Transcript Marketing Mix

Marketing Mix
(Chapter 3)
( 3rd Semester )
Meaning of Marketing Mix
Marketing mix is the policy framework adopted by marketeer
to get success in the field of marketing. It refers to the
amounts and kinds of marketing variables, the firm is using at
a particular time.
Under marketing mix, we include: Product Mix, Promotion
Mix, Promotion Mix, Distribution Mix, Process Mix, Place
Mix, People Mix.
A customer-oriented firm perform number of functions to
satisfy customers needs. The effective coordination of these
functions is often called as “Marketing Mix”.
Historical Development of Marketing
Mix
The term ‘Marketing Mix’ was first use and popularized by
Prof. Neil H. Borden of Harvard Business School, London.
Prof. James Culliton, an American marketing expert in 1948
described the marketing manager as a ‘decider’ or a ‘Mixer of
Ingredients’.
According to Philip Kotler, the marketing mix in the form of 4
P’s explain the seller’s view of the market ad not the buyers’s
view.
Nature of Marketing Mix
Marketing Mix denotes a combination of various elements
which in their totality constitute firm’s ‘marketing system’.
The nature of marketing mix concept should be clear from
the following explanation:
 Product Mix
 Price Mix
 Promotion Mix
 Place Mix
These 4 elements of marketing mix are co-equal,
interdependent and essential.
Elements of Marketing Mix
Each marketing firm has its own unique marketing mix. Such
inter-firm deviations arises due to the difference in their
product policy, price policy, promotion policy and
distribution policy.
This four fold classifications of marketing mix is accepted by
many scholars.
Elements of Marketing Mix: Four P’s
PRODUCT
PRICE
PROMOTION
PLACE
Product Mix
Product is sum total of tangible and intangible attributes
including various attributes. Product mix is the total of all
product, offered for sale by a company. Some important
variables of product mix are explained here:
 Product Design
 Product Line
 Product Quality
 Product Branding
 Product labeling
The product having all above aspects are highly preferred be the
customers.
Price Mix
Price is a matter of vital importance to the buyer and the seller.
That is why, every marketer takes special interest in fixing
and implementing his pricing policy. The price mix of a firm
include the following items:
 Pricing policies and strategies
 Terms of Credit
 Resale price maintenance
 Profit margin
 Delivery terms
Promotion Mix
Promotion is a mean by which marketer talk to its existing and
potential customers. Promotion mix is the Communication mix.
Some important variables of promotion mix are explained here.
 Personal selling
 Advertising
 Sales promotion
 Trade fairs and exhibitions
 Public relations
Promotion mix is used to communicate to the customers about the
product in such a way that the appeal reaches them and they make
a forward move to purchase the product.
Place Mix
Place mix is the distribution mix. It is concerned with the
smooth flow of goods and services from the producer to
customer by crating time, place and possession utilities.
Some important variables of place mix are explained are:
 Transportation
 Warehousing
 Inventory Levels
 Distribution Channel
 Physical Distribution
Determining the Marketing Mix
Determining the optimum marketing mix is not an easy
exercise. It requires a lot of information, imagination and
judgment. Marketing research, fore-sightedness and
judgment are used in designing the marketing mix just as
they are used in locating the target customers and
discovering their needs. Determining marketing mix is not a
one time job, rather it is a continuous process. It changes
with the change in needs of the customers and also with the
change in environment factors.
Factors affecting marketing Mix
For a successful marketing it is necessary to evaluate various
elements of marketing mix, because there are several factors
which affect the marketing mix. They may be classified into
two categories:
 Uncontrollable Factors
 Controllable Factors
Uncontrollable Factors
Uncontrollable factors affecting the marketing mix are related
to the market, therefore, also known as Market Factors. The
company/firm has no control over these factors but they
affect the marketing activities of the company. Some
important uncontrollable factors are follows:
Uncontrollable factors affecting Marketing Mix
Consumer’s
Behavior
Competitor’s
Behavior
Intermediaries'
Behavior
Government’s
Behavior
Controllable factors
Controllable factors are those which are under the control of
the marketing manager and effect the marketing mix. These
factors are related to marketing activities, so they are also
called as marketing factors. The main controllable factors are:
Controllable factors affecting Marketing Mix
Product Policy
Branding Policy
Promotion Policy
Packaging
Policy
Distribution
Policy
Pricing Policy
Other Factors
Importance of Marketing Mix
 Marketing mix signifies that if four elements are closely
interrelated then all the product features.
 Marketing mix serves as the link between the business firm and its
customers. It focuses attention on the satisfaction of customers.
 Marketing mix takes care of needs of the customers, it helps in
increasing sales and earning higher profits.
 Marketing mix provides an opportunity to analyze cost benefit
elasticity.
 Marketing Mix helps to allocate the responsibilities.
 Marketing mix helps in meeting environmental changes.
Expanded Marketing Mix
Some marketing experts says that there is no rigidity on ‘4 P’s’
model. Because there are many situations and instances of
marketing programmers which do not match to 4 P’s model.
They indicate seven ingredients in the formula of marketing
mix, known as ‘seven P’s model of marketing mix. These new
ingredients are briefly explained here:
 Packaging
 Publicity and Public Relations
 Post Sale Services
Expanded marketing mix in Case of
Service Sector
In the case of service sector one needs different types of P’s in
addition to ‘Four P’s’. These are as follows:
 People
 Physical evidence
 Process
Hence in marketing of services an expand marketing mix in
required, which comprise product, price, place, promotion,
people, physical evidence and process.
Thank You