product place price promotion marketing mix place, price and promotion. • hence, it is a term that...
Post on 21-Mar-2018
215 Views
Preview:
TRANSCRIPT
© ManagementStudyGuide.com. All rights reserved.
Marketing Mix
Product Place Price Promotion
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Course Objectives
• Explain what is Marketing Mix
• Explain the 4 Ps and 4 Cs of Marketing Mix
• Explain what is Viral Marketing
• Explain Extended Marketing Mix
• Explain 7Ps & 7Cs of Marketing Mix
• Describe the Characteristics of Marketing Mix
• Explain Marketing Planning Process
• Explain AIDA
• Explain SWOT Analysis
• Compare Old-School vs. Predictive Marketing Mix Analysis
© ManagementStudyGuide.com. All rights reserved.
Introduction
Helium Pvt. Ltd. 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.
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Introduction
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 marketed / promoted to make an impact?
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Introduction
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 marketed/promoted to make an impact?
All of the above questions as well as several other questions pertaining to the marketing of a product or service can be answered through an understanding
of the concept of ‘marketing mix’.
Let us learn about ‘marketing mix’ and its role in marketing.
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
History of Marketing Mix
• • •
The concept of ‘marketing mix’ was first introduced by Jerome McCarthy in 1960.
Marketing mix is a blend of variables through which a firm carries out its marketing strategy.
It provides a recipe for effective marketing.
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.
• •
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Objective
• Explain what is Marketing Mix
• Explain the 4 Ps and 4 Cs of Marketing Mix
• Explain what is Viral Marketing
• Explain Extended Marketing Mix
• Explain 7Ps & 7Cs of Marketing Mix
• Describe the Characteristics of Marketing Mix
• Explain Marketing Planning Process
• Explain AIDA
• Explain SWOT Analysis
• Compare Old-School vs. Predictive Marketing Mix Analysis
• Explain what is Marketing Mix
© ManagementStudyGuide.com. All rights reserved.
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.
••
Marketing mix is the combination of
four elements: Product, Place,
Price and Promotion.
••
Hence, it is a term that describes the key elements used by an organization
to help meet its marketing objectives.
••
So, by altering the elements within a marketing mix, the offer you make to your customer can
be altered.
••
So, for a high profile brand, the focus on
promotion is increased and whereas the
weightage laid on price is decreased.
•
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Definition of Marketing Mix
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Simple Marketing System
Industry (collection of sellers)
Communication
Goods / Services
Money
Information
Market (collection of buyers)
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Objective
• Explain what is Marketing Mix
• Explain the 4 Ps and 4 Cs of Marketing Mix
• Explain what is Viral Marketing
• Explain Extended Marketing Mix
• Explain 7Ps & 7Cs of Marketing Mix
• Describe the Characteristics of Marketing Mix
• Explain Marketing Planning Process
• Explain AIDA
• Explain SWOT Analysis
• Compare Old-School vs. Predictive Marketing Mix Analysis
• Explain the 4 Ps and 4 Cs of Marketing Mix
© ManagementStudyGuide.com. All rights reserved.
4 Ps
Marketing mix is the combination of four elements. They are:
Pro
du
ct
Pla
ce
Pri
ce Pro
mo
tio
n
These are known as the 4 Ps of marketing.
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Additional PsSome marketers also consider an additional four Ps to the original 4 Ps that you learnt. These are:
Peo
ple P
hysi
cal
Pre
sen
ce
Pro
cess Ph
ysi
cal
Evi
den
ce
How your staff, are different from those in a competitor’s organization, and how your clients are different from your competitor’s clients.
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.
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Price
Product
Promotion
Place
4 Ps and 4 Cs
Now-a-days, the Four Ps is being replaced by the Four Cs model,
consisting of :
The Four Cs model is more consumer-oriented and fits better in the
movement from mass marketing to niche marketing.
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Elements of 4 Cs Model
The elements of the four Cs model are:
Product- Customer /Consumer
Place- Convenience
Price- Cost
Promotion- Communication
Let’s look at each in detail.
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Product - Customer/Consumer
In the four Cs model, the product part of the Four Ps model is replaced by customer or consumer which shifts the focus to satisfying the consumer.
PRODUCT
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Place - Convenience
In the Four Cs model, the place part of the Four Ps model 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.
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Price - Cost
In the Four Cs model, the price part of the Four Ps model is replaced by cost, reflecting the reality of the total cost of ownership.
