MARKETING MIX

WHAT IS 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!

Another way to think about the marketing mix is to use the image of
an artist's palette.

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.
MARKETING MIX DEFINED
The marketing mix is the
specific collection of actions
& associated instruments
employed by an organization
to stimulate acceptance of its
ideas, products & services
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- Customer /Consumer

Price- Customer cost

Place- Convenience

Promotion- Communication
PRODUCT
A product, service or idea is that which satisfies the needs &
wants of the customers.

It can be A tangible object or an intangible service that is mass

produced or manufactured on a large scale with a specific
volume of units.

TANGIBLE LIKE CHIPS INTANGIBLE LIKE

COURIER SRVICES
Core, actual, and augmented product: People
who buy a BlackBerry device are buying more
than a cell phone, an e-mail device, or an
organizer. They are buying freedom and on-
the go connectivity to people and resources.
LABELLING
Labelling and
logos can enhance
a brand’s
positioning and
personality:
Pepsi’s new logo
is “more
adventurous, more
youthful,
with a bit more
personality to it.”
It presents a
“spirit of
optimism
and youth.”
PRICE
 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.
 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.
FESTIVE SALES
END OF SEASON SALE
 PRICING TACTICS
A) DIFFERENTIAL PRICING: CHARGING DIFFERENT PRICES
ACCORDING TO PLACE OR CUSTOMER’S ABILITY TO PAY.

B) DIVERSIONARY PRICING: IT IMPLIES A LOW PRICE FOR BASIC

SERVICES TO ATTRACT THE CUSTOMERS.

C) DISCOUNT PRICING: IT IS THE PRACTICE OF OFFERING A DISCOUNT

TO INTERMEDIARIES SUCH AS STOCK BROKERS, PROPERTY DAELERS,
ETC.

D) GUARANTEED PRICING: PAYMENT IS MADE ONLY AFTER THE

RESULTS ARE ACHIEVED.

E) HIGH PRICE MAINTENANCE: USED WHEN HIGH PRICE IS

ASSOCIATED WITH THE QUALITY OF SERVICE.
PLACE
 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.
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
 LARGE FORMAT STORES

GLOBAL PLAYERS IN
INDIA
Horizontal marketing channels: McDonald’s places
“express” versions of its restaurants in Walmart stores.
McDonald’s benefits from Walmart’s heavy store traffic, and
Walmart keeps hungry shoppers from needing to go
elsewhere to eat.
Exclusive distribution: Luxury carmakers such as
Bentley sell exclusively through a limited
number of retailers. Such limited distribution
enhances a car’s image and generates stronger
retailer support.
PROMOTION
 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
Advertising covers any communication that is paid
for, from and cinema commercials, radio and Internet
adverts through print media and billboards.
PERSONAL SELLING
PERSONAL SELLING IS THE INTERPERSONAL
ARM OF THE PROMOTION MIX.

IT INVOLVES TWO WAY, PERSONAL

COMMUNICATION BETWEEN SALESPEOPLE
AND INDIVIDUAL CUSTOMERS-
a) FACE TO FACE
b) BY TELEPHONE
c) THROUGH VIDEO
d) WEB CONFERENCES
 Salespeople link the company
with its customers. To many
customers, the
salesperson is the company.

For many types of selling situations,

phone or Web selling can be as
effective as a personal sales call. At
Climax Portable Machine Tools,
phone
reps build surprisingly strong and
personal customer relationships.
 SALES PROMOTION
IT CONSISTS OF SHORT TERM INCENTIVES TO
ENCOURAGE PURCHASE OR SALES OF A PRODUCT OR
SERVICE.

WHEREAS ADVERTISING AND PERSONAL SELLING OFFER

REASONS TO BUY A PRODUCT OR SERVICE, SALES
PROMOTION OFFERS REASONS TO BUY NOW.

EXAMPLE: MOBILE COUPONS

 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.
Building good relations with the
company’s various publics by obtaining
favourable publicity, building up a good
corporate image, and handling or
heading off unfavourable rumours, stories,
and events.
The power of PR: Apple’s iPad launch created
unbounded consumer excitement, a media frenzy,
and long lines outside retail stores— all with no
advertising, just PR.
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.
OTHER SOURCES
OF PROMOTION

BRAND
AMBASSADOR:
STAR POWER
 ADVERTISING THROUGH
RADIO STATIONS

PRINT MEDIA
Online pioneer
Amazon.com
does much more than
just sell goods on the
Web. It creates direct,
personalized
customer relationships
and online experiences.
“The thing that drives
everything
is creating genuine
value
for customers,” says
founder and CEO Jeff
Bezos,
pictured left.
 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 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
 EXAMPLES OF
PHYSICAL EVIDENCE
• Packaging.
• Internet/web pages.
• Paperwork (such as invoices, tickets and
dispatch notes).
• Brochures.
• Furnishings.
• Signage (such as those on aircraft and
vehicles).
• Uniforms.
• Business cards.
• The building itself (such as prestigious
offices or scenic headquarters).
 CASE STUDY

MARKETING MIX OF
VODAFONE
P’S of Service Marketing Mix…

Product
Price
Promotion
Place
People
Physical evidence
 Product
Company provides products like
 Postpaid connections

 Prepaid connections

 Dialing cards

 Vodafone PCO

 Vodafone Handy phone

Price....
 The prices are
being charged in Talk
plans
accordance with:

 The charges vary

from region to Prices
region.
Roaming
Services
rates
Pricing strategies…

Penetration

Skimming Competition

Product line
 Promotion....

Promotion

Advertisemen Personal
Hoardings Media Publicity Internet
t selling
Promotion of product

Easy
recharge

Two two
Validity
talk
offer
plan
Promotion

Reducing
VIP no’s
rates
 PLACE
The vodafone outlets are being situated
in various places in India which
includes 16 states.
It has both postpaid outlets and prepaid

outlets.
 Andhra Pradesh
Punjab
West Bengal
Karnataka
Maharashtra & Goa
Tamil Nadu
Rajasthan
UP (E)
UP (W)
Kerala
Delhi
Mumbai
Haryana
Physical Evidence….

Before and
After sale
documents

PHYSICAL
EVIDENCE

Sim cards Bills

 People
People are important because:
 Providing a service, rather than selling a
product.
 Quality of personal relationships between
company and clients becomes vital.
 New staff needs thorough training and constant
monitoring.
 Staffing costs the highest cost
 Recruiting specialist staff time
consuming and expensive.
 Strategies and tactics for recruiting, training and
safeguarding relationships.
 gh
er
People Include... ma
na
ge
Middle
rs
managers

Lower managers
Others like:
Technicians
Dealers
Other Employees (BPO Employees)
 Process
 That “P” of marketing mix

which let customers get the best of the products

Process of taking a postpaid connection

Go to vodafone Shop

Choose a product (Say Postpaid connection)

Pay the appropriate fees

Take the Respective product (Like SIM Card in this case)

Avail the facilities

Give the feedback