...image (the way it is promoted) and, of course, the price which should be charged. These are some of the ingredients which a marketing manager must mix together when optimising a limited amount of resources. What is the best mix? A marketing manager has to juggle resources and decide on the best marketing mix. Should money be spent or forfeited on: reduced prices? Improved products? New delivery trucks? Or maybe invest all your money in a high risk TV advertising campaign? Did you recognise the 4 Ps just there? In 1960 Jerome McCarthey presented the 4 Ps to the world. Since then marketing managers around the world have become familiar with them. Can you recall them? In addition to the 4 Ps, there are other approaches to the mix. These are explored under 'Different Approaches' subtopic as shown in the title map. Let's look at each of the 4 Ps briefly. Product - this means the product's (or service's) quality, the functions, the features and benefits of its design plus packaging, guarantees and level of after-sales service. Choices can be made about any of these aspects. Price includes recommended prices to end-user customers, distributor's trade prices, cash discounts, bulk discounts, terms of credit. Place means where and when the customer buys and consumes the product or service. Place is sometimes referred to as the marketing channels, physical distribution, logistics or location. Promotion means the promotions mix or the communications mix. This mix...
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...The 7 Ps or marketing mix consists of the following 7 elements: - Product - Price - Place - Promotion - Physical layout - Provision of customer service - Processes The 7-Ps or Extended Marketing Mix of Booms and Bitner is a Marketing Strategy tool that expands the number of controllable variables from the four in the original Marketing Mix Model to seven. The traditional Marketing Mix model was primarily directed and useful for tangible products. The 7-Ps model is more useful for services industries and arguably also for knowledge-intensive environments. Booms and Bitner's expanded the marketing mix by adding the following 3 additional P's: 5. People: All people directly or indirectly involved in the consumption of a service are an important part of the extended marketing mix. Knowledge Workers, Employees, Management and other Consumers often add significant value to the total product or service offering. 6. Process: Procedure, mechanisms and flow of activities by which services are consumed (customer management processes) are an essential element of the marketing strategy. 7. Physical Evidence: The ability and environment in which the service is delivered, both tangible goods that help to communicate and perform the service and intangible experience of existing customers and the ability of the business to relay that customer satisfaction to potential customers. The first two additional Ps are explicit (People, Process) and the third one (Physical Evidence) is an...
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...Marketing mix Kotler defined that marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering, and exchanging products and services of value freely with others. (Kotler, 2002) McCarthy’s Four Ps A marketing expert named E. Jerome McCarthy created the Marketing Four Ps in the 1960s. This classification has been used throughout the world. Business schools teach this concept in basic marketing classes. The marketing four Ps are also the foundation of the idea of marketing mix. Product A product is an item that is built or produced to satisfy the needs of a certain group of people. The product can be intangible or tangible as it can be in the form of services or goods. Price The price of the product is basically the amount that a customer pays for to enjoy it. Price is a very important component of the marketing mix definition. It is also a very important component of a marketing plan as it determines your firm’s profit and survival. Adjusting the price of the product has a big impact on the entire marketing strategy as well as greatly affecting the sales and demand of the product. Place Placement or distribution is a very important part of the product mix definition. You have to position and distribute the product in a place that is accessible to potential buyers. This comes with a deep understanding of your target market. Understand them inside out and you will discover the most efficient positioning...
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...MARKETING MIX The marketing mix is a business tool used in marketing and by marketing professionals. The marketing mix is often crucial when determining a product or brand's offering, and is often synonymous with the four Ps: price, product, promotion, and place; in service marketing, however, the four Ps have been expanded to the Seven Ps or eight Ps to address the different nature of services. In recent times, the concept of four Cs has been introduced as a more customer-driven replacement of four Ps.[1] And there are two four Cs theories today. One is Lauterborn's four Cs (consumer, cost, communication, convenience), another is Shimizu's four Cs (commodity, cost, communication, channel). Contents [hide] * 1 History * 2 Producer-oriented model * 3 Consumer-oriented model * 4 Four Cs: in the Seven Cs Compass Model * 5 See also * 6 References * 7 External links | ------------------------------------------------- History[edit] The term marketing mix was coined in an article written by Neil Borden called “The Concept of the Marketing Mix.”[2] He started teaching the term after he learned about it from an associate, James Culliton, who in 1948 described the role of the marketing manager as a "mixer of ingredients"; one who sometimes follows recipes prepared by others, sometimes prepares his own recipe as he goes along, sometimes adapts a recipe from immediately available ingredients, and at other times invents new ingredients no one else has tried.[3] -------------------------------------------------...
