Four Ps of Marketing

Jerome McCarthy an American Professor first described the Marketing Mix Variables in terms of 4 Ps.

   

Product Place ( Distribution) Price Promotion

Product
    

Product design, features, brand name, models, style, appearance Product Quality Warranty Package: Design Type, Material, Size, appearance and labelling Service: Pre- Sale, and after sale, service standards, service charges

Place


Channels of Distribution: Channel Design, types of intermediaries, location of outlets, channel remuneration, dealerprincipal relations etc Physical Distribution: Transportation, warehousing, inventory levels, order processing, etc

Price
 Pricing Policies, Margins, discounts and

rebates. terms of delivery, payment terms, credit terms, instalment purchase facilities


Resale price maintenance

Promotion
 Personal

selling, selling expertise, size of sales force  Advertising: Media mix, vehicles, programmes  Sales Promotion.  Publicity and Public relations

MARKETING PLANNING

Tasks Involved in Marketing Planning

     

Analysing The marketing Environment and spotting the opportunities and threats Internal appraisal Setting marketing objective of the unit Formulating the marketing strategy of the unit Developing detailed marketing plans and programmes Formulating the marketing budget

Internal appraisal
 Assessing the Strengths and weakness of

the Business Unit Marketing finance Manufacturing and operations - R&D- Human Resources Image of the unit its relative priority etc


Assessing Health and status of Product lines, Products and Brands Assessing the competitive advantages available to the Unit

Analysing the marketing Environment and spotting the opportunities and threats
 Favourable

and unfavourable factors prevailing/ emergingin the environment business opportunities available to the business units and their relative attractiveness.

 Specific

Setting Marketing Objective

  

Marketing objectives take the cue from Corporate decisions on SBUs Marketing objectives must be specified in clear terms Marketing objectives set in key areas:

Sales Volume Market Share Productivity Research & Development Innovation etc

Formulating the Marketing Strategy

 Selecting

the customer- his buying motives and buying behaviour

 Positioning  Assembling

the target market studying

the marketing mix

Deciding the approach in respect of each of the four Ps

Developing the detailed functional plans and programmes

      

Product Plan / Production Plan Sales forecast Plan Physical distribution Plan Channel Plan Advertising and sales promotion Plan Sales force Plan Sales organisation Plan

Reliance Textiles (VIMAL)



Company started business in 1960s with a small factory having four wrap knitting machines and a small dyeing section and just 70 people on its rolls. After 15 years Vimal became Indias top most textile company Mainly due to the Marketing strategy Vimal adopted

Marketing Strategy of Reliance textiles



Target Market selection

* Identified the well-to-do urbanites of India well-toIndia as its target market. market * Product High quality synthetic fabrics, using crimped yarn * The distinctive , sophisticated, and high price character of the fabrics

Positioning
 

Vimal fabrics was positioned on the plank of Fashion The fashion theme was given an additional value dimention with the help of technology attribute

Positioning
Vimal fabrics was positioned on the plank of Fashion  The fashion theme was given an additional value dimention with the help of technology attribute


Newly introduced crimped yarn DuPont cutting edge technology New dye process Modern design facilities

Vimal was positioned as a Superior product offering superior value

Product Strategy


Premium Product based on modern technology Collaboration with DuPont of USA Reliance for the first time introduced the worlds best synthetic fibre technology in India. Comprehensive Product Range Reliance entered into all four major segments of textile business Saris - Suitings - Shirting Dress materials Wide Variety and choice Employed 200 designers In suittings 10000 designs every year In saris - 400 New designs every month In dress materials 500 new designs every month ..

Product Strategy


Emphasis on quality -

three step approach

1) It voted for the premium quality as a delibrate option 2) It actually delivered premium quality 3) It communicated to the customers that premium quality was being delivered

The Distribution Strategy



The Show Room or Exclusive Retail Outlet idea was the cornerstone of Reliance distribution strategy
1800 Vimal show rooms across the country the largest retail network of its kind in India

The Distribution Strategy

Reliance promoted the unique distribution strategy VIMAL SHOWROOMS the largest nationwide retail network there is one near you  Reliance opened Jumbo Showrooms in big cities under the banner of Vimal Prestigious Showrooms


Pricing Strategies
Premium Pricing strategy Blend of What the traffic can bear and Value for money pricing

Promotional Strategy
 Initial Promotion budget of 5 crore per Annum in

1970s
* Reliance believed in high power promotion * Brand loyalty has been built up by sustained promotion campaign, using a good mix of different media.


Innovative approach
* Vimal departed from conventional models dependant approach * They induced the customers to look at textiles as a technical product and made them to talk of Crimped yarn , DuPont technology and Creative and Unique dress combinations

Different approaches for different Products/Audience

Different promotional approaches to different regional markets.

Promotional Strategy..


For Suitings

Reliance divided the target markets into two 1) The business people/ Executive community 2) The middle class gentle men

Promotional Strategy..


For Suitings

Reliance divided the target markets into two 1) The business people/ Executive community 2) The middle class gentle men Eg:- In Mumbai city Reliance developed Campaign A for business/ executive class consist of Ads in Business India, India Today etc. Campaign B for middle class segment - consist of Ads in CineBlitz, Stardust and Illustrated weekly

Promotional Strategy..
 Strategy

for Saris

A Woman Expresses Herself In Many Languages, Vimal Is One Of Them An attempt was made to create a rapport between Vimal and the buyer and appeal to her emotionaly

Promotional Strategy..
 Strategy

for Saris

A Woman Expresses Herself In Many Languages, Vimal Is One Of Them An attempt was made to create a rapport between Vimal and the buyer and appeal to her emotionaly

Promotional Strategy..
 

The Fashion Show Idea The ONLY VIMAL Idea

Only Reliance was producing , crimped polyester yarn in the country.( at that time) Only Reliance had an advanced R&D facilities Only Reliance was a position to offer 10000 designs and colour combinations Only Reliance was being rated by bodies like the World Bank, as on par with textile firms in the most developed countries

Promotional Strategy


Effective Media selection

* In the initial years 80% of the buget was earmarked for promotion through press * Later with the advent of T.V this has been changed, eventhough the cost is much higher.


Bold Steps in sales promotion

Ad campaigns with the telecast of * Miss Universe Contests * Oscar Awards Nite * Sponsoring World Cup Cricket Etc