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The Correct Marketing Mix

Get ABC s of marketing correct

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The Correct Marketing Mix

  1. 1. Marketing Mix Maxwell Ranasinghe
  2. 2. <ul><li>Most effective way to practice marketing is to find out first </li></ul><ul><li>What to be accomplished and then plan how to accomplish it. In other words you need to plan your marketing activity </li></ul><ul><li>This plan will constitute </li></ul><ul><li>marketing Objectives, identification of one or more target markets and an specific offering to serve each market </li></ul>
  3. 3. I <ul><li>In marketing jargon this offering is called the marketing mix. </li></ul><ul><li>The Marketing Mix is studied under the section called tactical Marketing </li></ul><ul><li>This is called Tactical Marketing as it is changed all the time and the decisions taken are usually short term </li></ul><ul><li>Directional - such as vision, mission, objectives and Strategic - such as market, market segments, targeting and positioning are not changed in the short term </li></ul>
  4. 4. <ul><li>Defining marketing mix </li></ul><ul><li>“ Marketing Mix is the set of controllable tactical marketing tools that the firm blends to produce the response it wants in the market. The marketing mix consists of everything the firm can do to influence the demand for its product ” Kotler 12 th edition </li></ul>
  5. 5. <ul><li>Traditionally it is comprised of </li></ul><ul><ul><li>Product </li></ul></ul><ul><ul><li>Price </li></ul></ul><ul><ul><li>Place ( Placement) </li></ul></ul><ul><ul><li>Promotion ( Communication) </li></ul></ul><ul><ul><li>For ease of use Mccarthy named this as 4 ps. </li></ul></ul>
  6. 6. <ul><li>These elements in the Marketing Mix are in the control of the marketer. </li></ul><ul><li>Therefore marketing Mix is set of controllable elements ( tools) in the hands of the marketer to use to achieve desired targets. </li></ul><ul><li>In other words marketing Mix is used to influence the buyer in the target market to create positive responses towards the marketers product </li></ul>
  7. 7. Product <ul><li>Product itself has its own way of offering it to the Target Market. Therefore it is called the product Mix </li></ul><ul><li>It comprises of Variety, Design, Brand name, image, quality, features and benefits, packaging, styling, accessories, warranty, after sales services etc. </li></ul>
  8. 8. Price <ul><li>Price should be affordable to the target market </li></ul><ul><li>The cost of the product is very important to decide the price. Further pricing objectives and pricing strategies also will decide the prices. </li></ul><ul><li>Price offer also could be called as the price Mix </li></ul><ul><li>It will have the suggested retail price, wholesale price, discounts, trading price, strategies, allowances, payment terms, credit etc. </li></ul>
  9. 9. Place <ul><li>The product should be made available to the target market where customers could buy it conveniently. </li></ul><ul><li>The Place mix could have distribution channels, Channel members, market coverage, inventory ( stock) control, warehousing, order processing, transport and logistics. </li></ul>
  10. 10. Promotion <ul><li>The major role of promotion is to make aware the target market that there is a product offering of this nature and develop interest, desire and action to buy the product. (AIDA) </li></ul><ul><li>The promotion mix includes Advertising, personal selling, Sales Promotion, Public relations, Direct marketing, etc. </li></ul><ul><li>Setting the communication budget are also part of the promo mix. </li></ul>
  11. 12. Key Characteristics of an Effective marketing Mix Effective marketing Mix Matches Customers needs Creates Competitive advantage Well Blended Matches corporate resources
  12. 13. <ul><li>Marketing Mix Matches Customer needs </li></ul><ul><li>- Customer needs to be understood </li></ul><ul><li>- How customers choose rival products to be studied </li></ul><ul><li>- The key customer requirements should be met through the Marketing Mix </li></ul>
  13. 14. <ul><li>Marketing Mix Creates a Competitive advantage </li></ul><ul><li>If a marketer can really identify the needs of the customer well and fine tune the marketing mix, then he will surely have an advantage over the competitors who have not done such fine tuning of the marketing Mix </li></ul>
  14. 15. <ul><li>The marketing Mix should be well blended </li></ul><ul><li>- 4 ps should be well blended ( fine tuned) to forma consistent theme </li></ul><ul><li>- 4 ps should display a coordinated program designed to achieve the companies marketing objectives </li></ul><ul><li>- Marketing Mix should be used as a tactical tool kit for establishing a strong positioning in the target market ( consumer) </li></ul><ul><li>M.Mix is interdependent and a change in one element may affect the other elements and on the total mix </li></ul>
  15. 16. <ul><li>Marketing Mix Should match Corporate Resources </li></ul><ul><li>- Marketing Mix that a company can offer depends on the resources it has such as financial, production capabilities, technologies, competences of people etc. </li></ul><ul><li>- Before designing and implementing the Marketing Mix strategies, the organization should identify its resources constraints </li></ul>