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...Qs. “The traditional elements of the Marketing Mix have become irrelevant in the modern world”. Give your reasoned view, either agreeing or disagreeing with the above statement. (Do not to exceed three pages {font type Times New Roman, size 12} in your answer). Ans. “The traditional elements of the marketing mix have become irrelevant in the modern world”. I do agree with the above statement with the following reasons:- Though “4Ps” still popular on college syllabi, they are becoming less and less relevant for professional marketers. That’s because in the real-time, digital world, the intersection of the 4 Ps – price, product, promotion, and place is constantly changing. New technologies allow and even require marketers and advertisers to understand consumer preferences and environment in real time to get the media exposure they desire. Although the core concepts of the 4 Ps are still essential, it’s clear that the marketing industry need a new guide to develop strategy and measure outcomes in the digital world. In fact, relevancy, not reach, is the new number of the game. Yet marketers have the same need that the original 4 Ps addressed identifying the core elements and principles that must be managed and optimized in order to drive a core success factor: relevancy. As per my opinion, the 4 Ps should an upgrade with the following new version:- 1. Preference: Modern marketing practices are founded on the belief that preferences matter- that what a consumer cares about...
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...4 MANAGEMENT DECISION 32,2 Has today’s dominant marketing mix paradigm become a strait-jacket? A relationship building and management approach may be the answer. From Marketing Mix to Relationship Marketing: Towards a Paradigm Shift in Marketing Christian Grönroos approach to marketing which eventually has entered the marketing literature[2, 4-14]. A paradigm shift is clearly under way. In services marketing, especially in Europe and Australia but to some extent also in North America, and in industrial marketing, especially in Europe, this paradigm shift has already taken place. Books published on services marketing[15-17] and on industrial marketing[18-20] as well as major research reports published are based on the relationship marketing paradigm. A major shift in the perception of the fundamentals of marketing is taking place. The shift is so dramatic that it can, no doubt, be described as a paradigm shift[21]. Marketing researchers have been passionately convinced about the paradigmatic nature of marketing mix management and the Four P model[22]. To challenge marketing mix management as the basic foundation for all marketing thinking has been as heretic as it was for Copernicus to proclaim that the earth moved[23, 24]. The purpose of this report is to discuss the nature and consequences of the dominating marketing paradigm of today, marketing mix management of the managerial school (cf.[25] and how evolving trends in business and modern research into, for example...
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...MARKETING FUNDAMENTALS (BMAN 70441) University Student ID: 7922185(0) Application of the marketing mix is no longer relevant for firms adopting a contemporary approach to marketing. Is this statement true? Write an essay that critically assesses this statement with reference to relevant literature and briefly outline suitable practical examples of firm’s practices where appropriate. Introduction Marketing developed as a distinctive management function in the period between the First World War and the Second World War (Lindgreen et al., 2004) which according to Marshall (1927) focused purely on distribution and exchange of goods. Period through the 1950s and 1960s as observed by (Borden, 1964) saw a tremendous increase in the evolution and interest in the subject of marketing, leading to the development of the concept of transactional marketing. The Marketing Mix Model also called as transaction marketing has been used as a corner stone of marketing for virtually four decades (Grönroos, 1994). Since its inception, McCarthy’s (1964) Four Ps- Product, Promotion and Place have been of utmost importance in the marketing management text (Yudelson, 1999). The model has seen little change since 1950s and as time has progressed; goods and services have noticeably transformed, both in terms of appearance and perceived value (Grönroos ,1994). Piller and Müller (2004) further observed that the customers had changed...