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Promotion - Communication
Finally, in the Four Cs model, the promotion part of the Four Ps model is replaced by communication. Communications represents a broader focus than simply promotions. Communications includes any form of communication between the firm and the consumer such as advertising, public relations, personal selling, viral advertising etc.
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Product
PRODUCT
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Components of a Product
••
••
•
Variety
Quality
Design
Features
Brand Name
• PackagingVisit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Components of a Product - Variety
Variety
There are different variants of a single product available due to a large range of combinations of product features possible
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Components of a Product - Quality
Quality
A quality product is a product or process that is reliable, and that performs its intended function
Quality usually refers to the non-inferiority or superiority of something. Hence, quality is a perceptual, conditional and somewhat subjective attribute and may be understood differently by different people
Consumers may focus on the specification quality of a product/service, or how it compares to competitors in the marketplace
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Components of a Product - Design
Design
Product design can be defined as the idea generation, concept development, testing and manufacturing or implementation of a physical object or service
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Components of a Product - Features
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
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Components of a Product - Brand Name
Brand Name
The brand name is often used interchangeably within "brand". However, brand name is more correctly used to 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 exclusively identifies the brand owner as the commercial source of products or services
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Components of a Product - Packaging
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
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Place
Place represents the location where a product can be purchased
Hence, place is often referred to as the distribution channel
It can include any physical store as well as virtual stores on the Internet Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Place - Physical Distribution
Physical distribution are the activities involved in transporting products from the producer to the consumer
Hence, the different components of distribution are: • Mode of transport• Warehousing & Storage• Order processing• Inventory control• Coverage• Locations• Transportation• Logistics
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Place - Channels of Distribution
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:• Distributor• Super-stockist• Wholesalers• Retailers
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Price
•
The price is the amount a customer pays for the product.
Price is dependent on a number of factors.
Some of the factors are:• Market share• Competition • Material costs • Product identity• Customer's
perceived value of the product
•• •
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Different Kinds of Pricing of Product
The different kinds of pricing of a product include:
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Different Kinds of Pricing of Product
The different kinds of pricing of a product include:
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, catalogs, or dealer purchase orders
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Different Kinds of Pricing of Product
The different kinds of pricing of a product include:
Discounts and allowances are reductions to a basic price of goods or services
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Different Kinds of Pricing of Product
The different kinds of pricing of a product include:The payment period is the stipulation by a business as to when it should be paid for goods or services supplied, such as, cash on order, payment on delivery, or within a particular number of days of the invoice date
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Different Kinds of Pricing of Product
The different kinds of pricing of a product include:
A Credit term is a financial mechanism in which an arrangement for deferred payment for goods and services is made available. This arrangement is made available in exchange for a charge or fee
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Setting a Price
The following factors should be taken into consideration by marketers for setting the price of a product:
Let’s look at each in detail.
Cost
Competition
Society & Law
Target Segment
Variant Prices
Discount Policy
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Setting a Price
Target Segment:How much the target segment is willing to pay at different price levels which is also known as the price elasticity of demand
Cost
Target Segment
Competition
Society & Law
Variant Prices
Discount Policy
Target Segment
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Setting a Price
Cost:What is the cost borne by the firm in manufacturing and marketing the product
Cost
Target Segment
Competition
Society & Law
Variant Prices
Discount Policy
Cost
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Setting a Price
Competition:Prices of competitors
Cost
Target Segment
Competition
Society & Law
Variant Prices
Discount Policy
Competition
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Setting a Price
Society & Law:Price should be set within societal norms and legal framework defined by state and national laws
Cost
Target Segment
Competition
Society & Law
Variant Prices
Discount Policy
Society & Law
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Setting a Price
Variant Prices: Prices across models and geographic regions have to be established
Cost
Target Segment
Competition
Society & Law
Variant Prices
Discount Policy
Variant Prices
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Setting a Price
Discount Policy: The price should be set after taking into account and also framing the policies on discounts
Cost
Target Segment
Competition
Society & Law
Variant Prices
Discount PolicyDiscount Policy
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Price – Discounts and Rebates
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:• Innovative Discounts• Discount sales in shopping malls• Off season sales• Closing down sales• Credit points• Exchange offers – mobiles, cookers,
cars• Festive Sales: Christmas & Diwali
Sales• End of season sale• Special Sales
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Methods of Fixing Price
There may be two methods of price-fixation:
Let’s look at each in detail.Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
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.
• While following this approach, no other factors e.g. prices of substitute goods, nature of demand, etc. are considered.
