The marketing mix

The marketing mix is a set of controllable marketing tools that an institution uses to
produce the response it wants from its various target markets. It consists of everything
that the university can do to influence the demand for the services that it offers.
Tangible products have traditionally used a 4Ps model, the services sector on the other
hand uses a 7P approach in order to satisfy the needs of the service providers
customers: product, price, place, promotion, people, physical facilities and processes.

The product is what is being sold. It is more than a simple set of tangible features, it
is a complex bundle of benefits that satisfy customer needs. choice.
The price element of the services marketing mix is dominated by what is being
Charged
Place is the distribution method that the university adopts to provide the tuition to
its market in a manner that meets, if not exceeds, student expectations
Promotion encompasses all the tools that universities can use to provide the market
with information on its offerings: advertising, publicity, public relations and sales
promotional efforts.

The intangible nature of services resulted in the addition of a further element
people. The people element of the marketing mix includes all the staff of the university
that interact with prospective students and indeed once they are enrolled as students of
the university. These could be both academic, administrative and support staff.
in their range of options than an eminent Professors publications or research record.

Physical evidence and processes are the newest additions to the services mix.
Physical evidence is the tangible component of the service offering. A variety of
tangible aspects are evaluated by a universitys target markets, ranging from the
teaching materials to the appearance of the buildings and lecture facilities at the
university.

While processes are all the administrative and bureaucratic functions of the
university: from the handling of enquiries to registration, from course evaluation to
examinations, from result dissemination to graduation, to name but a few. Unlike
tangible products that a customer purchases, takes ownership of and then takes home
to consume, a university education requires payment prior to consumption, an
ownership exchange does not take place and a long and closer face-to-face the
relationship often results. Students attend classes for at least a year (on post-graduate
programmes) and much longer for undergraduate degrees. During the period that the
student is registered, processes need to be set in motion to ensure that the student
registers for the correct courses, has marks or grades correctly calculated and entered
against the students name and is ultimately awarded the correct qualification. While
this might seem quite straight forward, there are numerous other processes that need
to be implemented concurrently (with the finance system, accommodation, time tabling
and the library) to ensure the highest level of student satisfaction.
The 7P business school marketing mix
The names for the seven factors were intuitively developed, based on the
appropriateness of the label in representing the variables that were included in the
factor. Given that variables with the highest loadings in that factor are considered
more important, these had the greatest influence in the selection of the factor name. For
example, in this factor solution, the promotion factor was named this on the basis of
variables measuring advertising, publicity and electronic media communications being
included in the factor. While the price label came from the arrangements
A new higher education
marketing mix: the 7Ps for MBA
marketing
Jonathan Ivy
Birmingham City University, Birmingham, UK
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for people
Behavioural economics and consumer behaviour in financial services
Loss aversion, prospect theory, the disposition effect and the endowment effect
Explanation. People have been shown to be loss averse, generally appearing to dislike
losing something roughly twice as much as they like gaining it (Kahneman et al., 1991;
Thaler and Sunstein, 2008). Such a phenomenon has been shown in a number of
experimental studies in a broad range of contexts (Tversky and Kahneman, 1991;
Benartzi and Thaler, 1995; Camerer et al., 1997). Loss aversion can be explained by
prospect theory (Kahneman and Tversky, 1979), which states that an individuals value
function (whether for money or otherwise) is concave for gains but convex for losses. In
other words, people are more sensitive to losses compared to gains of similar magnitude.
This is illustrated in Figure 1. The reference point in the diagram is the current position
of the individual concerned. Gains and losses are evaluated with reference to this neutral
reference point. The value function takes an asymmetric S-shape because marginal value
(or sensitivity) declines as absolute gains and losses increase in size.
Loss aversion and prospect theory are also related to the disposition effect, which
refers to the tendency of investors to continue holding assets that have dropped in
value and to sell assets that have increased in value (Kahneman et al., 1990). Also
closely related is the endowment effect, which is the tendency of individuals to place a
higher price or value on an object if they own it than if they do not. Put simply,
according to standard economic theory, what we are willing to pay for a good should
be equal to what we are willing to accept to be deprived of it. However, experimental
studies have shown that we generally demand more money to part with something
once we own it than we would be willing to pay for it in the first place (Knetsch, 1989;
Kahneman et al., 1990).

