Marketing ْMix

Marketing Mix
Product – Place – Price - Promotion

Compant X is a major
player in the field of
cosmetics.
Till now, it has
majorly focussed on
cosmetics related to
skincare of men and
women.
However, now it
intends to venture
into the baby
healthcare products.
Look at the various
questions that come
into the minds of the
marketing people at
Helium.

What should be
the products /
services to be
offered?
Which areas
should be first
ventured into?
What kind of
pricing strategy
should be
followed?
How should the
new products be
promoted to make
an impact?

All these questions are pertaining to the marketing of a product or
service, they can be answered through an understanding the concept
of
‘Marketing Mix’

The concept of ‘marketing mix’
was first introduced by Jerome
McCarthy in 1960.
It provides a recipe for effective
marketing.
Jerome McCarthy
(February 20, 1928 – December 3, 2015)

Marketing mix is a blend of
variables through which a firm
carries out its marketing strategy.

Effective marketing is based on the
Right Balance
of marketing elements and processes
depending on the
Nature
of the product, service or idea being marketed.

Definition of Marketing
"the activities and processes for creating,
communicating, delivering, and exchanging
offerings that have value for customers,
clients, partners, and society at large"

"Satisfying needs and
wants through an
exchange process“
Philip Kotler

a decade later …
“a social and managerial
process by which
individuals and groups
obtain what they want
and need through
creating, offering and
exchanging products of
value with others.”
Philip Kotler

1. Marketing informs and
attracts leads and
prospects to your
company and product /
service.
Marketing
Differences Between Sales and Marketing
Sales
1. Sales works directly with
prospects to reinforce the
value of the company's
solution to convert
prospects into customers.

• Finding out what the
customer wants?
• Planning and developing
product or service that
satisfy these wants.
• Determining the best way
to price, promote and
distribute these products
or services
Marketing
Cont. …
Sales
• Planning, directing and
controlling personal selling
activities including
recruitment, selection,
training, motivating and
compensating field force.

• Emphasize on customer
• Company finds out what the
customer wants and
develops and supplies the
products that satisfies these
wants
Marketing
Cont. …
Sales
• Emphasize on product
• Company makes a products
and then finds out how to
sell it.

• Marketing is one-to-many.
• Marketing tells the stories (of
the company, of the product,
etc.) to many people according
to target segment.
• Marketing looks after branding
and brand’s reputation
• Marketing needs to keep the
stories circulating and
resonating with the target
markets using the company’s
plumb line as its central
reference.
Marketing
Cont. …
Sales
• Sales is about one-to-one.
• Sales is where the business
becomes real for the clients. It
is where the stories and brand
come to life.
• Sales develops relationships and
is relationship-driven.
• Sales looks after individuals.

• Marketing analyses the big
data.
• Marketing brings you the
average result not the
specifics.
Marketing
Cont. …
Sales
• Sales deals with the
ambiguities and the details
of each person.
• It cannot be averaged.

• Marketing should not promote
special prices and discounts,
and instead, replace these with
special offers, focusing on
delivering greater value.
Marketing
Cont. …
Sales
• Sales moves away from
discussing price and discount,
instead replacing these with
discussions about total cost of
ownership, which includes price
but extends to include
deliveries, warranties, support,
training and the other
contributing things that are
delivered as part of the
purchase.

What’s in Common?
› One thing sales and marketing must share in common is:
Company’s ‘plumb line’ and its
stories.

› What is Marketing Mix?
› 4 Ps and 4 Cs of Marketing Mix
› Extended Marketing Mix
› 7Ps & 7Cs of Marketing Mix
› Marketing Planning Process
› AIDA

What is Marketing Mix?
› ‘Marketing Mix’ refers to
the primary elements that
must be taken care of in
order to properly market a
product or service;
1. Product
2. Place
3. Price
4. Promotion
› It describes the key
elements used by an
organization to help meet
its marketing objectives.

