2. Marketing Mix
Introduced by Neil H. Borden -12
Elements
In 1960, E. Jerome McCarthy
grouped these elements and
suggested the four Ps of marketing
2
3. Marketing Mix
Marketing mix is a combination
of elements, tools or efforts used
to market effectively to a target
market.
3
4. Marketing Mix
Depends on
Marketing environment of the organization
Marketing objectives
Resources position of the firm
Marketing organization structure and information system
4
6. PRODUCT
Product refers to a good, a
service or a unique
combination of goods and
services offered by a firm to
satisfy the needs and wants of
consumers.
6
7. 7
PRODUCT
The product includes both the tangible and intangible elements.
Product decisions involve product attributes such as quality, brand name,
packaging, product logos, trademarks, the breadth and mix of the product line
The products can be physical objects, services, places, organisations etc.
8. PRODUCT LEVEL Hospitality managers need to think about four
levels of a product.
1
Core Products
Answers the
question of
what the
buyer is really
buying.
2
Facilitating Products
Service or
goods that
must be
present for
the guest to
use the core
products
3
Supporting Products
Extra
products
offered to add
value to the
core product
and to help
differentiate it
from the
competition.
8
4
Augmented Products
Additional
consumer
services and
benefits built
around the
core products.
9. PRICE
Price refers to the monetary
value of the product.
Price is the value placed by a
firm on its products and
services.
9
10. 10
PRICE
Sum of the values consumers exchange for the benefits of having or using the
product or service.
What the buyer pays to the seller, including discounts, allowances, credit
terms, payment period etc.
In service industry, the term price names- interest, rent, salary, fees etc.
11. PRICING STRATEGY
Price mix influence the positioning of the product
among competition as well as the customer’s
perception of the product.
Penetration Pricing
Low price kept
to capture
market share
Skimming Pricing
High price
initially then
lowering of
price
Competition Pricing
Pricing at par
of competition
11
12. 12
Factors to Consider for Setting Price
Internal Factors External Factors
Marketing Objective
Marketing Mix Strategy
Cost
Cost Subsidization
Organisation Considerations
Nature of the Market and Demand
Consumer perception of Price and value
Analysing the price – demand
relationship
Price elasticity of Demand
Factors affecting Price _Demand
Relations
Competitors price and offers
Other environmental factors
14. 14
PLACE
Movement of the product from the sellers to the buyers
Storage at different points to make product available at convenient time and
locations to the buyers.
Where and how the product will be available for the customers for the
actual sale
15. PLACE MIX STRATEGY
15
Intensive Distribution
Cover as much
market as you can
Selective Distribution
For premium
products.
Open limited outlets
Franchise system
Small companies
distribute on your
behalf.
Exclusive Distribution
For more exclusive
products.
Very less outlets
19. What
Makes
Services
Different
?
Intangible, cannot be touched or seen
Produced and consumed simultaneously
Quality can vary from one service to the
next
Cannot be stored for
later use
Example: A spa experience
is intangible, varies by
provider, occurs as it is
consumed, and cannot be
stored
21. Intangibility
Services cannot be physically touched or
seen before they are bought and used
Use tangible cues to communicate
service quality
Example: Airlines provide images of
spacious seating and menus to visualize
the comfort and quality of the service
22. Inseparability
Services are typically produced and
consumed at the same time; the service
provider and customer are often present
together
Focus on training staff to ensure positive
customer interactions
Example: In a restaurant, the chef prepares
your meal while you wait, affecting your
overall dining experience
23. Heterogeneity
The quality of services can vary greatly,
depending on who provides them and
when and where they are provided
Implement standardized processes and
continuous training
Example: A hotel chain trains all staff to
provide a consistent level of service
across all locations
24. Perishability
Services cannot be stored for later
sale or use
Use pricing strategies to manage
demand
Example: Gyms offer off-peak
membership discounts to encourage
use during less busy times
