Four Ps • Four Ps

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Transcript Four Ps • Four Ps

Four Ps
• Four Ps
Marketing Mix
Marketing Mix
• The concept is simple. Think about
another common mix - a cake mix. All
cakes contain eggs, milk, flour, and sugar.
However, you can alter the final cake by
altering the amounts of mix elements
contained in it. So for a sweet cake add
more sugar!
Marketing Mix
• It is the same with the marketing mix.
• The offer you make to your customer can
be altered by varying the mix elements.
• So for a high profile brand, increase the
focus on promotion and desensitize the
weight given to price.
• Another way to think about the marketing
mix is to use the image of an artist's
Marketing Mix
• The marketer mixes the prime colours (mix
elements) in different quantities to deliver
a particular final colour.
• Every hand painted picture is original in
some way, as is every marketing mix.
Target Market is the key
• Competition
Designing the right marketing mix
• The most creative & challenging step in
marketing is designing the right marketing
• The marketing mix is the specific collection
of actions & associated instruments
employed by an organisation to stimulate
acceptance of its ideas, products &
Total Offer to the Customer
• First, the firm chooses the product to meet
the identified need of the target segment
• Second, the right distribution channel is
used to make the product available
• Third, the firm undertakes eye catching
• Fourth, the price platform is acceptable to
the customer & firm
4Ps & 4Cs
Product- Customer /Consumer
Price- Customer cost
Place- Convenience
Promotion- Communication
4Ps & 4Cs
• Four Cs
• The Four Ps is also being replaced by the
Four Cs model, consisting of consumer,
cost, convenience, and communication.
• The Four Cs model is more consumeroriented and fits better in the movement
from mass marketing to niche marketing.
Product- Consumer
• The product part of the Four Ps model is
replaced by consumer or consumer
models, shifting the focus to satisfying the
Price- Cost
• Pricing is replaced by cost, reflecting the
reality of the total cost of ownership.
Place- Convenience
• Placement is replaced by the convenience
• With the rise of internet and hybrid models
of purchasing, place is no longer as
relevant as before.
• Convenience takes into account the ease
to buy a product, find a product, find
information about a product, and several
other considerations.
Promotion- Communication
• Finally, the promotions feature is replaced
by communication.
• Communications represents a broader
focus than simply promotions.
• Communications can include advertising,
public relations, personal selling, viral
advertising, and any form of
communication between the firm and the
Extended Marketing Mix
• There have been attempts to develop an
'extended marketing mix' to better
accommodate specific aspects of
• For example, in the 1970s, Nickels and
Jolson suggested the inclusion of
• In the 1980s Kotler proposed public
opinion and political power
Booms & Bithner
• Booms and Bitner included three additional 'Ps' to accommodate
trends towards a service or knowledge based economy:
• People – all people who directly or indirectly influence the perceived
value of the product or service, including knowledge workers,
employees, management and consumers.
• Process – procedures, mechanisms and flow of activities which
lead to an exchange of value.
• Physical evidence – the direct sensory experience of a product or
service that allows a customer to measure whether he or she has
received value. Examples might include the way a customer is
treated by a staff member, or the length of time a customer has to
wait, or a cover letter from an insurance company, or the
environment in which a product or service is delivered
Extended- Marketing Mix
Extended Marketing Mix
• Booms and Bitner included three
additional 'Ps' to accommodate trends
towards a service or knowledge based
• People
• Process
• Physical Evidence
Extended Marketing Mix
• People – all people who directly or
indirectly influence the perceived value of
the product or service, including
knowledge workers, employees,
management and consumers.
• Process – procedures, mechanisms and
flow of activities which lead to an
exchange of value.
Physical Evidence
• The direct sensory experience of a product or
service that allows a customer to measure
whether he has received value.
• Examples might include the way a customer is
treated by a staff member, or the length of time a
customer has to wait, or a cover letter from an
insurance company, or the environment in which
a product or service is delivered.
Physical Evidence
• Physical evidence is the material part of
a service.
• Strictly speaking there are no physical
attributes to a service, so a consumer
tends to rely on material cues.
Physical evidence
• There are many examples of physical
evidence, including some of the following:
• Packaging.
