Module 4a

Module 4a
Traditional 4 Ps of Marketing
Mix
Marketing Program and
Marketing Mix
• The marketer’s task is to build a marketing
program or plan to achieve the company’s desired
objectives.
• The marketing program consists of numerous
decisions on the mix of marketing tools to use.
• The marketing mix is the set of marketing tools
the firm uses to pursue its marketing objectives in
the target market.
The Four P Components of the Marketing Mix
McCarthy classified these tools into four broad groups that he called the 4 Ps of
marketing: Product, Price, Place, and Promotion.
Figure 1-7: Marketing-Mix Strategy
(… Cond.)
Marketing Program and Marketing Mix
• The Four Ps represents the sellers’ view of the

marketing tools available for influencing buyers.
• From a buyers’ point of view, each marketing tools is
designed to deliver a customer benefit.
• Robert Lauterborn suggested that the sellers’ four Ps
corresponding to the customers’ four Cs.
Four Ps Four Cs
• Product Customer Solution
• Price Customer Cost
• Place Convenience
• Promotion Communication
Service Product/ Package
• A service is a bundle of features and benefits and secondly, these

benefits and features have relevance for a specific target market.
• Therefore, while developing a service product it is important that
the package of benefits in the service offer must have a
customer's perspective.
Five Product Levels
Five Product Levels
1. CORE BENEFIT The fundamental benefit or
service that the customer is buying (hotel:
rest/sleep)
2. BASIC PRODUCT Basic, functional attributes
(room; bed; bath. . .)
3. EXPECTED PRODUCT Set of
attributes/conditions the buyer normally expects
(clean room, large towel, quietness)
4. AUGMENTED PRODUCT That meets the
customers desires beyond expectations (prompt
room services and check-in out, music, aroma)
5. POTENTIAL PRODUCT The possible evolution
to distinguish the offer (all-suite hotel)
Augmented Service Offering
1 Accessibility of Services
2 Interactive communication between employees and

customers
3 Customer participation and sharing of information

Developing New Service Offering
❑What benefits consumers seek
❑What benefits should the organization offer
❑Service Offer in forms of features, quality, volume etc.
❑Service Delivery System
❑Managing the Image and Communication
Pricing Guidelines
•Demand fluctuations should be successfully
handled
•Service prices should be based on costs so
as to take into account the tangible clues
•Service pricing should-be such as to provide
value addition and quality indication
•Pricing strategy should cope-up with the
degree of competition
Pricing Objectives
• Price affects customers’ perceptual positioning

• Stage of PLC
• Competition from inter brand and from point of view of the
brand which provides same need satisfaction
• Strategic role that pricing can play in overall marketing
strategy
Because of Intangibility and
Inseparability….
most services are distributed through direct

sales – maybe one agent or middleman can be
added e.g. courier service, travel agents etc.
In case of certain services, actual product is
not transferable and therefore tangible
representations are created and transferred.
This type of channel is used for marketing
insurance services where a contract document
exists as a physical and tangible
representation of the service.
Considerations in Design of Service
Delivery
• Nature of contact between customers and service provider
• Steps in service delivery ( evaluate all alternatives e.g. paying before
or after delivery )
• Where and when to deliver?
• Imagery, atmosphere and experience to be created
• Protocol for serving customers
Type of Contact
Customers come to provider
Providers come to customers
Locations
Ministores
Multipurpose facilities
Timing is also important – some services may have to operate 24

hours a day, 365 days a year. So Call Centers have become very
important.
Cyberspace
Selling goods and services through the Internet is
a major growth trend. Smart Phones, Laptop
computers and the Internet are changing the way
people shop. From perusing catalogs and shopping
by mail or telephone, many people are moving to
shop in cyberspace for a wide array of both goods
and services.
Innovations that helped –
• Smartphone's with internet facility
• Creation of websites
• Creation of Mobile Apps
• Commercialization of Smart cards
Promotion Objectives
1. Develop personal relations with client
(personal relations might result in satisfaction,
more than their service offer).
2. Make a strong impression of competency,
honesty and sincerity (professional orientation
to service transaction so as to win buyer's
confidence in seller's abilities to deliver the
service).
3 . Should be able to use indirect selling
techniques (creating derived
demand or act as a buying consultant).
4 . Manage to maintain a fine image by
positive word of mouth.
5. Packaging and customization
Important factors in Promotion
• Target Audience should be clear
• Planning the Promotion Mix – (personal selling--customer service--
sales promotion—advertising--PR)
• Word of mouth should be capitalized
• Price/ Quantity promotion can help in generating long-term
commitment from consumers
• Prize promotions can be used effectively
Overall Communication Strategy
• One should attempt to reflect a consistent and attractive personality
in all manifestation of the organization that reach the public.
• Also one should aim for a recognizable human personality to
compensate for intangible/diverse 'product‘.
• Lastly, stress on specialization rather than on all things for all
people; this would help in creating a unique positioning.

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Module 4a

• The Four Ps represents the sellers’ view of the

• A service is a bundle of features and benefits and secondly, these

2 Interactive communication between employees and

3 Customer participation and sharing of information

• Price affects customers’ perceptual positioning

most services are distributed through direct

Timing is also important – some services may have to operate 24

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