Marketing Mix

Marketing

It is the delivery of customer satisfaction at a profit.

Marketing

may refer to the process of value exchange that is facilitated by the 4P’s.

Marketing Mix

refers to the combination of elements that shape how a business delivers value to its customers.

Marketing Mix

“set of marketing tools that the firm uses to pursue its

marketing objectives in the target market” — Peter Drucker

1. Place

2. Product

3. Price

4. Promotion

What are the 4Ps?

1. People

2. Process

3. Physical Evidence

Additional 3Ps

Product

is anything that can be offered in a market that might satisfy a need or want.

1. Tangible

2. Intangible

2 types of products

1. Core Benefit

2. Actual Product

3. Augmented Product

Levels of Product and Services

Core Benefit

• Benefit of the product

• Not the tangible physical product

Actual Product

• Tangible, physical product

• represents the design, brand name, and packaging

Augmented Product

• Additional services or benefits

• non-physical part of the product

Price

the sum of the values that customers exchange for the benefits of having or using the product or service.

1. Market Penetration Pricing

2. Market Skimming Pricing

3. Neutral Pricing

3 Major Pricing Strategies

Market Penetration Pricing

• Price is initially sent low

• To rapidly reach a wide fraction of the market

• Initiate Word of Mouth

Market Skimming Pricing

• sets a relatively high initial price for a product or service at first

• then lowers the price over time

Neutral Pricing

• prices are set to match the prices of competitors

• Drawback is that the product is priced not based on the product's value but on the market price

• company using neutral pricing will not be able to earn the maximum amount of profits

Place

• is the position and distribution channel of the product to make it accessible to the potential buyers.

• This is where your customers can find you.

1. Intensive distribution

2. Exclusive Distribution

3. Selective Distribution

4. Franchising

4 Distribution Strategies

Intensive Distribution

• is a form of marketing strategy under which a company tries to sell its product from a small vendor to a big store

• able to find the product everywhere

Exclusive Distribution

• create an aura of prestige and exclusivity that sets their products apart from competitors.

• increases customer anticipation that ends up creating quite a hype in the market

• helps build a strong base of loyal customers

Selective Distribution

• producer using a limited number of outlets in a geographical area to sell products

• Advantage: producer can choose the most appropriate or best-performing outlets and focus effort on them

Franchising

• Agreement between the franchiser and franchisee

• right to use its trademark or trade name as well as certain business system and processes

• to produce and market a good or service according to certain specifications

Promotion

refers to raising customer awareness of a product or brand, generating sales, and creating brand loyalty.

1. Public Relation

2. Sales Promotion

3. Advertising

3 elements of promotion

Public Relation

• creating and maintaining a favorable public image

• generate awareness and positive responses to products and services of the business

Advertising

• activity or profession of producing advertisement for commercial products or services

• a marketing tactic involving paying for space to promote a product, service, or a cause

• The goal is to reach out people most likely to be willing to pay for a company’s product or services and entice them to buy

Sales Promotion

• process of persuading a potential buyer to buy the product

• used as a short-term tactic to boost sales

People

refers to the staff and salespeople who work for your business, including yourself.

Process

refers to the flow of activities or mechanisms that take place when there is an interaction between customers and the businesses.

Physical Evidence

• It pertains on how a business and its products are perceived in the marketplace.

• It is the physical evidence of a business’ presence and establishment.