The Marketing Mix

The tools available to a business to gain the

reaction it is seeking from its target market in
relation to its marketing objectives
7Ps – Price, Product, Promotion, Place, People,
Process, Physical Environment
Traditional 4Ps extended to encompass growth of
service industry
Marketing Mix (4 Ps)
 Product
 Promotion
 Pricing
 Place (Distribution) – the most important for
international business entry
The Extended Marketing Mix
International Marketing Mix (9 Ps)
 Product
 Promotion
 Pricing
 Place
 People
 Process
 Physical environment
 Power
 Personal relation
Product
 
 Marketing Mix: Product
What is a product?

Anything that can be offered to a

market for attention, acquisition, use
or consumption that might satisfy a
want or need
Levels of a product
Product Mix
 Product Mix:
 The total assortment of products and services
marketed by a firm.

 Product Line:
 A group of individual products that are closely
related in some way.

 Individual Product:
 Any brand or variant of a brand in a product line.
 Product Mix Characteristics
Product Mix Width:
 The number of product lines in the product
mix.

Product Line Length:

 The number of products in a product line.

Product Mix Consistency:

 The relatedness of the different product lines
in a product mix.
Consumer products classification
 Marketing Mix: Product
 Product: a bundle of attributes
Hamburger: meat type, taste, texture, size
Automobile: power, design, quality,
performance, comfort, size/capacity
 Attributes need to be adapted to a greater or
lesser extent to satisfy
 Consumer preferences/tastes due to
culture
 Economic development levels affect
consumer behavior
 National product/technical standards state
mandated
Price
Price
Price discrimination: demand elasticity
Strategic pricing
Predatory (quick share-of-market focus):
 lower prices to drive competitors out, then raise
prices
Multipoint pricing:
 pricingin one market may have an impact in
another market; subsidize low pricing in one
market from profits in another
Experience curve:
use aggressive pricing to build volume and move
firm down experience curve (lower marginal costs)
 Regulatory issues:
antidumping, monopoly restriction
Price
Pricing Strategy
Importance of:
knowing the
market
elasticity
keeping an eye
on rivals
Promotion
Promotion
Strategies
to make the consumer aware of
the existence of a product
or service
NOT just advertising
Marketing Mix: Promotion

 How firm communicates the product

attributes / benefits to customers
 Barriers to international communication
Cultural barriers
Source effects (country of origin effects)
Noise levels
 Standardized advertising strategy possible;
standardized advertising strategy execution
more difficult (culture, laws)
Marketing Mix: Promotion
Push vs pull strategies
Push strategy: personal selling emphasis
Industrialproducts; complex new products
Short distribution channels
Few print or electronic media
Pull strategy: mass media advertising emphasis
Consumer goods
Long distribution channels
Marketing message may be carried via print /
electronic media
Place
Place

The means by which products and services

get from producer to consumer and where
they can be accessed by the consumer

The more places to buy the product and the

easier it is made to buy it, the better for the
business (and the consumer?)
Marketing Mix: Place
 Optimal channel a company chooses
to deliver the product
 The most locally responsive element
of marketing mix because
distribution channels vary
dramatically across countries
Retail system: concentrated-
fragmented
Channel length: long, short
Channel exclusivity
People
People
People represent the business
• The image they present can be important
• First contact often human – what is the
lasting image they provide to the
customer?
• Extent of training and knowledge
of the product/service concerned
• Mission statement – how relevant?
• Do staff represent the desired culture
of the business?
Process
Process
How do people consume services?
What processes do they have to go through to
acquire the services?
Where do they find the availability
of the service?
Contact
Reminders
Registration
Subscription
Form filling
Degree of technology
Physical Environment
Physical Environment

The ambience, mood or physical

presentation of the environment
Smart/shabby?
Trendy/retro/modern/old fashioned?
Light/dark/bright/subdued?
Romantic/chic/loud?
Clean/dirty/unkempt/neat?
Music?
Smell?
Power

Power Bases
Referent power Can it imitate
 Reward power
 Cohesive power
Expert power
Legitimate power
Personal relations

Ability to coordinate with parties

The Marketing Mix
Blend of the mix depends upon:
Marketing objectives
Type of product
Target market
Market structure
Rivals’ behaviour
Global issues – culture/religion, etc.
Marketing position
Product portfolio
Product lifecycle
Boston Matrix