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
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:o Price-in-lineo Market-pluso Market-minus
• Price-in-line means prices fixed nearly equal to the prices of close alternatives.
• When companies charge or fix up a price which is more than the price of existing substitutes, it is called market plus pricing.
• Sometimes business enterprises may supply products at a price lower than the market price. This method may be be adopted to grab a larger market share or to make a newly introduced product more popular. This approach is called market-minus approach
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Promotion
Promotion activities are meant to communicate and persuade the target market to buy the company’s products
Hence, promotion represents all of the communications that a marketer may use in the marketplace
•• •
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Elements of PromotionThere are five distinct elements of Promotion. A certain amount of crossover occurs when promotion uses the five principal elements together.The elements of promotion are:
Advertising
Personal Selling
Public Relations
Word of Mouth
Point of SaleLet’s look at each in detail.Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Elements of Promotion - Advertising
Advertising:
Advertising covers any communication that is paid for, from and cinema commercials, radio and Internet adverts through print media and billboards. Hence, it is mass communication efforts through media
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Elements of Promotion - Personal Selling
Personal Selling:
Personal selling includes face to face personal communication or tele-marketing
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Elements of Promotion - Public Relations
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-UTI,PTI, Reuters, annual reports, speeches by employees etc.
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Elements of Promotion - Word of Mouth
Word of Mouth:
This is the promotion of a product by the spread of information from one individual to another. Hence, this includes viral marketing
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Elements of Promotion - Point of Sale
Point of Sale:
The promotion of the product at the point of sale itself. This includes product brochures, banners, demos etc.
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Factors Governing Promotion-mix
• 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
• 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
• 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
• Budget: Funds available for promotion also decide promotion mix. Personal selling involves continuous spending. Thus, budget is a deciding factor for promotion-mix
• 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
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Objective
• Explain what is Marketing Mix
• Explain the 4 Ps and 4 Cs of Marketing Mix
• Explain what is Viral Marketing
• Explain Extended Marketing Mix
• Explain 7Ps & 7Cs of Marketing Mix
• Describe the Characteristics of Marketing Mix
• Explain Marketing Planning Process
• Explain AIDA
• Explain SWOT Analysis
• Compare Old-School vs. Predictive Marketing Mix Analysis
• Explain what is Viral Marketing
© ManagementStudyGuide.com. All rights reserved.
What is Viral Marketing?
‘Viral marketing’ and ‘viral advertising’ refer to marketing techniques that use pre-existing social networks to produce increases in brand awareness or to achieve other marketing 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
Various means can be used for viral promotions such as: video clips, interactive Flash games, advert games, eBooks, brandable software, images, or even text messages
Hence, you can see that 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
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Objective
• Explain what is Marketing Mix
• Explain the 4 Ps and 4 Cs of Marketing Mix
• Explain what is Viral Marketing
• Explain Extended Marketing Mix
• Explain 7Ps & 7Cs of Marketing Mix
• Describe the Characteristics of Marketing Mix
• Explain Marketing Planning Process
• Explain AIDA
• Explain SWOT Analysis
• Compare Old-School vs. Predictive Marketing Mix Analysis
• Explain Extended Marketing Mix
© ManagementStudyGuide.com. All rights reserved.
Extended Marketing Mix
Extended Marketing Mix
Price
Product
Place
PromotionPeople
Process
Physical Environment
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, for an extended marketing mix, Booms and Bithner included three additional 'Ps' to accommodate trends towards a service or knowledge based economy.
© ManagementStudyGuide.com. All rights reserved.
Booms & Bithner
Booms and Bithner included three additional 'Ps' to accommodate trends towards a service or knowledge based economy. These were:
Let’s look at each in detail.
People
Process
Physical Evidence
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
People
They suggested that all people who directly or indirectly influence the perceived value of the product or service, including knowledge workers, employees, management and consumers should be taken into consideration while designing a marketing mix.
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Process
The ‘process’ includes the procedures, mechanisms and flow of activities which lead to an exchange of value.
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
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. An example may be a cover letter from a bank for collection of dues. Hence, you can see that physical evidence is the material part of a service.
