Module 4 Marketing Mix

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Marketing Mix
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In order to make the goals and objectives success,

the formulation of the marketing mix is critical.
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What is Marketing Mix?

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Marketing Mix
This is a set of controllable and interrelated variables

composed of product, place, price, and promotions that
the company assesmbles to satisfy a target group better
that the competition.
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Marketing Mix
For service, 3 additional

marketinmix elements are
needed-- people, process, and
physical environment.
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Marketing Mix Strategy
Marketing mix strategy is choosing and implementing the best

possible course of action to attain the organization's long-term
objectives and gain customers bonding and competitive advantage
profitability.
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Marketing Mix Strategy
A company may succeed in year one but may not necessarily

succeed in year two due to changes in the competitive situation or
market dynamic.
Therefore, each of the 4Ps must be relevant, up-to-date, and

coherent. No single element of the marketing mix must be decided
on independently of the other elements.
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For instance,
Shakey's primary target is family. In

the late 70's up to the early 80's,
another segment composed of beer
drinkers who would patronize the
pizza parlor late in the evening was
steadily growing.
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• Music and bands were thus added to cater to the needs of this
emerging segment .
• The image of the new segment however, dominated and alienated

the original family market, which values a wholesome place to eat
without the noise and smoke created by beer drinkers.
• Shakey's then decided to refocus its attention back to its original

target market by renovating their stores to attain a brighter and more
wholesome look as expected by families who are their target
customers.
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Functions of Marketing
Mix
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1. Product
Marketing Function:
• To satisfy the needs and wants of the

target market.
Example:
Marty's vegetable chicharon targets the

unsatisfied needs of consumers who are
avoiding unhealthy snacks.
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2. Placement (or Distribution)

Marketing Function:
• To make the product conveniently available to the target consistent with

their purchasing patterns.
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2. Placement (or Distribution)
Examples
• St. Lukes Hospital branched out from a
single hospital at the Bonifacio Global
City in Taguig after its inauguration on
January 2010, doubling its bed
capacity to over 1, 200. Similarly,
Chong Hua, Hospital in Cebu branched
out to Mandaue to be nearer their
customer base
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3. Promotions
Marketing Function
• To build and improve consumer demand. Promotions has 4 components

called Promotion Mix, as follows:
a. Advertising
b. Public Relations
c. Selling
d. Sales Promotions
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3. Promotions
a. Advertising
• To effectively inform and persuade the
target market
Example:
Nesfruta improved penetration and
repeat purchase rate when they launched
two new flavors, melon, and guyabano,
supported with the TV advertising.
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3. Promotions
b. Public Relations
• To offer a positive image of the company
and the brand , as well as promote an
advocacy.
Example:
Ariel detergent launched Share The
Load campaign encouraging fathers to
share the household workload in order to
teach their sons the same, instead of
leaving all household works to women.
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3. Promotions
c. Selling
• To get the customers to buy
Example:
Yakult has over 2,500 street level

vendors promoting and delivering their
products to households.
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3. Promotions
d. Sales Promotions
To convince customers to buy
immediately.
Example:
Minute Burger pioneered the “buy 1-take

1 promo” of their hamburgers
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4. Price
To make the product affordable to the

target market and reflect the value of
benefits provided.
Example:
David's Salon has different pricing levels

for haircut depending on the seniority.
(suggesting skill and quality of service) of
the hairstylist chosen by the customers.
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• Product and Placement are considered as the strategic Ps of

the marketing mix since they cannot be changed overnight.
• Promotions and Price are considered as the tactical Ps of the

marketing mix because these can be changed more easily.
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• Marketers of consumer packaged goods such as food and personal care

products sold in supermarkets would often add “Mechandising” as another
component of the promotions mix.
• Merchandising aims yo extend advertising messages at the Point of

Purchase (POP) by generating superior presence within the store.
• Examples of merchandising materials used for this purpose are store signs,
posters, price tags, shell takers, and island displays.
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• For service industries, 3 additonal Ps are added to further address the

higher degree of personal contact required by their target market. These 3Ps
provide both the tangible and intangible evidences that must all be
managed to deliver the intended performance or experience offerings.
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Functions of Marketing
Mix
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Additional Marketing Mix of Service Industries

1. Physical Environment
• Place where service is perfomed; includes all touch points leading to the
place (also tangibles) such as parking, fire exits, even neighbor's
frontage or intangibles like smell, ambiance or status).
Example:
The spa has a unique lavender scent upon entering.
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2. Process
• Procedures, flow of activities, and other
mechanisms that deliver the intended
experience.
Example:
Pizza Hut has an ongoing 'Hate-Late”
campaign that assures customers prompt
delivery or pizza is free.
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2. People
• Service staff at Italianni's are trained to

make their customers feel like guests in
their own homes so they recruit people
who naturally exude warmth,extra
attentiveness and courtesy at all times.
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2. People
• Members of the team who contribute to the delivery of the service

and its brand promise whether at the front line or in the back
office,on-site or off-site; also includes other fellow customers if
onsite.
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To the marketers, the interacting 4Ps (and 3Ps of service) influence the
buying decision-making process of the customers at a level that
maximizes profit.
Other factors that must be considered are the Ps of competitibeve

brands, asw ell as customers' background, and customer's previous
experience with the product or similar products
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Factors Influencing Customers' Purchase Decision-Making
Customer' s
Company's 4Ps Competitor's 4Ps Background/ Experience
Target Market Purchase of No Puchase

Decision-Making
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This means that unless a firm wants to challenge conventional wisdom

and innovate, the overall marketing mix of the firm must show
superiority over competition if the company intends to gain market
shares, although all components of the marketing mix need not be
superior to the competiton
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Summary Steps to maintain Marketing Goals
Marketing Function
1. Awareness
Means make target market know you
Key Components:
Inform, persuade, and remind target customer
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Marketing Function
2. Availability
Market products available according to the purchase pattern of target
customers
Key Components:
Coverage, placement, display, inventories, resale prices and goodwill with
customers
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Marketing Function
3. Trial
Promote low risk initial experience to form positive impression.
Key Components:
Sampling introductory price, money back guarantee
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Marketing Function
4. Repeat Purchase
Be the preferred brandd and form an ongoing relevant relationships by
continuously satisfying needs and wants of target customers.
Key Components:
Product and service quality
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How Marketing Keeps Changing?

