Marketing Mix / 7 P's of marketing / Meaning of marketing mix

Marketing Mix / 7 P's of Marketing

1. Marketing Mix The term Marketing Mix was originally developed by Neil Borden in the year 1949. It was E. Jerome McCarthy who gave the  4Ps of the Marketing Mix . After the  emergence of the service economy , the 4Ps were promoted to  7Ps of Marketing Mix . People normally refer to them as the  Service Marketing Mix . With years, theories become old and people develop newer frameworks. But the Marketing Mix has been in the market for almost 70 years now. And still the young marketers, even today, are taught this as the alphabets of marketing..

2. Marketing Mix According to Philip Kotler “Marketing Mix is the set of controllable variables that the firm can use to influence the buyer’s response”. The controllable variables in this context refer to the 7 ‘P’s [product, price, place (distribution) and promotion]. Each firm strives to build up such a composition of 7‘P’s, which can create highest level of consumer satisfaction and at the same time meet its organizational objectives. Thus, this mix is assembled keeping in mind the needs of target customers, and it varies from one organization to another depending upon its available resources and marketing objectives. Let us now have a brief idea about the seven components of marketing mix .

3. 1. Product Products are commodities and services that solve problems and satisfy the needs of consumers. A product can be tangible, such as a vehicle or a piece of clothing, or intangible, such as a cruise or house cleaning service. A successful product either fills a void in the marketplace or offers a unique experience that spikes demand. Thus, the term product refers to goods and services offered by the organization for sale.

4. Product The following are some questions to answer before developing a product: What is the product? Is it a specific product or a service? What does the product accomplish? Does the product fulfill a need or provide a unique experience? Who are the target customers for the product? What differentiates the product from the competition?

5. Kotler proposed five different levels of a product 1. Core Level Products: These are the basic products that a customer needs in order to satisfy their need or want. Example : A customer may need a car to get from point A to point B. The core product of a car is transportation. 2. Generic Level Products: These are products that are similar to other products in the market. Example, a generic car is a car that is like all other cars on the market. It has four wheels, an engine, etc . 3. Expected Level Products: These are products that meet the customer’s expectations. Example, a customer may expect a car to have a certain level of safety, reliability, and comfort. 4. Augmented Level Products: These are products that exceed the customer’s expectations. Example, a customer may not expect a car to have GPS, heated seats, or a sunroof. 5. Potential Level Products: These are products that the customer has not even thought of yet. Example, a customer may not even know that cars can have GPS, heated seats, or a sunroof .

6. Real-Life Examples of Kotler’s Five Product Levels Model Apple iPhone Core Level Product:  A phone that makes calls, sends texts, and takes pictures. Generic Level Products:  A smartphone that has a touch screen, app store, and internet capabilities. Expected Level Products:  A smartphone that is sleek, easy to use, and has an excellent camera. Augmented Level Products:  A smartphone that has a fingerprint reader, facial recognition, and augmented reality features. Potential Level Products:  A smartphone that can be used as a virtual reality headset, a payment device, and a health tracker. ( The potential product includes all augmentations and improvements the product might experience in the future. This means that to continue to surprise and delight customers the product must be constantly improved)

7. Classification of products Consumer products : bought by final consumers for consumption. Convenience products : consumer’s products and services / frequency is high / with minimum comparison and buying high efforts Sub types : Staple products , Impulse products , Emergency products, Home delivery Products etc. 2. Shopping Products : Pre planning / less frequently purchased consumer products / Compared carefully on sustainability , price ,quality , style etc. Sub types : fashion products : appearance , distinctiveness , style Service Products : durability / requires repair n other services .

8. Classification of products 3. Speciality products : Consumer products & services with unique characteristics & brand identification / buyers willing to make special efforts . Example : Mercedes car / high priced watch etc . 4. Unsought Products : Consumer does not know about or does not think of buying. Example : life insurance policy

9. Classification of products Industrial Products : For further production. Material & Parts : Industrial products that enter manufacturers products completely Sub types : Raw material 2. Capital items : aid in buyers operations Sub types : Accessory equipment , Installations 3. Supplies & services : Supplies & business service ( house keeping , annual maintenance contract )

10. 1. Product Product refers to the goods and services offered by the organization. In simple words, product can be described as a bundle of benefits which a marketer offers to the consumer for a price. The term product refers to goods and services offered by the organization for sale.

11. 2. Price Price is the amount charged for a product or service. It is the second most important element in the marketing mix. Fixing the price of the product is a tricky job. Depends on factors like demand for a product , cost involved , consumer’s ability to pay , prices charged by competitors for similar products , government restrictions etc. In fact, pricing is a very crucial decision area as it has its effect on demand for the product and also on the profitability of the firm.

12. 3. Place Product must be made available to the consumers at a place where they can conveniently make purchase. This involves a chain of individuals and institutions like distributors , wholesalers and retailers who constitute firm’s distribution network (also called a channel of distribution ). The organization has to decide whether to sell directly to the retailer or through the distributors/wholesaler etc. It can even plan to sell it directly to consumers.

13. 4. Promotion Promotion is an important ingredient of marketing mix as it refers to a process of informing, persuading and influencing a consumer to make choice of the product to be bought. Promotion is done through means of personal selling, advertising, publicity and sales promotion. It is done mainly with a view to provide information to prospective consumers about the availability, characteristics and uses of a product. It arouses potential consumer’s interest in the product, compare it with competitors’ product and make his choice. The proliferation of print and electronic media has immensely helped the process of promotion.

14. 5. People The reputation of your brand rests in your people’s hands. It is essential to ensure that all employees who have contact with customers are not only properly trained but also the right kind of people for the job. Many customers cannot separate the product or service from the staff member who provides it. This shows the importance of your people. The level of after sale support and advice provided by a business is one way of adding value to what you offer, and can give you an important edge over your competitors. This will probable become more important than price for many customers once they start to use your product.

15. 6. Process The process of giving a service is a crucial to customer satisfaction. Process is one of the “P’s” that is frequently overlooked . Issues such as waiting times, the information given to customers and the helpfulness of staff are all vital to keep customers happy. A customer trying to reach your company by phone is a vital source of income and returning value ; but so often customers have to stay on hold for several minutes listening to a recorded message before they are able to get though. Many of these customers will hang up, go elsewhere and tell their friends not to use your company.

16. 7. Physical evidence A service can’t be experienced before it is delivered . This means that choosing to use a service can be perceived as a risky business because you are buying something intangible. This is uncertainly can be reduced by helping potential customers to “see” what they are buying. Cases studies and testimonials can provide evidence that an organization keeps its promises . Facilities such as a clean, tidy and well-decorated reception area can also help to reassure. The physical evidence demonstrated by an organization must confirm the assumptions of the customer – a financial services product will need to be delivered in a formal setting, while a child’s birthday entertainment company should adopt a more relaxed approach.