7 P’s in Marketing

Marketing Mix
What is Marketing?

Marketing
Identifying what the customer want and
Marketing Mix
satisfying this want through the right product, The marketing mix is intended to
the right price, the right locations and the right influence the customer in his purchasing
information. decision. The job of business operator is
to provide a blending of the variables
that will lead the customer to make a
Marketing Concept purchasing decision favourable to the
company.
Provides a guiding principle to small
business which is making a match
between its intended customers and its
products or services.
 7 P’s in Marketing
Positioning
Latitude
Latitude lays out what is important to the different
Positioning, in the context of a marketing battle plan,
customer segments from their differing point of view.
has three overlapping objectives.
Certain customers may claim that what is
important to them are the quality features of durability
First, positioning has an enterprise perspective: The
and functionality. Other customers may be looking for
enterprise scans the market environment and decides
style, design, and aesthetic appear and other would buy
to position itself with products that specifically address
lower priced products with lesser quality.
the needs of a chosen target market.
Second, positioning has a competitive perspective:
Longitude
The enterprise has to differentiate and distinguish itself
Longitude in the marketing map represents the product
from its competitors.
features and attributes of competitors in the marketplace.
Third positioning takes the customers’ perspective:
Most competitors would be offering product
Positioning is the way the customers perceive the
features, which the major customer segments want to buy.
enterprise and its products or services in their minds.
A few will focus on niche customers who are not in the
mainstream.
 7 P’s in Marketing
In determining its positioning, the
enterprise should be mindful of the main
value proposition (MVP) to its customers
relative to its competitors
Branding serves three purposes
1 To differentiate the products from other products.
2To avoid a commodity image for the product.
3prevent
To fill a space in the customer’s mind that would
space.
other products from occupying the same
Positioning
To establish the positioning of its various
products in the marketplace, the
enterprise endeavours to build the brand
of each product.
Once a space gets filled in the consumer’s mind it is
very hard to change.
Branding and brand equity development should go hand
in hand with positioning .
Example: Volvo stresses its safety brand positioning by
crashing their test cars into brick walls to dramatize the
minimal effect in the owner-driver.
7 P’s in Marketing
Positioning
Powerful brands have become the generic name for their product categories.
 7 P’s in Marketing
Product
• A product is the tangible good or the intangible service that the enterprise offers to its
customers in order to satisfy their needs and to produce their expected results.
• Products are often identified with their brand names to distinguish them from other
products in the market.
• Some products have built up so much loyalty to the point that their brand names become
their best selling proposition.

There are four general types of products that re marketed by enterprises:

1. Breakthrough products
2. Differential products
3. Copycat Products
4. Niche products
7 P’s in Marketing
Product
Breakthrough products
Breakthrough products offer completely new performance benefits. They may be
double the performance at half the cost. They may be much more convenient and easy
to use. They may cater to a unique set of customer needs that have not yet been
tapped. They may create a new demand.

Common examples products are borne out of the biotechnology field particularly in terms of coming up
with new vaccines to protect people from certain viruses.
7 P’s in Marketing
Product
Differentiated products
Differentiated products try to claim a new space in the mind of the costumer different
from the spaces occupied by existing products. The performance benefits may be close
to existing products but there would be additional benefits on special aspects of the
products.

Example: There are many different

eyeglasses available in the market
today but Transitions® lenses was
able to differentiate itself from the
rest because the lenses they use
adapt to changing light.
7 P’s in Marketing
Product
Copycat products
Copycat products will not make much impression on the customer’s mind. The
marketer should make up for this lack of mental space by offering more physical space
in the shelves, lower prices, easier access, promotional freebies, and the like.

Example: A classic Philippine copycat

product is the Beer na Beer brand
Asia Brewery pitted against the San
Miguel Pale Pilsen. Both have amber
colored bottles with similarly styled
white colored font printed outside
bottles.
7 P’s in Marketing
Product
Niche products
Niche products do not intend to compete directly with the giants. They are products
with lower reach, lower visibility, lower prices, and lower top of mind. They are content
to play minor roles in specific and smaller market segments.

Example: The Dirty Rotten Flowers

delivery service in the United States?
In contrast to romantics wanting to
send the best and most beautiful
flowers to their loved ones, this
company caters to the wronged ones
or those who want to seek revenge.
 7 P’s in Marketing
Packaging
Packaging refers to the way your product or service appears from the outside.
Packaging also refers to your people and how they dress and groom. It refers to your
offices, your waiting rooms, your brochures, your correspondence and every single
visual element about your company. Everything counts. Everything helps or hurts.
Everything affects your customer's confidence about dealing with you.

Today, packaging serves several important purposes, which elevate it to one of the
seven Ps of marketing.

First, packaging identifies the product, describes its features and benefits, and complies
with government rules on specifying its content, weight, chemical compositions, and
potency. Packaging provides easy brand identification for the consumers.
 7 P’s in Marketing
Packaging
Second, packaging differentiates the product from its competitors and even from its other
brand offerings.
For example, liquor brands differentiate their premium scotch and brandy offering by
packaging them in ceramic bottles

Third, packaging lengthens the lifespan, physically protects, and extends the usefulness of
the product. Vacuum-packed products prolong the shelf lives of many food and beverage
items. High-tech packaging protects fragile and sensitive products like crystal sculptures,
laptops, precision tools, and the like.

