1. Marketing Mix
Unit 2

2. Marketing objectives - the purpose of marketing
Market segmentation – who is the target market?
Market share – what is the market size and
what share is your firm aiming for?
Marketing mix:
Product – what type and range of products will you sell?
Pricing strategy – what price will you set for your products?
Place – where will you sell and how will you distribute your product?
Promotion – how will you effectively target your market?

3. The Marketing Mix
What is this?

4. The Marketing Mix
The tools available to a business to gain the reaction it is seeking from its target market in relation to its marketing objectives
7Ps – Price, Product, Promotion, Place, People, Process, Physical Environment
Traditional 4Ps extended to encompass growth of service industry

5. The Marketing Mix
This has 4 key areas:
Product
Price
Place
Promotion….

6. People Process Physical evidence Influences on the marketing mix
However, the extended marketing mix takes into account other important variables that particularly affect services to make the 7Ps:
People
Process
Physical evidence

7. The 4 Ps & 4Cs Convenience Customer Solution Customer Cost
Marketing
Mix
Product
Place
Promotion
Price
Convenience
Customer
Solution
Customer
Cost
Communication

8. Physical evidence or environment
The marketing mix – the 7Ps
Marketing Mix – the 7Ps
Product
Promotion
Place
Price
Process
Physical evidence or environment
people
For
services

9. Product

10. Product
Methods used to improve/differentiate the product and increase sales or target sales more effectively to gain a competitive advantage e.g.
Extension strategies
Specialised versions
New editions
Improvements – real or otherwise!
Changed packaging
Technology, etc.

11. What is a Product? There are 4 general categories of ‘products’: Good
Service
Place
Person
Can you think of
an example for
each category?
Refer to their handout – add some of their own examples

12. Goods

13. Services

14. Place

15. Person

16. What is the difference between TANGIBLE & INTANGIBLE?

17. Tangible & Intangible Products
Is more quantitative…
Can be measured specifically & see the actual results
E.g. Car speed, safety standards, efficiency (mpg)
Products
Intangible
Is more qualitative…
Cannot be scientifically measured.
Focuses on how people feel or the image or pleasure gained…
Services

18. Price

19. Price Pricing Strategy Importance of: knowing the market elasticity
keeping an eye on rivals
Elasticity:ratio of % change in 1 variable to % change in another variable

20. Promotion

21. Promotion
Strategies to make the consumer aware of the existence of a product or service
NOT just advertising

22. Place

23. Place
The means by which products and services get from producer to consumer and where they can be accessed by the consumer
The more places to buy the product and the easier it is made to buy it, the better for the business (and the consumer?)

24. People

25. People People represent the business
The image they present can be important
First contact often human – what is the lasting image they provide to the customer?
Extent of training and knowledge of the product/service concerned
Mission statement – how relevant?
Do staff represent the desired culture of the business?

26. Process

27. Process How do people consume services?
What processes do they have to go through to acquire the services?
Where do they find the availability of the service?
Contact
Reminders
Registration
Subscription
Form filling
Degree of technology

28. Physical Environment

29. Physical Environment/ physical evidence
The ambience, mood or physical presentation of the environment
Smart/shabby?
Trendy/retro/modern/old fashioned?
Light/dark/bright/subdued?
Romantic/chic/loud?
Clean/dirty/unkempt/neat?
Music?
Smell?
Physical evidence – for pharma products the clinical data becomes a source of evidence

30. THANK YOU -PHARMA STREET