Marketing mix

• The term "marketing mix" is a foundation

model for businesses, historically centered
around product, price, place, and
promotion(also known as the "4 Ps"). The
marketing mix has been defined as the "set
of marketing tools that the firm uses to
pursue its marketing objectives in the target
market"
• Marketing theory emerged in the early twentieth century. The
contemporary marketing mix which has become the dominant
framework for marketing management decisions was first published
in 1960.In services marketing, an extended marketing mix is used,
typically comprising 7 Ps, made up of the original 4 Ps extended by
process, people, price and physical evidence. Occasionally service
marketers will refer to 8 Ps, comprising these 7 Ps plus performance
• In marketing, a product is an object or system made available for
consumer use; it is anything that can be offered to a market
• to satisfy the desire or need of a customer. In retailing, products are
often referred to as merchandise, and in manufacturing, products are
bought as raw materials and then sold as finished goods. A service is
also regarded to as a type of product.

A product refers to an item that
satisfies the consumer's needs or
wants. Products may be tangible
(goods) or intangible (services,
ideas or experiences).
•Product design – features, quality
•Product assortment – product
range, product mix, product lines
•Branding
•Packaging and labeling
•Services (complimentary service,
after-sales service, service level)
•Guarantees and warranties
•Returns
•Managing products through the
life-cycle
• Pricing is the process whereby a
business sets the price at which it
will sell its products and services,
may be part of the business's
marketing plan. In setting prices,
the business will take into account
the price at which it could acquire
the goods, the manufacturing cost,
the marketplace, competition,
market condition, brand, and
quality of product.
Price refers to the amount a customer
pays for a product. Price may also
refer to the sacrifice consumers are •Price strategy
prepared to make to acquire a product •Price tactics
(e.g. time or effort). •Price-setting
Price is the only variable that has •Allowances – e.g. rebates for
implications for revenue. distributors
Price is the only part of the marketing •Discounts – for customers
mix that talks about the value for the •Payment terms – credit, payment
firm. methods
Price also includes considerations of
customer perceived value.
• Distribution (or place) is one of the
four elements of the marketing
mix. Distribution is the process of
making a product or service
available for the consumer or
business user who needs it. This
can be done directly by the
producer or service provider or
using indirect channels with
distributors or intermediaries.
• Mass distribution (also known as an
intensive distribution): When products
are destined for a mass market, the
marketer will seek out intermediaries
that appeal to a broad market base.
For example, snack foods and drinks
are sold via a wide variety of outlets
including supermarkets, convenience
stores, vending machines, cafeterias
and others. The choice of distribution
outlet is skewed towards those that
can deliver mass markets in a cost
efficient manner.
• Selective distribution: A manufacturer may choose
to restrict the number of outlets handling a product.
For example, a manufacturer of premium electrical
goods may choose to deal with department stores
and independent outlets that can provide added
value service level required to support the product.
Dr Scholl orthopedic sandals, for example, only sell
their product through pharmacies because this type
of intermediary supports the desired therapeutic
positioning of the product. Some of the prestige
brands of cosmetics and skincare, such as Estee
Lauder, Jurlique and Clinique, insist that sales staff
are trained to use the product range. The
manufacturer will only allow trained clinicians to sell
their products.
• Exclusive distribution: In an exclusive
distribution approach, a manufacturer chooses
to deal with one intermediary or one type of
intermediary. The advantage of an exclusive
approach is that the manufacturer retains
greater control over the distribution process. In
exclusive arrangements, the distributor is
expected to work closely with the manufacturer
and add value to the product through service
level, after sales care or client support services.
Another definition of exclusive arrangement is
an agreement between a supplier and a retailer
granting the retailer exclusive rights within a
specific geographic area to carry the supplier's
product.
 The producer's products are stocked in the majority of outlets.
Intensive distribution
[5]
This strategy is common for mass-produced products such as
basic supplies, snack foods, magazines and soft drink
beverages.[6]

The producer relies on a few intermediaries to carry their

Selective distribution product.[5] This strategy is commonly observed for more
specialised goods that are carried through specialist dealers,
for example, brands of craft tools, or large appliances.