Behavioural economics and
financial services marketing:
a review
Swee-Hoon Chuah and James Devlin
Nottingham University Business School, Nottingham, UK
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pentru evidenta fizica

technological change and the transformation of labour in the US insurance industry

Evoluia pieei de asigurri din SUA este legat de dezvoltarea i aplicarea
tehnologiilor create pentru a mbunti nregistrarea, procesarea, obinerea i
analiza datelor. Abilitatea de a capitaliza costurile cu fora de munc a reprezentat
un avantaj pentru firmele de asigurri de pe piaa american. De aceea, este
important s analizm impactul pe termen lung al birourilor tehnologizate i a
serviciilor de calcul i contabilitate computerizate. Achiziia i uzul tehnologiei
computerizate de ctre industria de asigurri a a avut origini att interne, ct i
externe. Firmele de asigurri nu numai c au achiziionat tehnologie de calcul
sofisticat, dar au i nvat cum s foloseasc i s modifice aceast tehnologie
pentru a-i dezvolta un avantaj competitiv pe pia. De asemenea, automatizarea
sarcinilor de rutin din industria asigurrilor a dus la costuri mai mici cu fora de
munc. Mainile care i fceau treaba repede i sigur au nlocuit funcionarii leni
i fr experien pentru a aduce beneficii n ceea ce privete costurile firmei.
Acest lucru a dus la *omajul tehnologic*, aa cum l-a numit Keynes, lipsa de
locuri de munc pentru oameni datorit mecanizrii activitii pe care unii o
ntreprindeau. Keynes era un cunosctor al domeniului cu multe studii la activ,
acest lucru i datorit statului su de preedinte i manager de investiii al unei
mari firme de asigurri din Marea Britanie.

Cambridge Journal of Economics 2001, nr. 25, pag. 517-537
Classical labour-displacing technological change : the case of the US insurance
industry Jason Hecht

Pentru produs



It appears to be the case that
foreign providers have failed to appreciate that the interest of many Chinese
consumers
in insurance or financial products is closely linked to investment and financial
management. This may partly account for the low market share (Ji and Thomas,
2001).

Analyzing efficiency in the
Chinese life insurance industry
Xiaoling Hu
Business School, University of Gloucestershire, Cheltenham, UK
Cuizhen Zhang
Department of International Economics, Chinese Foreign Affairs University,
Beijing, Peoples Republic of China
Jin-Li Hu
Institute of Business and Management, National Chiao Tung University,
Taipei City, Taiwan, and
Nong Zhu
Institut National de la Recherche Scientifique,
Montreal, Canada
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pentru promovare

Reputaiile puternice ale corporaiilor rezult n mod clar dintr-un amestec al performanelor
actuale ale companiei pe pia i eforturile acestora de a dezvolta percepii pozitive n
legtur cu comportamentul lor ca afacere, atitudinea lor i valorile pe care le susin din
partea publicului-int. Este cunoscut faptul c o reputaie solid nu numai c reflect
calitatea, sigurana, aspectul, preul i distribuia produsului sau serviciului oferit, dar,
totodat, determin prile interesate s aib impresii de marketeri, impresii asupra pieei
i companiei care sunt caracterizate de competen i autoritate(Rhoads and Cialdini,
2002) i le produc acestora implicare n fenomen i n problemele ce in de
aspecte financiare, de mediu sau de comunitate. (Saiia and Cyphert, 2003).

Chiar dac exist o documentaie stufoas asupra a cum oamenii de marketing
promoveaz un produs, atributele acestuia i beneficiile pe care le aduce,
precum i sentimentul de bucurie ce va rezulta din cumprarea sau consumul
bunului sau serviciului promovat (Rossiter and Percy, 2001), exist prea puine
dovezi de cum companiile i ntreprinderile reflecteaz asupra a ce este
promovat i cum manageriaz aceste lucruri i identitatea corporaiei pentru a
construi sau a menine o reputaie puternic pe pia. (Pruzan, 2001).

This may be because, as Dowling (2001, p. 123) reminds us, stakeholders, and
especially customers, are more interested in what companies do for them than in
what they say about themselves. Nevertheless, the creation of trust in a
company, its expertise, solidity and good intentions is of particular importance if
the company specialises in intangible products or services that have become
almost synonymous with the company name. This is most obviously the case
with financial products and services offered by banks, insurance companies,
investment firms and a variety of consultancies from which purchases are
typically infrequent and long-term and often without immediate pay-offs or
gratification for the customer. Financial products and services are easily
perceived as generic and undifferentiated, and we would expect little inclination
among advert readers to try to process more than a minimum of technical
information in order to better understand and appreciate their complexity. On the
other hand, customers in this market are buying a high-involvement product
associated with financial risk and will be seeking some reassurance that the
service and its source are dependable.
Therefore, we assume that members of the industry will want to rely
considerably
more on corporate image advertising (whose main objective is to positively
describe
the advertiser) than on product advertising describing features of the financial
service
or the positive emotions that the customer will experience from purchasing or
consuming the service. In the current research, we have closely examined the
advertising of a number of international financial companies to determine what
they in
fact say about themselves to appear dependable, trustworthy and compassionate.

Building credibility
in international banking
and financial markets
A study of how corporate reputations are
managed through image advertising
Poul Erik Flyvholm Jrgensen
Aarhus School of Business, University of Aarhus, Aarhus, Denmark, and
Maria Isaksson
Norwegian School of Management BI, Oslo, Norway
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