From Marketing Mix to Relationship Marketing
Towards a paradigm shift in marketing
Prepared by: Mai Hamed
Presented to: Dr. Mariam Abo youssef
Table of Contents
The problem with the Marketing Mix7
The Nature of the Marketing Mix8
What is the History of the Marketing Mix?9
Contemporary Theories of Marketing11
The New Approaches and the Marketing Mix12
The Future: The Relationship Marketing Concept13
Is There a Paradigm Shift in Marketing?14
This report discusses how the marketing mix management paradigm has dominated the marketing thought, research and practice since it was introduced almost 40 years ago, but today new marketing approaches are being introduced and used.
The globalization of business and the evolving recognition of the importance of customer retention and market economies and of customer relationship economics, among other trends, reinforce the change in mainstream marketing.
The term "marketing mix" is probably one of the most famous marketing terms used by millions of people. Its elements are known as the Four P's, which are price, place, product, and promotion. These four variables are the variables that marketing managers can control in order to best satisfy customers in the target market.
Figure 1: Marketing Mix Model – 4Ps
Marketing the way most textbooks treat it today was introduced around 1960. The concept of the marketing mix and the Four Ps of marketing – product, price, place and promotion – entered the marketing textbooks at that time. Quickly they also became treated as the unchallenged basic model of marketing, so totally overpowering previous models and approaches, such as, for example, the organic functionalist approach advocated by Wroe Alderson as well as other systems-oriented approaches and parameter theory developed by the Copenhagen School in Europe that these are hardly remembered, even with a footnote in most textbooks of today. (Gronroos, Toward a Relationship Marketing Paradigm, 1994)
The marketing mix refers to variables that a marketing manager can control to influence a brand’s sales or market share. Traditionally, these variables are summarized as the Four Ps of marketing: product, price, promotion, and place (i.e., distribution).
Product refers to aspects such as the firm’s portfolio of products, the newness of those products, their differentiation from competitors, or their superiority to rivals’ products in terms of quality. Promotion refers to advertising, detailing, or informative sales promotions such as features and displays.
Price refers to the product’s list price or any incentive sales promotion such as quantity discounts, temporary price cuts, or deals. Place refers to delivery of the product measured by variables such as distribution, availability, and shelf space.
The 4Ps model is just one of many marketing mix lists that have been developed over the years. And, whilst the questions we have listed above are keys, they are just a subset of the detailed probing that may be required to optimize your marketing mix. Amongst the other marketing mix models have been developed over the years is the 7Ps, sometimes called the extended marketing mix, which include the first 4 Ps, plus people, processes and physical layout decisions.
Another marketing mix approach is Lauterborn's 4Cs, which presents the elements of the marketing mix from the buyer's, rather than the seller's, perspective. It is made up of Customer needs and wants (the equivalent of product), Cost (price), Convenience (place) and Communication (promotion).
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