Four Ps

Four Ps

Marketing Mix

Product
Price
Promotion
Place

Marketing Mix
The concept is simple. Think about
another common mix - a cake mix. All
cakes contain eggs, milk, flour, and sugar.
However, you can alter the final cake by
altering the amounts of mix elements
contained in it. So for a sweet cake add
more sugar!

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 the
weight given to price.

Marketing Mix
The marketer mixes the prime colours
(mix elements) in different quantities to
deliver a particular final colour.
Every hand painted picture is original in
some way, as is every marketing mix.

Target Market is the key

Competition

History
The term marketing mix was coined in an article written by Neil
Borden called The Concept of the Marketing Mix.
He started teaching the term after he learned about it from an
associate, James Culliton, who in 1948 described the role of the
marketing manager as a "mixer of ingredients"; one who sometimes
follows recipes prepared by others, sometimes prepares his own
recipe as he goes along, sometimes adapts a recipe from
immediately available ingredients, and at other times invents new
ingredients no one else has tried.

Four Ps: the producer-oriented model

The marketer, E. Jerome McCarthy, proposed a four Ps
classification in 1960, which has since been used by
marketers throughout the world. 4 Ps classification is
Product
Price
Promotion
Place

Designing the right marketing mix

The most creative & challenging step in
marketing is designing the right marketing
mix
The marketing mix is the specific
collection of actions & associated
instruments employed by an organisation
to stimulate acceptance of its ideas,
products & services

Total Offer to the Customer

First, the firm chooses the product to meet
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

4Ps & 4Cs

Product- Customer /Consumer

Price- Customer cost
Place- Convenience
Promotion- Communication

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 consumeroriented and fits better in the movement
from mass marketing to niche marketing.

Extended- Marketing Mix

Extended Marketing Mix

Booms and Bitner included three
additional 'Ps' to accommodate trends
towards a service or knowledge based
economy:
People
Process
Physical Evidence

Extended Marketing Mix

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

Process
Process procedures, mechanisms and
flow of activities which lead to an
exchange of value.

Physical Evidence
The direct sensory experience of a product or
service that allows a customer to measure
whether he has received value.
Examples might include the way a customer is
treated by a staff member, or the length of time a
customer has to wait, or a cover letter from an
insurance company, or the environment in which
a product or service is delivered.

Physical Evidence
Physical evidence is the material part of
a service.
Strictly speaking there are no physical
attributes to a service, so a consumer
tends to rely on material cues.

Physical evidence
There are many examples of physical
evidence, including some of the following:
Packaging.
Internet/web pages.
Paperwork (such as invoices, tickets and
despatch notes).
Brochures.

Physical Evidence
Furnishings.
Signage (such as those on aircraft and
vehicles).
Uniforms.
Business cards.
The building itself (such as prestigious
offices or scenic headquarters).

7Ps & 7Cs

The 7 Ps

The 7 Cs

Organisation Facing

Customer Facing

Product =

Customer/ Consumer

Price =

Cost

Place =

Convenience

Promotion =
People =

Communication
Caring

Processes =

Co-ordinated

Physical Evidence =

Confirmation

Product
Product:
A product, service or idea is that which satisfies the needs
& wants of the customers
A tangible object or an intangible service that is mass
produced or manufactured on a large scale with a specific
volume of units.
Intangible products are often service based like the tourism
industry & the hotel industry or codes-based products like
cell phone load and credits.
Typical examples of a mass produced tangible object are
the motor car and the disposable razor. A less obvious but
ever-present mass produced service is a computer
operating system.

Product
Cars

Cars- Reva
Reva

Car- Maruti 800

Maruti

Product

Variety
Quality
Design
Features
Brand Name
Packaging
Service

Product Variety
Even today, manufacturers of products which
are built to customer order, for example, cars,
aeroplanes and medical equipment, offer such a
large range of combinations of product features
that millions of variants of a single product are
possible.
Commercially available software systems
support the automation of many aspects of the
engineering process; product databases enable
the description of single products and
engineering applications can use these product
descriptions to carry out their tasks.

Product Quality
A product or process that is reliable, and that
performs its intended function is said to be a
quality product.
Quality in business, has an interpretation as the
non-inferiority or superiority of something.
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.

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

Brand Name
The brand name is often used interchangeably
within "brand", although it 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

Product

Titan introduces quartz watches

24 Hour banking & ATMs by banks
Tetra pack cartons for milk, juices
7 year warranty on refrigerators- Allwyn

Product & Packaging

FMCG

Product- Durable
Washing machines

Products
Latest Gadgets

New generation products

Ipod, & walkman mobile

Services
Courier Aviation

Services
Despatch

Aviation

Place
Place represents the location where a
product can be purchased.
It is often referred to as the distribution
channel. It can include any physical store
as well as virtual stores on the Internet.

