumer.

12/07/21 14
 Pricing is replaced by cost, reflecting the
reality of the total cost of ownership.

12/07/21 15
 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.

12/07/21 16
 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.

12/07/21 17
 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

12/07/21 18
12/07/21 19
 Booms and Bitner included three additional
'Ps' to accommodate trends towards a service
or knowledge based economy:
 People
 Process
 Physical Evidence

12/07/21 20
12/07/21 21
 People – all people who directly or indirectly
influence the perceived value of the product
or service, including knowledge workers,
employees, management and consumers.

12/07/21 22
 Process – procedures, mechanisms and flow
of activities which lead to an exchange of
value.

12/07/21 23
 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.

12/07/21 24
 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.

12/07/21 25
 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.

12/07/21 26
 Furnishings.
 Signage (such as those on aircraft and

vehicles).
 Uniforms.
 Business cards.
 The building itself (such as prestigious offices

or scenic headquarters).

12/07/21 27
 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

12/07/21 28
 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.

12/07/21 29
 Broadly defined, optimizing the marketing
mix is the primary responsibility of
marketing.
 By offering the product with the right

combination of the four Ps marketers can

improve their results and marketing
effectiveness.
 Strategic & Tactical Changes

12/07/21 30
 Making large changes in any of the four Ps
can be considered strategic.
 Making small changes in the marketing mix is

typically considered to be a tactical change.

12/07/21 31
 For example, a large change in the price, say
from Rs19.00 to Rs39.00 would be
considered a strategic change in the position
of the product.
 However a small change of Rs130 to
Rs129.99 would be considered a tactical
change, potentially related to a promotional
offer.

12/07/21 32
Product:
 A product, service or idea is that which

satisfies the needs & wants of the customers

12/07/21 33
 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.

12/07/21 34
 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.

12/07/21 35
 Variety
 Quality
 Design
 Features
 Brand Name
 Packaging
 Service

12/07/21 36
 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.

12/07/21 37
 A product or process that is reliable, and that performs its
intended function is said to be a quality product. 

 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.

12/07/21 38
 Product design can be defined as the idea
generation, concept development, testing and
manufacturing or implementation of a
physical object or service

12/07/21 39
 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

12/07/21 40
12/07/21 41
 Despatch

12/07/21 42
 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.

12/07/21 43
 Physical distribution are activities involved in
transporting products from the producer to
the consumer:
 Mode of transport
 Warehousing & Storage
 Order processing
 Inventory control

12/07/21 44
 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

12/07/21 45
 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

12/07/21 46
 Channels
 Coverage
 Locations
 Inventory
 Transportation
 Logistics

12/07/21 47
12/07/21 48
 Local kirana stores

12/07/21 49
 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.

12/07/21 50
 List Price
 Discounts
 Allowances
 Payment Period
 Credit Terms

12/07/21 51
 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.

12/07/21 52
 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.

12/07/21 53
 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

12/07/21 54
 Price is the amount a consumer pays in
exchange for the product or service.
 Marketers must consider the following in

setting prices:

12/07/21 55
 Discount sales in shopping malls
 Off season sales
 Closing down sales
 Festival sales
 Credit points
 Exchange offers – mobiles, cookers, cars

12/07/21 56
 Christmas & Diwali Sales

12/07/21 57
12/07/21 58
 Promotion activities are meant to
communicate & persuade the target market to
buy the company’s products
 This is done by:-

12/07/21 59
 Advertising
 Personal selling
 Sales promotion- POS
 Public Relations
 Word of mouth – Viral advertising

12/07/21 60
 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.

12/07/21 61
 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.

12/07/21 62
 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.

12/07/21 63
 What’s 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.

12/07/21 64
 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.

12/07/21 65
 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.

12/07/21 66
 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

12/07/21 67
 Personal Selling

12/07/21 68
 Discount coupons

12/07/21 69
 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

12/07/21 70
 Signages

12/07/21 71
 Using famous people to attract target
segment

12/07/21 72
 Entertaining information to add spice

12/07/21 73
 Newspapers & Magazines

12/07/21 74
 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.

12/07/21 75
 Walk when you talk

12/07/21 76
 IDEA’s 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.

12/07/21 77
 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.

12/07/21 78