Marketing Mix

Marketing Mix

4Ps of marketing mix / elements of marketing mix – Product, price, promotion, place

§ Product - A tangible object or an intangible service that is mass produced or manufactured on a large scale with a specific volume of units.

• Intangible products are service based like the tourism industry & the hotel industry or codes-based products like cell-phone load and credits. Typical examples of a mass produced tangible object are the motor car and the disposable razor. A less obvious but ubiquitous mass produced service is a computer operating system. Packaging also needs to be taken into consideration.

§ Price – The price is the amount a customer pays for the product. The business may increase or decrease the price of product if other stores have the same product.

• It is determined by a number of factors including
• market share
• competition
• material costs
• product identity and
• Customer's perceived value of the product.

§ Place – Place represents the location where a product can be purchased. It is often referred to as the distribution channel. It can include any physical store as well as virtual stores on the Internet.

§ Promotion represents all of the communications that a marketer may use in the marketplace. Promotion has four distinct elements: advertising, public relations, personal selling and sales promotion. A certain amount of crossover occurs when promotion uses the four principal elements together, which is common in film promotion.

• Advertising covers any communication that is paid for, from cinema commercials, radio and Internet adverts through print media and billboards.
• Public relations are where the communication is not directly paid for and includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events.
• Word of mouth is any apparently informal communication about the product by ordinary individuals, satisfied customers or people specifically engaged to create word of mouth momentum.
• Sales staff often plays an important role in word of mouth and Public Relations.

Targeting: Choose the segment based on company’s strength (Targeting is done). Weighing opportunity Vs Cost