• Internet/web pages.
• Paperwork (such as invoices, tickets and
despatch notes).
• Brochures.
Physical Evidence
• Furnishings.
• Signage (such as those on aircraft and
• Uniforms.
• Business cards.
• The building itself (such as prestigious
offices or scenic headquarters).
7Ps & 7Cs
The 7 Ps
The 7 Cs
Organisation Facing
Customer Facing
Product =
Customer/ Consumer
Price =
Place =
Promotion =
People =
Processes =
Physical Evidence =
Fundamental Actions
• The term 'marketing mix' however, does
not imply that the 4P elements represent
• They are not trade-offs but are
fundamental marketing issues that always
need to be addressed.
• They are the fundamental actions that
marketing requires whether determined
explicitly or by default.
• Product:
• A product, service or idea is that which
satisfies the needs & wants of the
Product- (Learn)
• A tangible object or an intangible service
that is mass produced or manufactured on
a large scale with a specific volume of
• Intangible products are often 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 everpresent mass produced service is a
computer operating system.
• Cars
Cars- Reva
• Reva
Car- Maruti 800
• Maruti
Brand Name
Product Variety
• Even today, manufacturers of products which
are built to customer order, for example, cars,
aeroplanes and medical equipment, offer such a
large range of combinations of product features
that millions of variants of a single product are
• Commercially available software systems
support the automation of many aspects of the
engineering process; product databases enable
the description of single products and
engineering applications can use these product
descriptions to carry out their tasks.
Product Quality
• A product or process that is reliable, and that
performs its intended function is said to be a
quality product.
• Quality in business, has an interpretation as the
non-inferiority or superiority of something.
• Quality is a perceptual, conditional and
somewhat subjective attribute and may be
understood differently by different people.
• Consumers may focus on the specification
quality of a product/service, or how it compares
to competitors in the marketplace.
Product design
• Product design can be defined as the
idea generation, concept development,
testing and manufacturing or
implementation of a physical object or
Brand Name
• The brand name is often used interchangeably
within "brand", although it is more correctly used
to specifically denote written or spoken linguistic
elements of any product.
• In this context a "brand name" constitutes a type
of trademark, if the brand name exclusively
identifies the brand owner as the commercial
source of products or services
• Instruments that aim at satisfaction of the
prospective exchange party’s needs
• Examples: Product characteristics,
options, assortments, packaging,
guarantees, quality, features, style, brand
name, size & packaging, services,
warranties/guarantees, returns &
Titan introduces quartz watches
24 Hour banking & ATMs by banks
Tetra pack cartons for milk, juices
Indoor coolers
7 year warranty on refrigerators- Allwyn
Product & Packaging
• Consumer durable products
• Increase in mobile services in India
Product- Durable
• Washing machines
• Camera
• Latest Gadgets
New generation products
• Ipod, & walkman mobile
• Courier Aviation
• Despatch
Modern gadgets
• ipod
• 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.
• Physical distribution are activities involved
in transporting products from the producer
to the consumer:
• Mode of transport
• Warehousing & Storage
• Order processing
• Inventory control
• Channels of distribution are the routes
through which the ownership of goods flow
on its way from the producer to the
• Distributor
• Super-stockist
• Wholesalers
• Retailers
• Instruments that determine the intensity &
manner in which goods or services will be
made available
• Types of channels, density of distribution,
trade-relation mix, merchandising advise
Duty Free Stores - Airports
Hypermart-Store Signage's
Availability- Place
• Large Format stores
Large Format Stores
Shoppers Stop
Big Bazaar
Retail brands
• Stores
Nokia Store
• Global Players in India
• Markets
• Stores
Modern Grocery Store
Local stores
• Local kirana stores
• The price is the amount a customer pays
for the product.
• It is determined by a number of factors
including market share, competition,
material costs, product identity and the
customer's perceived value of the product.
• The business may increase or decrease
the price of product if other stores have
the same product.
List Price
Payment Period
Credit Terms
List Price
• In retail, price regularly quoted to
customers before applying discounts. List
prices are usually the prices printed on
dealer lists, invoices, price tags, catalogs,
or dealer purchase orders.
