marketing mix and the 4ps of marketing

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    A report of BSBA 1 students

    Group 1

    Principles of Marketing 1

    Marketing Mix and the 4Ps of

    Marketing

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    Objectives:

    At the end of the discussion, you should be able to:

    Define what is MARKETING MIX

    Give the four Ps needed for a successful business ventureRealize the importance of considering the 4 Ps in establishing

    a business

    Differentiate 4 Ps from 4 Cs in Marketing

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    MARKETING MIX

    y Marketing mix is a broad concept which includes several

    aspects of marketing which is related to creating awareness

    and customer loyalty. The term is often summarized as

    referring to the "four P's": price, promotion, product, and

    placement.

    when these are effectively blended, they form a marketing

    program that provides want-satisfying goods and services for

    the companys market.

    -http://en.wikipedia.org/wiki/Marketing_mix

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    MARKETING MIX

    y A planned mix of the controllable elements of a product's

    marketing plan commonly termed as 4Ps: product, price,

    place, and promotion.

    These four elements are adjusted until the rightcombination is found that serves the needs of the

    product's customers, while generating optimum income.

    Sometimes the first P (Product) is substituted by

    presentation.

    -http://www.businessdictionary.com/definition/marketing-mix.html

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    MARKETING MIX

    y The levels and interplay of the elements of a product's or

    service's marketing efforts, including product features,

    pricing, packaging, advertising, merchandising, distribution,

    and marketing budget; especially as these elements affect

    sales results.

    -http://marketing.about.com/od/marketingglossary/g/mrktmixdef.htm

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    HISTORY of Marketing Mixy The term "marketing mix" was coined in 1953 by Neil Borden in

    his American Marketing Association presidential address. However, thiswas actually a reformulation of an earlier idea by his associate, JamesCulliton, who in 1948 described the role of the marketing manager as a"mixerof ingredients", who sometimes follows recipes prepared by

    others, sometimes prepares his own recipe as he goes along, sometimesadapts a recipe from immediately available ingredients, and at othertimes invents new ingredients no one else has tried.

    The term became popular in the article written by Niel Borden calledThe Concept of the Marketing Mix. He started teaching the term afterhe learned about it with an associate.

    The prominent marketer, E. Jerome McCarthy, proposed a FourP classification in 1960, which has seen wide use.

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    The 4 Ps

    What about??

    The 4 Ps is one way probably the best-known way of

    defining the marketing mix, and was first expressed in 1960

    by E J McCarthy.The 4Ps are:

    y Product (or Service)

    y Price

    y Place

    y Promotion

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    4 PsElements of the marketing mix are often referred to as the

    "Four 'P's", a phrase used since the 1960's

    y Product - It is a tangible good or an intangible service thatis mass produced or manufactured on a large scale with a

    specific volume of units. Intangible products are servicebased like the tourism industry & the hotel industry orcodes-based products like cellphone load and credits. Typicalexamples of a mass produced tangible object are the motorcar and the disposable razor. A less obvious but ubiquitousmass produced service is a computer operating system.

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    PRODUCTSy What does the customer want from the product/service?What needs does it

    satisfy?

    y What features does it have to meet these needs?

    y Are there any features you've missed out?

    y

    Are you including costly features that the customer won't actually use?y How and where will the customer use it?

    y What does it look like? How will customers experience it?

    y What size(s), color(s), and so on, should it be?

    y What is it to be called?

    y How is it branded?

    y How is it differentiated versus your competitors?

    y What is the most it can cost to provide, and still be sold sufficiently profitably?

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    4 Psy Price The price is the amount a customer pays for the

    product. The business may increase or decrease the price ofproduct if other stores have the same product.

    y Pricing is one of the most important elements of the

    marketing mix, as it is the only mix, which generates aturnover for the organisation. The remaining 3ps are thevariable cost for the organisation. It costs to produce anddesigna product, it costs todistribute a product and costs to promote it.Price must support these elements of the mix

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    PRICE

    Pricing is difficult and must reflect supply and

    demand relationship. Pricing a product too high or too low

    could mean a loss of sales for the organisation. Pricing should

    take into account the following factors:

    y Fixed and variable costs.

    y Competition

    y Company objectives

    y Proposed positioning strategies.y Target group and willingness to pay.

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    PRICEy What is the value of the product or service to the buyer?

    y Are there established price points for products or services in this

    area?

    y Is the customer price sensitive?Will a small decrease in price gain

    you extra market share? Or will a small increase be indiscernible,

    and so gain you extra profit margin?

    y What discounts should be offered to trade customers, or to other

    specific segments of your market?

    y How will your price compare with your competitors?

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    4 Ps

    y Placement A way of getting the product to the consumer

    and/or how easily accessible it is to consumers.

    y Just like with pricing, the places where your product is

    available say a lot about both the quality and "status" of the

    product.

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    PLACE

    y What isPlace Marketing?

    Place Marketing (aka Place Branding, Territorial Marketing)

    is the practice of applying marketing and branding strategies

    to regions, states, cities and nations. As place marketing

    teams (i.e. city councils, tourism departments) compete to

    attract residents, tourists, businesses and ultimately tax

    revenue they have consulted branding tactics to turn their

    places into destinations.

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    PLACEy Where do buyers look for your product or service?

    y If they look in a store, what kind? A specialist boutique or in a

    supermarket, or both? Or online? Or direct, via a catalogue?

    y How can you access the right distribution channels?

    y Do you need to use a sales force? Or attend trade fairs? Or make

    online submissions? Or send samples to catalogue companies?

    y What do you competitors do, and how can you learn from that

    and/or differentiate?

