MARKETING MANAGEMENT –

BBA2005
MODULE III
Unit III: MARKETING MIX (10 sessions) (Understand)

Introduction to 4 Ps of Marketing- History –

Product-Concept – Classification of Products – Levels of
products – PLC.
Pricing- Factors affecting pricing, Types of Pricing, Cost
based, Buyer based & Competition based.
Place – introduction - Factors affecting Channel selection-
Types of Marketing channel levels.
Promotion – Promotional mix, Personal Selling, Direct
Marketing, Sales Promotion, PR, Advertising, AIDA.

2
The Four P Components of the Marketing Mix

3
Introduction to Marketing Mix 4P’s
• A marketing expert named E. Jerome McCarthy created the
Marketing 4Ps in the 1960s. This classification has been used
throughout the world. Business schools teach this concept in basic
marketing classes.
• The marketing 4Ps are also the foundation of the idea of
marketing mix.
• [Link]

4
 The Marketing Mix 4P’s and 7P’s
Explained
• Before we go into all the elements of the marketing mix, and to avoid
confusion between the 4p’s, 7p’s and even the 4c’s – you should pay
attention at the image to understand what makes up the entire
marketing mix.
It is about putting the right product or a combination thereof in the
place, at the right time, and at the right price.
• The difficult part is doing this well, as you need to know every aspect
of your business plan.
• The marketing mix is predominately associated with the 4P’s of
marketing, the 7P’s of service marketing, and the 4 Cs theories
developed in the 1990s.

5
Marketing Mix
• Marketing mix is the set of marketing tools that the firm uses to
pursue its marketing objectives in the target market.
• Marketing-mix decisions must be made to influence the trade
channels as well as the final consumers.
• Robert Lauterborn suggested that the sellers’ four Ps correspond to
the customers’ four Cs.
• Four Ps Four Cs
Product Customer solution
Price Customer cost
Place Convenience
Promotion Communication

6
 4 Cs theories
1. Customer solutions, not products: Customers want to buy value
or a solution to their problems.
2. Customer cost, not price: Customers want to know the total cost
of acquiring, using and disposing of a product.
3. Convenience, not place: Customers want products and services
to be as convenient to purchase as possible.
4. Communication, not promotion: Customers want two-way
communication with the companies that make the product.

7
8
9
People
• In service marketing, "people"
refers to the individuals involved in
delivering the service, including
employees, customers, and even other
stakeholders, who directly or
indirectly influence the customer
experience and perception of the
service

10
 Process
• The systems and processes of the organization
affect the execution of the service.
• So, you have to make sure that you have
a well-tailored process in place to
minimize costs.
• It could be your entire sales system, a
pay system, distribution system and
other procedures and steps to ensure a working
business that is running effectively.

11
 Physical Evidence
• The physical evidence is the element of marketing mix refers to the
physical environment experienced by the customer. This could mean
the design and the layout of shop or website.
• It is important that physical evidence is appealing to customers. It
should also reflect how the business wants to be seen by its customers.
• For example, an expensive restaurant needs to ensure that the
furniture, lighting and tableware all present an image of quality.

12
 Positive physical environments
• The following processes can be completed to ensure the physical
environment gives a positive experience for customers:
• premises should be clean
• layout of the stores are easy to navigate
• design of the premises should convey the image of the business
• eye catching displays
• appropriate parking and toilet facilities
Physical evidence is the tangible proof
Which establishes the credibility.

13
 Contd..
• The same is true for company websites:
• The site needs to be easy to navigate
• products should be clearly displayed with key information
• key information about the company and customer service should be
clear and findable
• customers should be able to contact the company
• the design should use colors, text and images that reflect the business

14
15
The 4P’s of Marketing
• 4P’s
Place

The
Marketing Price
Product
Mix

Promotion

16
1. Marketing Mix: Product
• Product: Any tangible or intangible good or service that is a result of a
process and that is intended for delivery to a customer or end user.
Anything that can be offered to a market for attention, acquisition, use
or consumption that might satisfy a want or need. It includes physical
objects, services, persons, places, organizations and ideas.
The product can be intangible or tangible as it can be in the form of
services or goods.
It is the total offering Includes features, brand name, packaging and
warranty etc.
You must ensure to have the right type of product that is in demand
for your market
• [Link]

17
Product contd..

18
 Classification of Product
• Consumer products
Consumer goods are products bought for consumption by the average
consumer. Also called final goods, consumer goods are the end result
of production and manufacturing. Consumer goods can be classified as
durable, nondurable, or service goods.
 durables goods include appliances such as washers, dryers,
refrigerators, and air conditioners; tools; computers, televisions, and
other electronics; jewelry; cars etc. durable goods are products that do
not need to be purchased often, it lasts longer than 3 years,
non-durable goods and services tend to be consumed immediately.
non-durable goods and services include food and transport services.
Goods that are immediately consumed in one use or have a lifespan of
less than three years.

