THE MARKETING -MOHIT( )

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

PRICE

 Pricing Strategy  Importance of: knowing the market elasticity keeping an eye on rivals

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. Image copyright:

PROMOTION

 Strategies to make the consumer aware of the existence of a product or service  NOT just advertising

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?)

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?

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

PHYSICAL ENVIRONMENT

 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?

WHAT ARE THE FOUR BASIC MARKET STRUCTURES? There are four basic market structures. Market structure is the amount of competition within a market. To distinguish between the market structures, consider the following elements:  number of producers and consumers  amount of business each company does within the market  types of products being traded  amount of information made available between companies and consumers. 18

WHAT ARE THE FOUR BASIC MARKET STRUCTURES? The market structures—from least to most competitive— are perfect competition, monopolistic competition, oligopoly, and monopoly. 19

WHAT ARE THE FOUR BASIC MARKET STRUCTURES? A. Perfect competition describes a market where there are many small firms producing homogeneous goods. There are many buyers and many sellers within the market. 1. It is easy for a business to enter into pure competition. 2. It is relatively easy to acquire information as a competitive business or as a consumer. 3. Businesses are typically able to sell their products (e.g., wheat, silver, and hogs) in a way to generate profits. 20

WHAT ARE THE FOUR BASIC MARKET STRUCTURES? B. Monopolistic competition occurs in a market where there are a large number of businesses controlling a small portion of the market share—portion or percentage of a total market that a business serves. 1. Differentiated products are sold in a monopolistic competition. 2. It is easy for a business to enter into monopolistic competition and to have some control over the price of its product. 3. Examples include restaurants, clothing, and grocery products. 21

WHAT ARE THE FOUR BASIC MARKET STRUCTURES? C. An oligopoly is a market dominated by a small number of businesses. Since the playing field is so small, each business in the market is keenly aware of the actions of its competitors. 1. It is difficult to enter into an oligopic market. 2. When conducting strategic planning, those businesses in the oligopoly must take the actions and responses of other businesses in the market into consideration. Because of this, the risk of fraud is high. 3. Examples include telecommunications, automobiles, and aeronautics. 22

WHAT ARE THE FOUR BASIC MARKET STRUCTURES? D. A monopoly occurs if there is only one provider for a product. Because there is no competition (or very little), the company has significant control over price and availability. 1. Monopolies can occur naturally when mergers take place. 2. A monopoly is illegal when it does not allow any competition to enter the marketplace. 23

WHAT ARE THE FOUR BASIC MARKET STRUCTURES? D. A monopoly (cont’d) 3. Examples of businesses or industries that have been in monopolies include: a. The salt commission (China—758) b. British East India Company (1600) c. Standard Oil (1911) d. Major League Baseball (1922) e. Microsoft (2001) 24