MARKETING MIX

Marketing Mix
 Marketing Mix is a combination of marketing
tools that a company uses to satisfy their target
customers and achieving organizational goals.
McCarthy classified all these marketing tools
under four broad categories:
>> Product , >> Price ,
>> Place , >> Promotion
 These four elements are the basic components
of a marketing plan and are collectively called 4
P’s of marketing.
Marketing Mix and 4P
 Product
 Product: Product refers to the goods and
services offered by the organization. A pair of
shoes, a plate of rice, a lipstick, all are products.
All these are purchased because they satisfy
one or more of our needs. We are paying not for
the tangible product but for the benef it it will
provide. So, in simple words, product can be
described as a bundle of benef it s which a
marketer offers to the consumer for a price.
While buying a pair of shoes, we are actually
buying comfort for our feet, while buying a
lipstick we are actually paying for beauty
because lipstick is likely to make us look good.
 Product
 The range of products offered by an
organization is called the product mix.
 Motor car manufacturer- cheap, basic family
runabouts, medium prices family saloons,
estate cars, executive saloons, and sports cars.
Within most of these product lines, various
refinement can be offered e.g. two door and four
door function of the family saloons, variations in
the engine size and of course a range of colors.
 Product
 The range of products offered by an
organization is called the product mix.
 Motor car manufacturer- cheap, basic family
runabouts, medium prices family saloons,
estate cars, executive saloons, and sports cars.
Within most of these product lines, various
refinement can be offered e.g. two door and four
door function of the family saloons, variations in
the engine size and of course a range of colors.
 Product
 It is important to note that people generally want
to acquire the benef its of the product, rather
than its features. For example for buying a
motor car a person is buying such thing as
luxury or speed or economy or status. The facts
that these benef its are achieved by differences
in engine size suspension design or paintwork is
really of secondary interest. All the
organizations are selling benef its of the product
to their customers.
 Product life cycle
 PLC: Various studies have shown that as the
time goes product passes though a series of
stages. The product life cycle is the combination
o f these stages fo rm the time they are
introduced until the time they are withdrawn.
Product life cycle
 Product life cycle
 From the PLC it is possible to plan the product mix ,
plan the development and introduction of new
products , plan the development and introduction of
new products, plan to withdrawal or obsolete or
unprofitable products and set the revenue targets for
each product within the total range
 Price
Price: Price is the amount charged for a product or
service. It is the second most important element in the
marketing mix. Fixing the price of the product is a
tricky job. The factors have to kept in mind while
pricing a product are:
 like demand for a product,

 cost involved,

 consumer’s ability to pay,

 prices charged by competitors for similar products,

government restrictions etc.
 Price
 The activities of competitors have an important
bearing on pricing decision.
 The most obvious example is when a competitor’s
raises or lowers his prices. If your product can offer
no particular advantages over his, then if he drops
his price, you will have to follow suit.
 Promotion
If the product is manufactured keeping the consumer
needs in mind, is rightly priced and made available at
outlets convenient to them but the consumer is not
made aware about its price, features, availability etc.,
its marketing effort may not be successful.
Promotion is done through means of personal selling,
advertising, publicity and sales promotion. It is done
m ai nl y w i t h a v i e w to p rov i d e i nf o rm at i o n to
prospec tive c onsum ers about the availability,
characteristics and uses of a product.
 Promotion- Advertising

Ad v er ti si ng : Ad v er ti si ng i s the p roc ess of

communication, persuasive information about the
product to target market by means of the written and
spoken word, and by visual material. There are f iv e
principal media of advertising as follows:
 The press- newspaper, magazines, journals etc.

 Commercial Television

 Direct mail

 Commercial radio

 Outdoor- hoardings, transport advertisements etc.