19
Contd..
INDUSTRIAL PRODUCTS
• Material and parts – Material and parts include raw material like
agricultural products, crude petroleum, iron ore, manufactured
materials include iron, yarn, cement, wires and component parts
include small motors, tires, and castings.
• Capital items – Capital items help in production or operation and
include installations like factories, offices, fixed equipment's like
generators, computer systems, elevators and accessory equipment's
like tools office equipment's.
• Supplies – Supplies include lubricants, coal, paper, pencils and repair
maintenance like paint, nails brooms.
• Services – Services include maintenance and repair services like
computer repair services, legal services, consultancy services, and
advertising services.

20
Product -Concept

• Definition of Product:- product is anything that can be

offered to a market for attention, acquisition, use or
consumption that might satisfy a want or need. It includes
more than tangible goods.
• Services are a form of products that consists of activities,
benefits or satisfactions offered for sale that are essentially
intangible and do not result in the ownership of anything.
Examples are banking, hotel, airline,

21
Product levels
• Five product levels

22
Levels of product Contd..
• Core product (benefit) – The most fundamental level is the core
benefit. The fundamental service or benefit that the customer is really
buying. A hotel guest is buying ‘Rest and Sleep'. The purchaser of a
drill is buying “holes". Marketers must see themselves as a benefit
providers. The fundamental needs & wants that satisfies when the
customer buy product.
• Actual (Basic) product- it built around the core product. Actual
products may have the as many as five characteristics: these are a
quality level, features, design, a brand name, and packaging. For
example, thus a hotel room includes a bed room, bathroom ,towels
desk, dresser, and closet.
• Actual(Basic/Generic) is that version of product made up of only
those features necessary for it to function.

23
Contd..
• Expected product- At third level, the marketers prepares an expected
product, a set of attributes and condition buyers expect when they
purchase this product. Hotel guests expect a clean bed, fresh towels,
working lamps and relatively a degree of quietness. Because most
hotels can meet these expectation the traveller normally will settle for
whichever hotel is most convenient or least expensive.
• Augmented Product: At the fourth level marketers prepares an
augmented product that exceeds customer expectations, i.e., a product
containing additional features, services and benefits so that the
customer is able to distinguish his product that of from competitive
offers for example; a hotel can include a remote control television
set, fresh flowers, wifi, rapid-check in, express check out fine dine
and room service.

24
Contd..

• Potential product: At the fifth level stands the potential product,

which encompasses all the possible augmentation and transformation
the product might undergo in the future.
• Here is where companies search for new ways to satisfy customers and
distinguish their offer.
• All-suite hotels where the guest occupies a set of rooms represent an
innovative transformation of the traditional hotel product.

25
LEVELS OF PRODUCT – another EXAMPLE

• Core product – Car

• Basic product – Car, better functioning , mileage, safety
• Expected product – efficient mileage, air bags, appearance ,
colour variants, serviceability, cost, insurance
• Augmented product – Sub compact SUV, Sun roof, speed,
no. of free service
• Potential product – Hybrid cars, cooling ability, face
recognition, advanced security features, voice recognition

26
 Five Product Levels
Advantages
• The real advantage of the model is that it enables an organization to
identify the needs and wants of customers.
• The organization can then:
match the features they create to what the customer wants.
match operational processes to what customers want. In our hotel
example, this would mean strict processes around cleaning each room.
match marketing efforts to appeal to customers wants.
The model finally helps organizations differentiate themselves from
their competitors in a way that aligns with the wants and needs of their
customers.

27
 Summary
• The Five Product Levels model provides a way to show the
different levels of need that customers have for a product.

