MARKETING

MIX
OBJECTIVES
• Understand the importance and relevance of 7p’s and 7 c’s.
• Analyze the importance of Customer value
INTRODUCTION

Marketing is the process of getting the right goods or services or ideas to the
right people at the right place, time, and price, using the right promotion
techniques and utilizing the appropriate people to provide the customer service
associated with those goods, services, or ideas. Marketing is about creating
exchanges. An exchange takes place when two parties give something of value
to each other to satisfy their respective needs or wants

One common misconception is that some people see no difference between

marketing and sales. They are two different things that are both part of a
company’s strategy. Sales incorporates actually selling the company’s products
or service to its customers, while marketing is the process of communicating the
value of a product or service to customers so that the product or service sells.
Most successful organizations have adopted the marketing concept. The marketing
concept is based on the “right” principle. The marketing concept is the use of marketing
data to focus on the needs and wants of customers in order to develop marketing
strategies that not only satisfy the needs of the customers but also to accomplish the
goals of the organization. An organization uses the marketing concept when it
identifies the buyer’s needs and then produces the goods, services, or ideas that
will satisfy them. Specifically, the marketing concept involves the following:

• Focusing on the needs and wants of the customers so the organization can
distinguish its product(s) from competitors’ offerings. Products can be
goods, services, or ideas. 

• Integrating all of the organization’s activities, including production and

promotion, to satisfy these wants and needs.

• Achieving long-term goals for the organization by satisfying customer

wants and needs legally and responsibly.
One important key to understanding the marketing concept is to know that using the marketing
concept means the product is created after market research is used to identify the needs and wants of
the customers. Products are not just created by production departments and then marketing
departments are expected to identify ways to sell them based on the research.

The marketing function is the study of market forces, factors and the development of a company's
position to optimize its benefits from them. It is all about getting the right product or services to the
customers at right price, in the place , at the right time.
Successful Marketing depend upon :
• What a company is going to produce
• How much it is going to charge
• How it is going to deliver its products or services to the customers
• How it is going to tell its customers about its product and services.
• These considerations are known as 7P’s of marketing and it is also known as
marketing mix.
Marketing is most successful when the philosophy, tasks and manner of
implementing available technology are coordinated and complementary.“Find and
keep customers” is the main motive of marketing.
7 P’s of Marketing
Accordingly, the 7 P's of marketing play a significant part in today's marketing
campaigns when it comes to drawing up Marketing Campaigns. Marketing, like
everything else in the world, is always changing.Methods for enhancing marketing
inside a company are evolving along with the rest of the globe. Marketers and
marketing authorities use a variety of strategies and approaches. The marketing mix
originally consisted of just four Ps, however 7 Ps are now more often
acknowledged.
History of 7 P’s
Every company or organization has a particular marketing strategy to either target a
specific audience or to gain more traffic. Apart from creating an effective marketing
strategy, it is also essential to continuously monitor and evaluate the strategy’s effect.
And this brings us to the 7 Ps of marketing. These 7 Ps include the various
fundamental factors that need to be looked into from time-to-time to
understand the full effect of your marketing strategy.

(a) 1960
E. Jerome McCarthy introduced the concept of the 4 P’s of Marketing. It was and still
is a widely
used tool for businesses toto understand the products or their brand offerings. The
original 4 P’s were Product, Price, Place and Promotion.

(b) 1981
Due to a full acknowledgment, it was accepted that the marketing mix should be
updated from only 4 P’s of Marketing to 7 P’s of Marketing. The extended 7 p’s of
service marketing included People, Processes, and Physical Evidence.
Why use the 7P’s of Marketing?
After understanding each of the seven important components of marketing, it is crucial to know why
these aspects are essential. Each element of marketing has a role to play. And all these summed up
together construct a successful marketing policy for any firm or business.

