four p's of marketing

Parul Institute of Engineering & Technology

Subject Code : 150001

Name Of Subject : MANAGEMENT- 2

Name of Unit : INTRODUCTION TO MARKETING

Topic : FOUR P’s of Marketing,Concepts of Marketing

Name of Students: Agrawal Swapnil J.

• INTRODUCTION– What is Marketing?– Marketing Management

• 4 P’s of Marketing– Introduction to Marketing Mix– Product– Price– Place– Promotion

Sub: MANAGEMENT-2 Topic: Marketing Function

CONTENTS

CONTENTS• Different Concept of Marketing

– Introduction– The Marketing Concept– Core Marketing Concept– Management Orientation

• Production Concept• Product Concept• Selling Concept• Marketing Concept• Holistic Concept• Societal Concept


What is Marketing?

• Marketing is managing profitable customer relationships– Attracting new customers– Retaining and growing current customers

• “Marketing” is NOT synonymous with “sales” or “advertising”


Marketing Management

• Marketing management is “the art and science of choosing target markets and building profitable relationships with them.”– Creating, delivering and communicating

superior customer value is key.


Marketing Management

• Customer Management:– Marketers select customers that can be

served well and profitably.

• Demand Management:– Marketers must deal with different demand

states ranging from no demand to too much demand.

The 4 P’s of Marketing


The 4 P’s of Marketing

•Referred to as The Marketing Mix–All four are essential to the success of a marketing plan for either a product or a service

•4 P’s stand for–Product–Price–Place–Promotion

•A mix of the four is necessary to sell a product

•4 P’s


The Marketing MixThe elements are interconnected

Product

Place

Price

Promotion


The Marketing Mix

• Think of a Cake• All cakes need 4 things – flour, egg, sugar, milk• However, you can play with the flavour of your cake

by changing the ingredients slightly– Example: Sweeter cake – add

more sugar


The Marketing Mix

• The same thing is true with the marketing mix• You can very the type of message you are sending

out about your product/service by mixing different elements of each of the P’s

• Example: Want to be seen as a luxury item – make the price high, have limited selection


Product• Refers to the benefits of buying a product

– What need does the service/product fulfill– Quality

• What will the quality of your service/product be?

• Some people really want quality vs. others that don’t really matter

– Features• How will your product/service differ from the

competition• What will you do differently?


Product– Packaging – if your selling a product what image

will the packaging communicate?• If a service – how will the appearance of your

operation communicate an image about your business

– Range of Products – what complimentary products may you offer• If service: Will you offer other products with your

service• E.g. Think of range of products that apple has


Price

• Marketing is responsible for establishing the price of their service/product

• Must consider the costs of all the inputs (materials, labour, etc)

• Mark-up Price – How much profit do you want to make on every product/customer

• Example: Selling Cupcakes – Every cupcake uses $1 of materials and labour

roughly costs $0.25 to make one muffin– You must charge at least $1.25 to break-even


Price

• The price of your product or service tells the customer a lot about your product

2000 Rs. 5000 Rs.


Price

• Different Pricing Strategies– Competition – basing your prices on those of the

competition– Penetration – making your price low while new

just to get some business– Bundle – putting the product/service with

another item and bundling the prices– Psychological – making the price say something

about the quality of your productSub: MANAGEMENT-2 Topic: Marketing Function

Place

• Simply refers to how & where you are going to sell the product to the consumer

• Direct Distribution – selling your product directly to the consumer– Brick & Mortar vs. Virtual Store

• Indirect Distribution – sold through a 3rd party– What retailers are the best for reaching your

Target Market?– Example: Selling protein powder – where do I sell?


Place

• For a service : where are you going to locate in order to best reach your target market

• You want to be in an area that – your target market frequents– Says something about your business

• Notice how car dealerships arealways on the outskirts of town or close to a highway?

• Brantford CommonsSub: MANAGEMENT-2 Topic: Marketing Function

Promotion

• A successful product or service means nothing unless the benefit of that product/service can be communicated to the Target Market

• There are many ways to get the “word out”• How many can we think of...


Promotion

BuzzSales

AdvertisingPublic Relations


Different Concept of MarketingThe marketing concept has suffered in two

ways:• First, it has been established as optimal management philosophy when it is not necessarily so in all instances

• Second, we can see many examples of poor marketing practice that have been adopted in the name of the marketing concept.


Different Concept of Marketing

The marketing concept• Customer focus

• Profits • Integration of organizational efforts.


Different Concept of Marketing

–Customer orientation• Satisfying its customers at a profit…• Determining the needs and wants of target

markets…• Discovering the wants of a target audience and

then creating the goods and services to satisfy them…


• Goods• Services• Experiences• Events• Persons

• Places• Properties• Organizations• Information• Ideas

Many Things Can Be Marketed!Many Things Can Be Marketed!

Different Concepts of Marketing


Different Marketing Concept

• Needs, wants, and demands

• Marketing offers: including products, services and experiences

• Value and satisfaction

• Exchange, transactions and relationships

• Markets

Core Marketing ConceptsCore Marketing Concepts


Different Marketing Concept

• Production concept• Product concept

• Selling concept • Marketing concept

• Holistic Marketing conceptHolistic Marketing concept

• Societal Marketing conceptSocietal Marketing concept

Management OrientationsManagement Orientations



•A firm focusing on a production orientation specializes in producing as much as possible of a given product or service.

•Thus, this signifies a firm exploiting economies of scale until the minimum efficient scale is reached.

•A production orientation may be deployed when a high demand for a product or service exists, coupled with a good certainty that consumer tastes will not rapidly alter (similar to the sales orientation).

PRODUCTION CONCEPTPRODUCTION CONCEPT


PRODUCT CONCEPTPRODUCT CONCEPT•A firm employing a product orientation is chiefly concerned with the quality of its own product.

•A firm would also assume that as long as its product was of a high standard, people would buy and consume the product.


SELLING CONCEPTSELLING CONCEPT•A firm using a sales orientation focuses primarily on the selling/promotion of a particular product, and not determining new consumer desires as such. Consequently, this entails simply selling an already existing product, and using promotion techniques to attain the highest sales possible.

•Such an orientation may suit scenarios in which a firm holds dead stock, or otherwise sells a product that is in high demand, with little likelihood of changes in consumer tastes that would diminish demand.


MARKETING CONCEPTMARKETING CONCEPT•The 'marketing orientation' is perhaps the most common orientation used in contemporary marketing.

• It involves a firm essentially basing its marketing plans around the marketing concept, and thus supplying products to suit new consumer tastes.

•E.g. a firm would employ market research to gauge consumer desires , use R&D to develop a product attuned to the revealed information, and then utilize promotion techniques to ensure persons know the product exists.


HOLISTIC CONCEPTHOLISTIC CONCEPT•The holistic marketing concept looks at marketing as a complex activity and acknowledges that everything matters in marketing - and that a broad and integrated perspective is necessary in developing, designing and implementing marketing programs and activities.

•The four components that characterize holistic marketing are relationship marketing, internal marketing, integrated marketing, and socially responsive marketing.


SOCIETAL CONCEPTSOCIETAL CONCEPT•Societal marketing emerged in the 1960s.

•The societal marketing concept deals with the needs, wants and demands of customers: how to satisfy them by producing superior value that should satisfy the customers and promote the well-being of society.

•The producer should not produce products deemed hazardous to society.

•Societal marketing developed into sustainable marketing.

REFERENCES

Books:-1.Management-2

Second Edition by Pearson Publication2.Management-2

By Mahajan PublicationWeb Resources:-

1.Google2.Wikipedia

ANY QUERIES???