A few other examples of physical evidence are as follows: • Packaging• Internet/web pages• Paperwork (such as invoices, tickets and
despatch notes)• Brochures• Business cards• The infrastructure itself (such as prestigious or
scenic offices)Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Objective
• Explain what is Marketing Mix
• Explain the 4 Ps and 4 Cs of Marketing Mix
• Explain what is Viral Marketing
• Explain Extended Marketing Mix
• Explain 7Ps & 7Cs of Marketing Mix
• Describe the Characteristics of Marketing Mix
• Explain Marketing Planning Process
• Explain AIDA
• Explain SWOT Analysis
• Compare Old-School vs. Predictive Marketing Mix Analysis
• Explain 7Ps & 7Cs of Marketing Mix
© ManagementStudyGuide.com. All rights reserved.
7Ps & 7Cs
1 2 3 4 5 6 7
The 7Ps are Organisation Facing & the 7Cs are Customer Facing.
Let’s look at the 7Ps & 7Cs of Marketing Mix.
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
7Ps & 7Cs
1 2 3 4 5 6 71
PRODUCT
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
7Ps & 7Cs
1 2 3 4 5 6 72Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
7Ps & 7Cs
1 2 3 4 5 6 73Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
7Ps & 7Cs
1 2 3 4 5 6 74Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
7Ps & 7Cs
1 2 3 4 5 6 75Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
7Ps & 7Cs
1 2 3 4 5 6 76Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
7Ps & 7Cs
1 2 3 4 5 6 77Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Fundamental Actions of Marketing Mix
Hence, they are the fundamental actions that marketing requires whether determined explicitly or by default.
It is important to keep in mind that, in a ‘marketing mix’, the 4P elements do not represent options.
They are not trade-offs but are fundamental marketing issues that always need to be addressed.
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
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 TV & radio advertising, print advertising and internet banner ads.
The ATL strategy makes use of current traditional media: television, newspapers, magazines, radio, outdoor, and internet.
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
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 mail and e-mail, often using highly targeted lists of names to maximize response rates.
BTL is a common technique used for touch and feel products.
Those consumer items where the customer will rely on immediate information than previously researched items.
BTL techniques ensures recall of the brand while at the same time highlighting the features of the product.
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
ATL versus BTL
The major difference between Above the line (ATL) and Below the line (BTL) is:
ATL
ATL uses the usual common channels of advertising to promote products, services.
ATL
ATL uses the usual common channels of advertising to promote products, services.
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.
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
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.
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
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.
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Designing the Right Marketing Mix
The right blend of the marketing mix achieves the following:
Achieves marketing objectives
Meets customer needs
Is balanced and consistent
Creates a competitive advantage
Matches corporate resources
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Achieving the Right Marketing Mix
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
The right marketing mix can be achieved by:
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Inter-relationship between Components of Marketing-mix
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Objective
• Explain what is Marketing Mix
• Explain the 4 Ps and 4 Cs of Marketing Mix
• Explain what is Viral Marketing
• Explain Extended Marketing Mix
• Explain 7Ps & 7Cs of Marketing Mix
• Describe the Characteristics of Marketing Mix
• Explain Marketing Planning Process
• Explain AIDA
• Explain SWOT Analysis
• Compare Old-School vs. Predictive Marketing Mix Analysis
• Describe the Characteristics of Marketing Mix
© ManagementStudyGuide.com. All rights reserved.
Characteristics of Marketing Mix
Marketing mix has to be reviewed constantly in order to meet the changing requirements
Changes in external environment necessitate alterations in the mix
Marketing-mix is the crux of marketing process
The following are the characteristics of a marketing mix:
Changes taking place within the firm too necessitate changes in marketing mix
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Marketing Plan
• Marketing plan is the application of marketing resources to achieve marketing objectives.
• The various components that need to be considered for a successful market plan are:o Strengths of organizationo Weakness of organizationo Design for creating valueo Market Needso Wantso Existing competitorso Expected competitors
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Objective
• Explain what is Marketing Mix
• Explain the 4 Ps and 4 Cs of Marketing Mix
• Explain what is Viral Marketing
• Explain Extended Marketing Mix
• Explain 7Ps & 7Cs of Marketing Mix
• Describe the Characteristics of Marketing Mix
• Explain Marketing Planning Process
• Explain AIDA
• Explain SWOT Analysis
• Compare Old-School vs. Predictive Marketing Mix Analysis
• Explain Marketing Planning Process
© ManagementStudyGuide.com. All rights reserved.
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
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Marketing Strategy vs. Marketing Plan
• 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 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.
