1. The Marketing Mix NMIT 1

2.  Understand the marketing mix model as an integrative, operational tool for marketing decision making  Review the classic 4P’s marketing mix model which dates from the early 1960’s and which is suited to product intensive marketing  Review the extended marketing mix (1990’s) with 7P’s which takes account of service intensive marketing 2

3.  It is a set of CONTROLLABLE marketing variables that an organisation blends (“MIXES”) together to create a marketing programme for a SPECIFIC TARGET MARKET. 3

4.  Probably the most famous phrase in marketing  The elements of the marketing mix are the marketing tactics  They are a tactical tool kit aimed at producing results in the short/medium term.  Also known as the 4P’s; the marketing mix elements are Product, Price, Place & Promotion 4

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6.  Brand name  Functionality  Styling  Quality  Safety  Packaging  Repairs and support  Warranty  Accessories and services 6

7.  Pricing Strategy (Skim, Penetrate etc)  Suggested Retail Price  Volume discounts and wholesale pricing  Cash and early payment discounts  Seasonal pricing  Bundling  Price flexibility  Price discrimination 7

8.  Promotional Strategy (push, pull, etc)  Advertising  Personal selling & sales force  Sales promotions  Public Relations & publicity  Marketing communications budget 8

9.  Distribution channels  Market coverage (inclusive, selective, or exclusive distribution  Specific channel members  Inventory management  Warehousing  Distribution centres  Order processing  Transportation  Reverse logistics 9

10.  The marketing mix framework was particularly useful in the early days when physical products represented a larger portion of the economy. 10

11.  Today, with the marketing more integrated into organisation & with a wider variety of products and a huge number of services on offer the mix has been extended. 11

12.  In the 1990’s an extension to the marketing mix was presented and it is now the recognised and recommended approach.  This is because the extension takes into account the changed nature of business some 40 years on from the original marketing mix.  Added are Process, People & Physical Evidence 12

13.  Employees  Customers  Co-customers  Recruitment, selection, training & development  Motivation & morale  Conditions of service  Enterprise culture & values (The reality branding mix) 13

14.  Flow of activities  Number of steps  Information technology  Operations management  Level of customer involvement  Standardised versus customised  Responsiveness (The “Getting Things Done Right” Mix) 14

15.  Facility Design  Employee presentation  Service “cues”  Colour, light, noise, temperature  Housekeeping  Vehicles & equipment  “Atmosphere and ambiance” (The “Reassuring Tangibles” Mix) 15