7P's of Marketing Mix

• 7 P's of Marketing Mix

  • PRODUCT

  • PLACE

  • PRICE

  • PROMOTION

  • PEOPLE

  • PACKAGING

  • POSITIONING
• Product - refers to any goods or services that is produced to meet the consumers’ wants, tastes and preferences.
• Goods can be categorized into business goods or consumer goods.
• Goods

  Consumer Goods

  Business Goods
• Services

  Consumer Services

  Professional Services
• Place - represents the location where the buyer and seller exchange goods or services.
• Place - It is also called the distribution channel.
• Place

  Location of the retailer

  Wider range of outlets

  Trained distribution or sales agent
• Stages of Distribution Channel

  Channel 1

  • Wholesaler - typically buys and stores large quantities of several producers goods.

  • Small retailers- limited order quantities
• Stages of Distribution Channel

  Channel 2

  • One (1) Intermediary or middleman

  • Retailer- is a company that buys product from a manufacturer or wholesaler and sells them to end users.
• Stages of Distribution Channel

  Channel 3

  • Direct-marketing

  • Manufacturers to customers
• Price - Is the amount or value that a customer gives up to enjoy the benefits of having or using a product or service. Value
• Penetration Pricing - The price charged for products and services is set artificially low in order to gain market share. Once this is achieved, the price is increased
• Skimming Pricing - A company charges a higher price then slowly lowers the price to make the product available to a wider market because it has a considerable competitive advantage.
• Competition Pricing - A pricing method in which a seller uses prices of competing products as a benchmark instead of considering own costs or the customer demand.
• Bundle Pricing - The act of placing several products or services together in a single package and selling for a lower price than would be charged if the items were sold separately.
• Premium Pricing - Setting the price of a product higher than similar products. The goal is to create the perception that the products must have a higher value than competing products because the prices are highe
• Psychological Pricing - is the practice of setting prices slightly lower than rounded numbers, in the belief that customers do not round up these prices, and so will treat them as lower prices than they really are.
• Optional Pricing - The company earns more through cross-selling products along with a basic core product. The main product does not have many features (and is priced low) which can be enhanced through optional or accessory products which are sold at premium by the same company
• Cost Plus Pricing - involves adding a markup to the cost of goods and services to arrive at a selling price. Under this approach, you add together the direct material cost, direct labor cost, and overhead costs for a product, and add to it a markup percentage in order to derive the price of the product.
• Cost Based Pricing - A pricing method in which a fixed sum or a percentage of the total cost is added (as income or profit) to the cost of the product to arrive at its selling price.
• Value Based Pricing- A price-setting strategy where prices are set primarily on consumers' perceived value of the product or service.
• Promotion - Refers to the complete set of activities, which communicate the product, brand or service to the user.
• Advertising


  Radio

  Television

  Print

  Electronic

  Word of mouth

  Generic
• Advertising

  Radio - Selecting the territory and audience, cheaper than TV advertising
• Advertising

  Television-This is the latest and the fastdeveloping medium of advertising and is getting increased popularity these days.
• Advertising

  Print- The print media carry their messages entirely through the visual mode.
• Advertising

  Electronic- Advertise electronically through the company website and provide important and pertinent information to clients or customers.
• Advertising

  Word of Mouth- Is important for every business, as each happy customer can steer dozens of new ones your way
• Advertising

  Generic- The promotion of a particular commodity is without reference to a specific producer, brand name or manufacturer.
• Public Relations or PR -The article that features your company is not paid for. The reporter, whether broadcast or print, writes about or films your company as a result of information he or she received and researched.
• Personal Selling - Personal selling occurs when an individual salesperson sells a product, service or solution to a client.
• Five Stages of Personal Selling Process

  i. Prospecting

  ii. Making first contact

  iii. The sales call

  iv. Objection handling

  v. Closing the sale
• Sales Promotion - Is any initiative undertaken by an organization to promote an increase in sales, usage or trial of a product or service that is not covered by the other elements of the marketing communication or promotion mix.
• Sales Promotion Technique


  i. Free Gifts

  ii. Free Samples

  iii. Free Trial

  iv. Customer Contests

  v. Special Pricing
• Direct Marketing - Is a promotional method that involves presenting information about your company, product, or service to your target customer without the use of an advertising middleman.
• Forms of Direct Marketing

  i. Brochure

  ii. Coupons

  iii. Catalogs

  iv. Email

  v. Fliers

  vi. Phone calls

  vii. Newsletters

  viii. Text Messages

  ix. Post Cards
• People - People are the ultimate marketing strategy. They sell and push the product. People are one of the most important elements of the marketing mix today.
• Packaging - Is a silent hero in the marketing world. It is the outside appearance of a product and how it is presented to the customers
• Five Basic Functions of Packaging

  Protection

  Containment

  Information

  Utility of use

  Promotion