Price Lists
Discounts & Allowances
• Discounting is a financial mechanism in
which a debtor obtains the right to delay
payments to a creditor, for a defined
period of time, in exchange for a charge or
• Discounts and allowances are
reductions to a basic price of goods or
Payment Period & Credit Terms
• The stipulation by a business as to when it
should be paid for goods or services
supplied, for example, cash with order,
payment on delivery, or within a particular
number of days of the invoice date
• Bills
• Price is the amount a consumer pays in
exchange for the product or service.
• Marketers must consider the following in
setting prices:
• Target segment- How much the target
segment is willing to pay at different price
levels- price elasticity of demand
• Cost- How much it costs the firm to
produce & market the product
• Competition- Prices of competitors
• Society & Law- Within legal framework
Price elasticity of demand-1
• Elasticity is a measure of responsiveness.
Two words are important here.
• The word "measure" means that elasticity results
are reported as numbers, or elasticity
• The word "responsiveness" means that there is
a stimulus-reaction involved.
• Some change or stimulus causes people to react
by changing their behavior, and elasticity
measures the extent to which people react.
Price elasticity of demand-2
• The most common elasticity measurement is
that of price elasticity of demand.
• It measures how much consumers respond in
their buying decisions to a change in price.
• The basic formula used to determine price
elasticity is
• e= (percentage change in quantity) /
(percentage change in price).
(Read that as elasticity is the percentage
change in quantity divided by the percentage
change in price.)
• Marketers have to determine prices to
consumers & channel partners
• Prices across models & geographic
regions have to be established
• Policies on discounts have to be framed
• These decisions are vital to enhance sales
Innovative Discounts
Discount sales in shopping malls
Off season sales
Closing down sales
Festival sales
Credit points
Exchange offers – mobiles, cookers, cars
Festive Sales
• Christmas & Diwali Sales
Innovative discounts
• Discounts
End of season sale
Special Sales
• Sales
Gold Sale- Impact
• Festive season revives gold demand,
premiums steady
Report- Gold Sales
• Wednesday August 12, 01:40 PM Festive
season revives gold demand, premiums steady
• SINGAPORE/MUMBAI (Reuters) - Gold trading
picked up in India, the world's largest consumer,
as jewellers took advantage of a price drop to
replenish stocks during the festive season, while
premiums for kilobars were mostly steady in
Asia in the past week.
Discount Rush
• Promotion activities are meant to
communicate & persuade the target
market to buy the company’s products
• This is done by:-
Personal selling
Sales promotion- POS
Public Relations
Word of mouth – Viral advertising
• Promotion represents all of the communications
that a marketer may use in the marketplace.
• Promotion has five distinct elements –
advertising, personal selling, public relations,
word of mouth and point of sale.
• A certain amount of crossover occurs when
promotion uses the five principal elements
• Advertising covers any communication that is
paid for, from and cinema commercials, radio
and Internet adverts through print media and
• Above the line (ATL) is an advertising technique using
mass media to promote brands.
• Major above-the-line techniques include TV and radio
advertising, print advertising and internet banner ads.
• This type of communication is conventional in nature and
is considered impersonal to customers.
• The ATL strategy makes use of current traditional media:
television, newspapers, magazines, radio, outdoor, and
• It differs from BTL (Below the line), that believes in
unconventional brand-building strategies, such as direct
BTL- Below the line
• The terms "below the line" promotion or
communications, refers to forms of nonmedia communication, even non-media
• Below the line promotions are becoming
increasingly important within the
communications mix of many companies,
not only those involved in FMCG products,
but also for industrial products.
• What’s the difference between ‘Above the line’ and
‘below the line’ advertising?
• Below the line (BTL) is an advertising technique.
• It uses less conventional methods than the usual specific
channels of advertising to promote products, services,
etc. than ATL (Above the line) strategy.
• These may include activities such as direct mail, public
relations and sales promotion for which a fee is agreed
upon and charged up front.
Below the Line
• Below the line advertising typically focuses on direct
means of communication, most commonly direct mail
and e-mail, often using highly targeted lists of names to
maximize response rates
• The term "Below the Line" is rapidly going out of fashion
in advertising circles as agencies and clients switch to an
'Integrated Communication Approach.'