Fourth, packaging has become an environment issue by itself. Many packages are
discarded after the contents have been taken out. This generates waste and poses
environmental hazards, Recyclability and biodegradability are now a major concern of
packagers and consumers alike.
 7 P’s in Marketing
Packaging
Fifth, the aforementioned purposes of packaging have increased the cost of packaging and,
therefore, the price of the product. To counteract this, the packaging must possess its own
value proposition for the customers as well as for enterprise. For the customers they may
put some premium on environment-friendly packaging. Customers may even be able to
convert the packaging into money if the packaging were exchangeable for cash. Some
packaging are so beautiful, they can create their own value as collectibles.
 7 P’s in Marketing
Place
“Location, Location, Location” This is the often-recited mantra of salespeople who want to
have the best access to their customers. Although finding a good location proves to be
challenging, even more challenging is maximizing the potentials of that location.

Initial Location Screening

In finding a good location, one needs to consider the following:

1. The number of customers residing or working in the area, and the number of customer
who frequently pass through the area.
2. The density or number of customers per unit area.
3. The access routes to alternative locations and their traffic count in those routes.
4. The buying habits of customers or where they buy, at what time and how frequent.
5. Locational features such as parking spaces, foot access, creature comforts, and the like.
 7 P’s in Marketing
Place
In a similar way, the entrepreneur must be able to determine the price that comes with the
location because it will spell out the success or failure of the business.

The entrepreneur has to consider the following:

1. The cost of buying or renting, renovating, and operating the location.
2. Customer volume, drop-in rates (what percentage of customer traffic would stop by the
store) and sales conversation ratios (what percentage of drop-ins would actually purchase
something from the store).
3. Revenues based on the volume and mix of goods and services expected to be sold at
certain prices.
4. Profits.
 7 P’s in Marketing
Place
In addition to the previous factors, the final choice of location must be based on the following:
1. Image and location conditions. This refers to the physical look of a location, sanitary
conditions, crime and safety level, etc. The reputations of a location is also important.
2. Exact fit to target customers. Is the location traffic generally composed of your target
customers?
3. Clustering of competitor establishments. This oftentimes results in drawing a bigger
market to the location.
4. Future area development. A certain location might not have the most customers or the
best economics in the short term, but it might become a central business hub within the
next five years.
5. Fiscal and regulatory requirements. An entrepreneur would want to set up shop in a
town or city with low tax rates, good governance , excellent infrastructures, and great
public services.
 7 P’s in Marketing
Place
Relevant Location Drivers In-depth location analysis.

1. Physical Proximity to target Market • Cheap utilities

2. Customer Traffic Flow • Efficient transportation and logistics
3. Industry Clustering • Availability of skilled labor force
4. Converge of Multiple Industries • Low crime rates
5. Population Concentrations • Good fiscal incentives
6. Activity Hubs • Trusted public officials
7. Growth Potential 9. Cost of Doing Business and Producing Goods
8. Business Climate and Services
Enterprises prefer locations that are conducive in
doing business. This includes areas with:
• High economic growth
• Stable political situation
• Effective social services
• Good infrastructures
 7 P’s in Marketing
People
People are the ultimate marketing strategy.
People sell and push the product.
People search hard to find the right market.
People distribute, promote, price, and sell the products in the most
attractive market places.
People aim to please the customers through continuing service and
product enhancements long after the customers have bought the
product.
 7 P’s in Marketing
People
To arouse the interest of customers, the enterprise can use several
people or organization modalities
• First modality is to outsource the people from advertising agencies,
events management outfits, call centers, and telemarketers.
• The second modality is to build in-house capabilities by hiring market
researchers, brand managers, salespeople, public relations officers,
website writers, etc.
• The third modality is to collaborate or enter into partnerships with
principals, distributors, dealers, and industry associations.
 7 P’s in Marketing
Promotion
Promotion is the explicit communication strategy adopted by an enterprise to elicit the
patronage, loyalty, and support not only from its customers but also its other significant
stakeholders.
Promotion encompasses all the direct communication efforts of the enterprise such:
• Advertising
• Public relation campaigns
• Promotional tours
• Product offerings
• Point of sale displays
• Websites
• Flyers
• Emails
• Letters
• Telemarketing
 7 P’s in Marketing
Promotion
Effective promotion depends on three critical factors:
• The credibility of the communicator
• The message and the medium of the message
• The receptiveness of the audience to all that is being communicated

Before crafting promotion and communication strategy, the communicator must profile the target audience
very well, In business, this requires some research on who exactly is the market audience, what they are
looking for in particular product offering and what it will take to convince them to purchase the product
offering.

For a business promoter, it is important to get a very positive emotional reaction from the target audience. All
messages must make an impact on the target audience – sensory, emotional, and intellectual impact at that.
Therefore, all messages must start from where the customer are, not from where the enterprise is. The only
exception is when the enterprise has gained so much credibility and loyalty from the audience that anything it
says is taken as gospel truth.
 7 P’s in Marketing
Price
Pricing depends on the business objectives set by the enterprise. While price is a
major factor for the customer in buying a product, its is not the only factor such as in
the case of buying premium products. Non price factors outweigh the price factor
whenever a customer is buying a premium item because he or she is more particular
about the premium-ness in terms of quality, the status or image that the product
brings, shorter waiting time or immediate delivery, and other such decision criteria.

Finding the right price for a product is, therefore, not a simple matter of adding a
mark-up on the cost of a product or service, as some companies do.
7 P’s in Marketing
Price
Profit, Revenue, and Market Share Maximization

Price Volume Total Revenues Total Costs Total Profits Unit Cost

10 100 1000 800 200 8

12 90 1080 750 230 8.33

14 75 1050 675 375 9

16 60 960 600 360 10

18 50 900 550 350 11