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Objective
• Explain what is Marketing Mix
• Explain the 4 Ps and 4 Cs of Marketing Mix
• Explain what is Viral Marketing
• Explain Extended Marketing Mix
• Explain 7Ps & 7Cs of Marketing Mix
• Describe the Characteristics of Marketing Mix
• Explain Marketing Planning Process
• Explain AIDA
• Explain SWOT Analysis
• Compare Old-School vs. Predictive Marketing Mix Analysis
• Explain AIDA
© ManagementStudyGuide.com. All rights reserved.
I D
AIDA
AIDA is an acronym which represents the steps a marketer takes in order to persuade customers to buy a product or service.
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
AIDA
Attention: • Marketing must first attract the customers’ attention to the
product. • Customers become aware of a product and know it is available.
Interest: • Then, marketing must create an interest in the product. • Customers will develop an interest in the product.
Desire: • Next, marketing must develop a desire to own or have the
product so that customers actively want the product.
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.
A
D
I
A
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Objective
• Explain what is Marketing Mix
• Explain the 4 Ps and 4 Cs of Marketing Mix
• Explain what is Viral Marketing
• Explain Extended Marketing Mix
• Explain 7Ps & 7Cs of Marketing Mix
• Describe the Characteristics of Marketing Mix
• Explain Marketing Planning Process
• Explain AIDA
• Explain SWOT Analysis
• Compare Old-School vs. Predictive Marketing Mix Analysis
• Explain SWOT Analysis
© ManagementStudyGuide.com. All rights reserved.
SWOT Analysis
SWOTAnalysis
Opportunity
Threats
Strengths
Weakness
It is critical to carry out a SWOT Analysis before entering the marketplace.
Acronym for SWOT: Strengths, Weaknesses, Opportunities, Threats.
Hence, a SWOT analysis helps to identify the strengths and weaknesses of a product, service or company, and the opportunities and threats facing it.
Strengths and weaknesses refer to the product itself and are considered as internal factors.
The external factors, referring to the marketplace, are opportunities and threats.
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Objective
• Explain what is Marketing Mix
• Explain the 4 Ps and 4 Cs of Marketing Mix
• Explain what is Viral Marketing
• Explain Extended Marketing Mix
• Explain 7Ps & 7Cs of Marketing Mix
• Describe the Characteristics of Marketing Mix
• Explain Marketing Planning Process
• Explain AIDA
• Explain SWOT Analysis
• Compare Old-School vs. Predictive Marketing Mix Analysis• Compare Old-School vs. Predictive Marketing Mix Analysis
© ManagementStudyGuide.com. All rights reserved.
Old-School vs. Predictive Marketing Mix Analysis
Old-School Marketing Mix Analysis
Decision Making
• Secondary data from vendor
• Sales reports
Technique
• Spreadsheets
Frequency / User
• Biannual MM analysis by marketing managers
• Ad hoc
• Static
Predictive Marketing Mix Analysis
Techniques
• Econometrics
• Forecasting
• Predictive modelling
• Simulation
• Statistics
• Text analysis
Frequency / User
• On-demand reports by multiple analysts supporting marketing and finance
Decision Making
• Predictive
• Proactive
• For C-level execution
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Case Study
Global Trading Pvt. Ltd. has been in the business of importing glassware from Italy and selling in the U.S. Now, Global Trading wants to venture into importing and selling of medical equipments in Asian countries.
Global Trading Pvt. Ltd. has been in the business of importing glassware from Italy and selling in the U.S. Now, Global Trading wants to venture into importing and selling of medical equipments in Asian countries.
1. What is the kind of analysis that the marketing department at Global Trading needs to do?
2. What are the factors that need to be considered for a good marketing mix?
1. What is the kind of analysis that the marketing department at Global Trading needs to do?
2. What are the factors that need to be considered for a good marketing mix?
Visit https://grandemareopenseatoknowledge.wordpress.com/
© ManagementStudyGuide.com. All rights reserved.
Summary
In this module you learnt that:
‘Marketing Mix’ refers to the primary elements that must be taken care of in order to properly market a product or service.
Below the line (BTL) is an advertising technique that uses less conventional methods than the ATL. ATL uses the usual common channels of advertising to promote products, services.
Marketing mix is the combination four elements: Product, Place, Price and Promotion. Hence, it is a term that describes the key elements used by an organization to help meet its marketing objectives.
The additional four Ps to the original 4 Ps are, people, physical presence, process and physical evidence.
Now-a-days, the Four Ps is being replaced by the Four Cs model, consisting of consumer, cost, convenience, and communication.
Visit https://grandemareopenseatoknowledge.wordpress.com/
top related