The document discusses the key elements of a company's marketing mix. It describes the 4Ps of marketing - product, price, place, and promotion. It provides details on decisions involved in each P, such as product variety, pricing methods, distribution channels, and advertising types. The document also notes that some experts have expanded the marketing mix to 7Ps with the addition of people, physical evidence, and process. Overall, the marketing mix refers to the strategic combination of controllable elements that a company uses to achieve its marketing goals in the target market.

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In the words of Dawer,” Group of various policies
used by producer to succeed in market can be
said as marketing mix.”

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PRODUCT MIX
Product refers to what the business or non profit
organization offers to its customers. Total
product includes not only the basic product but
also many services attached to it including
package, brand, shape, design, style, warranty
and service subsequent to sale etc.

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PRODUCT MIX CONCERNS WITH FOLLOWING
DECISIONS
Development and introduction of new products.
Matching the products with needs and wants of target consumers.
Modifications (in term of qualities, features, and performance) on
existing products.
Product related strategies including branding, packaging, labeling,
colour, weight, grading etc.
Product line decisions including different varities or models and
product mix decision including width, depth, length and consistency.
Product related services like after sale services, home delivery,
guarantee, warrantee and demonstration.
Study of competitive (or comparitive) advantages of products.
Product life cycle, relevant strategies for each of the stages of product
life cycle, and consumer adoption process.

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Length of product mix refers to total no. of items in
its product mix.
Width refers to how many product lines the company
carries.
Depth of the product mix refers to the average
number of items offered by the company in each
product line.
Consistency means how closely the various product
lines are related in production requirements,
distribution channels etc.
The marking manager has to take number of
decisions related to product such as product addition,
product deletions and product modifications.

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Package also performs many functions. The
packaging lends charm to the product and
reinforces the brand name.
Warranty is also a part of total product. Product
warranty which communicates a written
guarantee of a product’s integrity and outlines the
manufacturer’s responsibility.

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PLACE (DISTRIBUTION) MIX
Place (Distribution) mix strategies are
concerned with making products available
when and where customers want them. It
comprises of many activities or many
decisions related to channels of distribution,
transportation, warehousing and inventory
control.

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PLACE DECISIONS INVOLVE :
I. Studying geographical concentration of customers.
II. Studying types of distribution channels and channel
members.
III. Analyzing various relevant factors affecting channel
decisions.
IV. Strategic decisions related to distribution activities.
Transportation decision involve selecting the
specific mode that will be used to physically move
products

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Transportation decision involve selecting the specific
mode that will be used to physically move products
from manufacturer or wholesaler to the buyer.
Warehousing : It’s necessary because of time lag
between production and consumption.
 Inventory Control is another important decision
taken in distribution mix. Managers should be cautious
while taking decision relating in ideal level of inventory
keeping supplier’s costs as low as possible.

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PROMOTION MIX
Promotion is the persuasive communication by the
marketers to existing customers and potential buyers.
Advertising has the ability to communicate to a large
number of people at once. It is indirect and non-
personal method of persuading consumers. Most
Commonly used methods of advertisement are
Television and magazines.
Personal Selling is face to face interaction between
seller and buyer. No other tool of promotion has
strong convincing power as personal selling.

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Publicity is similar to advertisement because like
advertisement, publicity is done through same mass
media.
Sales Promotion plays very important role in
lubricating the marketing efforts. Sales Promotion is a
direct and open persuasion to the customer to try the
product immediately.

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PRICE MIX
Price is what a buyer must give up to obtain a
product.
First and foremost factor is that a company must
clear about its objectives i.e. whether company want
maximum current profit or maximum market
skimming or product quality leadership.
The next step afterwards is analysis of competitor's
costs, prices and offers. Keeping into consideration
all these factors. Company has to select pricing
method. The pricing method will then lead to a
specific price.

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Companies usually do not fix a single
price but adopt different strategies.
Trade Discounts are consideration for
performing marketing function on
behalf of manufacturer. During slack
seasons dealers sometimes alow
seasonal discount to reduce storage
cost.

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PEOPLE
This is the fifth ‘P’ suggested by many authors in
recent years. The standard of customer service is
increasingly as a key factor in determining
company ‘s success or failure.
Customers make judgment about service
provision and delivery based on the people
representing an organization.
7P’s of Marketing Mix
 Booms and Bitter (1981) have suggested an
extended 7ps approach.

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All People directly or indirectly involved in the
consumption of a service e.g. employees or consumers.
People represent the business (discussed earlier in this
chapter)
Procedure, practices, mechanisms and flow of activities
by which services are consumed is a fundamental
element of marketing strategy.
An efficient service that replace old credit cards will
foster consumer loyalty and condence in the company.
The Physical environment is an important element of
the modern marketing mix. The atmosphere of a
physical environment affect marketing activities.

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For example if you walk into a restaurant you expect a
clean and friendly environment. If the restaurant is
smelly or dirty, customers are likely to walk out. This is
before they have been received the service. .

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FACTORS AFFECTING MARKETING MIX

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