Lec-2 Elements of marketing mix , its nature and scope.pptx

elements of marketing mix

1. Elements of Marketing MIX

2. 2 The 4 Ps & 4Cs Marketing Mix Product Price Promotion Place Customer Solution Customer Cost Communication Convenience

3. 4 A’s of Marketing Acceptability Acceptability is the extent to which a firm’s total product offering Exceeds customer expectations. The authors assert that Acceptability is the dominant component in the framework and that design, in turn, is at the root of acceptability. Functional aspects of design can be boosted by, for instance, enhancing the core benefit or increasing reliability of the product; psychological acceptability can be improved with changes to brand image, packing and design, and positioning. Affordability Affordability is the extent to which customers in the target market are able and willing to pay the product’s price. It has two dimensions: Economic (ability to pay) and psychological (willingness to pay). Acceptability combined with affordability determines the product’s value proposition. When Peachtree Software lowered the price of its accounting software from $5000 to $199 and started charging for customer support, sales demand increased enormously.

4. 4 A’s of Marketing Accessibility Accessibility, the extent to which customers are able to readily acquire the product, has two dimensions: availability and convenience. Successful companies develop innovative ways to deliver both, as online shoe retailer Zappos does with excellent customer service and return policies and its tracking of up-to-the-minute information about warehouse stock, brands, and styles. Awareness Awareness is the extent to which customers are informed regarding the product’s characteristics, persuaded to try it, and reminded to repurchase. It has two dimensions: brand awareness and product knowledge. Sheth and Sisodia say awareness is ripest for improvement because most companies are either ineffectual or inefficient at developing it. For instance, properly done advertising can be incredibly powerful, but word-of-mouth marketing and co-marketing can more effectively reach potential customers.

5. Marketing is the process of Identifying customer needs Conceptualizing those needs in terms of an organization’s capacity to produce. Communicating that conceptualization to the appropriate laws of power in the organization, Conceptualizing the consequent output in terms of the customer needs earliest identified, and Communicating that conceptualization to the customer.

6. Good Marketing is No Accident The roaring success of four-wheeler Tata Ace, in a market earlier dominated by three-wheeler load carriers, was due to a deep understanding of the market needs and customer requirements.

7. NATURE OF MARKETING Exchange is the essence of marketing. Marketing is customer/ consumer oriented. Marketing starts and ends with customers/ consumers. Modern marketing precedes and succeeds production. Marketing is goal oriented and the goal being profit maximization through satisfaction of human needs. Marketing is a science as well as an art. Marketing is the guiding element of business (It tells what, when, how to produce; Marketing is capable of guiding and controlling business. Marketing is a system . Marketing is a process, i.e., series of interrelated functions.

8. Marketing has a very wide scope it covers all the activities from conception of ideas to realization of profits. Some of them as discussed as below: Study of Consumer Wants and Needs: Goods are produced to satisfy consumer wants. Therefore study is done to identify consumer needs and wants. These needs and wants motivates consumer to purchase. Study of Consumer behaviour: Marketers performs study of consumer behaviour. Analysis of buyer behaviour helps marketer in market segmentation and targeting. Product Planning and development :  It includes the activities of product research, marketing research, market segmentation, product development, determination of the attributes, quantity and quality of the products. Branding:  Branding of products is adopted by many reputed enterprises to make their products popular among their customer and for many other benefits. Marketing manager has to take decision regarding the branding policy, procedures and implementation programs. Packaging : Packaging is to provide a container or wrapper to the product for safety, attraction and ease of use and transportation of the product. Scope of Marketing

9. Scope of Marketing Channels of Distribution:  Decision regarding selection of most appropriate channel of distribution like wholesaling, distribution and retailing is taken by the marketing manager and sales manager. Pricing Policies: Marketer has to determine pricing policies for their products. Pricing policies differs form product to product. It depends on the level of competition, product life cycle, marketing goals and objectives, etc. Sales Management:  Selling is a part of marketing. Marketing is concerned about all the selling activities like customer identification, finding customer needs, persuading customer to buy products, customer service, etc. Promotion: Promotion includes personal selling, sales promotion, and advertising. Right promotion mix is crucial in accomplishment of marketing goals. Finance:  Marketing is also concerned about the finance, as for every marketing activity be it packaging, advertising, sales force budget is fixed and all the activities have to be completed with in the limit of that budget. After Sales services:  Marketing covers after sales services given to customers, maintaining good relationships with customers, attending their queries and solving their problems.