Developing Marketing
Mix
Historical Background
Origins: The concept of the marketing mix was first introduced in
the 1940s and 1950s.
E. Jerome McCarthy: The term "marketing mix" was popularized
by E. Jerome McCarthy in 1960, who categorized the mix into four
key elements (the 4 Ps).
E. Jerome McCarthy Biography and Contribution
E. Jerome McCarthy was a marketing professor and consultant. -
He published his ideas in the book "Basic Marketing: A
Managerial Approach."
McCarthy's framework provided a simple, memorable way to
think about marketing strategies and became foundational in
marketing education.
Evolution of the Marketing Mix
-Initial Focus on 4 Ps ; Originally, the 4 Ps were primarily
applied to tangible products.
-Expansion to Services - In the 1980s, the marketing mix
was extended to include three additional Ps (People,
Process, Physical Evidence) to address the unique
challenges of service marketing.
Introduction to Marketing Mix -
The marketing mix is a set of actions, or tactics, that a
company uses to promote its brand or product in the
market.
Components: Traditionally known as the 4 Ps: Product,
Price, Place, Promotion.
Importance of Marketing Mix
- Aligns marketing strategies with business
objectives.
- Helps in understanding customer needs.
- Facilitates effective resource allocation.
- Enhances competitive advantage.
The 4 Ps of Marketing Mix 1.
1. Product
The goods or services offered.
Features, quality, branding, and packaging.
2. Price
The amount customers pay.
Pricing strategy, discounts, and perceived value.
3. Place
Distribution channels to reach customers.
Locations, logistics, and online presence.
4. Promotion-
Activities to communicate the product’s value. -
Advertising, sales promotions, public relations, and
social media.
Developing the Product
-Identify customer needs and preferences.
- Develop unique selling propositions (USPs). - Consider
product lifecycle stages.
Setting the Price
- Pricing strategies: Cost-plus, penetration, skimming, and
value-based pricing.
- Factors influencing pricing: Costs, competition, and
customer demand.
Choosing the Place
- Distribution strategies: Direct vs. indirect channels.
- Importance of supply chain management. - Considerations
for physical vs. online distribution.
Crafting the Promotion Strategy
- Integrated marketing communications (IMC) approach.
- Selecting the right promotional mix: Advertising, sales
promotion, personal selling, and public relations.
- Importance of digital marketing in today’s landscape.
The Extended Marketing Mix (7 Ps) -
People- Employees and customers involved in the service.
Process- The flow of activities in service delivery.
Physical Evidence- The environment in which the service is
delivered.
Challenges in Developing Marketing Mix
- Rapid market changes and consumer preferences.
- Competition and market saturation.
- Balancing the 4 Ps effectively.
END!
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