Marketing Mix- Comp 2

7/28/2019 Marketing Mix- Comp 2

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Four Ps

Four Ps


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Marketing Mix

Product Place

Price Promotion


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Marketing Mix

The concept is simple. Think aboutanother common mix - a cake mix. Allcakes contain eggs, milk, flour, and sugar.However, you can alter the final cake byaltering the amounts of mix elementscontained in it. So for a sweet cake add

more sugar!


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Marketing Mix

It is the same with the marketing mix. The offer you make to your customer can

be altered by varying the mix elements. So for a high profile brand, increase the

focus on promotion and desensitize theweight given to price.


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Target Market is the key

Competition


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Designing the right marketing mix

The most creative & challenging step inmarketing is designing the right marketingmix

The marketing mix is the specific collectionof actions & associated instruments employed by an organisation to stimulateacceptance of its ideas, products &services


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Total Offer to the Customer

First, the firm chooses the product to meetthe identified need of the target segment

Second, the right distribution channel isused to make the product available

Third, the firm undertakes eye catchingpromotion

Fourth, the price platform is acceptable tothe customer & firm


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E. Jerome McCarthy

A prominent marketer , E. JeromeMcCarthy, proposed a 4 P classification in1960, which has seen wide use.


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4Ps & 4Cs

Product- Customer /Consumer Price- Customer cost

Place- Convenience Promotion- Communication


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4Ps & 4Cs

Four Cs The Four Ps is also being replaced by the

Four Cs model, consisting of consumer,cost, convenience, and communication .

The Four Cs model is more consumer-oriented and fits better in the movementfrom mass marketing to niche marketing.


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Product- Consumer

The product part of the Four Ps model isreplaced by consumer or consumer models, shifting the focus to satisfying theconsumer.


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Place- Convenience

Placement is replaced by the conveniencefunction.

With the rise of internet and hybrid modelsof purchasing, place is no longer asrelevant as before.

Convenience takes into account the ease

to buy a product, find a product, findinformation about a product, and severalother considerations.


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Extended- Marketing Mix


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Extended Marketing Mix

Booms and Bitner included threeadditional 'Ps' to accommodate trendstowards a service or knowledge basedeconomy:

People Process Physical Evidence


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Extended Marketing Mix


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People

People all people who directly or indirectly influence the perceived value of the product or service, includingknowledge workers, employees,management and consumers.


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Process

Process procedures, mechanisms andflow of activities which lead to anexchange of value.


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Physical Evidence

The direct sensory experience of a product or service that allows a customer to measurewhether he has received value.

Examples might include the way a customer istreated by a staff member , or the length of time acustomer has to wait, or a cover letter from aninsurance company, or the environment in whicha product or service is delivered.


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Physical Evidence

Physical evidence is the material part of a service.

Strictly speaking there are no physicalattributes to a service, so a consumer tends to rely on material cues.


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Physical evidence

There are many examples of physicalevidence, including some of the following:

Packaging. Internet/web pages. Paperwork (such as invoices, tickets and

despatch notes). Brochures.


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Physical Evidence

Furnishings. Signage (such as those on aircraft and

vehicles). Uniforms. Business cards.

The building itself (such as prestigiousoffices or scenic headquarters).


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7Ps & 7CsThe 7 Ps The 7 Cs

Organisation Facing Customer Facing

Product = Customer/ Consumer

Price = CostPlace = Convenience

Promotion = Communication

People = CaringProcesses = Co-ordinated

Physical Evidence = Confirmation


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Fundamental Actions

The term 'marketing mix' however, doesnot imply that the 4P elements representoptions.

They are not trade-offs but arefundamental marketing issues that alwaysneed to be addressed.

They are the fundamental actions thatmarketing requires whether determinedexplicitly or by default.


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Optimizing the marketing mix-2

Making large changes in any of the four Pscan be considered strategic .

Making small changes in the marketingmix is typically considered to be a tacticalchange.