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...The marketing mix 7 Ps of the marketing mix… …a framework for complete marketing © 2005 Clarity Marketing Ltd www.clarity-in-communication.com 1 Why is a framework for marketing important? When you are developing your marketing plan, there are many factors that need to be considered. So many, that it could be easy to miss an important element. And since all these elements are interlinked, overlooking one factor could mean that the decisions you make about the others are not fully informed. So why 7 Ps? Traditionally, the marketing mix was developed for the fast moving consumer goods sector, and there were 4 Ps: Product, Price, Promotion, and Place (or distribution). As service sectors have become more aware of marketing, this marketing mix has been developed to also include: People, Process and Physical Evidence. Even if you think you only sell a product, so the original 4 Ps will suffice, it can be useful to think how much of a service element there is to your business. Indeed, the goods-service continuum demonstrates that very few products are purely goods and very few purely service. Goods Service Tangible Intangible Most of us sell either products with a surrounding service element (for example, a customer care help-line for a software retailer) or services with a tangible element (the skill of a hair stylist is a service but tangible products are required to deliver it). So it could be wise, even for product manufacturers, to consider all 7 Ps in...
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...EXPANSION OF MARKETING MIX The marketing mix is the combination of marketing activities that an organization engages in so as to best meet the needs of its targeted market. The marketing mix consists of four main elements: 1. Product - The product is the physical product or service offered to the customer. In the case of physical products, it also refers to any services or conveniences that are part of the offering. Product decisions include aspects such as function, appearance, packaging, service, warranty, etc. 2. Price – pricing decisions should take into account profit margins and the probable pricing response of competitors. Pricing includes not only the list price, but also discounts, financing, and other options such as leasing. 3. Place – place decisions are those associated with channels of distribution that serve as the means for the product to the target customers. The distribution system performs transactional, logistical, and facilitating functions. Distribution decisions include market coverage, channel member selection, logistics, and levels of service. 4. Promotion – promotion decisions are those related to communicating and selling to potential consumers. Since these costs can be large in proportion to the product price, a break-even analysis should be performed when making promotion decisions. It is useful to know the value of a customer in order to determine whether additional customers are worth the cost acquiring them. Promotion decisions...
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...BUSINESS & ECONOMICS MEB University Assessment Task: Research Report Green marketing: How The Body Shop Australia applies it by Lucy Wang November 2014 Course: Monash University English Language Bridging Program for University Teachers: A. Smith & M. Webb BUSINESS & ECONOMICS Table of Contents Executive Summary ……………………………………………………………………………………………………………….ii 1. Introduction……………………………………………………………………………………………………………………….3 2. Green Marketing………………………………………………………………………………………………………………..3 2.1. The four Ps of Marketing …………………………………………………………………………………………………….3 3. The Body Shop Strategy ……………………………………………………………………………………………………..4 3.1. Product Policy……………………………………………………………………………………………………………………..4 3.2. Price Policy…………………………………………………………………………………………………………………………..5 3.3. Placement Policy ………………………………………………………………………………………………………………….6 3.4. Promotion Policy ………………………………………………………………………………………………………………….6 4. Conclusions and Recommendations…………………………………………………………………………………….7 5. References ………………………………………………………………………………………………………………………….8 List of Figures Figure 1: The Body Shop Green Products……………………………………………………………………………………..5 Figure 2: Green Planet Campaign by The Body Shop …………………………………………………………………….7 i BUSINESS & ECONOMICS Executive Summary This report analyses how The Body Shop Australia applies green marketing, using four of the elements of the marketing mix, including product, price, promotion and place. The findings indicate that the company is committed...
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...IMPORTANT ELEMENT IN THE MARKETING MIX Definition of Marketing Mix According to Philip Kotler - "Marketing Mix is the combination of four elements, called the 4P's (product, Price, Promotion, and Place), that every company has the option of adding, subtracting, or modifying in order to create a desired marketing strategy" Marketing Mix was first coined by Neil Bordon, the President of the American Marketing Association in 1953 and is referred to as the set of actions, used by a company or organisation to promote its product or service in the market. A typical Marketing Mix is made up of 4Ps – Product, Price, Promotion and Place. These 4 Ps were introduced by the marketer E. Jerome McCarthy in 1960 and since then they are being used worldwide by the marketers. Product A product is a good or service offered by the company to satisfy the demands of the consumer. Price Price is considered to be an amount charged by the seller for the product or service given to the buyer. Promotion The methods used by the marketer to bring the product into market and to create awareness among the people e.g. advertisement. Place Place is all about how the products reach its buyers for sale. A business can be profitable only when the right product with right price is made available to the right users. The Product ‘P’ is always the single most important element in the Marketing Mix Affirmative The product plays the most important role in the entire process of marketing mix. The product is...
