Marketing Mix Flashcards
Define the marketing mix
The specific collection of actions and associated instruments employed by an organisation to stimulate acceptance of its ideas, products and services
Kotler et al 2001 marketing mix definition
‘Controllable tactical marketing tools that the firm blends to produce the response it wants in the target market’
Each element should be designed to add up to the positioning required
To be effective it needs to
Match customer needs
Create a competitive advantage
Should be well blended
Should match corporate resources
What is co-creation?
Joint creation of value by company and customer
Features of co-creation
Co-construct service experience to suit context
Active dialogue
Joint problem definition and solving
Innovating experience environments
Experience variety
Experience economy
Internal of experience society
- how you feel
- obtain better experiences
- work for meaning/challenge
External of production society
- what have/do
- work for money
- obtain material things
External vs internal orientated motifs
What is Relationship marketing
Network approach (not just seller initiated)
Long term relationships (stems from services marketing)
Customer relationship economies
Relationship building and management
8 Features of relationship marketing Gronroos 1994
- long term focus
- interactive marketing
- customers less sensitive to price
- quality of interactions important
- managing customer base
- real time customer feedback
- interface of substantial strategic importance
- internal marketing of substantial strategic importance
4 stages of Total offer to the customer
- Choose product to meet identified need of target segment
- Right distribution channel used to make it available
- Undertakes eye-catching promotion
- Price platform is acceptable to the customer and firm
Time scale of marketing mix
1960s 4Ps
1970s-1990s service aspects, 7Ps and consumer focus 4/7Cs
What are the 4Ps?
Product
Price
Place
Promotion
7Ps vs 7Cs
7Ps organisation facing
7Cs customer facing
What is Price?
How much it’ll cost
Amount of money charged for product or service
Sum of value exchanged for benefits of having/using product or service
E.g discount supermarkets, low cost airlines
What is place?
Where to sell your product
E.g convenience stores, coffee shops
What is product?
What products to make and sell
Anything that can be offered to a market for attention, acquisition, use or consumption
What is promotion?
Activities that communicate the product or service and its merits to the facet customers o persuade them to buy
Promotion C
Communication
Product C
Customer/consumer
Place C
Convenience
Price C
Customer cost
4C’s
Customer/consumer (product)
Customer cost (price)
Convenience (place)
Communication (promotion)
Nickels and Jolson 1970s suggested an extra P
Packaging
1980s Kolter proposed Ps
Public opinion
Political power
What is the extended marketing mix?
Accommodate specific aspects of marketing
Booms and Bitner 3Ps extended marketing mix
Process
Physical evidence
People
What is process?
Procedures mechanisms and flow of activities which lead to an exchange of value
E.g drive thru
What is people?
All who directly or indirectly influence the perceived value of product/service
E.g apple staff build relationships
Abercrombie model staff
What is physical evidence?
The direct sensory experience of a product/service that allows a customer to measure whether he/she has received value
E.g packaging, websites, paperwork, uniforms, buildings
E.g treatment by staff, length of wait, environment
Why did Booms and Bitner add 3Ps?
To accommodate trends towards a service or knowledge-based economy
Strengths of 7Ps
More comprehensive
More detailed
More refined
Broader perspective
Includes participants/people and process
Standardisation
Signals marketing theory
Weaknesses of 7Ps
More complicated
Extra elements can be incorporated in 4Ps
Controllability of the three new elements
Weaknesses of 4Ps
Too simple, not broad enough
Lack of services
Lack of relationship marketing
Lack of connection and integration
Static nature
Strengths of 4Ps
Lee Goi 2009
Simplicity
Easy to memorise
Good pedagogic tool
Adaptable
Useful conceptual framework
Lee Goi 2009
Marketing managers are learning to cope with a whole host of new elements that have emerged from the online world of the internet
Low and Kok 1997
Decisions can’t be made on one event without considering its impact on other elements
McCarthy pointed out (1960)
The number of possible strategies of the marketing mix is infinite
Particularly useful in early days of the marketing concept when
Physical products represented a larger portion of the economy
Criticism of McCarthy 4Ps 1960
Interplay between components not taken into consideration
Relationship marketing
More focused on customer retention than customer acquisition
E.g EE, retain and spend more with them