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Optimizing the marketing mix-3

For example, a large change in the price,say from Rs19.00 to Rs39.00 would beconsidered a strategic change in the

position of the product. However a small change of Rs130 to

Rs129.99 would be considered a tacticalchange , potentially related to apromotional offer.


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Product

Product: A product, service or idea is that which

satisfies the needs & wants of thecustomers


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Product- (Learn)

A tangible object or an intangible service that is mass produced or manufactured ona large scale with a specific volume of units.

Intangible products are often servicebased like the tourism industry & the hotelindustry or codes-based products like cellphone load and credits.


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Product

Typical examples of a mass producedtangible object are the motor car and thedisposable razor . A less obvious but ever-present mass produced service is acomputer operating system .


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Cars- Reva

Reva


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Car- Maruti 800

Maruti


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Product Variety Even today, manufacturers of products which

are built to customer order, for example, cars,aeroplanes and medical equipment, offer such alarge range of combinations of product features

that millions of variants of a single product arepossible. Commercially available software systems

support the automation of many aspects of theengineering process; product databases enablethe description of single products andengineering applications can use these productdescriptions to carry out their tasks.


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Product Quality A product or process that is reliable, and that

performs its intended function is said to be aquality product.

Quality in business, has an interpretation as thenon-inferiority or superiority of something.

Quality is a perceptual, conditional andsomewhat subjective attribute and may beunderstood differently by different people.

Consumers may focus on the specificationquality of a product/service, or how it comparesto competitors in the marketplace.


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Product design

Product design can be defined as theidea generation, concept development,testing and manufacturing or implementation of a physical object or service


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Brand Name

The brand name is often used interchangeablywithin "brand", although it is more correctly usedto specifically denote written or spoken linguistic

elements of any product. In this context a "brand name" constitutes a type

of trademark, if the brand name exclusivelyidentifies the brand owner as the commercialsource of products or services


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Product

Instruments that aim at satisfaction of theprospective exchange partys needs

Examples: Product characteristics,options, assortments, packaging,guarantees, quality, features, style, brandname, size & packaging, services,warranties/guarantees, returns &replacements


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Product

Titan introduces quartz watches 24 Hour banking & ATMs by banks Tetra pack cartons for milk, juices Indoor coolers 7 year warranty on refrigerators- Allwyn


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Product & Packaging


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FMCG


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Product

Consumer durable products


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Products

Increase in mobile services in India


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Product- Durable

Washing machines


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Product

Camera


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Product


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Products

Latest Gadgets


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New generation products

Ipod, & walkman mobile


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Services

Courier Aviation


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Modern gadgets

ipod


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Place

Place represents the location where aproduct can be purchased.

It is often referred to as the distributionchannel . It can include any physical storeas well as virtual stores on the Internet.


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Place

Physical distribution are activities involvedin transporting products from the producer to the consumer:

Mode of transport Warehousing & Storage Order processing Inventory control


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Place

Instruments that determine the intensity &manner in which goods or services will bemade available

Types of channels, density of distribution,trade-relation mix, merchandising advise


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Duty Free Stores - Airports


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Hypermart-Store Signage's


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Retail brands

Stores


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Nokia Store


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Place

Global Players in India


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Place

Markets


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Place

Stores


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Modern Grocery Store


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Local stores

Local kirana stores


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Price

The price is the amount a customer paysfor the product.

It is determined by a number of factors

including market share, competition,material costs, product identity and thecustomer's perceived value of the product.

The business may increase or decreasethe price of product if other stores havethe same product.


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Price

List Price Discounts Allowances Payment Period Credit Terms


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List Price

In retail, price regularly quoted tocustomers before applying discounts . Listprices are usually the prices printed on

dealer lists, invoices, price tags, catalogs,or dealer purchase orders.


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Discounts & Allowances

Discounting is a financial mechanism inwhich a debtor obtains the right to delaypayments to a creditor, for a defined

period of time, in exchange for a charge or fee

Discounts and allowances are

reductions to a basic price of goods or services.