• It can be useful in helping organizations understand their

customers. From there, they can structure themselves to best
serve those needs and wants. In this way, they can
differentiate themselves from their competitors.
• [Link] An
Airlines industry example

28
PRODUCT DEVELOPMENT LIFE CYCLE

29
30
 PLC (PRODUCT LIFE CYCLE)
1. Introduction
Period of slow sales growth, Product is introduced in the market,
Profits are nonexistent in this stage, Sales is low, awareness is
low , Advertising costs typically high.

31
Contd..
2. Growth
Period of rapid market acceptance and substantial profit improvement
Rapid revenue growth, sales increases
Increased advertising to build brand preference
New product feature and packaging option

32
Contd..
3. Maturity
Most profitable stage, brand awareness is there
Advertising expenditure will be reduced
Primary goal is to maintain market share and extend the product life
cycle

33
Contd..
4. Decline
Stage when sales show a downward drift and profit erode
The number of product in the product line may be reduced. Price may
be lowered to liquidate
Expenditures are lower

34
 PLC and Marketing Strategies
/ŶƚƌŽĚƵĐƟŽŶ^ƚĂŐĞ ͗ D ĂƚƵƌŝƚLJ^ƚĂŐĞ ͗
D ĂƌŬĞƟŶŐK ďũĞĐƟǀ Ğ ͗ƌĞĂƚĞĂǁ ĂƌĞŶĞƐƐĂŶĚ D ĂƌŬĞƟŶŐK ďũĞĐƟǀ Ğ ͗ĞĨĞŶĚŵĂƌŬĞƚƐŚĂƌĞ͕
ƐƟŵƵůĂƚĞ ŝŶŝƟĂůĚĞŵĂŶ Ě͘ ŵĂdž ŝŵŝnjĞƉƌŽĮ ƚ͕ ĂŶĚŵĂŝŶƚĂŝŶĐƵƐƚŽŵĞƌůŽLJĂůƚ LJ͘
D ĂƌŬĞƟŶŐ^ƚƌĂƚĞŐŝĞƐ ͗, ĞĂǀ LJƉƌŽŵŽƟŽŶĂůĂŶĚ D ĂƌŬĞƟŶŐ^ƚƌĂƚĞŐŝĞƐ ͗ŵƉŚĂƐŝnjĞďƌĂŶĚ
ĂĚǀ ĞƌƟƐŝŶŐĂĐƟǀ ŝƟĞƐƚŽĞĚƵĐĂƚĞĐŽŶƐƵŵĞƌƐ Ěŝī ĞƌĞŶƟĂƟŽŶĂŶĚƉƌŽĚƵĐƚƋƵĂůŝƚ ŽŶƐŝĚĞƌ
LJ͘
ĂďŽƵƚƚŚĞŶĞǁ ƉƌŽĚƵĐƚΖƐĨĞĂƚƵƌĞƐĂŶĚďĞŶĞĮ ƚ Ɛ͘ ƉƌŽŵŽƟŽŶĂůĂĐƟǀ ŝƟĞƐ͕ ůŝŬĞůŽLJĂůƚLJƉƌŽŐƌĂŵ Ɛ͘
WƌŝĐŝŶŐ^ƚƌĂƚĞŐLJ͗dŚŝƐŵĂLJ ŝŶǀ Žůǀ ĞƐĞƫ ŶŐŚŝŐŚĞƌ WƌŝĐŝŶŐ^ƚƌĂƚĞŐLJ ͗ dŚŝƐŵĂLJ ŝŶǀ Žůǀ ĞƉƌŝĐĞ
ƉƌŝĐĞƐƚŽƌĞĐŽƵƉĚĞǀ ĞůŽƉŵĞŶƚĐŽƐƚƐŽƌ ĂĚũƵƐƚŵĞŶƚƐ͕ ĚŝƐĐŽƵŶƚƐ͕ ŽƌďƵŶĚůŝŶŐƚŽŵĂŝŶƚĂŝŶ
ƉĞŶĞƚƌĂƟŽŶƉƌŝĐŝŶŐƚŽ ĂƩ ƌĂĐƚĞĂƌůLJĂĚŽƉƚĞƌ Ɛ͘ ŽƌƐƚƐĂůĞ Ɛ͘
ŝƐƚƌŝďƵƟŽŶ ͗>ŝŵŝƚĞĚĚŝƐƚƌŝďƵƟŽŶĐŚĂŶŶĞůƐŵĂLJ ŝƐƚƌŝďƵƟŽŶ ͗t ŝĚĞƐƉƌĞĂĚĚŝƐƚƌŝďƵƟŽŶŝƐ
ďĞƵƐĞĚŝŶŝƟĂůů LJ͘ ĞƐƐĞŶƟĂů͘

