Marketing Mix
(4Ps)

Generating the optimal response in the market. Explanation of Marketing Mix of E. Jerome McCarthy.



  

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What is the Marketing Mix? Description

The Marketing Mix model (also known as the 4 P's) can be used by marketers as a tool to assist in defining the marketing strategy. Marketing managers use this method to attempt to generate the optimal response in the target market by blending 4 (or 5, or 7) variables in an optimal way. It is important to understand that the Marketing Mix principles are controllable variables. The Marketing Mix can be adjusted on a frequent basis to meet the changing needs of the target group and the other dynamics of the marketing environment.

 

Product

 Historically, the thinking was: a good product will sell itself. However there are no bad products anymore in today's highly competitive markets. Plus there are many laws giving customers the right to send back products that he perceives as bad. Therefore the question on product has become: does the organization create what its intended customers want? Define the characteristics of your product or service that meets the needs of your customers. Functionality; Quality; Appearance; Packaging; Brand; Service; Support; Warranty.
Price How much are the intended customers willing to pay? Here we decide on a pricing strategy - do not let it just happen! Even if you decide not to ask (enough) money for a product or service, you must realize that this is a conscious decision and forms part of the pricing strategy. Although competing on price is as old as mankind, the consumer is often still sensitive for price discounts and special offers. Price has also an irrational side: something that is expensive must be good. Permanently competing on price is for many companies not a very sensible approach. List Price; Discounts; Financing; Leasing Options; Allowances.
Place Available at the right place, at the right time, in the right quantities? Some of the recent major changes in business have come about by changing Place. Think of the Internet and mobile telephones. Locations; Logistics; Channel members; Channel Motivation; Market Coverage; Service Levels; Internet; Mobile.
Promotion (How) are the chosen target groups informed or educated about the organization and its products? This includes all the weapons in the marketing armory - advertising, selling, sales promotions, Direct Marketing, Public Relations, etc. While the other three P's have lost much of their meanings in today's markets, Promotion has become the most important P to focus on. Advertising; Public Relations; Message; Direct Sales; Sales; Media; Budget.

 

The function of the Marketing Mix is to help develop a package (mix) that will not only satisfy the needs of the customers within the target markets, but simultaneously to maximize the performance of the organization. There have been many attempts to increase the number of P's from 4 to 5P's in the Marketing Mix model. The most frequently mentioned one being People or Personnel. Booms and Bitner have suggested a 7-Ps approach for services-oriented companies.

 

Book: Nirmalya Kumar - Marketing As Strategy: Understanding the CEO's Agenda.. -

Book: David A. Aaker - Strategic Marketing Management -

 

