This document discusses the marketing mix for project marketing. It begins by defining the traditional 4P marketing mix of product, price, place and promotion. It then explains that projects have unique characteristics that require a separate marketing mix. This includes defining the 7P marketing mix elements for projects - product, price, promotion, process, period, pooling and profile. Each of these elements is then defined in detail in the context of project marketing.

1. MARKETING MIX FOR
PROJECT MARKETING
6

2. Learning objectives
1. introduction
2. Understand the marketing mix elements of a project marketing mix.
3. The case for a separate marketing mix for projects
4. Understand the connection between the marketing mix and the project
marketing process.

3. Introduction
The marketing mix is a set of controllable tactical marketing tools that a firm
blends to produce the response it wants in the target market. Firms need to design a
market offering and present it to the market to satisfy its needs and wants. The
marketing mix is a tool that helps achieve The marketing mix, consisting of ‘four
Ps’ (product, price, place, and promotion), is applicable to the consumer and
industrial goods, while in case of services, an extended marketing mix of seven Ps
(product, price, place, promotion, process, people, and physical evidence) is
applicable.

4. The case for a separate marketing mix for projects
We know that services differ from products on account of the characteristics of
services; services are intangible, heterogeneous, produced and consumed
simultaneously, and are perishable.. a project is a complex transaction covering
a package of products, services, and work, specifically designed to create
capital assets that produce benefits for a buyer over an extended period of time
. it consists of industrial goods, services, and specialized work to be completed
within a specific time period. A typical project is marked with characteristics
such as discontinuity, uniqueness, complexity, and very high financial stakes.

5. Figure 6.1
product
promotion
period
pooling
Profile
process
price
Marketing mix elements for projects

6. Products
• the project marketing/contracting/subcontracting firm offers to execute the project
to the specifications of the client. The client firm ‘buys’ the project from it. Thus
the project itself may be looked upon as a product.
Variety
Range
Design
Quality
Features

7. CONT.…
• Variety: A project marketing firm that can offer and execute a variety of projects is likely to be
placed favorably its competitors.
• Range: A project marketing firm that can offer and execute a wider range or project size or
specifications is in a better position with respect to its competitors to receive the contract.
• Quality: It is a common practice that the project firm does not execute the entire project all by itself
or manufacture the entire range of equipment required for a project; a substantial portion is
subcontracted or purchased from other sources.
• Design: Since each project is unique, the design of the complete project is also likely to be unique
and supposed to be tailor-made.
• Features: The offer of a project marketing firm should not only meet the requirements and
specifications of the customers but also offer some features over and above the requirements

8. Price
• Price may be defined as the amount of money clients have to pay to obtain the
product.
Perspective of
price
Attribute of price Cost of involved Pricing strategies
• Attributes of price: The attributes of price are bid price, discounts, payment period,
and credit terms, in particular, and commercial terms and conditions in general.
Since each project is unique, every project would have a different bid price.

9. Cont..
Cost
involved E.m.d
Bank guarantee for advance
Bank guarantee for performance
Liquidated damages
Contingency
Royalty/contingency

10. Pricing strategies
• Three strategies are commonly found in
practice.

11. Cont.…
• Cost-based pricing: Here the project marketer bases its price on the costs
involved in executing the project and a mark up on the cost.
• Competition-based pricing: Here a project marketer tries to offer the lowest
bid price in comparison to its competitors with the intention of becoming the
‘L1’ priced bidder and getting the contract
• Value-based pricing: Here the project marketer offers a higher price as
compared to its competitors based on a certain differentiation in its offer. A
minor deviation of this, termed a life-cycle cost, is occasionally seen in projects
such as power generation and the like where equipment forms a significant
component of the project.

12. Promotion
• Promotion includes all activities related to communication with the target market
and also includes activities to persuade customers to buy a product.
• promotion for products and services includes advertising, publicity, sales
promotion, personal selling, and online selling.
• Buying a project from a project marketer cannot happen merely by seeing an
advertisement or publicity efforts due to the complexity and uniqueness
characteristics of the project and thus the role of advertising and publicity becomes
restricted.

13. Process
• The process is generally described by the ‘method statement’ of a project.
This statement describes the steps involved in completing a project. Project
marketers that have a better method statement in comparison to competitors
that results in some benefits to client firms, e.g. a shorter project delivery
time, can often differentiate themselves from their competitors. A better
method statement is a refection of the competencies of a project marketer.

14. Profile
• Profile suggests the stature of a project marketing firm with respect to its
competitors.
profile
ownership
Financial
strength
Experience Differentiation
No of complex
projects
Clients listed specialization
• No of complex projects completed: A firm that has complex projects delivered
to its account can impress a customer with its capability and is better placed to get
business from a customer.
• Client list: A firm having a large number customers also reflects the capability
of a project marketing firm.
• Specialization: Specialization by project marketing firms is instrumental in
acquiring contracts that involve a high level of complexity.

15. Pooling
• Pooling suggests a network, which a project marketing firm establishes, for
influencing the project customer. Cove and Hoskins (1997) strongly state that
the networking approach provides improved chances of success while bidding
for jobs.

16. Connect between the marketing mix and the
process of project marketing
Contract
Project negotiation
Project offer
Project development
Project screening
functional development relational development
Strategies priorities
product process period price promotion Pooling profile