4Ps+of+Marketing+Mix.pdf

4Ps of Marketing Mix
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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

The Concept of Marketing Mix

Marketing Mix
Most Popular Concept in Marketing Management
The elements of Marketing Mix considered as the pillars of marketing strategies.
Marketing mix is designed from ‘SELLERS POINT OF VIEW’

Coined by Neil Borden 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

Meaning
Marketing Mix refers to 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.

The effective implementation of 4Ps brings a series of benefits to the organisation.
Higher
Sales
Maximum
Revenue
Brand
Building
Positioning

The Building Blocks of Product Mix

Product Mix
• Also termed as Product Assortment
• Starting point/Core for Marketing Mix
• Most critical for a business
Product
Price
Place
Promotion

What is Product?
Product is 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.

Desire
Need
Ability
Demand

Types of
Product
Tangible Products
Intangible Services

Need for a product may be different. For example mobile phone:
• Individual
• Organisations

Levels of Product
Potential Product
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

Elements of Product Mix
The four dimensions of a company’s product mix may include:
Product Mix
Width
Length
Depth
Consistency

1. Width
• Total Number 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

Those who do not have width in product?
• Small companies
• Start-ups
1. Width

• It is length 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

3. Depth
• Total number 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.

Procter & Gamble
P&G Products
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

4. Consistency
Understand the pattern 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

Strategies to Improve Business by Changing Product Mix
• Adding new products to the product lines
• Changing the product variants
• Customization
• Standardization
• Strengthening product consistency

• 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

Product Standardization v/s Product Customization

Product Standardization
Product standardization is 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

Examples:
• Gift Industry
• Fashion Industry
• Nike
• Bluesky

Products sell mostly when customized
• Clothes
• Cakes
• Keychains
• Bags
• Labels
• Jewelry
• Gifts
• Stationary
• FMCG goods

Advantages of
Standardization to the
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

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

Disadvantages to the Business
• Market Research
• Failure to adapt
• Limited Choices for consumers
• Limited Alternatives
• Cultural differences
• Changing needs and preferences

Quick Recap
• 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
• 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

Importance of Price in Marketing

Price Mix
Price
Promotion
Place
Product

• Important Element in 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

Objectives
of
Pricing
Survival
Recovery of Cost
Profit
Market Share
Positioning
Entering New
Markets
Handle Competition
Objectives of Pricing

“Price is a Double Edged Sword”

Types of Pricing
Types of
Pricing
Cost + Profit
Value Based
Skimming
Dumping
Psychological
Penetration
Market
Premium

Factors Affecting
Pricing Decision
Internal Factors External Factors

Factors affecting Pricing Decisions
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

Role of Place in Marketing Mix

Place Mix
Place
Promotion
Product
Price

Products are sold in two platforms
• Brick and Mortar environment
• Virtual Environment

• Distribution Mix
• Moving products and servicers from the point of production to the point of consumption

Channel Partners
Distributors
Dealers
Agents
Stockist
Wholesalers
Retailers

Types of Distribution Channels
• Producer...Distributors...Wholesaler...Retailer...Consumer
• Producer...Wholesaler...Retailer...Consumer
• Producer...Retailer...Consumer
• Producer...Consumer

Importance of Promotion

Promotion Mix
Promotion
Product
Price
Place

Promotion Mix
The Promotion mix 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?

Promotional Strategies
Advertising
Personal
Selling
Sales
Promotion
Public
Relation

A.Advertising
• Information sharing
• Aiding Decisions
• Pull Strategy
• Free/Paid
• Forms of Advertising

Basic Functions of Advertising
• Awareness
• Information
• Persuasion
• Trigger
• Reminder
• Advise

How to Design an Effective Advertisement
• Define your target audience
• Determine the platform
• How to design the advertising plan
• Create your advertising strategy
• Craft right content

B.Personal Selling
• Face-to-Face Selling
• Skills and abilities
• Drug Companies

The Most Common Personal Selling Techniques
Personal Selling
Techniques
Presentation
Demonstration
Retail Selling
Door to Door
Consultative
Reference

The AIDA Theory
Attention
Interest
Action
Desire

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

Sales Promotion
• Incentives
• Discounts
• Freebies
• Coupons
• Free Samples
• Consumer Contests
• Buyback Allowance
• Refunds

Benefits of Sales Promotion
• To Producers
• To Intermediaries
• To Consumers

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.

• Prospective Clients
• Customers
• Investors
• Employees
• Suppliers
• Governments
• Tax Authorities
• Partners
• Social media networks
• Media
Public Relation(PR)

Summary
• The Promotion mix 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

Quick Recap
• Marketing Mix 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

Thank You!

4Ps+of+Marketing+Mix.pdf

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