Unit 1

Concept of Marketing Mix

 Product
Parameters for product
• Variety
• Quality
• Design
• Features
• Brand name
• Packaging
• Sizes
• Services
• Warranty
• Returns
• Durability
• Ordering Ease

• Ex: Colgate – 50% market share

• Dental Cream, Total, Sensitive, Max Fresh, Kids, Energy Gel, herbal, Cibaca,
Advance whitening, Active Salt, Charcoal, Vedshakti
 Price
• List price
• Discounts
• Allowances
• Payment Terms
• Credit Terms
• Interest free EMIs
– Few other names
• Air Fare, College fee, Hotel Tariff, Insurance premium,
Interest charges, Rent, Wage, Toll, Honorarium, consultancy,
Salary Commission
 Importance of Price
• Measurement of Revenue
• Easiest to adjust
• Helps in communicating “Value Proposition”

• Value = Benefit – Cost

• (relationship between perceived benefit and
perceived cost)
 Place
• Channels
• Coverage
• Assortments
• Locations
• Inventory
• Transport
• Distribution channels
• Lot sizes
• Product assortments
• Locations
• Inventory
• Logistics
• 24 x 7 availability
 Maruti Suzuki
• 2 brand communication – Arena & Nexa
• 660 cities
• 14 brands of cars
• 150 variants
• 3060 service points
• 1454 cities
• 350 true value shops
 Promotion
• Sales Force
• Sales promotion
• Advertising
• Public relations
• Personal Selling
• Direct Marketing
• Digital Marketing
• People – Internal Marketing focused on employees

• Processes
• Creativity
• Discipline
• Structure

• Programs – Consumer directed activities

online/offline/traditional/non traditional

• Performance – Profitability with brand equity and

customer loyalty
4 Cs of Marketing
Service Marketing Mix
 Characteristics of Services
• Intangibility

• Inseparability

• Heterogeneity

• Perishability
 People
• All people who directly or indirectly
influence the perceived value of the
product or service, including knowledge
workers, employees, management and
consumers.
 Process
• Procedures, mechanism and flow of
activities which helps the marketer
to satisfy the consumer in a better
way
 Physical Evidence
• It deals with the direct sensory
experience of a product or service
that allows a customer to measure
whether he or she has received value
 Developing of an Effective Marketing Mix
• Goals and Objectives – to create right marketing mix with
clearly defined marketing goals (target of market share, brand
awareness, time frame)

• Establishing the budget

• Determining unique sales proposition (USP) in detail

• Well defined target market (in depth profile of your ideal

customer)
 Developing of an Effective Marketing Mix……

• Selecting the right distribution channel (Multi layered, Direct

to retailers, direct to customers)

• Creating a pricing strategy (Demand based, competitor based,

mark up pricing)

• Choosing the promotional mix – PR, direct marketing,

advertising, sales promotion, WOM

• Use inbound marketing (AKA free traffic sources) – Website,

Search engine optimization, email marketing, social media,
facebook, blogging