• BTL is a common technique used for touch and feel
products. Those consumer items where the customer will
rely on immediate information than previously
researched items.
• BTL techniques ensures recall of the brand while at the
same time highlighting the features of the product.
Integrated Communication
• Definition: A management concept that is
designed to make all aspects of marketing
communication such as advertising, sales
promotion, public relations, and direct
marketing work together as a unified force,
rather than permitting each to work in
Through the line-TTL
• Through the line" refers to an advertising strategy
involving both above and below the line communications
in which one form of advertising points the target to
another form of advertising thereby crossing the "line".
• An example would be a TV commercial that says 'come
into the store to sample XYZ product'.
• In this example, the TV commercial is a form of "above
the line" advertising and once in the store, the target
customer is presented with "below the line" promotional
material such as store banners, competition entry forms,
Personal selling
• Personal Selling: Face to face personal
communication- Eureka Forbes
• In person selling, tele-marketing
• Advertising- Mass communication efforts
through media
• Sales Promotion- Communication through
contests, OOH, trade shows, free samples,
yellow pages, call helplines
Personal Selling
• Personal Selling
Discount coupons
• Discount coupons
• Publicity- Communicating with an
audience by personal or non-personal
media that are not paid for delivering the
• Print media news, broadcast media newsUTI,PTI, Reuters, annual reports,
speeches by employees
• Signages
Known companies
• Recognizable companies
• Nokia
• Fly High
Same theme over the years
• Competition
Celebrity endorsement
• Using famous people to attract target
ICICI Bank- Print Ad
Brand Ambassador
Star Power
TV Channels
TV Channels
TV Channels
TV Channels
TV Channels
More than just news
• Entertaining information to add spice
First thing in the morning
Print Media
• Print- Newspapers & Magazines
Print Media
• Newspapers & Magazines
Read everywhere
• Omnipresent
Newspapers you could read
Economic Times
Business Standard
Hindu Businessline
Business News in
daily newspapers
• The Hindu
• Growing radio stations in India
Radio Stations
• Numerous- FM
Radio channels
• Meow targets at women
Bajaate Raho- Red FM
Radio on the internet
• On the internet
Videos can be uploaded
• Companies upload their corporate films
Sales Staff & PR
• Sales staff often plays an important role in
word of mouth and Public Relations
Public Relations
• 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
Press Release
• Press Release
Public Relations
• Press Conferences
Media Entertainment
PR Material
• Press kit to be given to press with all info.
Press Conference
• Spokesperson of the company talks to the
Client Meetings
• Word of mouth publicity
Word of mouth publicity
• Word of mouth is a reference to the
passing of information from person to
person. Originally the term referred
specifically to oral communication but
now includes any type of human
communication, such as face to face,
telephone, email, and text messaging
Word of mouth publicity
• Salespersons
Word of mouth publicity
• At meetings
• Responding to competitor activity &
• You may have seen similar activity in cola
ad wars
Reports in media
• Cola war shifts to a new turf
• The famous cola wars have found a new
battleground — the Indian fields.
• The world’s largest beverage company CocaCola, like its rival PepsiCo, is finalising plans for
sourcing fruit from India for its juice brands.
• Cola vans act as OOH
• Pepsi van
• Cola signages
Vending Machines
• Vending machine- Note both brands
Recognizable logos
• Coke vs Pepsi
Sales Promotion
• Yeh Dil Maange More!!!
Point of Sales
• Point of sales (POS) or checkout refers to both a
checkout counter in a shop, and the location where a
transaction occurs
POS Display
Cola Ads-Promotion
• Cola drinks- Thums Up, Coca Cola
Vodafone vs Airtel
Telecom Ad- Messages
• Airtel- Now Airtel removes distances
across India.
• Vodafone- Happy to Help
• Spice- Faltoo callers ki No Entry
Vodafone vs Airtel Ads
• Celebrity endorsement
Reliance Telecom
• Reliance
Reliance Mobile- Hritik
Reliance Mobile
• Hritik Roshan
What an idea, Sirji
• Walk when you talk
OOH- Idea Cellular
Idea Cellular
• IDEA’s ad campaigns based on the theme
of ‘Democracy’; ‘Championing a world
without caste’; ‘Championing a world in
which no one suffers from the disability to
communicate’; and ‘Education for All’,
have been a huge success amongst all
categories of audience.