' ƌŽǁ ƚŚ^ƚĂŐĞ ͗ ĞĐůŝŶĞ^ƚĂŐĞ ͗

D ĂƌŬĞƟŶŐK ďũĞĐƟǀ Ğ ͗dž ƉĂŶĚŵĂƌŬĞƚƐŚĂƌĞĂŶĚ D ĂƌŬĞƟŶŐK ďũĞĐƟǀ Ğ ͗D ĂŶĂŐĞƚŚĞĚĞĐůŝŶĞĂŶĚ
ŵĂdž ŝŵŝnjĞƉƌŽĮ ƚ Ɛ͘ ƉŽƐƐŝďůLJƉŚĂƐĞŽƵƚƚŚĞƉƌŽĚƵĐ ƚ͘
D ĂƌŬĞƟŶŐ^ƚƌĂƚĞŐŝĞƐ ͗ŽŶƟŶƵĞĂĚǀ ĞƌƟƐŝŶŐ͕ďƵƚ D ĂƌŬĞƟŶŐ^ƚƌĂƚĞŐŝĞƐ ͗ZĞĚƵĐĞŵĂƌŬĞƟŶŐ
ƐŚŝŌĨŽĐƵƐƚŽĚŝī ĞƌĞŶƟĂƟŽŶĂŶĚĐƵƐƚŽŵĞƌ ĞdžƉĞŶƐĞƐĨŽƌƚŚĞƉƌŽĚƵĐ ƚ͘ ŽŶƐŝĚĞƌ
ůŽLJĂůƚ LJ͘/ŶƚƌŽĚƵĐĞƉƌŽĚƵĐƚǀ ĂƌŝĂƟŽŶƐŽƌ ĚŝƐĐŽŶƟŶƵĂƟŽŶŽƌƌĞǀ ŝƚĂůŝnjĂƟŽŶƐƚƌĂƚĞŐŝĞ Ɛ͘
Ğdž ƚĞŶƐŝŽŶƐ͘ WƌŝĐŝŶŐ^ƚƌĂƚĞŐLJ ͗ dŚŝƐŵĂLJ ŝŶǀ Žůǀ ĞƉƌŝĐĞ
WƌŝĐŝŶŐ^ƚƌĂƚĞŐLJ ͗D ĂLJƌĞŵĂŝŶƐƚĂďůĞŽƌ ƌĞĚƵĐƟŽŶƐƚŽĐůĞĂƌ ƚŚĞƌĞŵĂŝŶŝŶŐŝŶǀ ĞŶƚŽƌLJ͘
Ğdž ƉĞƌŝĞŶĐĞƐůŝŐŚƚĚĞĐƌĞĂƐĞƐĂƐĐŽŵƉĞƟƟŽŶ ŝ ƐƚƌŝďƵƟŽŶ͗ dŚŝƐŵĂLJ ƌĞĚƵĐĞĚŝƐƚƌŝďƵƟŽŶ
ŝŶĐƌĞĂƐĞƐ͘ ĐŚĂŶŶĞůƐ͕ ĞƐƉĞĐŝĂůůLJŝĨƚŚĞƉƌŽĚƵĐƚŝƐďĞŝŶŐ
ŝƐƚƌŝďƵƟŽŶ ͗t ŝĚĞƌĚŝƐƚƌŝďƵƟŽŶƚŽƌĞĂĐŚŵŽƌĞ ƉŚĂƐĞĚŽƵ ƚ͘
ĐƵƐƚŽŵĞƌƐ.
PRODUCT MIX MEANING
• Product mix (also called Product assorted) is a set of all product lines
and items that a particular seller offers for sale to buyers. In other
word, “It is a composite of products offered for sale by a firm.”
• According to AMA. “Product Mix is the composite of products
offered for sale by a firm or a business unit.”
• For example:- If an enterprises manufactures or deals with different
varieties of Soap, Oil, toothpaste, toothbrush, watches, machinery
item etc. the group of these products is called Product Mix.
• Product line is a group of products that are closely related because
they function in a similar manner, are sold to the same customer
group, are marketed through the same types of outlets or fall within
given price ranges

36
37
Example
39
Product mix dimension
• Length of product line refers to the total number of items in the
product [Link] typically carries many brands within each line. For
example; It sells Laundry detergents, ten soaps, four shampoos and
two toothpaste.

