5. The Marketing Mix and Communications After carefully studying this chapter, you should be able to: Define the marketing mix; Identify and explain the 7 areas in the marketing mix; Explain the need to integrate the mix; Draw and explain a basic model of communication.

5.1 Marketing mix defined Every profession has a central core of expertise. For marketing it is called the marketing mix. Peter Kotler defines the marketing mix as: The marketing mix is the set of marketing tools that the organisation uses to pursue its marketing objective. The marketing mix contains 7Ps and 7Cs.

5.1.1 The 7Ps and 7Cs The marketing mix can be approached from two direction: A self-centered ‘P’ approach – from the viewpoint of the organization. A consumer-centered ‘C’ approach – from the viewpoint of the consumer. Marketers should plan each P in terms of what it will mean to customers. (examples on p.91)

Product  Customer Value We don’t just buy a product. We buy what it can do. We buy its value to us. E.g. Nobody wants a TV set because it is a TV set. We buy a TV set because it allows us to watch TV programs. Price  Cost to a customer

Place  Convenient to a customer Suppliers have to place their product offers at places where the customers/consumer feel convenient. Promotion  Communication to a customer Marketers, as the bridge to the customer, must be expert communicators in order to get the organisation’s message crossed.

Physical evidence  Confirmation to a customer When buying we all look for confirmation that our decision is a good one. Appearance Manner Administration Promises Guarantee

People  Consideration to customer Process  Co-ordination To simplify processes as far as possible. To make sure processes are well co-ordinated so that unnecessary duplication can be prevented.

PsCs Product is made by a supplier but provides ………… Customer value Price is set by a supplier but is ……………………… Cost to a customer Place is chosen by a supplier to place product offers where they are ………………… Convenient to a customer Promotion by the supplier is ………………………… Communication to a customer Physical evidence for the supplier is ……………….Confirmation to a customer People to a supplier is ………………………………Consideration to a customer Process to a supplier is ……………………………… Co-ordination to a customer

5.1.2 Products and services Products are tangible; services are intangible. But many services also have physical presence: Hair dressing is a service, but it also needs a physical location and hardware such as scissors and combs. Restaurants offer a service, but they need the physical location, the tables, chairs, butlery, etc.

Communications model 5.2. Communication Sender Message C O DI N G D E C O DI N G Channel Message Receiver Feedback

AICDA model of communication Attention Interest Comprehension Desire Action

5.2.2 Push and Pull Model Push: a self-centered P approach in the CoD. Manufacturer Wholesaler Retailer Customer Consumer

Pull: A customer-centered C approach in the CoD. The consumer wants  the customer will buy  the shop will have to buy stocks from the wholesaler  the wholesaler will have to buy from the manufacturer/supplier Manufacturer Wholesaler Retailer Customer Consumer Supply Demand Media