The Marketing Mix

How Firms Compete

Applied Marketing Year 1

• Focuses on the application of marketing principles in Ghanaian context.

• Highlights the use of the marketing mix as a competitive strategy.

Learning Objectives

By the end of this lecture, you will be able to:

1. Explain the 4Ps of the Marketing Mix.

2. Understand the Extended 3Ps (People, Process, Physical Evidence).

3. Apply the marketing mix to real Ghanaian businesses.

4. Distinguish between goods and services marketing.

5. Explain how firms integrate the mix for competitive advantage.

Problem-Based Learning

• Scenario: A new local fast-food brand in Accra is losing customers due to:

  • Customers stating: "The food is good but expensive."

  • Complaints about delivery speed: "Delivery takes too long."

  • Lack of advertising: "We don't see their adverts."

• Diagnosing the issues using the Marketing Mix:

  • Expensive ➔ Price.

  • Slow delivery ➔ Place & Process.

  • No adverts seen ➔ Promotion.

• Conclusion: The Marketing Mix helps diagnose and solve business problems effectively.

The Marketing Mix (4Ps)

Definition

• The Marketing Mix refers to controllable tools that firms use to compete in the market effectively.

1. Product

• Definition: What is offered to customers.

• Includes:

  • Features.

  • Quality.

  • Design.

  • Branding.

  • Packaging.

• Discussion Point: Is product quality alone sufficient without strong branding?

• Example: Kasapreko Company Limited - Alomo Bitters

  • Stands out through:

  • Strong herbal brand positioning.

  • Distinctive packaging design.

  • Clear brand identity.

  • Premium product perception.

2. Price

• Definition: What customers pay for the product.

• Includes:

  • Pricing strategy (penetration, premium).

  • Discounts and offers.

  • Payment terms and conditions.

  • Perceived value.

• Discussion Point: Can a company charge high prices without corresponding high perceived value?

• Example: Melcom Ghana

  • Affordable pricing strategy.

  • Competes by positioning itself as accessible and affordable.

  • Price as a signal of brand value, target market, and market positioning.

3. Place

• Definition: How the product reaches the customer.

• Includes:

  • Physical location and outlets.

  • Distribution channels.

  • Delivery and logistics systems.

  • Online platforms and e-commerce.

• Discussion Point: Why is convenience a competitive advantage?

• Example: Jumia Ghana

  • Online platform and delivery network.

  • Competes based on convenience through:

  • E-commerce platforms.

  • Last-mile delivery.

  • Mobile apps.

  • Digital marketplaces.

4. Promotion

• Definition: How firms communicate value to customers.

• Includes:

  • Advertising (TV, Radio, Digital).

  • Social media marketing.

  • Sales promotions and events.

  • Public Relations (PR).

  • Influencer marketing.

• Discussion Point: Can customers purchase a product they are unaware of?

• Example: MTN Ghana

  • Utilizes aggressive advertising and sponsorship.

  • Maintains visibility through:

  • High-frequency ads on TV and radio.

  • Major event sponsorships.

  • Digital campaigns.

  • Strong brand recall.

Why the Extended Ps?

• The 4Ps work well for goods, which are tangible products that can be seen, touched, and owned.

• However, services require an extended marketing mix due to their intangible nature.

• Extended 3Ps for Services:

  1. People: Who delivers the service?

  2. Process: How the service is delivered.

  3. Physical Evidence: Tangible proof of quality.

Extended Ps in Depth

5. People

• Definition: Refers to the individuals delivering the service.

• Includes:

  • Staff behavior and attitude.

  • Customer service standards.

  • Training and skills development.

  • Front-line staff performance.

• Key Insight: The behavior of a single rude employee can permanently damage a brand's reputation.

• Example: GCB Bank PLC

  • Customer experience heavily relies on front-line staff quality and attitude which influences:

  • Customer satisfaction.

  • Brand loyalty.

  • Customer retention.

6. Process

• Definition: The systems and methods used to deliver the service.

• Includes:

  • Speed and efficiency of service delivery.

  • Ordering and queuing systems.

  • Customer handling procedures.

  • Consistency of experience.

• Key Insight: Efficient processes create speed, leading to competitive advantage.

• Example: KFC Ghana

  • Structured ordering and fast delivery systems.

  • Ensures:

  • Consistent food preparation.

  • Predictable wait times.

  • Customer satisfaction.

  • Scalable operations.

7. Physical Evidence

• Definition: Tangible proof of the quality of the service.

• Includes:

  • Cleanliness of the environment.

  • Product packaging and presentation.

  • Store/office design and layout.

  • Website and digital appearance.

• Key Insight: Customers often judge services based on the physical surroundings; a clean environment fosters trust.

• Example: Palace Mall

  • Modern design signaling quality and prestige, which communicates:

  • Premium quality.

  • Safety and cleanliness.

  • Lifestyle aspirations.

  • Brand prestige.

Integrating the Mix for Competitive Advantage

• Concept: All 7Ps support and reinforce one another.

• Importance: A clear and consistent brand positioning and seamless customer experience can result in competitive advantage.

• Scenario: If one of the Ps fails, it undermines the capability to charge premium prices while offering poor service.

• Example: A premium hotel must align

  • Premium price.

  • Premium location.

  • Premium staff.

Goods vs Services Marketing

• Characteristics:

  • Goods: Tangible, can be stored, standardized, produced before sale.

  • Services: Intangible, cannot be stored, variable, produced and consumed simultaneously.

• Marketing Mix Applications:

  • 4Ps sufficient for goods; 7Ps required for services.

Applying the 7Ps – Solving the Original Problem

• Case Study: Struggling Accra Fast-Food Brand - Diagnosis and Proposed Solutions:

  • Product: Improve consistency and food quality.

  • Price: Adjust value proposition to align with target market.

  • Place: Enhance delivery speed and coverage.

  • Promotion: Increase effort in digital and social media marketing.

  • People: Train staff to uphold service standards.

  • Process: Streamline ordering and fulfillment.

  • Physical Evidence: Revamp packaging and improve restaurant ambiance.

Class Activity – Problem-Based Learning

• Task: In groups, analyze the 7Ps of one chosen company:

1. Vodafone Ghana (Telecommunications)

2. Fidelity Bank Ghana (Financial Services)

3. Papaye Fast Foods (Food & Beverage)

4. UPSA (Higher Education)

• Objective: Identify strong Ps and those needing improvement.

• Presentation time: 5 minutes per group.

Key Takeaways

1. The Marketing Mix serves as a competitive toolkit, going beyond theory.

2. The 4Ps (Product, Price, Place, Promotion) are especially relevant for goods.

3. The Extended 7Ps (including People, Process, Physical Evidence) are critical for effectively marketing services.

4. Integration of all Ps is essential for creating competitive advantage; all should align.

5. Marketing decisions need to constantly address customer needs for effectiveness.

• Suggested activity: Observe and analyze 7Ps in local businesses; marketing is about strategic application, not just memorization.