Extended Marketing Mix

The mearketing mix explained, including the additional Service Mix elements

1. The Extended Marketing Mix

2. Objectives of this session:
•What is the ‘Marketing Mix’?
•What is the difference between the
traditional 4 Ps and the ‘Service Mix’?
•What are the range of decisions to be
made for each of the marketing Ps?
•What is meant by an integrated or co-
ordinated marketing mix?

3. Product Price
PlacePromotion
Marketing Mix: The Four Ps
• The Four Ps are controllable variables
• Should be tailored to needs of defined Target Group
• All four Ps are linked and should support each other

4. Four P’s: The Product
Product Decisions
Branding Quality Features
• Customer Value = the ‘bundle of benefits’ delivered to the customer
• Need to change benefits as customers’ needs change
Benefits offered

5. The Four Ps: Pricing
Pricing Strategies
Penetration
Skimming
Competition
Product Line
Bundle
Psychological
• Only ‘Price’ generates income
• Price must support costs of all other Ps
• Price also must reflect the relationship of supply
and demand within the marketplace
• Price = Cost the customer is prepared to pay

6. The Four Ps: Promotion
Promotional Mix
Advertising
Public
Relations
Sales
Promotion
Personal
Selling
Direct
Marketing
Internet/
E-commerce
• The task of Promotion is to target customers
and Communicate with them
• An integrated mix of promotional techniques
should reach customers by all available
channels

7. The Four Ps: Place
Manufacturer
Consumer
Manufacturer
Retailer
Consumer
Direct Distribution Indirect Distribution
• The task of Place is deliver the Product to the
customer at the right Price
• There are many options of channel design
• Channel design should take into account Cost and
Convenience for the customer
Manufacturer
Franchisee
Consumer

8. Marketing Mix: The Service Ps
• Product
• Price
• Place
• Promotion
• People
• Physical Evidence
• Processes

9. People Decisions
The Service Ps: People
Service & Quality
Relationship
Marketing
Marketing
Training
Internal
Marketing
• The most cost-effective means of differentiating
yourself from the competition is the degree of
customer focus, competence and efficiency of the
People the organisation employs
• Customers experience this as the degree of Care
and Concern they receive from the organisation

10. The Service Ps: Processes
Process
Decisions
Enquiry / Info
Search
Point of
Purchase
Delivery
After Sales
• All Processes are concerned with
the consistent creation and delivery
of Customer Value
• The Customer’s experience is
affected directly at those points at
which s/he interacts with the
Organisation
• Processes should be continuously
reviewed and co-ordinated to
improve the customer experience
and demonstrate Customer
Consideration

11. The Service Ps: Physical Evidence
Physical
Evidence
Evidence of
Ownership
Environment
of PoP
Product
Design
Packaging
Corporate
Identity
• Provides Physical Evidence of
delivered Quality
• Should be consistent through
entire customer experience
• Especially important where
customer is purchasing an
intangible (service)
• Provides Confirmation of
Customers’ expectations

12. In Conclusion
The 7 Ps The 7 Cs
< Organisation Facing Customer Facing >
Product=Customer Value
Price=Cost
Place=Convenience
Promotion=Communication
People=Caring
Processes=Co-ordinated
Physical Evidence=Confirmation