Place
Physical distribution are activities involved
in transporting products from the producer
to the consumer:
Mode of transport
Warehousing & Storage
Inventory control

Place
Channels of distribution are the routes
through which the ownership of goods flow
on its way from the producer to the
customer
Distributor
Super-stockist
Wholesalers
Retailers

Duty Free Stores - Airports

Hypermart-Store Signage's

Large Format Stores

Lifestyle
Westside
Shoppers Stop
Pantaloons
Big Bazaar

Retail brands
Stores

Nokia Store

Place
Global Players in India

Place
Markets

Place
Stores

Modern Grocery Store

Local stores
Local kirana stores

Price
The price is the amount a customer pays
for the product.
It is determined by a number of factors
including market share, competition,
material costs, product identity and the
customer's perceived value of the product.
The business may increase or decrease
the price of product if other stores have
the same product.

Price

List Price
Discounts
Allowances
Payment Period
Credit Terms

List Price
In retail, price 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.

Price Lists

Discounts & Allowances

Discounting is a financial mechanism in
which a debtor obtains the right to delay
payments 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.

Payment Period & Credit Terms

The stipulation by a business as to when it
should be paid for goods or services
supplied, for example, cash with order,
payment on delivery, or within a particular
number of days of the invoice date

Price
Bills

Price
Price is the amount a consumer pays in
exchange for the product or service.
Marketers must consider the following in
setting prices:

Price
Target segment- How much the target
segment is willing to pay at different price
levels- price elasticity of demand
Cost- How much it costs the firm to
produce & market the product
Competition- Prices of competitors
Society & Law- Within legal framework

Price
Marketers have to determine prices to
consumers & channel partners
Prices across models & geographic
regions have to be established
Policies on discounts have to be framed
These decisions are vital to enhance sales
volumes

Innovative Discounts

Discount sales in shopping malls

Off season sales
Closing down sales
Festival sales
Credit points
Exchange offers mobiles, cookers, cars

Festive Sales
Christmas & Diwali Sales

Innovative discounts
Discounts

End of season sale

Special Sales
Sales

Gold Sale- Impact

Festive season revives gold demand,
premiums steady

Discount Rush

Promotion
Promotion activities are meant to
communicate & persuade the target
market to buy the companys products
This is done by:-

Promotion

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

Promotion
Promotion represents all of the communications
that 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 when
promotion uses the five principal elements
together
Advertising covers any communication that is
paid for, from and cinema commercials, radio
and Internet adverts through print media and
billboards.

ATL & BTL

Above the line (ATL) is an advertising technique using
mass 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, and
internet.
It differs from BTL (Below the line), that believes in
unconventional brand-building strategies, such as direct
mail.

BTL- Below the line

The terms "below the line" promotion or
communications, refers to forms of nonmedia communication, even non-media
advertising.
Below the line promotions are becoming
increasingly important within the
communications mix of many companies,
not only those involved in FMCG products,
but also for industrial products.

ATL & BTL

Whats the difference between Above the line and
below the line advertising?
Below the line (BTL) is an advertising technique.
It uses less conventional methods than the usual specific
channels of advertising to promote products, services,
etc. than ATL (Above the line) strategy.
These may include activities such as direct mail, public
relations and sales promotion for which a fee is agreed
upon and charged up front.

Below the Line

Below the line advertising typically focuses on direct
means of communication, most commonly direct mail
and e-mail, often using highly targeted lists of names to
maximize 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 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.

Integrated Communication
Approach
Definition: 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.

Through the line-TTL

Through the line" refers to an advertising strategy
involving both above and below the line communications
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
into 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" promotional
material such as store banners, competition entry forms,
etc

Personal selling
Personal Selling: Face to face personal
communication- Eureka Forbes
In person selling, tele-marketing
Advertising- Mass communication efforts
through media
Sales Promotion- Communication through
contests, OOH, trade shows, free samples,
yellow pages, call helplines

Personal Selling
Personal Selling

Discount coupons
Discount coupons

Promotion-2
Publicity- Communicating with an
audience by personal or non-personal
media that are not paid for delivering the
message
Print media news, broadcast media news

TV Channels

TV Channels

More than just news

Entertaining information to add spice

Print Media
Print- Newspapers & Magazines

Newspapers

Print Media
Newspapers & Magazines

Newspapers you could read

Economic Times
Business Standard
Mint
Hindu Businessline
Business News in
daily newspapers

The Hindu

Radio
Growing radio stations in India

Radio Stations
Numerous- FM

Radio channels
Meow targets at women