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Payment Period & Credit Terms

The stipulation by a business as to when it should be paid for goods or servicessupplied, for example, cash with order,

payment on delivery, or within a particular number of days of the invoice date


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Price

Bills


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Price

Price is the amount a consumer pays inexchange for the product or service.

Marketers must consider the following insetting prices:


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Price

Target segment- How much the targetsegment is willing to pay at different pricelevels- price elasticity of demand

Cost - How much it costs the firm toproduce & market the product

Competition - Prices of competitors Society & Law- Within legal framework

l f d d


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Price elasticity of demand-1

Elasticity is a measure of responsiveness. Two words are important here.

The word " measure " means that elasticity resultsare reported as numbers , or elasticitycoefficients.

The word " responsiveness " means that there isa stimulus- reaction involved.

Some change or stimulus causes people to react by changing their behavior, and elasticitymeasures the extent to which people react .

P i l i i f d d 2


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Price elasticity of demand-2

The most common elasticity measurement isthat of price elasticity of demand. It measures how much consumers respond in

their buying decisions to a change in price.

The basic formula used to determine priceelasticity is e= (percentage change in quantity) /

(percentage change in price).

(Read that as elasticity is the percentagechange in quantity divided by the percentagechange in price.)

P i


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Price

Marketers have to determine prices toconsumers & channel partners

Prices across models & geographicregions have to be established

Policies on discounts have to be framed These decisions are vital to enhance sales

volumes

I i Di


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Innovative Discounts

Discount sales in shopping malls Off season sales Closing down sales Festival sales Credit points

Exchange offers mobiles, cookers, cars


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I i di


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Innovative discounts

Discounts

E d f l


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End of season sale


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S i l S l


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Special Sales

Sales

G ld S l I t


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Gold Sale- Impact

Festive season revives gold demand,premiums steady

R t G ld S l


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Report- Gold Sales

Wednesday August 12, 01:40 PM Festiveseason revives gold demand, premiums steady

SINGAPORE/MUMBAI (Reuters) - Gold tradingpicked up in India, the world's largest consumer,as jewellers took advantage of a price drop toreplenish stocks during the festive season, whilepremiums for kilobars were mostly steady in

Asia in the past week.
http://in.biz.yahoo.com/090812/137/bau145.htmlhttp://in.biz.yahoo.com/090812/137/bau145.htmlhttp://in.reuters.com/


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Promotion


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Promotion

Advertising Personal selling Sales promotion- POS Public Relations Word of mouth Viral advertising

Promotion


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Promotion

Promotion represents all of the communicationsthat a marketer may use in the marketplace. Promotion has five distinct elements

advertising, personal selling, public relations,

word of mouth and point of sale . A certain amount of crossover occurs whenpromotion uses the five principal elementstogether

Advertising covers any communication that ispaid for, from and cinema commercials, radioand Internet adverts through print media andbillboards.

ATL & BTL


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ATL & BTL

Above the line (ATL) is an advertising technique usingmass media to promote brands . Major above-the-line techniques include TV and radio

advertising, print advertising and internet banner ads. This type of communication is conventional in nature and

is considered impersonal to customers. The ATL strategy makes use of current traditional media:

television, newspapers, magazines, radio, outdoor, andinternet.

It differs from BTL (Below the line), that believes inunconventional brand-building strategies, such as directmail.

BTL Below the line


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BTL- Below the line

The terms "below the line" promotion or communications, refers to forms of non-media communication, even non-mediaadvertising.

Below the line promotions are becomingincreasingly important within thecommunications mix of many companies,not only those involved in FMCG products,but also for industrial products.

ATL & BTL


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ATL & BTL

Whats the difference between Above the line andbelow the line advertising?

Below the line (BTL) is an advertising technique.

It uses less conventional methods than the usual specificchannels of advertising to promote products, services,etc. than ATL (Above the line) strategy.

These may include activities such as direct mail, publicrelations and sales promotion for which a fee is agreed

upon and charged up front.