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Marketing is dynamic and keeps changing

fast.
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1. For example, traditional TV advertisement is no longer effective

for certain segments of the market (the segment that seldom watches
TV).
Hence, we now seee the rise of YouTube and Netflix, with

smartphones as a second screen for the consumers.
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2. Awareness no longer moves from the brand to its consumers.
• With social media, engagement and conversation between brand and

consumers are normal.
• Consumers have become more demanding and have become more

online activists--no longer choosing to write complain letters
directly to the company, but would rather post their reviews and
photos online immediately.
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• However, they have also become

brand advocates, so companies
need to ensure their physical
environment is instagrammable
for friends to see their latest
experience or adventure photos.
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• In fact, in the restaurant market, many

Filipinos have replaces saying grace
before meals while taking photos of their
food and posting them on instragram
before they eat.
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• Filipinos are also quite opinionated online--just look at social media

conversations about entertainment and sporting events, where people are
not shy to express their opinions even to strangers
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3. Consumers now get the information from strangers on Twitter and

Facebook.
• They check updates from their favorite bloggers (known as “inbound

marketers”) to know what's the latesr--a more entertaining and
personalized way to get information than company website.
• Snapchat, Facebook Live, and Instragram Live create urgency for

consumers to receive and process real-time information within a certain
period.
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3. Consumers now get the information from strangers on Twitter and

Facebook.
• Hashtags are now used for each campaign.

• Emojis and visual stickers are used to express emotions.
4. Research used to be done via encyclopedia and school libraries, while

it is almost via Google nowadays.
5.Content is now central to marketing , backed up with the the right

context
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6. Technology has changed and disrupted the way businessed are done.
• Travel businessed have been disrupted by Airbn, which transformed

homeowners into hotel managers.
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• Even couches are starting to be rented by backpackers as a space for the

night.
• News shows have been disrupted by citizen's tweets amd Twitter trends ,
sometimes even with live coverage
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• Greeting cards were disrupted by texts. Text messaging is now disrupted

by Facebook messages
• Many people are now using many free communication apps like Viber ,
Whatsapp.
• Retail stores are starting to be disrupted by online shops like Amazon,

Alibaba, and Lazada.
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6. Transactions used to be via pure cash. Now there are credit cards and
electronic wallet

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BUSINESS MARKETING

In order to make the goals and objectives success,

What is Marketing Mix?

This is a set of controllable and interrelated variables

For service, 3 additional

Marketing Mix Strategy

Marketing mix strategy is choosing and implementing the best

Marketing Mix Strategy

A company may succeed in year one but may not necessarily

Therefore, each of the 4Ps must be relevant, up-to-date, and

Shakey's primary target is family. In

• The image of the new segment however, dominated and alienated

• Shakey's then decided to refocus its attention back to its original

• To satisfy the needs and wants of the

Marty's vegetable chicharon targets the

2. Placement (or Distribution)

• To make the product conveniently available to the target consistent with

2. Placement (or Distribution)

• To build and improve consumer demand. Promotions has 4 components

Yakult has over 2,500 street level

Minute Burger pioneered the “buy 1-take

To make the product affordable to the

David's Salon has different pricing levels

• Product and Placement are considered as the strategic Ps of

• Promotions and Price are considered as the tactical Ps of the

• Marketers of consumer packaged goods such as food and personal care

• Merchandising aims yo extend advertising messages at the Point of

• For service industries, 3 additonal Ps are added to further address the

Additional Marketing Mix of Service Industries

Additional Marketing Mix of Service Industries

Additional Marketing Mix of Service Industries

• Service staff at Italianni's are trained to

Additional Marketing Mix of Service Industries

• Members of the team who contribute to the delivery of the service

Other factors that must be considered are the Ps of competitibeve

Factors Influencing Customers' Purchase Decision-Making

Target Market Purchase of No Puchase

This means that unless a firm wants to challenge conventional wisdom

Summary Steps to maintain Marketing Goals

Summary Steps to maintain Marketing Goals

Summary Steps to maintain Marketing Goals

Summary Steps to maintain Marketing Goals

How Marketing Keeps Changing?

Marketing is dynamic and keeps changing

1. For example, traditional TV advertisement is no longer effective

Hence, we now seee the rise of YouTube and Netflix, with

2. Awareness no longer moves from the brand to its consumers.

• With social media, engagement and conversation between brand and

• Consumers have become more demanding and have become more

• However, they have also become

• In fact, in the restaurant market, many

• Filipinos are also quite opinionated online--just look at social media

3. Consumers now get the information from strangers on Twitter and

• They check updates from their favorite bloggers (known as “inbound

• Snapchat, Facebook Live, and Instragram Live create urgency for

3. Consumers now get the information from strangers on Twitter and

• Hashtags are now used for each campaign.

4. Research used to be done via encyclopedia and school libraries, while

5.Content is now central to marketing , backed up with the the right