Definition of Marketing Mix
'The marketing process responsible
for identifying, anticipating and
satisfying customer requirements
profitably’

Definition of Marketing Mix
“the process of assessing needs
and wants of the customer and
accordingly designing the product
or service”

Simple Marketing System
Industry
(sellers)
Communication
Goods / Services
Money
Information
Market
(buyers)

4 Ps and 4 Cs of Marketing Mix
Product
Place
Price
Promotion

Additional Ps
People
PhysicalPresence
Process
PhysicalEvidence
How your staff/clients
are different from
competitor’s
How your shop or
website looks.
How your product is
built and delivered,
or how your service
is sold, delivered
and accessed.
How your service
becomes tangible. e.g.
policies & brochures
are something the
customers can touch
and hold.

Elements of 4 Cs Model
› The elements of the four Cs model are:
Product - Customer /Consumer
Place - Convenience
Price - Cost
Promotion - Communication

Product - Customer/Consumer
› The product is replaced by customer or consumer which
shifts the focus to satisfying the consumer.
Product

Place - Convenience
› The place is replaced by the convenience function, place is
no longer as relevant as before due to the rise of internet
and hybrid models of purchasing.
› Convenience takes into account the ease to buy a product,
find a product, find information about a product, and several
other considerations.
Place

Price - Cost
› The price is replaced by cost, reflecting the reality of the
total cost of ownership.
Price

Promotion - Communication
› Communications represents a broader focus than simply
promotions.
› Communications includes any form of communication
between the firm and customers such as advertising, public
relations, personal selling … etc.
Promotion

Product
› A product, service or idea
› It is “that which satisfies the needs and wants
of the customers”
› It includes products and services.
› Products features / service are be
demonstrated and in turn product would be
positioned according to target audience needs
and wants
Product
Place
Price
Promotion

Product
› While creating or developing a product, you
should consider components of a product
1. Variety
› There are different variants of a single product
available due to a large range of combinations of
product features possible
2. Quality
3. Design
4. Features
5. Brand Name
6. Packaging
Product
Place
Price
Promotion

Components of a Product
1. Variety
2. Quality
› A quality product is a product or process that is
reliable, and that performs its intended function
› Consumers may focus on the specification quality
of a product/service, or how it compares to
competitors in the marketplace
3. Design
4. Features
5. Brand Name
6. Packaging
Product
Place
Price
Promotion

Product
1. Variety
2. Quality
3. Design
› Product design can be defined as the idea
generation, concept development, testing and
manufacturing or implementation of a physical
object or service
4. Features
5. Brand Name
6. Packaging
Product
Place
Price
Promotion

Product
1. Variety
2. Quality
3. Design
4. Features
› Features of a product are the characteristics or
attributes that help differentiate one product
from the other. It also points to the functional
and physical characteristics of a product
5. Brand Name
6. Packaging
Product
Place
Price
Promotion

Product
1. Variety
2. Quality
3. Design
4. Features
5. Brand Name
› Brand name constitutes a type of trademark, if the
brand name exclusively identifies the brand owner as
the commercial source of products or services
6. Packaging
Product
Place
Price
Promotion

Product
1. Variety
2. Quality
3. Design
4. Features
5. Brand Name
6. Packaging
› Packaging refers to the overall presentation of
the product.
› It helps in the safe delivery of products across
the world. There are various types of packaging
available for different types of products
Product
Place
Price
Promotion

Place - Physical Distribution
› Place represents the location where a product
can be purchased.
› Place is often referred to as the distribution
channel
› It can include any physical store as well as
virtual stores on the Internet
Product
Place
Price
Promotion

› Physical distribution are the activities involved
in transporting products from the producer to
the consumer.
› Hence, the different components of distribution
are:
1. Logistics
2. Transportation
3. Warehousing & Storage
4. Inventory control
5. Order processing
6. Coverage
7. Locations
Product
Place
Price
Promotion

› Channels of distribution are the routes through
which the ownership of goods flow on its way
from the producer to the customer
› The various channels of distribution are:
1. Distributor
2. Super-stockist
3. Wholesalers
4. Retailers
Product
Place
Price
Promotion

Price
› The price is the amount of money a customer
pays for the product.
› Pricing is dependent on a number of factors;
1. Market share
2. Competition
3. Material costs
4. Product identity
5. Customer's perceived value of the product
Product
Place
Price
Promotion

