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Course: Introduction to ManagementCourse Instructor: Sir Hamza

BS-IVPresentationGroup 01

L/O/G/O

Group Members:

Hamnah abid --- 324/F12

Anum zulfiquar --- 325/f12

Huma iqbal --- 328/f12

Zakia rehman --- 330/f12

7 P’s of Marketing

Product

People

Process

Price

Place

Physical

Evidence

Promotion

Introduction

The Marketing Mix is one of two

interrelated components of

strategy

The Marketing Mix, more popularly

referred to as the 7Ps of Marketing is a

set of controllable and interrelated

variables

Marketing Mix strategy is choosing and implementing the

best possible course of action to attain the organization’s long-term objectives and

gain competitive edge.

It is composed of product, place, price and

promotions that a company assembles to satisfy a target group

better than it’s competitor.

Marketing Mix• The 7 P’s of Marketing are:• The primary goal of marketing is to optimize the

marketing mix, offering the best possible combination ofthe 7 P's to maximize the effectiveness of marketingefforts. The variables known as the 7 P's of the marketingmix are as follows:

Product

• Product is – The actually offerings – Product may be

• tangible (goods)• intangible (services)

• While formulating the marketing strategy, product include:

– Design– Technology– Usefulness– Convenience– Value– Quality– Packaging– Branding– Accessories– Warranties

Product

• Product Refers to:

– The questions related to the product such like:• What need does the service/product fulfill• What does the customer want from the

product/service?• What needs does it satisfy?• What features does it have to meet these needs?• Are you including costly features that the customer

won't actually use?• How and where will the customer use it?• What size(s), color(s), and so on, should it be?• How is it branded?• How is it differentiated versus your competitors?• How will your product/service differ from the

competition

Some Product Strategies

• Positioning compared with competitors

• Market (consumer) preferences

• Options and bundling

• Packaging

• Range of Products

Kotler suggested that a product should be viewed in three levels.

• Level 1: Core Product. What is the core benefit your product offers?.

• Level 2 Actual Product: All cameras capture memories. The aim is to ensure that your potential customers purchase your one.

• Level 3: Augmented product: What additional non-tangible benefits can you offer?

Some Examples of Product

People

They are the target consumers of the company. They are the ones who are the consumers

Process

The process of the product is essential in marketing. This determines the capability of the product to supply the

demand of the consumers.

• The actual procedures, mechanism and flow of activities by which serviceis delivered.

• Service process are complex and time consuming

Price

• Price is the process of determining that– What to charge for the product or service.

– The customers are willing and able to pay.

– Cost of production (time, labor, ingredients, packaging, advertising, etc.)

– Demand and Supply

• The end result is the price of the product or service.

Price• Price include:

– Price sensitivity– Value of goods– Discounts– Price Compare with Competitors– Profit – Forgo normal margins– Psychological – Competition– Bundle – Payment Plans

Some Examples

Place

• Place Refers to:– how & where you are going to sell the

product to the consumer

• There are two types of distribution:– Direct Distribution

• Selling your product directly to the consumer– Amazon.com, Ebay.com , ISPs

– Indirect Distribution• sold through a 3rd party

– Example: Cold Drinks producing companies

Place

Place Includes:• Distribution

• Channels

• Control issues

• Rationing

• Place of displaying

• Place of distribution

Place

• Place is where you are– going to locate in order to best reach your

target market• Example: Car Dealers

Some distribution/place strategies

• Offer exclusivity

• Co-operative advertising

• Offer Price protection

• Returns policies

Physical EvidencePhysical evidence is the first distinction of a product. A product could be easily recognized by it’s evidence.

The environment in which the servicesare assembled and

delivered.

Combined with tangible commodities that

facilities performance or communication

of service

Physical evidence include all tangible representations of services such as:

• Brochures• Letterhead

• Business cards• Report format

• Physical facilities

Physical Facilities

Brochures

Bussiness Cards

Letterhead

Promotion

• Promotion is – the actual marketing of the product or service

– the image portrayed.

– Advertising the product or

– making the customer aware of the product or service is involved in promotion. • Advertising can be done through

– public relations

– Media

– personal selling

Promotion

• Promotion includes:– Advertising

– Events

– Press releases

– Trade shows

– Brand awareness

– Brochures, datasheets

– Freebies

Promotion Mediums

• Television

• Radio

• Newspaper

• Telephone marketing

• Direct-mail

• Contests

• Free samples

• Coupons

• Rebates

• Magazine

• Outdoor

• Internet

• Transit

• Frequent purchaser programs

• Gifts

• Special events

• Buzz

Other Promotion Mediums

• Public-relations is free promotion generated by media coverage

• Personal selling – personal contact with the customers.

• Telemarketing– Inexpensive, but new laws restrict unsolicited phone calls

Some Promotion Strategies

• These are– Co-operative advertising

– Branding – define & build the brand(brand portfolio)

– Internet presence

– Follow-Up readiness

– Celebrity Promotion

Product, place and people are Considered as the strategic Ps of

marketing mix since they Cannot be changed overnight.

Promotions, price, process and physical

appearance are considered as the tactical

Ps of marketing mix because these can be

changed more easily.

Summary

The marketing mix of a company seldom stays the same

Marketers must therefore have a systematic way of reviewing what worked and why, what didn’t work and why.

Answering these queries are a prerequisite before planning what should be added or what should be dropped in order to attain, enhance or maintain competitive edge.

Visual Aid

Conclusion

01• 7 P’s are interdependent

02• 7 P’s constitute your “Marketing Strategy”

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• You can control these (independent variables)

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L/O/G/O

Thank You!