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4Ps+of+Marketing+Mix.pdf
- 1. 4Ps of MarketingMix Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
- 2. In this session,we will be discussing: The Concept of Marketing Mix The Building Blocks of Product mix Importance of Price in Marketing Role of Place in Marketing Mix Importance of Promotion Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
- 3. The Concept ofMarketing Mix Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
- 4. Marketing Mix Most PopularConcept in Marketing Management The elements of Marketing Mix considered as the pillars of marketing strategies. Marketing mix is designed from ‘SELLERS POINT OF VIEW’ Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
- 5. Coined by NeilBorden in 1949. Popularized by E. Jerome McCarthy introducing 4Ps of Marketing Mix during 1960s. According to McCarthy, marketer can design marketing plan considering 4Ps. Product Price Place Promotion Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
- 6. Meaning Marketing Mix refersto the set of arrangements, or strategies, that a business uses to promote its product or services in the market. A marketing mix is a group of marketing tools that a business customs to sell products or services to fulfil the needs of its Target Customers. Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
- 7. The effective implementationof 4Ps brings a series of benefits to the organisation. Higher Sales Maximum Revenue Brand Building Positioning Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
- 8. The Building Blocksof Product Mix Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
- 9. Product Mix • Alsotermed as Product Assortment • Starting point/Core for Marketing Mix • Most critical for a business Product Price Place Promotion Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
- 10. What is Product? Productis anything that can be offered to a customer. Necessarily that should be something of monetary value. The product must be able to satisfy the needs of consumers. Product is a bundle of utilities satisfies the psychological and physiological needs of an individual or group of individuals A bundle of perceived benefits packaged to fulfil the DEMAND. Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
- 11. Desire Need Ability Demand Proprietary content. ©Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
- 12. Types of Product Tangible Products IntangibleServices Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
- 13. Need for aproduct may be different. For example mobile phone: • Individual • Organisations Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
- 14. Levels of Product PotentialProduct Augmented Product Expected Product Basic Product Core Product Core : Transportation Basic :4 wheels, Engine, Steering, Break Expected : Comfort, Speed Augmented: Intelligent, Connectivity Potential : Voice Recognition, Face Recognition Core : Space for stay and rest Basic : Bed & Bedsheets Expected : Cleanliness, Towels Augmented : Customized service, Travel Guide Potential :Healthcare, Entertainment Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
- 15. Elements of ProductMix The four dimensions of a company’s product mix may include: Product Mix Width Length Depth Consistency Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
- 16. 1. Width • TotalNumber of product lines that company has during the period. • Products with similar characteristics are listed under each line of products offered by the client. Foods & Refreshment Home Care Beauty & Personal Care Life Essentials Industrial Goods Automobiles Food Products Telecom Home Appliances Mobile Phones Computer Products Entertainme nt Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
- 17. Those who donot have width in product? • Small companies • Start-ups 1. Width Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
- 18. • It islength of one product line • For example HUL has 63 products overall. It has been adding and removing products from its bucket. As on 29-11-2020 @21:25:00, the HUL’s website shows the availability of 63 products in the market. 2. Length Foods & Refreshment Home Care Beauty & Personal Care Life Essentials Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
- 19. 3. Depth • Totalnumber of variants available in one product offering • Depth of the product can be understood by visiting the website of company’s website. This will be keep changing based on the market demand. Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
- 20. Procter & Gamble P&GProducts Personal Health Care Vicks Inhaler Vicks Action 500Advance d Vicks Action 500 Vicks Cough Drops Vicks Baby Rub Oral Care Hairs Care Home Care Fabric Care Skin Care Baby Care Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
- 21. 4. Consistency Understand thepattern and focus of the products. For example, most of the HUL products are household related. Most of the products are in ready-to use format. 1. Dairy products(More Consistent) 2. Electronic manufacturers • GE • Nandini Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
- 22. Strategies to ImproveBusiness by Changing Product Mix • Adding new products to the product lines • Changing the product variants • Customization • Standardization • Strengthening product consistency Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
- 23. • Short run-Can not be altered and it should not be altered • Long Run- 4Ps can be altered Strategies to Improve Business by Changing Product Mix Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
- 24. Product Standardization v/sProduct Customization Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
- 25. Product Standardization Product standardizationis a process through which business attempts to maintain uniformity in the products being manufactured and the services being offered. Best examples: • Chain of Restaurants • Nuts and Bolts Manufacturers • Piston Manufacturers • Global Fast Food Joints Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
- 26. Examples: • Gift Industry •Fashion Industry • Nike • Bluesky Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
- 27. Products sell mostlywhen customized • Clothes • Cakes • Keychains • Bags • Labels • Jewelry • Gifts • Stationary • FMCG goods Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
- 28. Advantages of Standardization tothe Business • Reduce Costs • Increase Quality • Increased Production • Streamline Distribution • Decrease raw material costs • Standardizing the basic components • Widening global sales Advantages of Standardization to the Consumers Exact products available High quality product and services Better Living Standards Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
- 29. Advantages of Customization •Standing out from the crowd of competitors • Customer needs it • To build brand loyalty • Improve sales • Personalized experience • Customers need not pay for what they don’t want in a product • Face the competition • Customer retention • Attract millennials • Costly • Impact on manufacturing efficiency • Managing the expectations of customers • Tough to manage enough required inventory • Difficult to plan the demand • Wait time would be longer than usual • Requires specialized skills • Rising complexity • Substantial investment on market study Disadvantages of Customization Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