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    4 PsPromotion represents all of the communications that a

    marketer may use in the marketplace. Promotion has fourdistinct elements: advertising, publicrelations,personal selling and sales promotion. A

    certain amount of crossover occurs when promotion uses thefour principal elements together, which is common in filmpromotion.

    y Advertising- covers any communication that is paid for, fromcinema commercials, radio and Internet adverts throughprint media and billboards.

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    PROMOTIONy Public relations- are where the communication is not directly paid

    for and includes press releases, sponsorship deals, exhibitions,

    conferences, seminars or trade fairs and events.Word of mouth is

    any apparently informal communication about the product by

    ordinary individuals, satisfied customers or people specificallyengaged to create word of mouth momentum. Sales staff often

    plays an important role in word of mouth and Public Relations.

    y Personal Selling- Face-to-face selling in which a seller attempts to

    persuade a buyer to make a purchase.

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    PROMOTION

    y Sales Promotion- Activities, materials, devices, andtechniques used to supplement the advertising and marketingefforts and help coordinate the advertising with the personalselling effort. Sweepstakes are among the most well-knownsales promotion tools, but other examples include specialdisplays, coupons, promotional discounts, contests, and gift

    offers.

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    PROMOTIONy Where and when can you get across your marketing messages to

    your target market?

    y Will you reach your audience by advertising in the press, or on TV,or radio, or on billboards? By using direct marketing mailshot?Through PR? On the Internet?

    y When is the best time to promote? Is there seasonality in themarket? Are there any wider environmental issues that suggest ordictate the timing of your market launch, or the timing ofsubsequent promotions?

    y How do your competitors do their promotions? And how does

    that influence your choice of promotional activity?

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    MARKETING MIX DIAGRAM

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    4Cs of Marketing??y Robert F. Lauterborn proposed a four Cs classification in

    1993.The Four Cs model is more consumer-oriented andattempts to better fit the movement from mass marketing to nichemarketing.

    1. Product part of the Four Ps model is replaced by Consumer orConsumer Models, shifting the focus to satisfying the consumerneeds. Another C replacement for Product is Capable. By definingofferings as individual capabilities that when combined and

    focused to a specific industry, creates a custom solution ratherthan pigeon-holing a customer into a product.

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    4 Cs vs. 4 Ps

    y Consumer wants and needs (vs.Products)

    You can't develop products and then try to sell them to a

    mass market.Y

    ou have to study consumer wants and needsand then attract consumers one by one with something each

    one wants. Author of the movie Field ofDreams, J.P. Cancilla

    may have exclusive rights to the phrase "build it and they will

    come". In most cases, you have to find out what people want

    and then "build" it for them, their way.

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    4Cs of Marketing

    2. Pricing is replaced by Cost reflecting the total cost of

    ownership. Many factors affect Cost, including but notlimited to the customer's cost to change or implement the

    new product or service and the customer's cost for not

    selecting a competitor's product or service.

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    4 Cs vs. 4 Ps

    y Cost to satisfy (vs.Price)

    You have to realize that price - measured in dollars - is one

    part of the cost to satisfy. If you sell hamburgers, for

    example, you have to consider the cost of driving to your

    restaurant, the cost of conscience of eating meat, etc. One of

    the most difficult places to be in the business world is the

    retailer selling at the lowest price. If you rely strictly on price

    to compete you are vulnerable to competition - in the long

    term.

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    4 Cs of Marketing

    3. Promotions feature is replaced by Communication which

    represents a broader focus than simply Promotions.

    Communications can include advertising, public relations,personal selling, viral advertising, and any form of

    communication between the firm and the consumer.

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    4 Cs vs. 4 Ps

    y Communication (vs.Promotion)

    You have to consider the communication instead of

    promotion. Promotion is manipulative (ouch!) - its from theseller. Communication requires a give and take between the

    buyer and seller (that's nicer). Be creative and you can make

    any advertising "interactive". Use phone numbers, your web

    site address, etc. to help here. And listen to your customers

    when they are "with" you.

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    4 Cs of Marketing

    4. Placement is replaced by Convenience.With the rise of

    internet and hybrid models of purchasing, Place is becomingless relevant. Convenience takes into account the ease of

    buying the product, finding the product, finding information

    about the product, and several other factors.

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    4 Cs vs. 4 Ps

    y Convenience to buy (vs.Place)

    You must think of convenience to buy instead of place.You

    have to know how each subset of the market prefers to buy -

    on the Internet, from a catalogue, on the phone, using credit

    cards, etc. Lands End clothing, Amazon Books and Dell

    Computers are just a few businesses who do very well over

    the Internet.

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    LESSONS IN MARKETING

    You see a gorgeous girl at a party.You went up to her and say I am very rich. Marry me.Thats DIRECT MARKETING

    You are at a party with a bunch offriends and see a gorgeous girl. One ofyour friends goes up to herand pointing at you says,He is very rich. Marry him.Thats ADVERTISING

    You see a gorgeous girl at a party.You go up to her and get her telephone number.The next day youcalledher and say,Hi, I am very rich. Marry me.ThatsTELEMARKETING.

    You are at a party and see a beautiful girl.You get up and straighten your tie, you walk up to her andpour her a drink.You open the door for her, pick up her bag after she drops it, offer her a ride, and

    then say, By the way, Im very rich.Will you marry me?.ThatsPUBLIC RELATIONS.

    You are at a party and see a gorgeous girl. She walks up to you and says,You are very rich.Thats BRAND RECOGNITION.

    You see a gorgeous girl at a party.You go up to her and say,I am very rich. Marry me.She gives you a nice hard slap on your face.ThatsCUSTOMER FEEDBACK.

    - Unknown

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    Doing business without advertising is like winking at

    a girl in the dark. You know what you are doing,

    but nobody else does.-Steuart Henderson Britt

    ThankYou Very Much!!!

    From: GROUP 1