Marketing Mix Decisions
The term “marketing mix” became popularized after Neil H. Borden published his 1964 article, “The Concept of the Marketing Mix”. Borden began using the term in his teaching in the late 1940’s after James Culliton had described the marketing manager as a “mixer of ingredients”. The ingredients in Borden’s marketing mix included product The Marketing Mix planning, pricing, branding, distribution channels, personal selling, Source: http://www.quickmba.com/marketing/mix/ advertising, promotions, packaging, display, servicing, physical handling, and fact finding and analysis. E. Jerome McCarthy later grouped these ingrediThe 4 P’s of Marketing ents into the four categories that today are known as the 4 P’s of marketing. Product Strategy
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The four P’s are the parameters that the marketing manager can control, subject to the internal and external constraints of the marketing environment. The goal is to make decisions that center the four P’s on the customers in the target market in order to create perceived value and generate a positive response. Source: http://www.netmba.com/marketing/mix/
Placement Strategy Pricing Strategy Promotions Strategy
Product 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. Service Any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything. Three levels of product 1. Core product – addresses the question: What is the buyer really - the problem-solving services or core benefits that consumers are really buying when they obtain a product 2. Actual product – a product’s parts, quality level, features, design, brand name, packaging and other attributes that combine to deliver core product benefits 3. Augmented product – additional consumer services and benefits built around the core and actual products
Example: AMC cookware’s formal product is a multi-system cookware. It’s augmented products are availability of credit, lifetime warranty, free cooking lessons, home demo service and free delivery while the core product is better health.
Three levels of product Source: Armstrong, Gary and Kotler, Philip. Principles of Marketing, 7th Edition. Prentice-Hall International, Inc. 1996
Consumers tend to see products as complex bundles of benefits that satisfy their needs. When developing products, marketers first must identify the core consumer needs the product will satisfy. They must then design the actual product and find ways to augment it in order to create the bundle of benefits that will best satisfy consumers. Source: Armstrong, Gary and Kotler, Philip. Principles of Marketing, 7th Edition. Prentice-Hall International, Inc. 1996
According to consumption and tangibility
characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort (e.g. paintings done by artist Fernando Amorsolo) 5. Unsought products – consumer products that the consumer either does not know about or knows about but does not normally think of buying (e.g. life insurance) organizations for further processing or for use in conducting a business
1. Durables — which have a long interval between repeat purchases (e.g. cars and tv sets) 2. Non-durables — which have stronger repeat purchases (e.g. detergents and ice cream) 3. Services—which are essentially intangible because there are no physical products involved. (e.g. auto service centers and beauty parlors)
According to customer’s effort and risk Effort—the amount of money, time and energy the buyer is II. Industrial Products – products bought by individuals and willing to spend to purchase a...
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