MARKETING MIX

The marketing mix is a foundation model in marketing. General types of products :

 the set of marketing tools that the firm uses to
pursue its marketing objectives in the target. a. Breakthrough products also called pioneers, are
 it is about putting the right product or a products that are technologically advanced and
combination thereof in the place, at the right creatively superior to existing products in the market.
time, and at the right price.
b. Differentiated products depends on customer
Marketing mix refers to four broad levels of marketing perception. It’s not how the brand sees its product, it
decision, namely: product, price, promotion, and place. is how the customer recognises the product. There
The contemporary marketing mix, or the 4 Ps, which has are three types of product differentiation:
become the dominant framework for marketing
management decisions, was first published in 1960.  Horizontal differentiation: Distinctions in products
that cannot be evaluated in terms of quality.
Marketing plans – are designed to capture market share Choosing between different mineral water brands,
and defeat competitors. It is summarized in 7 Ps by which the customer doesn’t know the real difference but
the enterprise will engage competitors and gain chooses one anyway.
customers. Occasionally service marketers will refer to
8 Ps, comprising these 7 Ps plus performance  Vertical differentiation: Distinctions in products
that can be evaluated in terms of quality. It’s a case
The 7 Ps of Marketing Mix where it is possible to say that one good is better than
the other. Intel i3 and Intel i5, the customer clearly
1. Positioning - refers to the ability to knows the difference between the two and chooses
influence consumer perception regarding a brand or one according to his preference.
product relative to competitors. The objective of market
positioning is to establish the image or identity of  Simple (or Mixed) differentiation: Differentiation
a brand or product so that consumers perceive it in a based on numerous characteristics. Choosing an
certain way. iPhone over an Android as the customer considers
iPhone to be a status symbol and believes that it has
3 Positioning Perspective : an easier interface as compared to Android, choosing
to order a product on Lazada than to visit Robinson
as the customer doesn’t want to leave his house.
a. Enterprise perspective – the enterprise scans
the market environment and decides to position
c. Copycat product a product that copies competitor’s
itself with products that specifically address the
idea for a product, it that has been designed, branded
needs of a chosen target market.
or packaged to look exactly like that of a well-
established competitor; a cheap imitation.
b. Competitors’ perspective – the enterprise has to
differentiate and distinguish itself from its d. Niche product is a product targeting a specific
competitors section of a larger industry and market. Niche
products are often more expensive than more
c. Customers’ perspective – the way the generic products. Because niche products are
customers perceive the enterprise and its fulfilling a particular specialist demand, it tends to be
products or services in their minds. more price inelastic. Some examples are re-usable
drinking straws, cruelty-free cosmetics, vegan-
Branding is the process of giving a meaning to friendly apparel, organic pet food and treats, pet
specific organization, company, products or services by accessories and clothing.
creating and shaping a brand in consumers’ minds
Most common ways to define a niche are based on:
Purposes of branding :
 Price (e.g. luxury, moderate, discount)
 To differentiate the product from other products
 Demographics (gender, age, income level,
 To avoid a commodity image for the product
education level)
 To fill a space in the consumer’s mind that
 Level of quality (premium, handmade,
would prevent other products from occupying
economical)
the same space
 Psychographics (values, interests, attitudes)
 Geographics (residents of a certain country, city,
2. Product – is the tangible good or the intangible service
or even neighborhood)
that the enterprise offers to the customers in order to
satisfy their needs and to produce their expected results.
It refers to what you are selling, including all of the
features, advantages and benefits that your customers can
enjoy from buying your goods or services.
3. Packaging - refers to the way your product or service Elements of Promotional Mix :
appears from the outside.
a. Advertising
Purpose of packaging : It covers communication methods that are paid
for like television advertisements, radio commercials,
1. identifies the product, it provides easy brand print media, and internet advertisements. It is only as
identification for the customers helpful as its ability to be seen. But with so many
2. differentiates the product from its competitors brands vying for attention, campaigns lose
and even from its other brand offerings effectiveness over time.
3. lengthen the lifespan, physically protects, and
extends the usefulness of the product b. Public Relations
4. becomes an environmental issue by itself, In public relations or publicity, companies
recyclability and biodegradability are now a share their message through existing channels - most
major concern of packagers and consumers. often the press - by doing or sharing something
5. Must possess its own value proposition for the newsworthy, which the channel then shares with their
customers as well as for the enterprise audience. These are communications that are typically
not paid for, this includes press releases, exhibitions,
4. Place – location of the enterprise sponsorship deals, seminars, conferences, and events.

Consideration of good location : c. Direct Marketing

Direct marketing is marketing directly to a
1. Number of customers residing or working in the person. By communicating with a narrow group of
area potential customers, companies promote their
2. Density or number of customers per unit area offerings through telephone marketing, snail mail,
3. Access routes to alternative locations email, or catalogs and brochures.
4. Buying habits of customers or where they buy, at
what time, and how frequent d. Sales Promotion
5. Locational features such as parking spaces, foot Sales promotions are the sledgehammers of
access and the like the marketing world. A well-crafted sales promotion
can generate immediate traffic and boost your short-
5. People – the ultimate marketing strategy, it is term sales. A sales promotion is an incentive, such as
important to hire and train the right people to deliver a discount or coupon, intended to persuade customers
superior service to the clients, whether they run a support to make a purchase.
desk, customer service, copywriters, programmers…etc.
e. Personal Selling
Companies hire salespeople to reach out
Marketing efforts of people : directly to potential customers in order to share
 To create customer awareness information about products or services, answer any
 To arouse customer interest questions, and close the sale. Personal sales tend to be
 To educate customers as they evaluate their extremely effective because salespeople can easily
buying choices adapt their messaging to meet their prospects’ needs
 To close the sale and deliver the products in real time.

6. Promotion – the explicit communication strategy 7. Price – a major factor for the customer in buying a
adopted by an enterprise to elicit the patronage, loyalty, product
and support not only from its customers but also from its
significant stakeholders. Business objectives :
Critical factors of promotion : 1. Profit maximization
2. Revenue maximization
 The credibility of the communicator 3. Market share maximization
 The message and the medium of the message 4. Attainment of the desired prestige or quality
 The receptiveness of the audience to all that is leadership
being communicated 5. Penetration, survival, or liquidation
6. Scarcity pricing or market skimming

When setting the product price, marketers should

consider the perceived value that the product offers