BY

SAROJ KUMAR, KISHOR GAUTAM, RISHI RAJ,

AVINASH SINGH

MARKETING&

7 P’S

MARKETING

MARKETING :- Marketing is the process through which an organization can execute their plans and polices into market, creating desire of product, flow of goods and services from producers to consumers, creating mutual value between customers need and business objectives which ultimately helps in achieving the goals of an organizations.

ORThe right product, in the right place, at the right time, and at the right price’

Implications of marketing

• Who are our existing / potential customers?• What are their current / future needs?• How can we satisfy these needs?

• Can we offer a product/ service that the customer would value?

• Can we communicate with our customers?• Can we deliver a competitive product of service?

• Why should customers buy from us?

The marketing concept

choosing and targeting appropriate customers

positioning your offering

interacting with those customers

controlling the marketing effort

continuity of performance

Marketing management process

Analysis/Audit - where are we now?

Objectives - where do we want to be?

Strategies - which way is best?

Tactics - how do we get there?

(Implementation - Getting there!)

Control - Ensuring arrival

Why planning necessary in marketing?

Systematic futuristic thinking by management

better co-ordination of a

company’s efforts

development of performance

standards for control

sharpening of objectives and

policies

better prepare for sudden

developments

MARKETING MIX

The combination of marketing components that will maximize

customer satisfaction and ensure

PROFITS

HISTORY•The term marketing mix was coined in an article written by Neil Borden called “The Concept of the Marketing Mix.”

•The marketer, E. Jerome McCarthy, proposed a four Ps classification in 1960

•Robert F. Lauterborn proposed a four Cs classification in 1993

MARKETING MIX

- Four P’s- By E. Jerome McCarthy

4 P’s & 4 C’s

•Product- Customer /Consumer •Price- Customer cost

•Place- Convenience

•Promotion- Communication

EXTENDED MARKETING MIXBy Booms and Bitner

7P’s & 7C’s

The 7 Ps The 7 Cs

Organization Facing

Customer Facing

PRODUCT = CUSTOMER/ CONSUMER

PRICE = COST

PLACE = CONVENIENCE

PROMOTION = COMMUNICATION

PEOPLE = CARING

PROCESS = CO-ORDINATED

PHIYSICAL EVIDENCE = CONFIRMATION

PRODUCTA business offers goods and services to its customer.• Choice of product• Packaging• Services to support product• Product development strategy• Positioning• Quality• Business image

PRODUCT• What product/service will you provide?

• What choice of product/service will you make available to customers?

• How will you package or display your product?

• Will you provide additional services such as repair with your product?

• What warranties or guarantees can a customer be assured of when purchasing your product/service?

• What level of quality do you plan to offer with your product/service?

• How do you want customers to view your business?

• How much research and development will be needed to stay competitive?

Product--Choice and Packaging

• Choice of products for your businesso Product consistency is vital.o Do all of the products/services “fit together?”

• Packaging your productso Packaging choices affect the appearance and appeal

of the product. o Packaging impacts the display and storage of the

product.

Product--Services

• Do you provide services to support the products:o Some products such as computers, appliances,

vehicles, and many other “technical” products require special services to maintain customer satisfaction.

o Do you provide repair services for your product or just sell the product?

Product development strategy

Product developmet strategy by Ansoff• Market penetration• Product development• Market development• Diversification

Product development strategy…..•Market penetration – This involves increasing market share within existing market segments. This can be achieved by selling more products/services to established customers or by finding new customers within existing markets.

• Product development – This involves developing new products for existing markets. Product development involves thinking about how new products can meet customer needs more closely and outperform the products of competitors.

•Market development – This strategy entails finding new markets for existing products. Market research and further segmentation of markets helps to identify new groups of customers.

•Diversification – This involves moving new products into new markets at the same time. It is the most risky strategy. The more an organisation moves away from what it has done in the past the more uncertainties are created.

Product--Warranties• Warranties

o Assurance by the seller that the product is as it is represented to be or that it will be as it is promised to be.oA certain level of performance is expected from all

products; however, some products may not meet customer expectations.

oWhat steps will the business take to “back up” the products and ensure customer satisfaction?

oCustomer satisfaction is important for return customers.

Product--Quality

• Level of quality of the products or the business relates to customer’s perception of product value.o If the customer perceives higher quality, a higher

price will be accepted.o Interpretation of customer perceptions must be

accurate to succeed with higher prices.