The producer selects only very few intermediaries.[5] Exclusive

Exclusive distribution distribution occurs where the seller agrees to allow a single
retailer the right to sell the manufacturer's products. This
strategy is typical of luxury goods retailers such as Gucci.
 •Wholesaler: A merchant intermediary who sells chiefly to retailers, other
merchants, or industrial, institutional, and commercial users mainly for resale
or business use. The transactions are B2B (Business to Business).
Wholesalers typically sell in large quantities. (Wholesalers, by definition, do not
Channels deal directly with the public).
•Retailer: A merchant intermediary who sells direct to the public. There are

and many different types of retail outlet - from hypermart and supermarkets to
small, independent stores. The transactions in this case are B2C (Business to
Customer).
intermediari •Agent: An intermediary who is authorized to act for a principal in order to
facilitate exchange. Unlike merchant wholesalers and retailers, agents do not

es take title to goods, but simply put buyers and sellers together. Agents are
typically paid via commissions by the principal. For example, travel agents are
paid a commission of around 15% for each booking made with an airline or
hotel operator.
•Jobber: A special type of wholesaler, typically one who operates on a small
scale and sells only to retailers or institutions. For example, rack jobbers are
small independent wholesalers who operate from a truck, supplying
convenience stores with snack foods and drinks on a regular basis.
 •Strategies such as intensive
distribution, selective distribution,
exclusive distribution
•Franchising
•Market coverage
Refers to providing customer
•Channel member selection and
Place access Considers providing
channel member relationships
convenience for consumer.
•Assortment
•Location decisions
•Inventory
•Transport, warehousing and
logistics
• In marketing, promotion refers to any type of marketing
communication used to inform target audiences of the relative merits
of a product, service, brand or issue, most of the time persuasive in
nature. It helps marketers to create a distinctive place in customers'
mind, it can be either a cognitive or emotional route. The aim of
promotion is to increase awareness, create interest, generate sales or
create brand loyalty. It is one of the basic elements of the market mix,
which includes the four Ps, i.e., product, price, place, and promotion.
 •Promotional mix -
appropriate balance of
advertising, PR, direct
Promotion refers to marketing and sales
marketing communications promotion
May comprise elements •Message strategy - what is
Promotion
such as: advertising, PR, to be communicated
direct marketing and sales •Channel/ media strategy -
promotion. how to reach the target
audience
•Message Frequency - how
often to communicate
Modified and expanded marketing mix: 7
Ps
• required different tools and strategies. In 1981, Booms and Bitner
proposed a model of 7 Ps, comprising the original 4 Ps plus process,
people and physical evidence, as being more applicable for services
marketing.[
 •Staff recruitment and
training
Human factors who participate in
service delivery. Service personnel •Uniforms
who represent the company's values •Scripting
People to customers. •Queuing systems,
managing waits
Interactions between customers.
Interactions between employees and •Handling complaints,
service failures
customers.
•Managing social
interactions

The procedures, mechanisms and flow
Process of activities by which service is
delivered.
•Process design
•Blueprinting (i.e. flowcharting) service
processes[28]
•Standardization vs customization
decisions
•Diagnosing fail-points, critical incidents
and system failures
•Monitoring and tracking service
performance
•Analysis of resource requirements and
allocation
•Creation and measurement of key
performance indicators (KPIs)
•Alignment with Best Practices
•Preparation of operations manuals

The environment in which
service occurs. The space
where customers and service
personnel interact.
Tangible commodities (e.g.
Physical evidence equipment, furniture) that
facilitate service performance.
Artifacts that remind
customers of a service
performance.
•Facilities (e.g. furniture,
equipment, access)
•Spatial layout (e.g.
functionality, efficiency)
•Signage (e.g. directional
signage, symbols, other
signage)
•Interior design (e.g.
furniture, color schemes)
•Ambient conditions (e.g.
noise, air, temperature)
•Design of livery (e.g.
stationery, brochures, menus,
etc.)
•Artifacts: (e.g. souvenirs,
mementos, etc.)
References
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Homewood, IL: Irwin.
•Kotler, P., Marketing Management, (Millennium Edition), Custom Edition for
University of Phoenix, Prentice Hall, 2000, p. 9.
•Grönroos, Christian. "From marketing mix to relationship marketing: towards a
paradigm shift in marketing." Management decision 32.2 (1994): 4-20.
•Booms, Bernard H.; Bitner, Mary Jo (1981). "Marketing Strategies and
Organization Structures for Service Firms". Marketing of Services. American
Marketing Association: 47–51.
•Kotler, Philip (2012). Marketing Management. Pearson Education. p. 25.
•Needham, Dave (1996). Business for Higher Awards. Oxford, England:
Heinemann.
•Rodríguez, Ismael; Rabanal, Pablo; Rubio, Fernando (2017). "How to make a
best-seller: Optimal product design problems". Applied Soft Computing. 55
(June 2017): 178–196. doi:10.1016/j.asoc.2017.01.036. ISSN 1568-4946.
•Mintz, Ofer; Currim, Imran (2013). "What Drives Managerial Use of Marketing
and Financial Metrics and Does Metric Use Affect Performance of Marketing-
Mix Activities?". Journal of Marketing. 77 (2): 17. doi:10.1509/jm.11.0463.
•Groucutt, J. and Leadley, p., Marketing: Essential Principles, New Realities,
https://books.google.com/books?id=cd6Sjxu2lesC&pg=PA17, Kogan Page,
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