Below the Line


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Below the Line

Below the line advertising typically focuses on directmeans of communication, most commonly direct mailand e-mail, often using highly targeted lists of names tomaximize response rates

The term "Below the Line" is rapidly going out of fashion

in advertising circles as agencies and clients switch to an'Integrated Communication Approach.' BTL is a common technique used for touch and feel

products. Those consumer items where the customer willrely on immediate information than previouslyresearched items.

BTL techniques ensures recall of the brand while at thesame time highlighting the features of the product.

Integrated Communication


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Approach Definition: A management concept that is

designed to make all aspects of marketingcommunication such as advertising, sales

promotion, public relations, and directmarketing work together as a unified force ,rather than permitting each to work in

isolation.

Through the line TTL


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Through the line-TTL

Through the line" refers to an advertising strategyinvolving both above and below the line communicationsin which one form of advertising points the target toanother form of advertising thereby crossing the "line".

An example would be a TV commercial that says 'comeinto the store to sample XYZ product'. In this example, the TV commercial is a form of "above

the line" advertising and once in the store, the target

customer is presented with "below the line" promotionalmaterial such as store banners, competition entry forms,etc

Personal selling


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Personal selling

Personal Selling : Face to face personalcommunication- Eureka Forbes

In person selling, tele-marketing

Advertising - Mass communication effortsthrough media Sales Promotion- Communication through

contests, OOH, trade shows, free samples,yellow pages, call helplines

Personal Selling


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Personal Selling

Personal Selling

Discount coupons


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Discount coupons

Discount coupons

Promotion-2


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Promotion-2

Publicity- Communicating with anaudience by personal or non-personalmedia that are not paid for delivering the

message Print media news, broadcast media news-

UTI,PTI, Reuters, annual reports,

speeches by employees

Branding


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Branding

Signages

Known companies


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Known companies

Recognizable companies

Nokia


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Nokia

Nokia


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Examples-Lux


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Same theme over the years

Chips


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Chips

Competition

Celebrity endorsement


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Using famous people to attract targetsegment

ICICI Bank- Print Ad


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ICICI Bank Print Ad

Brand Ambassador


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Star Power

TV Channels


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TV Channels


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TV Channels


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TV Channels

TVC

TV Channels


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TV Channels


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More than just news


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More than just news

Entertaining information to add spice


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Print Media


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Print Media

Print- Newspapers & Magazines

Newspapers


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ewspape s

Print Media


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Newspapers & Magazines

Read everywhere


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y

Omnipresent

Newspapers you could read


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p p y

Economic Times Business Standard Mint

Hindu Businessline Business News in

daily newspapers

The Hindu

Radio


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Growing radio stations in India

Radio Stations


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Numerous- FM

Radio channels


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Meow targets at women

Bajaate Raho- Red FM


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j

Radio on the internet


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On the internet

Videos can be uploaded


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p

Companies upload their corporate films www.youtube.com

Sales Staff & PR


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Sales staff often plays an important role inword of mouth and Public Relations

Public Relations


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Public relations are where the communication isnot directly paid for and includes press releases,sponsorship deals, exhibitions, conferences,seminars or trade fairs and events.

Word of mouth is any apparently informalcommunication about the product by ordinaryindividuals, satisfied customers or people

specifically engaged to create word of mouthmomentum.

Press Release


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Press Release

Public Relations


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Press Conferences

Media Entertainment


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PR Material


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Press kit to be given to press with all info.

Press Conference


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Spokesperson of the company talks to thepress

Client Meetings


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Word of mouth publicity



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Wo rd o f m o u t h is a reference to thepassing of information from person toperson. Originally the term referredspecifically to oral communication butnow includes any type of humancommunication, such as face to face,telephone, email, and text messaging



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Salespersons



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At meetings

Competitors


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Responding to competitor activity &messages

You may have seen similar activity in cola

ad wars

Reports in media


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Cola war shifts to a new turf

The famous cola wars have found a newbattleground the Indian fields.

The worlds largest beverage company Coca -Cola, like its rival PepsiCo, is finalising plans for sourcing fruit from India for its juice brands.

