1. Session
Marketing Mix

2. Session Outline Market Positioning Mix Elements Perceptual Maps
Marketing Mix
4 C’s
People

3. This Session Weekly Activity:Positioning Business
Answer the 3 Levels of Strategy questions for your business:
Corporate - What business should I be in?
Business - How should I compete against my competition?
Functional - What strategies will I use to my position my business to my target customers?
The answers to these questions will form the basis for implementing your Marketing Plan.

4. Market Positioning
‘…developing a specific marketing mix to influence potential customers’ overall perception of the organisation itself, a brand, a product range or line.’

5. Topic Example Video The following video discusses market positioning.
Take note of the key points.

6. Market positioning
‘…developing a specific marketing mix to influence potential customers’ overall perception of a brand, a product line or the organisation itself.
The way the product is perceived by the consumers on important criteria’ (McColl-Kennedy et al. 1999, p.266)
Salient attributes are the important features or benefits the product offers.

7. Product positioning
The way that the product is defined by consumers based on important attributes.
The place that the product occupies in the consumers’ minds relative to competing products.
Product positioning map shows how consumers perceive competing products that serve a particular need based on a set of key attributes.

8. Image Positioning An image statement is a general message often using semantics to communicate to people:
Image positioning involves creating consumer associations that are strong, favourable or unique when compared with the competition.
An outline of benefits and advantage points
Product position enhancement
Basis for advertising appeals

9. Branding
A name, term, sign, symbol or design, or combination of these, intended to identify the goods or services, of one seller or group of sellers and to differentiate them from those of competitors.

10. Topic Example Video
The following video highlights how branding can be used for positioning.
Take note of the key points.

11. Positioning to target segments Need to consider:
Positioning Strategies
Marketing Mix Elements
Level of Product
Consumer Behaviour

12. Designing the right marketing mix
The most creative & challenging step in marketing is designing the right marketing mix
The marketing mix is the specific collection of actions & associated instruments employed by an organisation to stimulate acceptance of its ideas, products & services

13. Seven marketing mix elements

14. Total Offer to the Customer
First, the firm chooses the product to meet the identified need of the target segment
Second, the right distribution channel is used to make the product available
Third, the firm undertakes eye catching promotion
Fourth, the price platform is acceptable to the customer & firm

15. Perceptual Map
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

16. Topic Example Video
The following video the use of perceptual maps to identify market gaps.
Take note of the key points.

17. Customer Focus Organisation Product (features & attributes) Price
Placement (distribution)
Promotion
Customer
Considerations (needs & wants)
Cost
Convenience (location)
Communication

18. Product is the heart of the marketing mix
What is a product?
Product is the heart of the marketing mix
Price
Promotion
Place (distribution)

19. Topic Example Video
The following video discusses the difference between products and services.
Take note of the key points.

20. Product & Service What will your product and service strategies be?
Briefly describe your products - fuller details can be put in the Appendix. 
How will you position your products in the market and how does that compare to the competition's positioning? 
How will the product meet customer's needs? 
After the product is sold to the customer what will the policies be for providing support, dealing with complaints and returned goods? 
Describe the unique features of your product - these could be style, quality, brand name etc. 
Describe the uniqueness of the packaging - size, shape, material etc. 
Describe your service, warranty, repair and returns procedures.

21. What is the Product Concept?
A product is a bundle of tangible and intangible attributes that satisfy a buyer’s needs and wants.
Total product concept - consumers are buying the total bundle when they buy a product. Therefore, one physical product can target different market segments by varying the intangible component and thus satisfying different needs and wants of consumers.

22. Total Product

23. Topic Example Video
The following video outlines the 3 levels of product.
Take note of the key points.

24. Levels of Product
Products have three levels that need to be considered. These are;
the core product - the benefits of the product for the consumer
the actual product - the tangible or physical attributes of the product
the augmented product - the intangible or additional elements of the product.

25. Service
The result of applying human or mechanical efforts to people or objects.

26. Topic Example Video
In the following video, Brian McCarthy discusses Pricing.
Take note of the key points.

27. Price Common pricing strategies: Cost plus pricing
•Competition based pricing
•Loss leader pricing
•Promotional pricing
•Skimming strategy
•Penetration pricing
•Premium pricing
•Economy pricing
•Value pricing
•Dynamic pricing
•Product bundle pricing
2 mins – if need to fill time, then ask students to research a couple of strategies and then have a class discussion.

28. Price What impact has the internet had on pricing?
Allows price and product comparisons.
Prices are coming down.
Data collection allows sellers to tailor products and prices.
3 mins
Invite students to answer the question at the top.

29. Placement How will you get your products to your customers?
Describe how you ship your products to your customers. 
What channels do you propose to use - will you distribute directly, through distributors or via wholesalers or a combination of all three? 
Describe the channels you will use for each product for each target market segment. Describe what coverage they give.
If using distributors or wholesalers, describe where they are located and what inventory levels they carry.