Marketing Mix Special Interest Group


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Marketing Mix Forum

Recent User Comments
 - UK Marketing Mix Alternatives "Are there any credible alternatives to the marketing mix?"    1
Saroj K. Dash - India Marketing Mix for Business Planning "Define the service, develop a benefit list, focus on what makes the business different from the competition, develop the positioning of the service provided, calculate financial benefits for the advantages and develop them as solutions to the customers' issues."    3
Rob Hoekstra - Netherlands 4P + I "The four P`s needs an additional I for Image. This is especially relevant for high-involvement products."    3
Dheeraj - India Examples of Marketing Mix "I would like to see an example of the 4 ps of marketing with an example of air condition?"    4
Lucas - Netherlands Alternate 4 C's "I've got a new set of c's for u, where you probably want to think about.
1: charm
2: corruption
3: collaboration
4: chantage (blackmailing)
Even though most companies are doing legal business, most do use one of above activities as well."		    2
Best User Comments
Thitiwut Sri - Thailand Before using the Marketing Mix "Most marketers emphasize the marketing mix. In my opinion, The most important part of the marketing plan is knowing what are the customer requirements. Firstly, you must drill down to your target's behavior before analyzing the appropriate marketing mix. Your product or service may be suitable for selling to a niche market not for the mass market."    53
Aung Chit Khin - Myanmar the 7Ps Mix "Most of today's products are not purely physical. We are also offering intangible values like brand feelings and after-sale services in additional to the physical benefits. So, I think, only the 7Ps mix is complete for both products and services."    28
Editor - NL Quotes on Marketing Mix "Do you know some deep, famous or funny Quotes on the Marketing Mix? Quotations? Proverbs? Please share them as a reaction to this posting and mention the author. To get started, here's my favorite: 'Half the money I spend on advertising is wasted, and the problem is I do not know which half.' - Lord Leverhulme 1851-1925, British industrialist and philantropist"    23
Nhi - Viet Nam 4P + C "My teacher said that Marketing is the 4Ps plus a C (Customers). And he didn't explain it, so I really don't understand it too much. Can you help me explain it? Thanks."    12
FormulaOne - Canada The 5th P "As all things tend to evolve, the gap in this theory is failing to recognize the other key element in Marketing .......... People. The 5th P reflects demographics and the dynamics that occur when the other 4 P's are established and how people's behaviour and propensity to buy are influenced. Sales and Consumption can only be achieved through People responding and transacting which is where the 5th Element emerges."    12
obed gbamire - ghana Dissemination "The 4ps have played an important role in the dissemination of products."    9
Wouter - Netherlands 4S Web Marketing Mix "Constantinides constructed a 4S Internet Marketing Mix. The 4S's stand for Site, Synergy, Scope and System. For example, Place is not suited for the Internet, since a webshop is not the same as a fysical store. You find it via a link in the Compare to section below."    9
Mahesh Bhaskar - India Use Customer Perspective. 4 C's "The concept of 4p's is mainly dependent on the delivering value to customers' profitably, so for fulfilling above objective the company should think from buyers' point of view rather than seller's. So marketing strategies should be formed by making study and analysis of the 4 C's. i.e. Consumer needs, Cost to satisfy, Convenience to buy and Communication."    8
Aung Chit Khin - Myanmar Customers' Value Bundle "I think I saw the term(s) in P. Kotler's book. the word "Product" makes your thinking centered around the physical product only. So, i prefer using "market offering" or "Customers' value bundle". Sure, it's a mouthful. But, those terms make you think of th 7 Ps and customers simultaneously and integratively."    8
Dan - US 4Ps renamed: the SIVA model "An interesting customer-focused variant of the 4Ps was suggested by Chekitan S. Dev and Don E. Schultz in Marketing Management v.14 n.1 January/February 2005. Their approach is known as the SIVA model (Product > Solution, Promotion > Information, Price > Value, Place > Access)."    8
Anshu - India Impact of Marketing Environment "What is the impact of the marketing environment on marketing strategies?"    6
Sabhi - Pakistan Total Marketing Mix "The total marketing mix includes 4Ps, 4Cs,4As and 4Os:
4Ps: Product, Price, Promotion and Place
4Cs: Customer needs, Cost to user, Communication, Convenience
4As: Acceptability, Affordability, Awareness, Accessibility
4Os: Object, Organization, Objectives, Order."		    6
Mou - Kolkata Why Marketing Mix? "What is the significance of an effective marketing mix?"    6
Mac - Uganda C4Ps - Culture in Marketing Mix "All I can say about Marketing Mix is that may be also the Culture is also important. Maybe we could have called it c4pcs, believe me before analysing the product you must take note of the culture by analysing whether the people will like the products etc."    5
Nk - Nigeria Customer in Center of 4Ps "Why is the customer placed in the center of the 4ps?"    4
rehab - Egypt The five V's for Marketing Mix "Value, Viability, Volume, Variety, Virtue,"    3
Gene Lieb - USA 4Ps are Not Options "The concept of a Marketing Mix implies that these are not options. In practice the 4Ps represent the key questions or issues that need to always be addressed in Marketing. There is no trade-off among them. They are each a key action issues. There are a number of other issues such as the participants referred to as the 4Cs and the marketing concepts which would include segments, offerings, brands, position and value which are used to formulate strategy and development the actions. But the 4Ps remain as the underlying key issues that need to be addressed."    3
Nuri Marghani - Libya 3P's are all important . But Product is Longterm Success "A good quality product will always be the most important for a brand to succeed, and will survive longer in the market. The other 3P's come second."    1
 - China Difference between Theory and Practice "Despite all the marketers know the 4PS or 4CS, actually most of them don't execute according these theory due to a lots of practical problems. We just try our best to make good decisions and to do the right things."    -5
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Marketing Mix Education & Events


 

Compare with the 4-Ps: Extended Marketing Mix (7-Ps)  |  4S Web Marketing Mix  |  3C's  |  Product/Market Grid  |  SERVQUAL  |  Competitive Advantage framework  |  BCG Matrix  |  Bass Diffusion Model  |  Positioning  |  Co-Creation  |  Disruptive Innovation  |  Relationship Marketing

 

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Copyright 2009 12manage - The Executive Fast Track. V10.4 - Last updated: 11/21/2009. All names tm by their owners.