OOH


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Cola vans act as OOH

OOH


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Pepsi van

OOH


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Cola signages

Vending Machines


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Vending machine- Note both brands


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Sales Promotion


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Yeh Dil Maange More!!!


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POS Display


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Cola Ads-Promotion
http://upload.wikimedia.org/wikipedia/commons/a/a1/Easter_PoS_Display.JPG


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Cola drinks- Thums Up, Coca Cola

Vodafone vs Airtel


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Airtel


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Telecom Ad- Messages


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Airtel- Now Airtel removes distancesacross India.

Vodafone- Happy to Help

Spice- Faltoo callers ki No Entry


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Signages


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Reliance Telecom


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Reliance

Reliance Mobile- Hritik


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Reliance Mobile


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Hritik Roshan

What an idea, Sirji


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Walk when you talk

OOH- Idea Cellular
http://www.afaqs.com/advertising/newcamps/grfx/newcampaigns_inside/newcampaigns_huge/2008/airtel_16052008_huge.jpg


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Idea Cellular
http://www.afaqs.com/advertising/newcamps/grfx/newcampaigns_inside/newcampaigns_huge/2008/airtel_16052008_huge.jpg


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IDEAs ad campaigns based on the themeof Democracy; Championing a worldwithout caste; Championing a world in

which no one suffers from the disability tocommunicate; and Education for All,have been a huge success amongst allcategories of audience.

Effectiveness of Campaign


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The testimony of the success of thecampaign is reflected from the rapidgrowth of IDEAs subscriber base in thecountry.

The Aditya Birla Group company hasgrown to become the 3rd largest privateGSM operator with over 43 million

subscribers across 16 service areas,nationally.

Bus shelters


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Same message across all media

Outdoor
http://in.reuters.com/


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Hoarding/Billboard

OOH


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Signages & Gates

Brands using OOH


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Amul

Mobile truck- OOH


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Outdoor trucks with billboard

Trade Shows & Events


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Trade Shows Events


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Websites


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Airline Ad Wars


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Marketers should be ready to facecommunication challenges Jet Airways- Weve Changed

Kingfisher - We made them change Go Air- Weve not changed; we are still the

smartest way to fly

Ad wars


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In Mumbai- Samelocation on NarimanPoint


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Viral Marketing- Word of mouth


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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.

Viral Marketing


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Word of mouth

Word of Mouth Publicity


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On the internet


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On the Internet, viral marketing is anymarketing technique that induces Websites or users to pass on a marketing

message to other sites or users, creating apotentially exponential growth in themessage's visibility and effect.

Hotmail- Excellent Viral Marketing


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Hotmail--One example of successful viralmarketing is Hotmail, a company, nowowned by Microsoft , that promotes its

service and its own advertisers' messagesin every user's e-mail notes.

www.hotmail.com


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Hotmail- Viral Marketing


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In 1996, Hotmail was a particularly unique email servicein that it was free, could be accessed anywhere, andwould allow the user to have multiple accounts.

One of the interesting things Hotmail did was it wouldattach the message "Get your free email at Hotmail" at

the bottom of every email sent by a Hotmail user. Once the receiving user clicked on the word "Hotmail"

they were taken to Hotmail's homepage where the freeemail service was further explained.

The plan, original at the time, worked. By 1998, Hotmailhad accumulated 12 million subscribers. Hotmaileventually sold to Microsoft for a cool $400 million.

Cadburys in UK


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Cadbury's Dairy Milk 2007 Gorillaadvertising campaign was heavilypopularised on YouTube and Facebook.