• Width of product mix refers to how many different product lines the
company carries. For example; HUL markets a wide product mix of
many product lines, including food, household, cleaning, medicinal,
cosmetics and personal care products. As shown in the figure product
mix width of the five lines.

40
 Contd..
• Depth of product mix refers to how many varieties offered of each
product in the line. If close up in 5 sizes and 3 formulation (blue, red,
green) so close up has the depth of 15. the average depth of HUL
products mix can be calculated by averaging the [Link] variants within
the brand group.
• Consistency of product mix refers to how closely the various product
lines are in used, production requirement, distribution, or some other
ways. Product mix consistency refers to how closely products are
linked to each other. Less the variation among products, more the
consistency.
• These four product-mix dimensions permit the company to expand its
business by (1) adding new product lines, thus widening its product
mix; (2) lengthening each product line; (3) deepening the product mix
by adding more variants; and (4) pursuing more product-line
consistency.

41
A company dealing in just dairy products/beverage products has
more consistency than a company dealing in all types of electronics.

Product mix describes how closely related product lines are to one
another – in terms of use, production and distribution.

42
 Example Company ABC
• ABC Deterge toothpast Bar Soap Face perfume
nt e Cream

A1 B1 C1 D1 E1
A2 B2 C2 D2 E2
A3 B3 C3 E3
A4 C4 E4
A5 C5 E5
A6 C6
A7 C7
A8
COMPANY ABC
• The depth of product mix refers to how many
variant are offered of each product in the line
in ABC if toothpaste B2 comes in three
sizes and two formulation, then B2 has depth of
six

• Consistency refers to how closely related the

various product line are in end use, production
requirements, distribution channel
COMPANY ABC
• The width of the product mix is how many different
lines the company carries.
in ABC there are 5

• The length of product mix is total no of item in the

mix
in ABC length is 25
average length of line = length/total line
= 25/5 = 5
46
2. Marketing Mix: Price
Is the mutually agreed-upon amount that satisfies both sides in an
exchange.
• Pricing is a process of fixing the value that a manufacturer will receive
in the exchange of services and goods.
• Pricing method is exercised to adjust the cost of the producer’s
offerings suitable to both the manufacturer and the customer.
Pricing always help shape the perception of your product in
consumers eyes.
A low price usually means an inferior good in the consumers eyes.
Prices too high will make the costs high as compared to the
benefits in customers eyes.
When setting the product price, marketers should consider the
perceived value that the product offers.

47
Price contd..

48
Internal & External influences on pricing
• Internal influences:- Organisational objectives - the role pricing can
play in achieving long and short-term corporate objectives
• Marketing objectives - long & short term marketing objectives; price
& product positioning
• Costs - the relationship between price and cost; balancing the need to
cover costs against the price the market will bear
• External influences on pricing:- Customers and consumers:
demand & elasticity; price sensitivity
• Channels of distribution: need to cover costs, value added to
products; desired margins
• Competitors: pricing under different market structures
• Legal and regulatory: freedom to set prices, unfair pricing practices:
sales taxes, VAT and their impact on prices

49
 Contd.. Price
• Pricing Methods Break-even analysis
Target Rate of return
Cost-based
pricing Return on investment
Payback period
Going rate
Competition-based Seal bid
pricing
Competitive reaction

Identifying customer value

Market-based Matching sellers/buyers
pricing Perceived values
Demand differentiation

50
 Pricing Methods
• Cost-based pricing - prices set mainly on the basis of cost
(fixed & variable overheads)
• Competition-based pricing - pricing a product or service at
a price comparable with that charged by the competition
(this could be slightly higher or lower than the competition)
• Customer-based pricing - relies on the perceived value and
how much customers are prepared to pay for the product or
service

51
Fixed cost vs variable cost

52
 TYPES OF PRICING
• Optional product pricing ( KLM
• Premium pricing (Tom ford) air lines / Netherland )
• Penetration pricing ( initial • Neutral pricing ( Groceries items )
low price to attract customer )
• Captive pricing ( Ink and printer )
• Economy pricing ( Aldi ) • Bundle pricing ( Buy one get one
free )
• Skimming pricing ( Mobile
phones ) • Promotional pricing
( Apartments )
• Psychological pricing ( 999,
499, 1799 ) • Geographic pricing ( Cooking
Gas ) ( Car )