  ● Crazy Horse (India) Dutch Cynic "What a cynical view of big business you have Lucas. Go smoke some more weed and share your anti-globalization socialism some other place."

  ● S K "Bal" Palekar (India) Positioning comes before the Mix "Marketing Mix is a mere format. The content to fill the format comes from Positioning which in turn depends not only what the customers want but also on what your competition is doing"
  ● Thitiwut Srimanop (Thailand) Customer requirement come first "How do you know what you are going to do if you don't know the customer requirement. you can't produce any products or make anything about the marketing. Including how to compete with the competitor. The bottom line of doing business is profit that came from selling and the customer bought it."
  ●  (USA) Positioning Influences Marketing Mix "It has been my experience the positioning of the product influences the Marketing Mix as well. For instance, if you are the technology leader, you strive for healthy margins to invest into R&D. If you are low cost leader, you won't sell through direct sales because the costs/margins will be too high, you'll probably use a distributor. Remember though, you must evaluate where you are in the product life cycle to match your position with the 4 P's. It's a dynamic world."

  ● Fawas (Sri Lanka) Extended Marketing Mix "Yes, also called Extended Marketing Mix. See also the text and the link in "Compare also:" below."


  ● Sandra Maughon (USA) Marketing - 4Ps plus Customer "The four Ps (product, price, place, and promotion) are (or should be) all determined and planned from the company's vision and mission. Underlying it all, though, must be a fundamental understanding of who your customer is and how do you reach them. You are not likely to sell baby diapers on a regular basis to someone who does not have babies no matter how great the diapers are, no matter how cheap they are, no matter how many places you sell them, nor how many clever advertising methods you use.
Likewise, you have to understand your customer to determine what kinds of products you make, how you price them, where you sell them, and what kind of advertising you will use.
I know those are very simplistic examples, but I hope they help to explain the concept. "
  ● Amir (Israel) 4Ps+C "It means that even though you must look at all 4 Ps, without the customer's basic needs, or without his existence for that matter, the initial 4ps wouldn't amount to anything. The customer must exist for the market to be allowed."

  ● GuyFeng (China) 4P "Attitude to clients or service: Professional, Prompt, Patient, Preconsidering!!"
  ● Thijs (Netherlands) more P's "Presentation Psychical Distribution"
  ● WHW (Singapore) 4Ps "People? Yes the modified 7Ps already include People as well as Process and Physical Layout"
  ● Alvin Chua (Malaysia) secret Ps'.. "Ps''s Ps' that is think out the Ps' secret..!"

  ● Mizba (Pakistan) 4 p's "Thats true! We should focus on 4 p's in order to improve the quality of our product."
  ● Emoruwa Monday Sola (Nigeria) 7ps "Because of the dynamism of product - most of which are intangible these days - I believe the 7ps mix must always be considered for sales of products and services."


  ●  (Iran) 4Cs or 4 Ps "I think the 4C's are more important than the 4P's. This name cause customers feel more satisfaction."

  ● andreea (Romania) appealing "i want to read it"
  ● Jim (Pakistan) Marketing Business Mix ":O well I think this site is amazing I truly do..."

  ● Sachin Jaiswal (India) SIVA Concept "Hi I need some more explanation about the SIVA concept... Thanks"


  ●  (India) Marketing Mix Can not Be Exhaustive........ "Marketing is an ever evolving process much beyond only 4 Ps because it is highly dynamic and matching the changing forces in the internal and external environment. We need to continously address all other Ps - people - performance - projects and products."

  ● Charity (South Africa) My view "I think the Marketing Mix is very crucial so as to equally accommodate both the needs of the producer and the consumer."
  ●  (Iran) Marketing Mix is Important "In my opinion, the marketing mix is the most important part of decision for every company that wants to act in the market more effective and more efficient. The appropriate 4p's can create competitive position for enterprises. If the enterprises ( both commercial and services type) are keen to stand in the bright and shining position of the market, they must design, formulate and implement such a good and comprehensive marketing strategies for 4p's."


  ● Phan Viet Dung (Vietnam) Customer in the Center "Customers - or target customers or target market - should be placed in the center of the 4Ps marketing mix to show that all your 4Ps strategies and tactics planned for this particular target market must be aimed at satisfying thls target market's (customers') needs and wants."