Marketing Mix (4P's)

4P's of Marketing

  • Marketing Mix: Putting the right product in the right place at the right time and at the right price.

Product

  • An item produced to satisfy needs and wants of a target market.
  • Service: Intangible activities, benefits, or satisfactions offered for sale.

Levels of Product

  • Core Product
  • Actual Product: Brand name, features, designs, quality level, packaging
  • Augmented Product: Delivery and credit, product support, warranty, installation

Classification of Products

  • Consumer Goods vs. Industrial Goods.

Consumer Goods

  • Based on Consumer Shopping Habit:
    • Convenience Goods: Frequently bought without much planning.
    • Shopping Goods: Less frequently purchased, require special efforts.
    • Specialty Goods: Consumers put in extra time to locate the seller.
  • Based on Rate of Consumption & Tangibility:
    • Durable Goods: Used for a long period (e.g., refrigerator, car).
    • Non-Durable Goods: Consumed quickly (e.g., soap, salt).
    • Tangible Goods: Have a physical form.
    • Intangible Goods: Essentially intangible activities (e.g., medical treatment, banking services).

Industrial Goods

  • Installations
  • Accessory Equipment
  • Raw Materials
  • Components, Parts and Materials
  • Supplies

Individual Product & Service Decisions

  • Product Quality, Product Feature, Style, Design
  • Brand, Packaging, Labels
  • Product Support Service

Four Service Characteristics

  • Intangibility: Cannot be seen, tasted, felt, heard, or smelled before purchase.
  • Inseparability: Cannot be separated from their providers.
  • Variability: Quality depends on who provides them and when, where, and how.
  • Perishability: Cannot be stored for later sale or use.

Brand

  • Brand Equity and Brand Value: Differential effect that knowing the brand has on customer response.

Brand name Selection

  • Suggests benefits and qualities.
  • Easy to pronounce & recognize, Distinctive, Extendable, Translatable, Capable of registration and legal protection

Brand Development Strategies

  • Line Extensions, Brand Extensions, Multibrands, New Brands

Price

Pricing Approaches

  • Cost Based Approach.
  • Competition Based Approach.
  • Buyer Based Approach.

Place (Distribution Channels)

  • Marketing Channels: Interdependent organizations that help make a product available.
  • Physical Distribution: Facilitates movement of product from manufacturer to consumer.

Types of Marketing Channels

  • Distribution Channels of Consumer Goods
  • Distribution Channels of Industrial Goods
  • Distribution Channels for Services
  • Direct Selling, Dual Distribution, Reverse Channel

Factors to Consider in Marketing Channel Strategies

  • Market Factors: Market’s capacity to purchase, geographical locations
  • Competitive Factors: Companies with huge financial background
  • Organizational Factors: Organizations’ ability manage its channels, broad product line
  • Product Factors: Type of product the company will offer

Promotion

Elements of Promotional Mix

  • Personal Selling
  • Public Relations
    • Publicity
    • Public Affairs
  • Direct and Digital Marketing
    • Online Marketing, Email Marketing, Viral Marketing, Mobile Marketing
  • Advertising
  • Sales Promotion

Personal Selling

  • Face to face communication between buyers and sellers
    • Over the Counter Selling
    • Field Selling
    • Telemarketing
    • Inside Selling