Introduction and Development of Marketing Mix
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The document discusses the marketing mix, which is a blend of controlled factors that influence consumer purchasing behavior, and emphasizes its significance in forming a business plan for success. It outlines the traditional marketing mix of 4Ps (product, place, price, promotion) and the expanded 7Ps for service marketing (adding people, process, physical evidence). Additionally, it highlights the importance of continuously updating products, setting appropriate pricing strategies, and effectively promoting to the target audience.
Introduction and Development of Marketing Mix
- 1. Department of MBA IMS Engineering College, Ghaziabad Marketing Management – II UNIT 1 Marketing Mix
- 2. Marketing Mix: Meaning • By marketing mix, we mean a combination of factors that can be controlled by the organization to influence the consumers to purchase its products. • It is a set of marketing tools that the company uses to pursue its marketing objectives. • The elements of marketing mix influence each other. They make up the business plan for the company and if handled right, can give it great success.
- 3. Marketing Mix: Importance • Marketing mix represents the business plan of the company, hence has to be handled very carefully. • Marketing mix is formed after a lot of market research and consultation with several people – from the people involved in the supply chain to the consumers • It acts as a guide to improve the business • Marketing mix helps in enhancing product portfolio • Marketing mix helps in differentiation in a competitive market
- 4. The traditional Marketing Mix • The product marketing mix consists of 4Ps – Product, Place, Price and Promotion • The Marketing mix 4Cs consist of – Consumer (wants and needs), Cost, Communication, Convenience • The 4Cs enables the organization to think in terms of consumer rather than self, thus encouraging a consumer centric approach from a business centric approach
- 6. The Service marketing mix: 7Ps • Product • Place • Price • Promotion • People • Process • Physical evidence
- 7. The Service marketing mix: 7Ps • The 4Ps were developed by E. Jerome McCarthy in 1960, to these 4Ps, Booms and Bitner added another 3Ps in Late 1970s – People, Process and Physical Evidence • ‘People’ in service marketing mix means the human resource • ‘Process’ in service marketing mix means the sequence of activities that leads to service outcome • ‘Physical Evidence’ in service marketing mix means the ‘packaging’ of the service, it refers to tangibility in service
- 8. Developing an effective marketing Mix • Companies must update their products as per the technology and add to their products, such features which the customers value. • Companies can extend guarantees on their product offering if they are very confident about their product / service, this will make offering all the more effective • Packaging can also be used as a tool to enhance product offering
- 9. Developing an effective marketing Mix • Companies can offer low priced versions of their products to attract consumers • Marketers need to consider factors such as payment period, margin, credit terms etc before deciding the price • Some companies attempt to position themselves as offering lower price than their consumers
- 10. Developing an effective marketing Mix • To promote effectively, the companies have to decide carefully their marketing mix and channels they want to employ for communication with the customer. • Internet is also a great way to promote products and services • Companies may also think of viral, word of mouth promotion or publicity • Companies have to chose distribution channels carefully so that get the products and services in the right quantity when they need them.
- 11. Managing and Designing Marketing Mix • Organization must take care about the following before developing the marketing mix: • Identify overall goal or marketing strategy • Identify target market
- 12. Managing and Designing Marketing Mix • To create the right marketing mix, businesses have to meet the following conditions: The product has to have the right features - for example, it must look good and work well. • The price must be right. Consumer will need to buy in large numbers to produce a healthy profit. • The goods must be in the right place at the right time. Making sure that the goods arrive when and where they are wanted is an important operation. • The target group needs to be made aware of the existence and availability of the product through promotion. Successful promotion helps a firm to spread costs over a larger output.