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Mixiplicity: The 4P’s of Your Marketing Mix


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This is a guest lecture I prepared for UC Santa Barbara Extension course,

"Strategic Business Development for the Global Marketplace." It provides an

overview of the traditional 4P's of Marketing -- Product, Price, Place, and

Promotion -- along with a discussion of Brian Solis's suggested 5th P:

people. Features embedded videos with real world examples of each P plus

some humorous clips to balance out the academic content.

For some reason the embedded YouTube videos don't want to play, nor does

the link under each one work. So, to facilitate your ability to watch the

videos in this presentation, here is a list of them with a link to each:

1. BUSAD X411.1: Marketing Mix -- Product (GoGurt):

2. BUSAD X411.1: Marketing Mix -- Pricing (Smashburger):

3. BUSAD X411.1: Marketing Mix -- Place (Stew Leonard's):

4. BUSAD X411.1: Marketing Mix -- Promotion (Nestle):

Published in: Business, News & Politics
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Mixiplicity: The 4P’s of Your Marketing Mix

  1. 1. Mixiplicity: The 4P’s of Your Marketing Mix Matthew A. Gilbert, MBA | @MatthewAGilbert May 2014 MatthewA.Gilbert,MBAMixiplicity:The4P’sofYourMarketingMix 1
  2. 2. Welcome • Learning Objectives. • Product • Price • Place • Promotion • The “5th P” 2 Mixiplicity:The4P’sofYourMarketingMixMatthewA.Gilbert,MBA This Presentation Was Adapted In Part from Principles of Marketing (14th Edition) by Philip Kotler and Gary Armstrong
  3. 3. Product • Product: Anything offered in a market for attention, acquisition, use, or consumption to satisfy a need or want. • Good: A durable or non-durable object that can be physically used by the consumer immediately after its purchase. • Service: Activities, benefits or satisfaction that is intangible and does not result in the ownership of anything. 3 Mixiplicity:The4P’sofYourMarketingMixMatthewA.Gilbert,MBA
  4. 4. Product • Consumer Product Types • Convenience products • Newspapers, Candy, Fast food • Shopping products • Furniture, Cars, Appliances • Specialty products • Medical services, Designer clothes, High-end electronics • Unsought products • Life insurance, Funeral services, Blood donations 4 Mixiplicity:The4P’sofYourMarketingMixMatthewA.Gilbert,MBA
  5. 5. Product • Industrial Product Types • Capital items • Industrial products that aid in the buyer’s production or operations • Materials and parts • Raw materials, manufactured materials and parts • Usually sold directly to industrial users • Supplies and services • Operating supplies, repair and maintenance items, business services 5 Mixiplicity:The4P’sofYourMarketingMixMatthewA.Gilbert,MBA
  6. 6. Product • Experiences: Represent what buying the product or service will do for the customer. • Word of Mouth Marketing: Passing along of experiences and information about a product from one consumer to another. • Buyer’s Remorse: A sense of regret after making a purchase. • Social Media: Empowering the customer; increases quality. 6 Mixiplicity:The4P’sofYourMarketingMixMatthewA.Gilbert,MBA
  7. 7. Product • Individual Product and Service Decisions 7 Mixiplicity:The4P’sofYourMarketingMixMatthewA.Gilbert,MBA
  8. 8. Product • GoGurt 8 Mixiplicity:The4P’sofYourMarketingMixMatthewA.Gilbert,MBA BUSAD X411.1: Marketing Mix -- Product (GoGurt):
  9. 9. Price • Price: The sum of all the values consumers give up in order to gain the benefits of having or using a product or service. • Price is the only element in the marketing mix that produces revenue; all other elements represent costs. • Before setting prices, the marketer must understand the relationship between price and demand for its products 9 Mixiplicity:The4P’sofYourMarketingMixMatthewA.Gilbert,MBA
  10. 10. Price • Elasticity of Demand: Response to a change in price. • Inelastic demand occurs when demand hardly changes when there is a small change in price • Elastic demand occurs when demand changes greatly for a small change in price Price elasticity of demand = % change in quantity demand % change in price 10 Mixiplicity:The4P’sofYourMarketingMixMatthewA.Gilbert,MBA
  11. 11. Price • New-Product Pricing Strategies • Market-skimming pricing • Market- penetration pricing • Product Mix Pricing Strategies • Product line pricing • Optional-product pricing • Captive-product pricing • Product bundle pricing 11 Mixiplicity:The4P’sofYourMarketingMixMatthewA.Gilbert,MBA