1.Rise in the living standards- The seven elements mentioned above also play a role in the standard
of living, not only a company’s employees but also the entire company. Through the recurrent selling
and marketing of goods at an affordable rate, there is a considerable increase in the standard of living
of the whole human community.
2. Increase in employment opportunities- Marketing, in general, is a compact phenomenon
involving various processes. By implementing the 7P’s in your marketing policies, the sales of the
products increase. Hence, their demand increases, which leads to employing more people. This is one
of the few ways through which employment is generated.
3) A drastic influx of income-A successful marketing policy brings in a lot of revenue and income.
This excess profit can be saved for future utilities or investments. As mentioned above, a successful
marketing policy depends entirely on how well a company implements the seven elements. The more
established a company is in implementing those 7P’s the more profit it incurs from the business.
4) Progress in the exchange of goods and services-a successful marketing policy significantly
increases the sales of a company. And hence,there is progress in the sales of goods and services.
The 7 p’s of marketing mix can be used in any combination to satisfy the wants of the customers.They are affected by
internal and external environmental factors.
THE 7P’S OF MARKETING
• PRODUCT
The features, gains, and advantages provided to clients are all included in the product while quality, accessories, style,
repairs and upgrades are all included in product marketing. It's an essential aspect of what the company has to offer to its
clients.The marketing will fail if the product is not up to par. In order to develop an effective digital marketing strategy, it is
helpful to know what the competition is like.

• PRICE
It is the amount people pay and the avenue for revenue inflow into the organization. The price has a direct relationship with
the customer’s satisfaction level. Often, paying a higher price satisfies the customer more. To monetize products is more
comfortable than to monetize services because they are intangible. Price is essential for service consumption after service
recognition. A company needs to analyze whether the price range of the product is justified or not. Sometimes, the
production and the resources required to manufacture the product are too costly, but the selling price is too low.

Types of Pricing:
1) Premium pricing
It is a type of pricing which involves establishing a price higher than your competitors to achieve a
premium positioning. You can use this kind of pricing when your product or service presents
some unique features or core advantages, or when the company has a unique competitive
advantage compared to its rivals.
2) Penetration pricing-It is a commonly used pricing method amongst the various types of pricing is designed to capture
market share by entering the market with a low price as compared to the competition. The penetration pricing strategy is
used in order to attract more customers and to make the customer switch from current brands existing in the market. The
main target group is price
sensitive customers. However, this is a sensitive strategy to apply as the market might be penetrated by yet another new
entrant. Or the margins are so low that the company does not survive. And finally,
this strategy never creates long term brand loyalty in the mind of customers. This strategy is used
mainly to increase brand awareness and start with a small market share.
3) Economy pricing-This type of pricing takes a very low-cost approach. Just the bare minimum to keep prices low and
attract a specific segment of the market that is highly price sensitive. Examples of companies focusing on this type of pricing
include Walmart, Lidl and Aldi.
4)Skimming Price-Skimming is a type of pricing used by companies that have a significant competitive advantage and
which can gain maximum revenue advantage before other competitors begin offering similar
products or substitutes. It can be the case for innovative electronics entering the marketing before
the products are copied by close competitors or Chinese manufacturers. the products are copied by close competitors or
Chinese manufacturers. After being copied, the product loses its premium value and hence the price has to be dropped
immediately.
5) Psychological pricing-It is a type of pricing which can be translated into a small incentive that can make a huge impact
psychologically on customers. Customers are more willing to buy the necessary products at $4,99
than products costing $5. The difference in price is actually completely irrelevant. However, it
makes a great difference in the mind of the customers. This strategy can frequently be seen in the
supermarkets and small shops.
• PLACE
It is where the goods, products, services, assistance, etc. are showcased, sold, and distributed. Finding
the right location for the business is an essential aspect of spreading the market. The utility is a high
priority while choosing a place for the company. If it is closer to the customer, there is a higher chance
of being bought. The organization must always be in the habit of reviewing the exact location where a
product is sold.