Gorilla
http://en.wikipedia.org/wiki/Gorilla_(Cadbury)http://en.wikipedia.org/wiki/Gorilla_(Cadbury)http://en.wikipedia.org/wiki/Gorilla_(Cadbury)http://en.wikipedia.org/wiki/Gorilla_(Cadbury)http://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Advertising_campaignhttp://en.wikipedia.org/wiki/Advertising_campaignhttp://en.wikipedia.org/wiki/United_Kingdom


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Gori l la is a British advertising campaign launched byCadbury Schweppes in 2007 to promote Cadbury DairyMilk-brand chocolate . The 90-second television andcinema advertisement , which formed the centrepiece of the 6.2 million campaign, was created and directed by

Juan Cabral and starred actor Garon Michael. Thecampaign itself, which comprised appearances onbillboards , print newspapers and magazines, televisionand cinema spots, event sponsorships and an internet presence, was handled by advertising agency Fallon

London , with the online segment contracted out toHyper.
http://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Advertising_campaignhttp://en.wikipedia.org/wiki/Cadbury_Schweppeshttp://en.wikipedia.org/wiki/Dairy_Milkhttp://en.wikipedia.org/wiki/Dairy_Milkhttp://en.wikipedia.org/wiki/Chocolatehttp://en.wikipedia.org/wiki/Television_advertisinghttp://en.wikipedia.org/wiki/Television_advertisinghttp://en.wikipedia.org/wiki/Pound_sterlinghttp://en.wikipedia.org/wiki/Billboard_(advertising)http://en.wikipedia.org/wiki/Sponsor_(commercial)http://en.wikipedia.org/wiki/Internethttp://en.wikipedia.org/wiki/Advertising_agencyhttp://en.wikipedia.org/wiki/Fallon_Worldwidehttp://en.wikipedia.org/wiki/Fallon_Worldwidehttp://en.wikipedia.org/wiki/Fallon_Worldwidehttp://en.wikipedia.org/wiki/Fallon_Worldwidehttp://en.wikipedia.org/wiki/Advertising_agencyhttp://en.wikipedia.org/wiki/Internethttp://en.wikipedia.org/wiki/Sponsor_(commercial)http://en.wikipedia.org/wiki/Billboard_(advertising)http://en.wikipedia.org/wiki/Pound_sterlinghttp://en.wikipedia.org/wiki/Television_advertisinghttp://en.wikipedia.org/wiki/Television_advertisinghttp://en.wikipedia.org/wiki/Chocolatehttp://en.wikipedia.org/wiki/Dairy_Milkhttp://en.wikipedia.org/wiki/Dairy_Milkhttp://en.wikipedia.org/wiki/Cadbury_Schweppeshttp://en.wikipedia.org/wiki/Advertising_campaignhttp://en.wikipedia.org/wiki/United_Kingdom


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Definition- Viral Marketing


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The buzzwords viral marketing and viral advertising refer to marketing techniques that use pre-existing socialnetworks to produce increases in brand awareness or toachieve other marketing objectives (such as productsales) through self-replicating viral processes, analogousto the spread of pathological and computer viruses.

It can be word-of-mouth delivered or enhanced by thenetwork effects of the Internet. Viral promotions may take the form of video clips,

interactive Flash games, advergames, ebooks,brandable software, images, or even text messages.

The basic form of viral marketing is not infinitelysustainable.

Going Viral


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Funny Helpful & Unique Controversial Amazing &

Spectacular

Schematic

Word of Mouth


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Word of Mouth

Viral Marketing- Internet


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Social Networking sites

Close to 35 million internet users inIndia


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According to Internet market research firmcomScore Inc. India had 34.6 million Internetusers (who access the Web from their homes/offices) in June, of which at least 65%, or

22.61 million, accessed social networking sites. These figures have meant that people have kept

launching new social sites in India fuelled by thehype but success is still far for them.

T-Shirts


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T-Shirts with company & Logo message

Inflated Balloons


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Scooter covers


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Personal Selling


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Contact- Finding prospects Prospecting- Relating products to

prospects

Negotiation & Transaction- Reach priceagreement Promotion- Needs satisfaction

Physical Distribution- Safe delivery Collection- Payment


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Contact- Finding prospects Prospecting- Relating products to

prospects

Negotiation & Transaction- Reach priceagreement Promotion- Needs satisfaction

Documents

Marketing Mix- Comp 2