- 30. Disadvantages to theBusiness • Market Research • Failure to adapt • Limited Choices for consumers • Limited Alternatives • Cultural differences • Changing needs and preferences Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
- 31. Quick Recap • Amarketing mix is a group of marketing tools that a business customs to sell products or services to fulfil the needs of its target customers • Product is a bundle of utilities satisfies the psychological and physical needs of an individual or group of individuals • Levels of Product: Core product, Basic Product, Expected product, Augmented Product, Potential Product • Elements of Product Mix: Width, Length, Depth and Consistency Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
- 32. Importance of Pricein Marketing Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
- 33. Price Mix Price Promotion Place Product Proprietary content.© Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
- 34. • Important Elementin marketing mix • Price is the presumed value of a product decided by the producer • It can be an economic value of the product or service generally expressed in terms of money • It brings revenue which is the fuel for running the engine of business • Price is a complicated element Price Mix Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
- 35. Objectives of Pricing Survival Recovery of Cost Profit MarketShare Positioning Entering New Markets Handle Competition Objectives of Pricing Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
- 36. “Price is aDouble Edged Sword” Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
- 37. Types of Pricing Typesof Pricing Cost + Profit Value Based Skimming Dumping Psychological Penetration Market Premium Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
- 38. Factors Affecting Pricing Decision InternalFactors External Factors Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
- 39. Factors affecting PricingDecisions Internal Factors • Cost • Branding • Number of alternatives • Margins expectation • Pricing Policy • Product Life cycle • Product features • Advertisement cost • Uniqueness of the product External Factors • Demand and Supply level • Economic conditions • Government Policies • Competitors Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
- 40. Role of Placein Marketing Mix Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
- 41. Place Mix Place Promotion Product Price Proprietary content.© Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
- 42. Products are soldin two platforms • Brick and Mortar environment • Virtual Environment Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
- 43. • Distribution Mix •Moving products and servicers from the point of production to the point of consumption Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
- 44. Channel Partners Distributors Dealers Agents Stockist Wholesalers Retailers Proprietary content.© Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
- 45. Types of DistributionChannels • Producer...Distributors...Wholesaler...Retailer...Consumer • Producer...Wholesaler...Retailer...Consumer • Producer...Retailer...Consumer • Producer...Consumer Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
- 46. Importance of Promotion Proprietarycontent. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
- 47. Promotion Mix Promotion Product Price Place Proprietary content.© Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
- 48. Promotion Mix The Promotionmix is simply the basket of promotional tools used by the company to generate product awareness to increase the demand for product and services. Common questions answered • What? • Why? • When? • How? • To Whom? Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
- 49. Promotional Strategies Advertising Personal Selling Sales Promotion Public Relation Proprietary content.© Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
- 50. A.Advertising • Information sharing •Aiding Decisions • Pull Strategy • Free/Paid • Forms of Advertising Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
- 51. Basic Functions ofAdvertising • Awareness • Information • Persuasion • Trigger • Reminder • Advise Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
- 52. How to Designan Effective Advertisement • Define your target audience • Determine the platform • How to design the advertising plan • Create your advertising strategy • Craft right content Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
- 53. B.Personal Selling • Face-to-FaceSelling • Skills and abilities • Drug Companies Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
- 54. The Most CommonPersonal Selling Techniques Personal Selling Techniques Presentation Demonstration Retail Selling Door to Door Consultative Reference Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
- 55. The AIDA Theory Attention Interest Action Desire Proprietarycontent. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
- 56. C. Sales Promotion •Sales promotion is an effort involved to secure maximum rewards for the advertisements and other sales related activities. • Keeping competition at bay Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
- 57. Sales Promotion • Incentives •Discounts • Freebies • Coupons • Free Samples • Consumer Contests • Buyback Allowance • Refunds Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
- 58. Benefits of SalesPromotion • To Producers • To Intermediaries • To Consumers Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
- 59. D. Public Relation(PR) •Public Relation(PR) is the positive communication of a company or brand's message to all its target audiences. • The target audience may be those who are interested in the business or those who are connected with the business directly or indirectly. Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
- 60. • Prospective Clients •Customers • Investors • Employees • Suppliers • Governments • Tax Authorities • Partners • Social media networks • Media Public Relation(PR) Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
- 61. Summary • The Promotionmix is simply the basket of promotional tools used by the company to generate product awareness to increase the demand for product and services • Sales promotion is an effort involved to secure maximum rewards for the advertisements and other sales related activities • Public Relation(PR) is the positive communication of a company or brand's message to all its target audiences • Promotional Strategies: Advertising, Personal Selling, Sales Promotion, Public Relation Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
- 62. Quick Recap • MarketingMix is pillar for designing any marketing strategies • 4Ps of Marketing Mix • Concept of Product • Elements of Product • Levels of Product • Standardisation and Customisation • Importance of Price • Price is a doubled edged sword • Pricing Strategies • Channel Partners • Promotional Strategies Proprietary content. © Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.
- 63. Thank You! Proprietary content.© Great Learning. All Rights Reserved. Unauthorized use or distribution prohibited.