Marketing Mix In Traditional Marketing
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Marketing Mix In Traditional Marketing

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Marketing Mix In Traditional Marketing . Marketing Management

Marketing Mix In Traditional Marketing . Marketing Management

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Marketing Mix In Traditional Marketing Presentation Transcript

  • 1. Marketing organizations around the world have been using the traditional marketing mix to develop, design and market products/services that satisfy customers needs. The success of a product in the market depends on a marketers ability to mix the elements namely product, price, place, promotion in the right proportion.
  • 2. The way a product is priced should reflect the value it delivers, keeping the competitors pricing structure in mind. Promotion helps a company create awareness and build recognition for itself and its products in the target market through advertising, sales promotion etc.,. A company can gain higher profits if it can choose the right place in terms of distribution channels like distributers, wholesalers, and retailers etc., to sell its products.
  • 3. INADEQUACY OF FOUR Ps
  • 4. The four traditional Ps of the marketing mix- product, place, price and promotion are adequate for marketing a product. However they fail to cover the following aspect, which differentiate products from services and are therefore, important for services marketing. o The product element involves only tangible aspects and is therefore not appropriate for services, which are basically intangible in nature.
  • 5. o A part of the promotion of the services usually takes place at the time of consumption itself. This is not so in the case of a product. In fact, the people involved in service production handle the promotion too in most cases. o In the Indian scenario, the public sector produced most of the services until very recently. Very often still, the end consumer pays the standardized and subsidized price, and this aspect is ignored by the price mix.
  • 6. o The dual role played by service customers as co- producers and end consumers in the production of service goes unnoticed by four traditional Ps. o The four traditional Ps fail to capture the importance of distribution for services. In most of the services, the production and consumption takes place at the same time; therefore, the distribution channel is either absent or is very small.
  • 7. o Further, consumers are unable to perceive the quality standards of service before consumption. On the other hand, marketers are not able to identify and measure the elements of the marketing mix that can deliver quality service. The above problem faced by marketers have led to the addition of another three Ps for marketing services, namely, people, process management, and physical evidence.
  • 8. product Marketers have identify three levels in developing the product element of the marketing mix as far as services are concerned. The ‘core’ level aims to satisfy the important needs of the customer while the ‘tangible’ level manages the appearance of the product. The ‘augmented’ level involves the addition of supplementary services to the basic offering. These three levels can be condensed into two, the core level that caters to the basic benefits and a secondary level which includes the tangible as the augmented service levels.
  • 9. The core level basically deals with service offering while the secondary service level deals with the delivery of service. Pricing The pricing of services is very different from the pricing of goods for various reasons. Service for example, can be differentiated based on their price, as a higher price is generally associated with better quality. The fixed cost is higher and the variable cost is low in the case of service. Pricing of the same service can be changed depending on the demand for the service. Though this happens with some of the products which are seasonal.
  • 10. Promotion Service providers should aim to promote their service in order to eliminate the perceived risk. This can be best achieved by encouraging and promoting positive word-of-mouth publicity, developing strong brands, offering a trial use and finally by managing advertising and public relation effectively to clearly communicate the message to the customers.
  • 11. Place Place relates to the ease in accessing the service. Due to the inseparability of service, they are produced and consumed at the same place. This make its impossible for service providers to produce the service at a place where the cost are low and sell at a place where there is a high demand for it. People Service organizations perceive people as a means to gain a competitive advantage in the industry. Therefore they invest in attracting, training and relating the best talent.
  • 12.  Many service organizations involve their personnel both at the point of frontline delivery and during the production process that does not involve the final consumer.  The service 0personnel have an important role in not only designing the service, but also in delivering it.  Involve consumers as co-producers in designing the service offering to suit their individual preferences. In this case the service personnel play an important role in helping the end consumer present his requirements precisely.
  • 13. Process The production and delivery process in the manufacturing sector is easier than in the service sector. Marketers of service are often confused, as there is little difference between marketing and operations management in services. Customer service encounters have an impact on the quality of service delivered by the organisation. A service encounter is the actual time period during which an interaction take place between the service provider and the customer.
  • 14. over the years, some service organizations have mechanized their service processes to reduce the element of human judgment and error in service delivery. For example, banks has introduced ATMs to offer convenience to customers and also reduce labor cost which along with competition in the service industry has increased tremendously.
  • 15. Physical Evidence Service customers experience a great perceived risk as they cannot rate a particular service until it is consumed. Therefore they attach an element of tangibility to their service offering. The physical evidence can be in any form, for example, brochures or TV commercials showing the detail of holiday destination, pleasent and courteous behavior of the service personnel in a bank, the location and ambience of a food outlet etc.,