53
 FACTORS AFFECTING PRICING
• Price-quality relationship
• Product line pricing
• Competition
• Negotiating margins ( Suppliers / vendors )
• Effect on distributors and retailers
• Political factors
• Earning very high profits
• Buyers
• Demand
• Economic condition

54
 Internal Factors
 Organisational factors:- Pricing decision occurs on two levels Market segments
and individual product strategies.
 Marketing Mix:-Pricing is viewed as only one of the elements has an immediate
effect on the other three--- Production, Promotion and distribution.
 Product Differentiation:- In order to attract the customers different characteristics
are added. Generally , customers pay more prices for the product which is of new
style, fashion, better package etc.
 Cost of the product:- Cost and price of a product is closely related. A firm tries
to decide what price are realistic, considering current demand and competition
and in the market
 Objective of a firm:- Firm may pursue a variety of value oriented objectives,
such as maximising sales ,maximising market share, customer volume
maintaining an image, maintaining stable price etc.

55
 External factors
Demand:- The market demand for a product or service has a big
impact on the pricing decision; like [Link] size of competitors, the
prospective buyer’s, willingness and capacity to pay, preference, etc.
Competition:- condition of the competition affect the pricing. A firm
can fix a price equal to or lower than that of competitors, provided the
quality of product.
Suppliers:-Suppliers of raw material and other goods can have
significant impact on price of a product. Manufacturers in turn pass it
on consumers.
• Economic conditions:- The inflationary or deflationary tendency
effects pricing. (Ex. In recession-prices are reduced and in boom-
increased)

56
 Contd..
• Buyers:- The various consumers and business that buy a
company’s product or service may have an influence in the pricing
decision. Their nature or behaviour for the purchase of a particular
product ,brand or service, etc. affect pricing when their number is
large.
• Government:- Price discretion is also affected by the government
through enactment of legislation. When it is thought to arrest the
inflationary trend in price of certain products. The prices cannot
be fixed higher , as government keeps a close watch on pricing in
the private sector.

57
3. Marketing Mix: Place
• The place element of the marketing mix is where product production
and distribution channels are decided and planned.
• Place is an element of marketing and is a process of transferring
goods from the place of production to the place of consumption.
• Therefore, Place Mix is an important decision and is related to the
physical distribution of the goods and services to the customers. The
decisions under place mix include deciding the market for
distribution, the channel of distribution, etc.
• An example of this element of the marketing mix can be the
numerous branches of McDonald’s all over the world. Almost every
country in the world either has a McDonald’s franchisee, or knows of
it.

58
Place contd..

59
 MARKETING CHANNEL
• Marketing channel is the people, organizations, and activities
necessary to transfer the ownership of goods from the point of
production to the point of consumption.
• It is the way products and services get to the end-user, the consumer;
and is also known as a distribution channel.
• Intermediates:- merchants, agents and facilitators
• Producer → Customer (Amazon,which uses its platform to sell Kindles to its
customers, is an example of a direct model. Farmers, Bakery)
• Producer → Retailer → Consumer ( Walmart, channel works best for
manufacturers that produce shopping goods like clothes, shoes, furniture,
tableware, and toys. )
• Producer → Wholesaler → retailer → Customer ( alcoholic beverage/pharma
company etc.
• Producer → Agent/Broker → Wholesaler or Retailer → Customer

60
CHANNELS OF MARKETING

61
Businesses that engage in digital marketing
campaigns

62
FACTORS AFFECTING CHANNEL SELECTION
• Information Provider
• Price Stability
• Promotion
• Financing
• Help in Production Function
• Matching Demand and Supply
• Pricing
• Standardizing Transactions
• Matching Buyers and Sellers

63
 4. Marketing Mix: Promotion
• Promotion is a marketing tool, used as a strategy to communicate
between the sellers and buyers.
• Promotion is a very important component of marketing as it can boost
brand recognition and sales.
• Promotion is comprised of various elements like:
• Sales Organization, Public Relations
Advertising, Sales Promotion

• Word of mouth is also a type of product promotion and it can also

circulate on internet..

64
Promotion contd..

65
 5. Marketing Mix: People
• Target market and people are directly related to the business.