Product—Business Image• Business image is the mental picture customers

have of the business. • How do you want customers to “view” your

business?o Discount (Wal-Mart): Image is built on “low prices

everyday.”o Popular-priced (Shopper stop’s, Marshalls): Image is built on

the concept of quality designer brand merchandise at lower prices.

o Exclusive (UB City): Image is built on the superiority of the products carried by the business.

o Specialty (Victoria’s Secret): Image is built on the single brand or single type of merchandise carried.

Product—Research and Development

• Product research and development is necessary in order to remain competitive.

• An organization must consistently strive to improve products and services for customers and to keep up with trends, technology and customer spending patterns.

Product—Positioning

• Positioning of a business is the perceived standing of a business or its product in the minds of its customers as compared to the competition.

• This perception will help the customers decide where to spend their money.

PRICE

The amount of money a business charges customers

for its goods and services

Economy Pricing

This is a no frills low price. The cost of marketing and manufacture are kept at a minimum.

Penetration PricingTechnique of setting a relatively low initial entry price, often lower than the eventual market price, to attract new customers. The strategy works on the expectation that the customer will switch to the new brand because of the lower price. This pricing strategy increase market share or sales volume, rather than to make profit in short term.

Price Skimming

This pricing strategy in which a marketer sets a relatively high price for a product or service at first, then lower the price over time. It is a temporal version of price discrimination. It allows the firm to recover its sunk costs quickly before competition steps in and lower the market price. For Eg:- MP3 player, Apple iphone 5

Premium Pricing

Premium Pricing means high price and high quality, such as diamonds, watches and cars.

PLACE

Providing the product at a place which is convenient for consumer to access. Place is concerned with various methods of transporting and storing goods, and then making them available for the customer. Getting the right product to the right place at the right time involves the distribution system. The choice of distribution method will depend on a variety of circumstances. It will be more convenient for some manufacturers to sell to wholesalers who then sell to retailers, while others will prefer to sell directly to retailers or customers.

Place---Channels of Distribution

Channels of distribution from the manufacturer to the customer

o The usual channel of distribution goes from manufacturer to wholesaler to retailer

o How will your product get from the manufacturer to your customer?

To manufacturer To wholeseller To retailer

t

Place---Exclusive Rights

So what is the difference between selling product in the big shops and luxury shops?

So which one is better for you to buy Rolex?

Place---TransportationTransportation

What carrier will be chosen to move the products? Remember, the more people that touch the product between the manufacturer and the consumer, the higher the cost of the product will be to the final customer.

Common carrier: Provides transportation services for any business in its operating area for a fee. Examples include:

•UPS•Federal Express

PROMOTION

Promotion is all about communication.

Why because promotion is the way in a business makes its products known to the customers

PROMOTION…….

Promotion---Types of Promotion

Advertising - Non-personal promotional messages paid for by an identified sponsor.

Personal Selling - Communication between a salesperson and a customer intended to influence the customer’s buying decision.

Publicity - Information about a business or its products distributed through the media at no cost to the business.

PEOPLE

All the people directly or indirectly involved in the consumption of service are an important part of an extended marketing mix. Knowledge worker, employees, management and other consumer often add significant value to the total product or service offering

People Include...

Others like: Technicians Dealers Other Employees (BPO Employees)

PeoplePeople are important because:– Providing a service, rather than selling a product. – Quality of personal relationships between company

and clients becomes vital. – New staff needs thorough training and constant

monitoring.– Staffing costs the highest cost– Recruiting specialist staff time consuming

and expensive.– Strategies and tactics for recruiting, training and

safeguarding relationships.

PEOPLEEg:-

People - The employees in McDonalds have a standard uniform and McDonalds specially focuses on friendly and prompt service to its customers from their employees.

PROCESS

Process is associated with customer service are a number of processes involved in making marketing effective in an organisation e.g. processes for handling customer complaints, processes for identifying customer needs and requirements, processes for handling order etc

Process

• How do people consume services?• What processes do they have to go through to acquire

the services?• Where do they find the availability

of the service?– Contact– Reminders– Registration– Subscription– Form filling– Degree of technology

PROCESS….

Eg:-

Process - The food manufacturing process at McDonalds is completely transparent (the whole process is visible to the customers).

PHYSICAL EVIDENCEPhysical evidence: This refers to the way your product, service, and everything about your company, appears from the outside.  Decisions need to be made about the size, shape, color, material, and label of the packaging.  This should be customer tested and updated when needed.  It should fall in line with your other product offerings as well.  Packaging involves the visual layout, practical setup, and when needed for products, clear and precise installation instructions. 

PHYSICAL EVIDENCE

Eg:-

Physical Evidence - McDonalds focuses on clean and hygienic interiors of is outlets and at the same time the interiors are attractive and the fast food joint maintains a proper etiquette at its joints.