Marketing mix  “The set of marketing tools that the firm uses to pursue its marketing objectives in the target market” [Kotler]  It is often referred to as the 4 Ps

The four Ps  Product – collect of features and benefits that provide customer satisfaction  Price – value perceived in the mind of the customer  Promotion – marketing communications  Place – covers location, distribution, channels and logistics

4 Ps - Product  A product is anything that is capable of satisfying customer needs  A package of benefits  Products are designed to match needs  Quality  Style  Packaging  Durability  Installation  After sales  Branding  Warranty  Features

4 Ps - Price  Basic price  Discounts  Pricing policy  Price variations  Payment terms  Credit terms

4 Ps - Promotion  Marketing communications – how the product is communicated to the market  Advertising – message and media  Personal selling  Sales promotion  Public relations  Sponsorship  Direct marketing  The chosen combination of promotional activities is known as the promotional mix

4 Ps - Place  Choice of channels and outlets  Channel of distribution  Market coverage  Location

An effective marketing mix  Achieves marketing objectives  Meets customer needs  Is balanced and consistent  Creates a competitive advantage

Blending the mix  The marketing mix is more than a checklist of the 4Ps but the means by which firms blend together the elements of a marketing strategy.  There must be internal consistency within the mix.  The pricing, promotional and distribution strategy must be consistent with the product and its target market.

The blend  Product and price – cost must be taken into account when setting price  Promotion and price – cost of promotion is taken into account when setting price  Product life cycle and price – price set in relation to stage in the product life cycle  Product and promotion – the promotion mix should be varied in relation to product  Product and place – the nature of the product is a major factor in distribution strategy

Product life cycle  Introductory stage – informing clients, advertising and public relations are good for producing high awareness.  Mature stage – sales promotion again becomes important relative to advertising. Buyers know the brands and advertising is needed to remind them of the product  Decline stage – advertising is kept at a reminder level, public relations is dropped. Sales promotion may continue to be strong.

Activity  Working in pairs. Research marketing campaign of a tourism destination or product and analyse the 4Ps of their marketing mix.