(9) Marketing mix

A tool an organization uses to pursue its marketing objectives.

The traditional 4 Ps/Cs

Product (customer solution): define your product’s characteristics meeting customer needs.
Price (Customer cost): set a pricing strategy
Place (Convenience): for revolutions in marketing
Promotion (Communication): advertising, selling, sales, PR

Additional 4 Ps:

Product: offering to satisfy needs and wants of a specific target segment of customers

Brand:

Technical branding: product is well known among specific target customers from a known source.

Perceptual branding: established margin of loyalty within specific target groups.

Scientific term: Used to determine priorities in a product portfolio of a business unit.

Has two dimensions:

Market growth rate

The increase or decline in a product’s demand. Depends on industry or market’s growth.

Market share % & relative MS

Products in a BCG matrix are placed in 4 categories:

Stars	High market share in fast growing market. Need heavy investments. Critical for business future Investment decision is “Hold or invest”.	Ex: Crestor & Galvus.
Cash cows	High relative MS but in slow growing market. Less investments. They generate enough money to stay in leadership of MS. Decision is “harvest/milk & defend” — I.e. defend place in MS.	Ex: Amaryl & Augmentin
Question mark/ problem child	Low market share but in fast growing market. Need a lot of cash to hold their share. Decision is either heavily invest to increase MS% or sell/cut investments.	Ex: Apidra & Onglyza
Dogs	Low relative MS in a slow growing market. They’re the “break even” product; generating just enough to maintain business’s MS. Decision is typically “Divest” (sell or kill).	Ex: Daonil & Inderal