 Promotion- Advertising
The aim of the adverting is given below:
 Increase customer familiarity with a product
 Inform customers about specific features of a product
 Inform the customers about the key benefits of a
product
 Establish the creditability of a product
 Encourage potential customers to buy the product
 Maintain loyalty of existing customers
 Promotion- Advertising
Advertising effectiveness: There are two main ways of
looking at the question of advertising effectiveness-
the first is to consider the results of the advertising in
achieving target improvements in specific tasks e.g.
increasing brand awareness in a specific market; the
second is to consider the impact of advertising on
sales generally. It is extremely difficult to assess the
impact of advertising on sales as a whole, because so
many other factors, internal and external, are at work
in the marketing process of an organization
 Promotion- Personal Selling
 Personal Selling: Personal selling is the promotion
activity consists of face to face meeting between
the buyer and seller or his repetitive. Advertising
creates the interest and the desire, but personal
selling clinches the deal. Personal selling is the
most expensive from of promotion.
 Companies which utilize an aggressive sales policy,
based on personal selling, are said to be adopting a
push strategy. By comparison f irms which rely more
heavily on advertising are described as adopting a
pull strategy
 Promotion- Personal Selling
Sales representative’s tasks:
 After sales servicing (dealing with technical quires,
deliveries matters etc.)
 Gathering information (feedback on customers
reactions, competitors activities etc.
 Communicating regular information to customers
and prospective buyers.
 Prospecting (Looking out new selling opportunities)
 Promotion- Personal Selling
The effectiveness of sales
representatives can be measured in
a number of different ways. Typical
evaluation criteria include:
 Net sales achieved (per product,
per customer etc.)
 Call rate(no. of calls given in a
period)
 Values of sales per call
 No. of new sales/new customers
 Sales expense in proportion to
sales achieved
 Promotion- Sales promotion
Sales promotion: Sales promotion activities are a form of indirect
advertising designed to stimulate sales mainly by the use of incentives.
Sales promotion activities are organized and funded by the organization’s
own resources. They can take a no. o different forms, as, for example:
Customer oriented:
 Free samples
 Twin pack bargains
 Temporary price reductions
 Point of sale demonstrations
Trade oriented:
 Special discounts
 Co-operating advertising
 Bonuses/ prizes for sales representatives
 Provision of display material
 Place
Place: Goods are produced to be sold to the consumers. They
must be made available to the consumers at a place where
they can conveniently make purchase. Foods and snacks are
manufactured on a large scale in Bangladesh and you purchase
them at a store from the nearby market in your town. So, it is
necessary that the product is available at shops in your town.
This involves a chain of individuals and institutions like
distributors, wholesalers and retailers who constitute f irm’s
distribution network (also called a channel of distribution).
The channel though which the products are distributed to the
final customer are known as channel of distribution
 Place-Channel of distribution
Most common channels of distribution are given below:

C h a n n e l A r e pr e s e n t s a d i r e c t m a r k e t i n g c h a n n e l .
Manufacturers of goods such as m/c tools, computers, ships
and other large expensive items tend to move them direct to
the buyer without involving middleman or inter middleman.
e.g.: ship/plane
 Place-Channel of distribution
Most common channels of distribution are given below:

Channel B represents the typical chain for mass marketed

consumer goods. Manufacturers selling a wide range of
prod uc ts over a wid e geographic al area to a market.
Middlemen are important links in this channel. Wholesalers,
for example buy on bulk from the manufacturers, store the
good s, break them d own into smaller quantities, and
undertake advertising and promotional activities. The role of
the retailer is to make products available at the point of sale.
Individual customers need accessibility and convenience
from their local sources of consumable products. They also
need to see what is available, and what alternatives are
 Place-Channel of distribution
 Channel C represents one of the shorter indirect
channels, where the retailers are omitted. This
kind of operation can be found in mail order
b u s i n es s , a n d i n c a s h a n d c a r r y o u tl ets .
Wholesaler buy from manufacturers, store and
subsequently distribute direct to customers on a
nation-wide basis. e.g.: steel, cement, imported
items.
 Channel D is another version of a shorter, indirect
channel. In this case, it is the wholesaler who is
removed from the scene. Not, surprisingly, the
retailers who dominate this channel are powerful
chains or multiples in their own right. e.g: Tiles
 Market Segmentation

 Marke ts are m ad e up o f d i f f e re nt typ e s o f

customers i.e. within each total market; there exist
sub-markets which express distinctive product
preferences compared with each other. Market
segmentation can be defined as the sub-division of
a market into identif ia ble buyers-groups, or sub
markets, with the aim of reaching such group with a
particular marketing mix.
 The most frequent methods of segmenting market
are based on geographical, demographic and buyer
-behavior variables
Market Segmentation
 Marketing Research

Marketing research is fundamentally about the

segmentation and analysis of information required
for the marking of marketing decisions. The two
basic areas in which the information is sought are
 (a) markets (existing and potential), and

 (b) marketing tactics and methods.

The former is oriented towards what is happening

outside the organization, in the market place. The
second is oriented towards the way in which the
organization is responding internally to the customers,
present and future
 Marketing Research

A marketing research study usually includes the

following steps:
 Definition of problem and specification of
information to be sought
 Design of the study with particular reference to
data collection methods (surveys),
instrumentation (questionnaires), and simple
design.
 Field work (utilizing questionnaires, structured
interviews, consumer panels)
 Data analysis (using statistical and O.R.
techniques)
 Marketing Research

 Some of the more important advantages and

disadvantages of three approaches described are
as follows:
 Intellectual property (IP)-Patent

Intellectual property (IP) refers to creations of the

mind, such as inventions; literary and artistic works;
designs; and symbols, names and images used in
commerce. IP is protected in law by, for example,
patents, copyright and trademarks, which enable
people to earn recognition or financial benefit from
what they invent or create.
A Patent is a right granted to the owner of the
patent to stop others from making, using or selling
the invention that is the subject of the patent. The
right is granted by the Government by way of The
Patents Act.
 Consumer Protection

There are several means by which consumer

interest may be protected. These involve the
application of one or more:
 The common law

 Acts of Parliament

 Codes of Good practice

 Trademarks

 Independent consumer groups

Thank you all