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Marketing Mix. The Ps.
The term marketing mix was coined in an article written by Neil Borden called “The Concept of the Marketing Mix.” It came from the description of the marketing manager’s role as a "mixer of ingredients"; one who sometimes follows recipes prepared by others, sometimes prepares his own recipe, sometimes adapts a recipe from immediately available ingredients, and at other times invents new ingredients no one else has tried.
Four Ps: the producer-oriented model.
The marketing mix is the combination of techniques used to market a brand.The techniques are often called the Ps. Originally there were four Ps:
Product - A product is seen as an item that satisfies what a consumer needs or wants. It is a tangible good or an intangible service. Intangible products are service based like the tourism industry, the hotel industry and the financial industry.
Tangible products are those that have an independent physical existence. Typical
examples of mass-produced, tangible objects are the motor car and the disposable
razor. A less obvious but ubiquitous mass produced service is a computer operating system.
The term product also covers the variety or range of products the company sells. It also includes the branding, and reputation (the opinion the consumers have) of the product. For a service, supportfor the client after the purchase is important. For example, travel insurance is often sold with access to a telephone helpline in case of emergency.
Price – The price is the amount a customer pays for the product. The price is very important as it determines the company's profit and hence, survival. Adjusting the price has a profound impact on the marketing strategy, and depending on the price elasticity of the product, often it will affect the demand and sales as well. The marketer should set a price that complements the other elements of the marketing mix.
Promotion - represents all of the methods of communication that a marketer may use to provide information to different parties about the product. Promotion comprises elements such as: advertising, public relations, personal selling and sales promotion.
Advertising covers any communication that is paid for, from cinema commercials, radio and Internet advertisements through print media and billboards. Public relations is where the communication is not directly paid for and includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events. Word-of-mouth is any apparently informal communication about the product by ordinary individuals, satisfied customers or people specifically engaged to create word-of-mouth momentum. Sales staff often plays an important role in word-of-mouth and public relations.
Place - refers to providing the product at a place or location which is convenient for consumers and accessibility to the service. Place is synonymous with distribution. Various strategies such as intensive distribution, selective distribution, exclusive distribution and franchising can be used by the marketer to complement the other aspects of the marketing mix.
Today some marketers talk about the additional four Ps:
People: how the staff (or employees) of your company are different from those in a competitor's organization, and how the clients are different from the competitor's clients.
Physical environment: the importance of the product or service in the definite area or Internet environment and how the shop or website looks.
Process: how your product is built and delivered, or how your service is sold, delivered and accessed.
Productivity and quality: whether the company can timely meet the needs of the customers and how good the product or service is.
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