How use the marketing decision variables to gain competitive advantage - examples of turning the theory into practice.

1. The Marketing Mix
or marketing decision variables

2. The seven ‘P’s

3. Seven marketing decision variables
Product
Price
Place
Promotion
People
Physical evidence
Process

4. Let’s take an example
Two companies, Redco and
Greenco, each have a similar
product – a diagnostic device
for use with diesel engines.
Both use the same basic
circuitry and components from
the same manufacturers,
bought at a similar price.

5. Two approaches
But each takes a different
approach, using the variables
of the marketing mix.

6. Product
… focuses on ease of
use with simple
buttons and coloured
lights to show results.
They are aiming at
low skill users,
self-employed
mechanics, even
competent
amateurs.
… is aiming at high
skilled users in big
companies, utilities
and transportation
networks. They go for
displaying more
detailed
information,
and use finer
controls.

7. Price
… aims at a wide
market. Keeping
prices low enough for
amateur use.
They look for low
margin and high-
volume.
… targeting skilled
users. A small market
so going for low-
volume but with high
margin to fund
support and added
value.

8. Place
… need volume, so
going through retail
chains, big sheds and
volume e-commerce.
… small, easily
identified market, so
using direct sales,
specialist distributors,
own sales force.

9. Promotion
… mass market,
promote through
trade press, specialist
magazines, on-line,
in-store promotions.
… PR in specialist
press, editorial,
product reviews,
trade and technical,
blogging. Support
website.

10. People
… concentrate on
having the right staff
to work with
distributors and big
sheds. Understand
logistics and volume
production.
…high grade technical
trained staff to liaise
with customers/users
and provide pre and
post sales support.

11. Physical Evidence
…use attractive blister
packs showing ease of
use, simple
instructions.
… quality outer pack,
plastic pouch
included, user
manual, training.

12. Process
… strong retail
support, inventory,
stock control. Key
account service.
… technical support,
customer helplines,
OEM liaison, R&D,
updates

13. Both approaches are valid -
depending upon the business and
marketing strategies.
The seven variables allow an infinite
number of solutions.

14. Any one of the seven ‘P’s may
provide a lever you can pull to gain
competitive advantage.

15. Seven marketing mix tips

16. 1. Identify your strengths and
weaknesses – be honest.
2. Focus on strengths – that’s
where opportunities spring
from.
3. Analyse your competitors –
see where you can gain
advantage.

17. 4. Check internal logic – does
it make sense for your
business?
5. Check external logic – will
it make sense to
customers?
6. Does your mix match the
needs of your customers?

18. 7. For export you may need a
different mix for each
market – a weakness in one
market may be a strength in
another.

19. www.one-marketing.eu