66
6. Marketing Mix – Process
• The systems and processes of the organization affect the execution
of the service.
• So, you have to make sure that you have a well-tailored process in
place to minimize costs.
• It could be your entire sales system, a pay system, distribution
system and other procedures and steps to ensure a working
business that is running effectively.

67
 [Link] Mix–Physical Evidence
• In the service industries, there should be physical evidence that
the service was delivered.
• Physical evidence pertains also to how a business and it’s products
are perceived in the marketplace.
• A concept of this is branding. For example, When you think of
sports, the names Nike and Adidas come to mind.

68
Contd..

69
70
The Marketing Mix; summary

71
 Promotion mix
• Promotion is to make your customers aware that your
product exists.

72
Advertisement
• Any paid presentation and promotion of ideas, goods, or services by an
identified sponsor. Various medium of advertising are:
• Television
• Radio
• Newspaper and magazines
• Travel trade press
• videos
• Print ads
• cinema
• exhibitions and trade fairs
• internet

73
74
ADVERTISING OBJECTIVE
• Either the aim is to inform, persuade, remind or reinforce.
• Informative advertising :- aims to create brand awareness and
knowledge of new products or new features of existing products. Eg.
navigator
• Persuasive advertising:- It aims to create liking, preference,
conviction and purchase of a product or service. eg)VISA has run
successful ad campaign called “It’s Everywhere You Want to Be”,
that showcases desirable locations and events that don’t accept the
American Express card.
• Reminder/reinforce advertising :- to stimulate
repeat purchase of products and services. Satisfied customers
enjoying features of their new car.

75
Sales promotion
• Involves the use of special short-term techniques, often in the form
of incentives, to encourage customers to respond or undertake
some activity.
• For instance, the use of retail coupons with expiration dates
requires customers to act while the incentive is still valid.

76
 Contd..
• Makes use of a variety of formats: premiums, coupons, contests, etc.
Attracts attention, offers strong purchase incentives, dramatizes offers,
boosts sagging sales; Stimulates quick response; Short-lived; Not
effective at building long-term brand preferences

77
Public relations
• Non-paid non personal stimulation of demand for a product, service, or
business unit by planting significant news about it or a favorable
presentation of it in the media.
• Highly credible; Very believable;
• Many forms: news stories, news features, events and sponsorships,
etc.;
• Reaches many prospects missed via other forms of promotion;
• Dramatizes company or product;
• Often the most under used element in the promotional mix;

78
79
 Personal selling
• Sales men selling to the customer on a one to one basis. Advantages
being that questions can be answered straight away, problems can be
sorted out at a personal level.
• The sales man remains with the customers case through to the
completion of the sale.

80
Personal selling contd..
Most effective tool for building buyers’
preferences, convictions, and actions;
Personal interaction allows for feedback
and adjustments;
Relationship-oriented;
Buyers are more attentive;
Sales force represents a long-term
commitment;
Most expensive of the promotional tools

81
DIRECT MARKETING
• Direct marketing is a technique where direct marketing tools are used
to communicate to individual consumers directly.
• Rather than relying on third parties such as media publications or mass
media modern direct marketing tools involve social media, email,
mail, or phone/SMS campaigns to pitch their sales and deliver their
messages.

82
83
AIDA MODEL
• The AIDA model describes the four stages a consumer goes through
before making a purchasing decision.
• The stages are Attention, Interest, Desire, and Action (AIDA).
During these four stages, your content will ideally attract attention to
your brand, generate interest in your product or service, stimulate a
desire for it, and spur action to try or buy it.

84
Contd..
• Attention: The first step in marketing or advertising is to consider how
to attract the attention of consumers.
• Interest: Once the consumer is aware that the product or service
exists, the business must work on increasing the potential customer’s
interest level. For example, Disney boosts interest in upcoming tours
by announcing stars who will be performing on the tours.
• Desire: After the consumer is interested in the product or service, then
the goal is to make consumers desire it, moving their mindset from “I
like it” to “I want it.” For example, if the Disney stars for the
upcoming tour communicate to the target audience about how great the
show is going to be, the audience is more likely to want to go.
• Action: The ultimate goal is to drive the receiver of the marketing
campaign to initiate action and purchase the product or service.

85
REFERENCE LINK
• [Link]
10/five-product-levels/
• [Link]
promotion

86
87