Price
› While pricing a product / service, you should
consider;
1. Credit Terms
– A Credit term is a financial mechanism in which an
arrangement for deferred payment for goods and
services is made available.
2. Payment Period
– Payment period is the stipulation by a business as to
when it should be paid for goods or services supplied,
such as;
1. Cash in advance
2. Payment on delivery
3. Payment within a particular number of days of
the invoice date.
Product
Place
Price
Promotion

Price
3. Discounts & Allowances
– Discounts and allowances are reductions to a basic
price of goods or services
4. List price
– In retail, list price is regularly quoted to customers
before applying discounts.
– List prices are usually the prices printed on dealer
lists, invoices, price tags, catalogues, or dealer
purchase orders.
Product
Place
Price
Promotion

Pricing Strategy
Hight / Passive Hight / Active
Low / Passive Low / active

1. Target Segment
• How much the target
segment is willing to pay at
different price levels (price
elasticity of demand)
2. Cost
• What is the cost borne by
the firm in manufacturing
and marketing the product.
3. Competition
• Prices of competitors
The following factors should be taken into consideration by
marketers for setting the price of a product:
Setting a Price
4. Society & Law
• Price should be set within
societal norms and legal
framework defined by national
laws.
5. Variant Prices
• Prices across geographic
regions have to be established
if necessary.
6. Discount Policy
• The price should be set after
taking into account and also
framing the policies on
discounts.

1. Discount sales in shopping
malls
• Certain outlets – online
shopping
2. Off season sales
• Summer and winter
collections
3. Credit points
• Spend more to get free
vouchers as in most credit
cards and hypermarkets
Some of the different kinds of discounts or rebates that are
offered to consumers to lure them to buy the product and help
increase sales volumes are:
Price – Discounts and Rebates
4. Exchange offers
• Mobiles, cookers, cars ….etc
5. Seasonal and festival sales
• Ramadan, Eid, Christmas,
Mother’s day
6. Special sales
• Brand anniversary –
Company expansions – New
branch opening

Methods of Fixing Price
› There may be two methods of price-
fixation:
1. Cost-based approach
2. Competition-based approach

Methods of Fixing Price - Cost-based
Approach
› Cost-based approach is the simplest
method of pricing.
› In this method, the companies add a
certain percentage of profit, to the
total cost of the product.
› The total cost of the product is
calculated after taking all types of
costs into consideration.

Methods of Fixing Price - Competition-
based Approach
• In a competitive market, cost-
based approach is not always
practicable.
• Companies may follow any one of
the following three approaches:
1. Price-in-line
2. Market-plus
3. Market-minus

Promotion
› Promotion activities are meant to communicate
and persuade the target market to buy the
company’s products
› Promotion represents all of the communications
that a marketer may use in the marketplace
Product
Place
Price
Promotion

Promotion
› There are six distinct elements of Promotion. A
certain amount of crossover occurs when
promotion uses the five principal elements
together.
› The elements of promotion are:
1. Advertising
2. Personal Selling
3. Public Relations
4. Sales promotion
5. Word of Mouth
6. Point of Sale
Product
Place
Price
Promotion

Promotion
1. Advertising
– Advertising covers any paid communication, from
cinema commercials, radio and Internet adverts
through print media and billboards.
– It is mass communication efforts through media.
2. Personal Selling
– Personal selling includes face to face personal
communication or tele-marketing
3. Sales promotion
4. Public Relations
5. Word of Mouth
6. Point of Sale
Product
Place
Price
Promotion

Promotion
1. Advertising
2. Personal Selling
3. Sales promotion
– Price discounts on temporary basis
– Free goods
4. Public Relations
5. Word of Mouth
6. Point of Sale
Product
Place
Price
Promotion

Promotion
1. Advertising
2. Personal Selling
3. Sales promotion
4. Public Relations
– This includes any type of publicity such as
communicating with an audience by personal or non-
personal media that are not paid for delivering the
message.
– These include print media news, broadcast media
news, Reuters, annual reports, speeches by
employees etc.
5. Word of Mouth
6. Point of Sale
Product
Place
Price
Promotion