  16. 17. ELEMENTS OF EXTENDED MARKETING MIX <ul><li>People were not buying only tangible goods but they buy many services such as services from banks, insurance companies, hotels, doctors, government agencies etc. </li></ul>
  17. 18. Services differ from physical goods <ul><li>Variable </li></ul><ul><li>Intangible </li></ul><ul><li>Inseparable </li></ul><ul><li>Perishable </li></ul><ul><li>When services are included in the marketing further extension of marketing mix took place </li></ul><ul><li>Traditional marketing mix was not enough to handle the service salutations </li></ul>
  18. 19. <ul><li>THEREFORE </li></ul><ul><li>People </li></ul><ul><li>Processes </li></ul><ul><li>Physical Evidence </li></ul><ul><li>Were added to the marketing mix to accommodate the services into marketing. </li></ul>
  19. 21. People <ul><li>Marketing organisation deals with many stake holders. All of them are people </li></ul><ul><li>Suppliers, distributors, customers, competitors, government, authorities and many other organisations </li></ul><ul><li>Their needs, values, attitudes are different </li></ul><ul><li>The marketer has to identify them and treat them well to deliver the promise that he or she makes. </li></ul>
  20. 22. <ul><li>The marketing force should be trained to handle customers. They should recruit people who would be people friendly. </li></ul><ul><li>Understand customer expectations, understand customer types, help customers to find their needs, establish service standards, positive attitudes, handling complaints, listening skills, telephone skills, have to be developed in front line staff of the marketer. </li></ul><ul><li>Further marketer should adopt motivational programs to enhance commitment of the staff </li></ul>
  21. 23. Process <ul><li>Process is the ways and means the marketing activity is delivered. </li></ul><ul><li>Efficient processes have to be adopted in serving customers </li></ul><ul><li>Order taking, queuing and waiting time, issue of estimates, completion of repairs and services, notifying customers of service completion, automation and computerization are aspects that should be dealt in processes. </li></ul><ul><li>If processes fail customer dissatisfaction will appear and it will lead to loss of sales and business. </li></ul><ul><li>Therefore, establishing service standards, capacity development to accommodate customer demands, managing customer contacts are process issues that a marketer should bear in mind. </li></ul>
  22. 24. Physical evidence <ul><li>“ Physical evidence gives the consumer to refer to and to show other people if necessary. Since service products are usually intangible, the consumer of ( say) an insurance policy will need some written evidence of its existence in order to feel confident in the product”. Jim Blyth- 2005 </li></ul><ul><li>Physical evidence includes </li></ul><ul><ul><li>Tangible evidence of purchase </li></ul></ul><ul><ul><li>Physical environment which surrounds the purchase </li></ul></ul>
  23. 25. <ul><li>Tangible evidence of purchase could be created through receipts, bills, tickets, vouchers, certificates, letters, labels, logos and other visible evidence of brand identification etc. </li></ul><ul><li>Environment of service delivery could be created by interior décor, colours, staff uniforms, facilities, music and sound, company website, layout etc. </li></ul>
  24. 26. <ul><li>Physical evidence conveys the nature of the service delivered. It communicates with the customer about the status of the service delivered. </li></ul><ul><li>It could be used to reinforces the image of the company and its services. </li></ul>
  25. 27. Managing the marketing mix <ul><li>Marketing mix has to be fine tuned to get the desired results </li></ul><ul><li>A change in one element may affect the whole marketing mix </li></ul><ul><li>Therefore all elements are interdependent and carefully adjusted </li></ul><ul><li>When one element cannot be adjusted, then the other elements may be adjusted to fill the gaps. </li></ul>
  26. 28. Seven Ps in the view point of marketer and the customer <ul><li>Marketer customer </li></ul><ul><ul><li>Product Customers value </li></ul></ul><ul><ul><li>Price Cost </li></ul></ul><ul><ul><li>Place Convenience </li></ul></ul><ul><ul><li>Promotion Communication </li></ul></ul><ul><ul><li>People Consideration </li></ul></ul><ul><ul><li>Process Co-ordination </li></ul></ul><ul><ul><li>Physical Evidence Confirmation </li></ul></ul>
  27. 29. Be mindful <ul><li>If you are in marketing, you would always be meddling with the marketing mix. </li></ul><ul><li>So read more, involve more and get experience and master the adjustment of the Marketing Mix. </li></ul><ul><li>You will become a winner. </li></ul>
  28. 30. 7 Ps in operation Satisfying customer needs profitably Product Physical evidence Process People Place Promotion Price
  29. 31. <ul><li>Take this all of you, develop with your insight and others, learn from it , share with others and teach others to make good marketing resource personnel in Sri Lanka </li></ul><ul><li>Good luck . </li></ul><ul><li>Email Maxwell if any clarification or support needed; </li></ul>