so many products fail

Traditional 4Ps extended to cope with today's changing environment

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

The Marketing Mix (7P): componant

Marketing mix (7Ps)

1.Product

Product

• The firm must come up with a product or service that people will want to buy.

• It must fulfil some need

or want.

• It must be (or at least seem) unique.

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

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otherwise!

– Changed packaging – Technology, etc.

1.DV coát loõi

DV massage, giaët uûi mieãn phí Trang trí ñeïp

2.DV mong ñôïi

Coù phuïc vuï thöùc aên 3.DV taêng theâm

v.v… 4.DV tieàm naêng Ña daïng DV

Ñaày ñuû tieän nghi Cho thueâ nôi löu truù Phoøng oác lòch söï

AÊn saùng mieãn phí Phöông tieän saïch seõ

4 levels of hotel service

Phuïc vuï nhanh choùng

Nhaân vieân taän tình, lòch söï

9

K/H khoâng chæ mua lôïi ích cô baûn DV mang laïi maø hoï muoán mua noù ôû möùc ñoä hoaøn chænh cao nhaát & möùc ñoä ñoù do caáp 2,3, 4 mang laïi =>Möùc ñoä hoaøn chænh caøng cao thì caøng laøm taêng khaû naêng caïnh tranh treân TTr

Ñöa ñoùn khaùch ñeán taän saân bay

Airport services

DV bao quanh trong heä thoáng

DV ñöa ñoùn

DV treân khoâng

DV baùn veù

DV cô baûn

DV ñoåi tieàn

vaän chuyeån haøng khoâng

DV böu ñieän

DV nhaø haøng, khaùch saïn ôû saân bay

DV bao quanh ñoäc laäp

10

Core Product

Actual Product

Augmented Product

Product or service/ brand

BMW

Freedom to travel A motor car

Sheraton

Rooms

Room service

Egypt Air

Flight

An airline journey

Zamalek Football

Excitement and

Club

leisure

T-shirts – photos with players

ALICO

Finance

Insurance policy

UNIONAIR

Cooling

Warranty

Price

2.Price

• The price must be one that the customer thinks is good value for money.

• This is not the same as

being cheap!

• Prices have a great

psychological effect on customers.

CAÙC PHÖÔNG PHAÙP ÑÒNH GIAÙ Döïavaøomoâhình3C-3yeáutoácôbaûnnhaátchiphoáisöïhìnhthaønh&vaänñoänggiaù caû-tacoùnhöõngcaùchñònhgiaùsau:

Möùc giaù cao khoâng phaùt sinh nhu caàu

Möùc giaù thaáp khoâng theå saûn xuaát

Möùc giaù gaén lieàn vôùi SX & chi phí (COST)

Möùc giaù gaén lieàn vôùi caïnh tranh treân TT (COMPETITOR)

Möùc giaù gaén lieàn vôùi nhu caàu K/H (CUSTOMER)

GIAÙ SAØN

GIAÙ TRAÀN

VUØNG LÖÏA CHOÏN GIAÙ COÙ THEÅ

THAÁP

CAO

14

BIEÂN ÑOÄ CUÛA GIAÙ

Chi phí SX 1 ñôn vò SP Giaù cao nhaát K/H coù theå mua

3.Place

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?)

4.Promotion

Promotion

• Strategies

to make the consumer aware of the existence of a product or service

• NOT just advertising

Promotion

The promotional message should

Grab Attention

Stimulate Interest

Create Desire

Promote Action

5.People

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

– Do staff represent the desired culture

of the business?

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?

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?

6. Process

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

7.Physical Environment

Physical Environment The ambience, mood or physical presentation of

the environment

• Packaging. • Internet/web pages. • Paperwork (such as invoices, tickets,…..). • Brochures. • Furnishings. • Uniforms. • Business cards. • The building itself (such as prestigious offices or

scenic headquarters).

• Mailboxes and many others . . . . . .

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?

Stages in Consumer Decision Process

Word- of- Mouth

Awareness

Advertising

Interest

Channel

Decision

Product / Service

Action

Price

Satisfaction

The Marketing Mix

Blend of the mix depends

upon:

• Marketing objectives • Type of product • Target market • Market structure • Rivals’ behaviour • Global issues –

culture/religion, etc.

• Marketing position • Product portfolio – Product lifecycle – Boston Matrix

Marketing Model

Target Market

Aware

Understand

Intention to Purchase

Believe

Want

Above the Line

Find

Below the Line

Point of Purchase

Buy

Revenue

Use

Experience

Value

Behavior

Prefe r Loyal

Developing Competitive Advantage

Competitive Advantage

Customer Value

Customer Satisfaction

Customer Relationships

Value and Satisfaction

8

10

10

8

If performance is lower than expectations, satisfaction is low.

If performance is higher than expectations, satisfaction is high.

Performance Expectation Performance Expectation