Promotion
1. Advertising
2. Personal Selling
3. Sales promotion
4. Public Relations
5. Word of Mouth
– This is the promotion of a product by the spread of
information from one individual to another.
– This includes viral marketing
6. Point of Sale
– The promotion of the product at the point of sale
itself.
– This includes product brochures, banners, demos etc.
Product
Place
Price
Promotion

Factors Governing Promotion-mix
1. Nature of product:
– Different types of products require different promotion mix.
– In case of consumer goods, advertisement is considered to be the
most important because the goods are non-technical and produced
on a large scale.
2. Type of the market:
– If the number of customers is quite large and they are spread over a
vast area, advertisement is more helpful because it can reach people
everywhere
3. Stage of the product life cycle:
– The promotional mix depends upon the stage of the product in
product life cycle.
– During introduction, heavy expenditure is incurred on advertisement
followed by personal selling and sales promotion.
– At the maturity stage, competition is more intense

Cont. …
3. Budget:
– Funds available for promotion also decide promotion mix. Personal
selling involves continuous spending.
– Thus, budget is a deciding factor for promotion-mix
4. Push vs. Pull Strategy:
– When the firm pushes the product to the middlemen they push it to
consumers, known as ‘push’ strategy.
– Pull strategy refers to a policy to strive to build consumer demand
without middlemen

What is Viral Marketing?
› It is a marketing technique that use pre-existing social
networks to increase brand awareness or to achieve other
marketing objectives through self-replicating viral processes,
just like the spread of pathological and computer viruses
› It can be word-of-mouth delivered or enhanced by the
network effects of the Internet

Cont. …
› Various means can be used for viral
promotions such as:
1. Video clips
2. Interactive flash games
3. Advert games
4. E-books
5. Brandable software
6. Images
7. Text messages

Cont. …
› Viral marketing depends on
a high pass-along rate from
person to person.
› If a large percentage of
recipients forward
something to a large
number of friends, the
overall growth snowballs
very quickly.
› If the pass-along numbers
get too low, the overall
growth quickly fizzles.

Extended Marketing Mix
Extended Marketing
Mix
Price
Product
PlaceProcess
Physical
Environment
Promotion
There have been attempts to better
accommodate specific aspects of
marketing by developing an 'extended
marketing mix'.
For example, in the 1970s, Nickels and
Jolson suggested the inclusion of
packaging.
In the 1980s, Kotler proposed public
opinion and political power.
With the same intention, Booms and
Bithner included three additional 'Ps' to
accommodate trends towards a service
or knowledge based economy.
People

People
Process
Physical Evidence
Booms & Bithner
› Booms and Bithner included
three additional 'Ps' to
accommodate trends towards a
service or knowledge based
economy.
› These were:
1. People
2. Process
3. Physical evidence

People
› Booms and Bithner suggested that marketers
should be taken into consideration, while
designing a marketing mix, all people who
directly or indirectly influence the perceived
value of the product or service, including;
1. Knowledge workers
2. Employees
3. Management
4. Consumers.

Process
› The ‘process’ includes the procedures,
mechanisms and flow of activities which lead
to an exchange of value.

Physical Evidence
› The ‘physical evidence includes the direct
sensory experience of a product or service
that allows a customer to measure whether he
or she has received value.
› Physical evidence is the material part of a
service.
› Examples of physical evidence are:
1. Packaging
2. Internet/web pages
3. Paperwork (such as invoices, tickets and despatch
notes)
4. Brochures
5. The infrastructure itself (such as prestigious or
scenic offices)

7Ps & 7Cs
› The 7Ps are Organization Facing …. The 7Cs are Customer
Facing
7Ps

Cont. …
1
2
3
4
5
6
7
Product Consumer
Co-ordination
Confirmation
Process
Physical evidence
People Caring
Promotion Communication
Price Cost
Place Convenience

It is important to keep in mind
that, in a ‘marketing mix’,
the 4P elements
do not represent
options.