Effectiveness of Campaign
• The testimony of the success of the
campaign is reflected from the rapid
growth of IDEA’s subscriber base in the
• The Aditya Birla Group company has
grown to become the 3rd largest private
GSM operator with over 43 million
subscribers across 16 service areas,
Bus shelters
• Same message across all media
• Hoarding/Billboard
• Signages & Gates
Brands using OOH
• Amul
Mobile truck- OOH
• Outdoor trucks with billboard
Trade Shows & Events
• Trade Shows
• Events
Wall paintings- Shutters
Airline Ad Wars
• Marketers should be ready to face
communication challenges
• Jet Airways- We’ve Changed
• Kingfisher- We made them change
• Go Air- We’ve not changed; we are still the
smartest way to fly
Ad wars
• In Mumbai- Same
location on Nariman
Viral Marketing- Word of mouth
• Viral marketing depends on a high passalong rate from person to person.
• If a large percentage of recipients forward
something to a large number of friends,
the overall growth snowballs very quickly.
• If the pass-along numbers get too low, the
overall growth quickly fizzles.
Viral Marketing
• Word of mouth
Word of Mouth Publicity
On the internet
• On the Internet, viral marketing is any
marketing technique that induces Web
sites or users to pass on a marketing
message to other sites or users, creating a
potentially exponential growth in the
message's visibility and effect.
Hotmail- Excellent Viral Marketing
• Hotmail--One example of successful viral
marketing is Hotmail, a company, now
owned by Microsoft, that promotes its
service and its own advertisers' messages
in every user's e-mail notes.
Hotmail- Viral Marketing
• In 1996, Hotmail was a particularly unique email service
in that it was free, could be accessed anywhere, and
would allow the user to have multiple accounts.
• One of the interesting things Hotmail did was it would
attach the message "Get your free email at Hotmail" at
the bottom of every email sent by a Hotmail user.
• Once the receiving user clicked on the word "Hotmail"
they were taken to Hotmail's homepage where the free
email service was further explained.
• The plan, original at the time, worked. By 1998, Hotmail
had accumulated 12 million subscribers. Hotmail
eventually sold to Microsoft for a cool $400 million.
Cadbury’s in UK
• Cadbury's Dairy Milk 2007 Gorilla
advertising campaign was heavily
popularised on YouTube and Facebook.
• Gorilla is a British advertising campaign launched by
Cadbury Schweppes in 2007 to promote Cadbury Dairy
Milk-brand chocolate. The 90-second television and
cinema advertisement, which formed the centrepiece of
the £6.2 million campaign, was created and directed by
Juan Cabral and starred actor Garon Michael. The
campaign itself, which comprised appearances on
billboards, print newspapers and magazines, television
and cinema spots, event sponsorships and an internet
presence, was handled by advertising agency Fallon
London, with the online segment contracted out to
Gorilla Ad Campaign
• Gorilla Campaign
Definition- Viral Marketing
• The buzzwords viral marketing and viral advertising
refer to marketing techniques that use pre-existing social
networks to produce increases in brand awareness or to
achieve other marketing objectives (such as product
sales) through self-replicating viral processes, analogous
to the spread of pathological and computer viruses.
• It can be word-of-mouth delivered or enhanced by the
network effects of the Internet.
• Viral promotions may take the form of video clips,
interactive Flash games, advergames, ebooks,
brandable software, images, or even text messages.
• The basic form of viral marketing is not infinitely
Going Viral
Helpful & Unique
Amazing &
• Schematic
Word of Mouth
• Word of Mouth
Viral Marketing- Internet
• Social Networking sites
Close to 35 million internet users in
• According to Internet market research firm
comScore Inc. India had 34.6 million Internet
users (who access the Web from their
homes/offices) in June, of which at least 65%, or
22.61 million, accessed social networking sites.
• These figures have meant that people have kept
launching new social sites in India fuelled by the
hype but success is still far for them.
• T-Shirts with company & Logo message
Inflated Balloons
Scooter covers