MARKETING

4 Ps of Marketing
Identification, selection and development of
a product,
Determination of its price,
Selection of a distribution channel to reach
the customer's place, and
Development and implementation of a
promotional strategy.
CORE CONCEPT OF MARKETING
 Needs, Wants, Desires / demand

Exchange, Transactions & Relationships

Products, Utility, Value & Satisfaction

Markets, Marketing & Marketers

The Marketing Process:

Situation Analysis:

Marketing Strategy

Marketing Mix Decisions

Implementation and Control

THE MARKETING MIX

There are four parameters that the marketing manager

can control subjected to the internal and external
constraints of the marketing environment.

These Four Parameters are:

Product
Price
Place (distribution)
Promotion
 The Marketing Mix

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.
(1) Marketing Mix: Product

A PRODUCT SHOULD BE VIEWED IN THREE LEVELS:

Level 1: Core Product. What is the core benefit your product offers?

Level 2: Actual Product: The aim is to ensure that your potential

customers purchase your one. The strategy at this level involves
organizations branding, adding features and benefits to ensure that
their product offers a differential advantage from their competitors.

Level 3: Augmented product: What additional non-tangible benefits

can you offer? Competition at this level is based around after sales
service, warranties, delivery and so on.
 When an organization introduces a product into a market
they must ask themselves a number of questions.

Who is the product aimed at?

What benefit will customers expect?
How does the firm plan to position the product within the market?
What differential advantage will the product offer over their competitors?
 HERE ARE SOME EXAMPLES OF THE PRODUCT DECISIONS TO
BE MADE:

Brand name
Functionality
Styling
Quality
Safety
Packaging
Repairs and Support
Warranty
Accessories and services
 WHEN PLACING A PRODUCT WITHIN A MARKET MANY FACTORS
AND DECISIONS HAVE TO BE TAKEN INTO CONSIDERATION.
EXAMPLES:

Product design: Will the design be the selling point for the organization as
we have seen with the iPad, the new VW Beetle.

Product quality: Quality has to consistent with other elements of the

marketing mix. A premium based pricing strategy has to reflect the quality a
product offers.

Product features: What features will you add that may increase the benefit
offered to your target market?

Product branding: One of the most important decisions a marketing

manager can make is about branding. Brands have the power of instant sales,
they convey a message of confidence, quality and reliability to their target
market.
 (2) MARKETING MIX:
PRICING

Pricing is one of the most important elements of the marketing mix, as

it is the only mix, which generates a turnover for the organization. The
remaining 3ps are the variable cost for the organization.

Pricing should take into account the following factors:

1. Fixed and variable costs.
2. Competition
3. Company objectives
4. Proposed positioning strategies.
5. Target group and willingness to pay.
PRICING STRATEGIES :

Penetration pricing: Here the organization sets a low price to increase

sales and market share. Once market share has been captured the firm
may well then increase their price.

Skimming pricing: The organization sets an initial high price and then
slowly lowers the price to make the product available to a wider market.
The objective is to skim profits of the market layer by layer.

Competition pricing: Setting a price in comparison with competitors.

Really a firm has three options and these are to price lower, price the
same or price higher.
Bundle Pricing: The organization bundles a group of products at a
reduced price. Common methods are buy one and get one free
promotions.

Premium pricing: The price set is high to reflect the exclusiveness of the
product.

Cost plus Pricing: Here the firm adds a percentage to costs as profit margin to
come to their final pricing decisions.

Optional pricing: The organization sells optional extras along with the product
to maximize its turnover.
 Pricing Objectives:

Current profit maximization

Maximize quantity
Maximize profit margin
Quality leadership
Survival
 MARKETING MIX: PLACE

Distribute the product to the user at the right place at the

right time.
Two types of channel of distribution methods are:

(a) Indirect distribution: involves distributing product

by the use of an intermediary.

(b) Direct distribution: involves distributing direct from

a manufacturer to the consumer.
Distribution Strategies:
(a). Intensive distribution:
Used commonly to distribute low priced or impulse
purchase products
Example: chocolates, soft drinks.

(b). Exclusive distribution:

Involves limiting distribution to a single outlet.
The product is usually highly priced, and requires the
intermediary to place much detail in its sell.

(c). Selective Distribution:

A small number of retail outlets are chosen to distribute
the product.
 Marketing Mix: Promotion
Marketing communications are the means by which firms
attempt to inform, persuade, and remind consumers- directly
or indirectly about the products.

five major types of communication are:

(a). Advertising:
Advertising is a public mode of communication.
Advertising messages can be repeated number of times.

(b). Sales promotion:

Sales promotion tools like coupons, contests, premiums,
and the like act as communication medium and also
promote sales.
(c). Public relations and publicity:
News stories and feature articles are more authentic and
credible than advertisements to readers.

(d). Personal selling:

Personal selling as a communicative channel involves a
live, immediate, and interactive relationship between
persons.
Personal selling leads to relationships.

(e). Direct Marketing:

Direct mail, Email, and telemarketing.
Message is addressed to a specific person and
customized.