Above the Line (ATL)
› Above the line (ATL) is an advertising technique to promote
brands using mass media.
› This type of communication is conventional in nature and is
considered impersonal to customers.
› Major above-the-line techniques include:
1. TV & radio advertising
2. Print advertising (newspapers and magazines)
3. Internet banner ads.
4. Outdoor advertising (bill boards)

Below the Line (BTL)
› The terms ‘Below the Line (BTL)’ promotion or
communications, refers to forms of non-media
communication including non-media advertising.
› Below the line advertising typically focuses on direct means
of communication, most commonly through direct e-mail
and mail, often using highly targeted lists of names to
maximize response rates.

• ATL uses the usual
common channels of
advertising to promote
products and services.
• ATL uses the usual
common channels of
advertising to promote
products, services.
ATL
ATL vs. BTL
BTL
• BTL uses the
unconventional methods
such as direct mail, public
relations and sales
promotion for which a fee
is agreed upon and
charged up front.

Integrated Communication Approach
The term ‘Below the
Line’ is rapidly going
out of fashion in
advertising circles.
Agencies and clients
switch to an 'Integrated
Communication Approach’.
The 'Integrated
Communication Approach' is
a management concept that
is designed to make all
aspects of marketing
communication such as
advertising, sales
promotion, public
relations, and direct
marketing work together as
a unified force, rather
than permitting each to
work in isolation.

Through The Line (TTL)
The ‘Through the Line’ refers to an advertising
strategy which involves both above and below
the line communications.
It is a form of advertising strategy in
which one form of advertising points
the target to another form of
advertising thereby crossing the ‘line’.
An example would be a TV commercial that says
'come visit our nearest showroom to sample
XYZ product'.
In this example, the TV commercial is a form of ‘above
the line’ advertising and once in the showroom, the
target customer is presented with ‘below the line’
promotional material such as showroom banners,
competition entry forms, etc.

Designing the Right Marketing Mix
Achieves marketing objectives
Meets customer needs
Is balanced and consistent
Creates a competitive advantage
Matches corporate resources

Cont. …
First, choosing the product
that meets the identified
need of the target segment
Second, the right
distribution channel is used
to make the product
available
Third, the firm undertakes
eye catching promotion
Fourth, the price platform is
acceptable to the customer
& firm

Inter-relationship between Components of
Marketing-mix
› The four elements of marketing mix, product, price,
promotion and place are related with each other.
› Hence, a marketer has to consider these inter-relationships
and then design an optimum marketing mix which takes
care of both customers’ satisfaction and organisational
objectives.
› An example of an inter-relation can be seen in that tools of
promotion depends upon the nature of product, the price
that can be charged for that product, and the process
through which it would reach the consumer.

Marketing Planning Process
Step 1:
Performing a
situation analysis
Step 2:
Formulating basic
assumptions
Step 3:
Setting objectives
for what is being
sold and to whom
Step 4:
Deciding how the
objectives are to be
achieved
Step 5:
Scheduling and
costing out the
actions necessary for
implementation

• A company’s marketing
strategy describes how it will
position itself and the
products it sells or the
services it provides in the
competitive marketplace.
• Hence, marketing strategy
includes a discussion of
target markets, product and
pricing policies, and
proposed marketing and
promotional initiatives.
Marketing Strategy
Marketing Strategy vs. Marketing Plan
Marketing Plan
• Marketing plan is a written
document which details the
marketing methods selected
such as advertising, price
promotions, etc. and specific
marketing actions or
marketing activities.
• It also examines the
resources needed, both
financial and human to
achieve specified marketing
objectives.

AIDA
› AIDA is an acronym which represents the steps a marketer
takes in order to persuade customers to buy a product or
service.

I D
Attention:
• Marketing must first attract the
customers’ attention to the product.
• Customers become aware of a
product and know it is available.

I D
Interest:
• Then, marketing must create an
interest in the product.
• Customers will develop an interest in
the product.

I D
Desire:
• Next, marketing must develop a
desire to own or have the product so
that customers actively want the
product.

I D
Action:
• Finally, marketing must prompt
action to purchase, so that customers
take steps to buy the product.
• For example, by going to the shop or
ordering it online.

Contact us on;
ossama.motawae@eurekaeg.com
+201023985680

Marketing ْMix

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