30. Topic Example Video
In the following video, Brian McCarthy discusses Distribution.
Take note of the key points.

31. Major channels of distribution
PRODUCERS OF CONSUMER GOODS
Agents
Agents
Wholesalers
Wholesalers
Retailers
Retailers
Retailers
Retailers
ULTIMATE CONSUMERS

32. Topic Example Video
In the following video, Brian McCarthy discusses Marketing Communications or more commonly, the Promotional Mix.
Take note of the key points.

33. Promotional Methods Advertising Publicity Public Relations
Personal Selling
Media Announcements
Sales Promotion
Internet
Product Launches
Functions
Direct-response Marketing

34. Promotional Mix What is the thrust of your marketing message?
What must you convey to make them buy? 
How will you inform your customers about your products? 
What promotion strategy will you employ - advertising, telemarketing, seminars, trade shows, personal selling, public relations, testimonials? 
Describe what media mix you will employ for advertising - magazines, newspapers, direct mail, television, yellow pages - and how often you will use them. 
Describe the types of seminars and trade shows you will be using and the personal selling activities that you will use.

35. 4Ps & 4Cs
Four Cs
The Four Ps is also being replaced by the Four Cs model, consisting of consumer, cost, convenience, and communication.
The Four Cs model is more consumer-oriented and fits better in the movement from mass marketing to niche marketing.

36. Product- Consumer
The product part of the Four Ps model is replaced by consumer or consumer models, shifting the focus to satisfying the consumer.

37. Price- Cost
Pricing is replaced by cost, reflecting the reality of the total cost of ownership.

38. Place- Convenience Placement is replaced by the convenience function.
With the rise of internet and hybrid models of purchasing, place is no longer as relevant as before.
Convenience takes into account the ease to buy a product, find a product, find information about a product, and several other considerations.

39. Promotion- Communication
Finally, the promotions feature is replaced by communication.
Communications represents a broader focus than simply promotions.
Communications can include advertising, public relations, personal selling, viral advertising, and any form of communication between the firm and the consumer.

40. Topic Example Video The following video highlights the 7 P’s.
Take note of the key points.

41. Extended Marketing Mix
There have been attempts to develop an 'extended marketing mix' to better accommodate specific aspects of marketing.
For example, in the 1970s, Nickels and Jolson suggested the inclusion of packaging.
In the 1980s Kotler proposed public opinion and political power

42. Booms & Bithner
Booms and Bitner included three additional 'Ps' to accommodate trends towards a service or knowledge based economy:
People – all people who directly or indirectly influence the perceived value of the product or service, including knowledge workers, employees, management and consumers.
Process – procedures, mechanisms and flow of activities which lead to an exchange of value.
Physical evidence – the direct sensory experience of a product or service that allows a customer to measure whether he or she has received value. Examples might include the way a customer is treated by a staff member, or the length of time a customer has to wait, or a cover letter from an insurance company, or the environment in which a product or service is delivered

43. Extended Marketing Mix
Booms and Bitner included three additional 'Ps' to accommodate trends towards a service or knowledge based economy:
People
Process
Physical Evidence

44. People
People – all people who directly or indirectly influence the perceived value of the product or service, including knowledge workers, employees, management and consumers.

45. Process
Process – procedures, mechanisms and flow of activities which lead to an exchange of value.

46. Physical Evidence
The direct sensory experience of a product or service that allows a customer to measure whether he has received value.
Examples might include the way a customer is treated by a staff member, or the length of time a customer has to wait, or a cover letter from an insurance company, or the environment in which a product or service is delivered.

47. Physical Evidence Physical evidence is the material part of a service.
Strictly speaking there are no physical attributes to a service, so a consumer tends to rely on material cues.

48. Physical evidence
There are many examples of physical evidence, including some of the following:
Packaging.
Internet/web pages.
Paperwork (such as invoices, tickets and despatch notes).
Brochures.

49. Physical Evidence Furnishings.
Signage (such as those on aircraft and vehicles).
Uniforms.
Business cards.
The building itself (such as prestigious offices or scenic headquarters).

50. 7Ps & 7Cs The 7 Ps The 7 Cs Organisation Facing Customer Facing
Product =
Customer/ Consumer
Price
Cost
Place
Convenience
Promotion
Communication
People
Caring
Processes
Co-ordinated
Physical Evidence
Confirmation

51. Fundamental Actions
The term 'marketing mix' however, does not imply that the 4P elements represent options.
They are not trade-offs but are fundamental marketing issues that always need to be addressed.
They are the fundamental actions that marketing requires whether determined explicitly or by default.

52. Choosing The Right Promotion
Marketers need to consider:
The target market.
The nature of the product.
The stage of the product’s life cycle.
Money available for the promotion.

53. Topic Recap Video The following video recaps on the Marketing Mix.
Take note of the key points.

54. Next Session Weekly Activity: Understanding Markets
Select a category of passenger car from the list used by VFACTS.
To find this list, go to and click on “sales”, “cars” & “segmentation criteria” in the top menu
With this category as a basis, describe (or profile) a market segment that would be interested in buying a new vehicle, using each of the segmentation approaches discussed as sub-headings.
Explain your approach for each sub-heading.