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... and even agents that list incredible homes in Dallas. My work is primarily in Uptown, Highland Park, and University Park. These neighborhoods are all top-dollar markets in Dallas with average home value is between $450K-$1M. This means that our clients (connections) are seeking top dollar customers. Philosophy of Style is designed to connect our clients with their ideal customers. The avenue we use to achieve this goal is our website: www.philosophyofstyle.com. Although the website is up and running, it is still very much in its infancy. Many elements of this paper serve as a plan for the future of Philosophy of Style. Not all the ideas have been implemented yet, but I believe the marketing strategies discussed herein will be effective. PRODUCT Philosophy of Style (PS) is a news and marketing website designed to highlight major players (and their work) in the Dallas real estate industry, including architects, developers, builders and even some...
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...successful business on relies fine-tuning of and constantly adjusting the marketing mix using the marketing management process. In today’s hypercompetitive marketplace, when a firm has the right marketing mix chances for success are very good; if the marketing mix is only marginally successful a firm’s future is in doubt. This paper will briefly describe the marketing management process. Next the elements of the marketing mix are described. Along with each element, examples are provided showing how each part of the marketing mix affects the development of an organization’s marketing strategy and tactics. “The marketing management process is the process of (1) planning marketing activities, (2) directing the implementation of the plans, and (3) controlling these plans” (Perreault, Cannon, & McCarthy, 2009, p. 32). Planning activities include setting objectives, evaluating opportunities, creating marketing strategies, preparing marketing plans, and developing a marketing program. Implementing the plan is putting everything into practice. Controlling the marketing plan after implementation includes measuring results, evaluating progress, and adjusting the marketing mix accordingly. Through the marketing management process as part of defining the marketing strategy, a firm defines its marketing mix. When a firm hits on the right combination of the four Ps of the marketing mix, it will enjoy success. The four Ps are “…controllable parameters likely to influence the consumer buying process...
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...brand marketing was created in the 1950s by consumer package goods companies like Procter & Gamble as a way to differentiate their products from their competitors with very similar offerings. Think about the recent example from Mad Men — Ketchup was created by Heinz to stand out versus all of the competitors’ catsups. Like most brand marketing, the product was essentially the same from one manufacturer to the other, but the marketing and the point of difference (commonly referred to today as the brand’s value proposition) was what made the branded product stand out and it served as a platform for all the marketing that surrounds that product. This brand value helped consumers justify a higher price for a higher-quality product, or at least one that was perceived to be better through the creation of clever advertising. Brands like Tide became household names and the gold standard when it came to getting your clothes clean. And today, many would argue that Tide is still a must-have in the laundry room, showcasing the success of strategic, evolving and cohesive brand management for the past 60 years. The 4 Ps of Marketing in the Digital Age When you take a marketing class in college, you are taught a basic framework to think about how to most effectively market a product: the “four Ps.” The four Ps include: product, pricing, promotion and placement. Each of these Ps, or levers, can and should be used in conjunction with one another to create the most effective marketing mix...
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...Marketing Mix Frank Robles MKT/421 February, 25 2013 Paressa Naveed There are four categories in the marketing mix. They consist of product, place, price and promotion. Many companies use these four elements of the marketing mix to help bring in revenue on the services that they are using. This paper will focus on those four p’s of marketing and explain in detail how the four p’s are beneficial to any organizations, marketing strategy and tactics. The first category in the four p’s would be the product. What the product is a service or item that a company offers. When a product is marketed, it means that the company created the idea to reach a target audience. The product should attract a certain audience and the company is responsible for creating the marketing strategy in order to hit the target audience. The second category in the four p’s would be place. Place is directly involved where an organization puts together a strategy where they make sure they get the product to its target audience. The whole process is revolved around how the product gets distributed to the consumer. This process is very important on deciding how the product gets to the consumer before they decide to purchase it or buy it. There are many ways on how the product gets to the consumer and how it reaches the target population. Now, as for the third P which stands for promotion. When a company promotes a product, they have different ways of doing so...
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