Transcript Topic 7 Marketing Mixx

The Marketing Mix
NMIT
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Understand the marketing mix model as an
integrative, operational tool for marketing
decision making
Review the classic 4P’s marketing mix
model which dates from the early 1960’s
and which is suited to product intensive
marketing
Review the extended marketing mix
(1990’s) with 7P’s which takes account of
service intensive marketing
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 It
is a set of CONTROLLABLE
marketing variables that an
organisation blends (“MIXES”)
together to create a marketing
programme for a SPECIFIC
TARGET MARKET.
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Probably the most famous phrase in
marketing
The elements of the marketing mix are the
marketing tactics
They are a tactical tool kit aimed at producing
results in the short/medium term.
Also known as the 4P’s; the marketing mix
elements are Product, Price, Place &
Promotion
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Brand name
Functionality
Styling
Quality
Safety
Packaging
Repairs and support
Warranty
Accessories and services
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Pricing Strategy (Skim, Penetrate etc)
Suggested Retail Price
Volume discounts and wholesale pricing
Cash and early payment discounts
Seasonal pricing
Bundling
Price flexibility
Price discrimination
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Promotional Strategy (push, pull, etc)
Advertising
Personal selling & sales force
Sales promotions
Public Relations & publicity
Marketing communications budget
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Distribution channels
Market coverage (inclusive, selective, or exclusive
distribution
Specific channel members
Inventory management
Warehousing
Distribution centres
Order processing
Transportation
Reverse logistics
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 The
marketing mix framework
was particularly useful in the
early days when physical
products represented a larger
portion of the economy.
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 Today,
with the marketing
more integrated into
organisation & with a wider
variety of products and a huge
number of services on offer
the mix has been extended.
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In the 1990’s an extension to the marketing
mix was presented and it is now the
recognised and recommended approach.
This is because the extension takes into
account the changed nature of business
some 40 years on from the original
marketing mix.
Added are Process, People & Physical
Evidence
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Employees
Customers
Co-customers
Recruitment, selection, training &
development
Motivation & morale
Conditions of service
Enterprise culture & values
(The reality branding mix)
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Flow of activities
Number of steps
Information technology
Operations management
Level of customer involvement
Standardised versus customised
Responsiveness
(The “Getting Things Done Right” Mix)
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Facility Design
Employee presentation
Service “cues”
Colour, light, noise, temperature
Housekeeping
Vehicles & equipment
“Atmosphere and ambiance”
(The “Reassuring Tangibles” Mix)
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