Marketing Mix. (Chapter 3) ( 3 rd Semester ). Meaning of Marketing Mix. Marketing mix is the policy framework adopted by marketeer to get success in the field of marketing. It refers to the amounts and kinds of marketing variables, the firm is using at a particular time.
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Marketing Mix (Chapter 3) ( 3rd Semester )
Meaning of Marketing Mix Marketing mix is the policy framework adopted by marketeer to get success in the field of marketing. It refers to the amounts and kinds of marketing variables, the firm is using at a particular time. Under marketing mix, we include: Product Mix, Promotion Mix, Promotion Mix, Distribution Mix, Process Mix, Place Mix, People Mix. A customer-oriented firm perform number of functions to satisfy customers needs. The effective coordination of these functions is often called as “Marketing Mix”.
Historical Development of Marketing Mix The term ‘Marketing Mix’ was first use and popularized by Prof. Neil H. Borden of Harvard Business School, London. Prof. James Culliton, an American marketing expert in 1948 described the marketing manager as a ‘decider’ or a ‘Mixer of Ingredients’. According to Philip Kotler, the marketing mix in the form of 4 P’s explain the seller’s view of the market ad not the buyers’s view.
Nature of Marketing Mix Marketing Mix denotes a combination of various elements which in their totality constitute firm’s ‘marketing system’. The nature of marketing mix concept should be clear from the following explanation: • Product Mix • Price Mix • Promotion Mix • Place Mix These 4 elements of marketing mix are co-equal, interdependent and essential.
Elements of Marketing Mix Each marketing firm has its own unique marketing mix. Such inter-firm deviations arises due to the difference in their product policy, price policy, promotion policy and distribution policy. This four fold classifications of marketing mix is accepted by many scholars. Elements of Marketing Mix: Four P’s PRODUCT PRICE PROMOTION PLACE
Product Mix Product is sum total of tangible and intangible attributes including various attributes. Product mix is the total of all product, offered for sale by a company. Some important variables of product mix are explained here: • Product Design • Product Line • Product Quality • Product Branding • Product labeling The product having all above aspects are highly preferred be the customers.
Price Mix Price is a matter of vital importance to the buyer and the seller. That is why, every marketer takes special interest in fixing and implementing his pricing policy. The price mix of a firm include the following items: • Pricing policies and strategies • Terms of Credit • Resale price maintenance • Profit margin • Delivery terms
Promotion Mix Promotion is a mean by which marketer talk to its existing and potential customers. Promotion mix is the Communication mix. Some important variables of promotion mix are explained here. • Personal selling • Advertising • Sales promotion • Trade fairs and exhibitions • Public relations Promotion mix is used to communicate to the customers about the product in such a way that the appeal reaches them and they make a forward move to purchase the product.
Place Mix Place mix is the distribution mix. It is concerned with the smooth flow of goods and services from the producer to customer by crating time, place and possession utilities. Some important variables of place mix are explained are: • Transportation • Warehousing • Inventory Levels • Distribution Channel • Physical Distribution
Determining the Marketing Mix Determining the optimum marketing mix is not an easy exercise. It requires a lot of information, imagination and judgment. Marketing research, fore-sightedness and judgment are used in designing the marketing mix just as they are used in locating the target customers and discovering their needs. Determining marketing mix is not a one time job, rather it is a continuous process. It changes with the change in needs of the customers and also with the change in environment factors.
Factors affecting marketing Mix For a successful marketing it is necessary to evaluate various elements of marketing mix, because there are several factors which affect the marketing mix. They may be classified into two categories: • Uncontrollable Factors • Controllable Factors
Uncontrollable Factors Uncontrollable factors affecting the marketing mix are related to the market, therefore, also known as Market Factors. The company/firm has no control over these factors but they affect the marketing activities of the company. Some important uncontrollable factors are follows: Uncontrollable factors affecting Marketing Mix Consumer’s Behavior Competitor’s Behavior Intermediaries' Behavior Government’s Behavior
Controllable factors Controllable factors are those which are under the control of the marketing manager and effect the marketing mix. These factors are related to marketing activities, so they are also called as marketing factors. The main controllable factors are: Controllable factors affecting Marketing Mix Product Policy Branding Policy Packaging Policy Pricing Policy Promotion Policy Distribution Policy Other Factors
Importance of Marketing Mix • Marketing mix signifies that if four elements are closely interrelated then all the product features. • Marketing mix serves as the link between the business firm and its customers. It focuses attention on the satisfaction of customers. • Marketing mix takes care of needs of the customers, it helps in increasing sales and earning higher profits. • Marketing mix provides an opportunity to analyze cost benefit elasticity. • Marketing Mix helps to allocate the responsibilities. • Marketing mix helps in meeting environmental changes.
Expanded Marketing Mix Some marketing experts says that there is no rigidity on ‘4 P’s’ model. Because there are many situations and instances of marketing programmers which do not match to 4 P’s model. They indicate seven ingredients in the formula of marketing mix, known as ‘seven P’s model of marketing mix. These new ingredients are briefly explained here: • Packaging • Publicity and Public Relations • Post Sale Services
Expanded marketing mix in Case of Service Sector In the case of service sector one needs different types of P’s in addition to ‘Four P’s’. These are as follows: • People • Physical evidence • Process Hence in marketing of services an expand marketing mix in required, which comprise product, price, place, promotion, people, physical evidence and process.