  12. 12. Price • Price Adjustment Strategies • Discount and allowance pricing • Segmented pricing • Psychological pricing • Reference prices • Promotional pricing • Geographical pricing 12 Mixiplicity:The4P’sofYourMarketingMixMatthewA.Gilbert,MBA
  13. 13. Price • Smashburger 13 Mixiplicity:The4P’sofYourMarketingMixMatthewA.Gilbert,MBA BUSAD X411.1: Marketing Mix -- Pricing (Smashburger):
  14. 14. Worksheet • Product and Price • Complete individually (5 minutes) • Discuss as a class (5 minutes) 14 Mixiplicity:The4P’sofYourMarketingMixMatthewA.Gilbert,MBA
  15. 15. Place • Place: The distribution channels through which a product or service is made available to consumers to purchase. • Supply Chain Management: The process of managing upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers. • Impact of the Internet: The Internet is a distribution channel; consider its impact on the music industry as a means of music distribution (e.g. no more – or very few -- physical music stores). 15 Mixiplicity:The4P’sofYourMarketingMixMatthewA.Gilbert,MBA
  16. 16. Place 16 Mixiplicity:The4P’sofYourMarketingMixMatthewA.Gilbert,MBA • Number of Channel Levels
  17. 17. Place 17 Mixiplicity:The4P’sofYourMarketingMixMatthewA.Gilbert,MBA • Multichannel Distribution System
  18. 18. Place • Stew Leonard’s 18 Mixiplicity:The4P’sofYourMarketingMixMatthewA.Gilbert,MBA BUSAD X411.1: Marketing Mix -- Place (Stew Leonard's):
  19. 19. Promotion • Promotion: The specific blend of advertising, public relations, personal selling, and direct-marketing tools that the company uses to persuasively communicate customer value and build customer relationships. • Advertising: Any paid form of non-personal presentation and promotion. Reaches masses of geographically dispersed buyers at a low cost per exposure, and it enables the seller to repeat a message many times 19 Mixiplicity:The4P’sofYourMarketingMixMatthewA.Gilbert,MBA
  20. 20. Promotion • Direct Marketing: Making direct connections with carefully targeted consumers through the use of direct mail, telephone, direct-response television, e-mail, and the Internet. • Personal Selling: Personal presentation by the firm’s sales force to prospective customers. Good for building buyers’ preferences, convictions, actions, and developing customer relationships. 20 Mixiplicity:The4P’sofYourMarketingMixMatthewA.Gilbert,MBA
  21. 21. Promotion • Integrated marketing communications: Integration of a company’s channels to deliver a clear, consistent, and compelling message about the organization and its brands. 21 Mixiplicity:The4P’sofYourMarketingMixMatthewA.Gilbert,MBA
  22. 22. Break • 15 minutes 22 Mixiplicity:The4P’sofYourMarketingMixMatthewA.Gilbert,MBA
  23. 23. Promotion • Public Relations: Building good relations with the company’s various publics. • Sales Promotion: A short-term incentive to encourage a purchase or sale. • Social Media: Reach customers and track results in real time; empowering marketers and consumers alike. 23 Mixiplicity:The4P’sofYourMarketingMixMatthewA.Gilbert,MBA
  24. 24. Promotion • Nestlė 24 Mixiplicity:The4P’sofYourMarketingMixMatthewA.Gilbert,MBA BUSAD X411.1: Marketing Mix -- Promotion (Nestle):
  25. 25. Worksheet • Place and Promotion • Complete individually (5 minutes) • Discuss as a class (5 minutes) 25 Mixiplicity:The4P’sofYourMarketingMixMatthewA.Gilbert,MBA
  26. 26. The 5th P • Brian Solis: People are the 5th P. • “If we visit the traditional 4P’s of marketing…the key ingredient of favorable engagement and business outcomes is the very thing that’s been missing all along, People – you, me and the individuals who invest in products and sometimes the brands behind them.” 26 Mixiplicity:The4P’sofYourMarketingMixMatthewA.Gilbert,MBA Source:
  27. 27. Global Marketing Quiz • 20 minutes to take in small groups. • 10 minutes to grade another group’s answer sheet. 27 Mixiplicity:The4P’sofYourMarketingMixMatthewA.Gilbert,MBA
  28. 28. Class Evaluations • Complete the class evaluations. • A Hero (Volunteer) shall rise! • Your input is essential. 28 Mixiplicity:The4P’sofYourMarketingMixMatthewA.Gilbert,MBA
  29. 29. Parting Words • “The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself.” -- Peter Drucker 29 Mixiplicity:The4P’sofYourMarketingMixMatthewA.Gilbert,MBA