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Marketing Association presidential address, took the recipe idea one step further and coined the term marketing! mi" # A prominent marketer, $# %erome Mc&arth', proposed a ( ) classification in 19*+, which has seen wide use# The four )s concept is e"plained in most marketing te"t,ooks and classes# Contents 1 -our )s . $"tended marketing mi" 3 -our &s ( -our &s in /&s compass model Four Ps $lements of the marketing mi" are often referred to as 'the four )s'0 Product ! A tangi,le o,1ect or an intangi,le ser2ice that is mass produced or manufactured on a large scale with a specific 2olume of units# 3ntangi,le products are often ser2ice ,ased like the tourism industr' 4 the hotel industr' or codes!,ased products like cellphone load and credits# T'pical e"amples of a mass produced tangi,le o,1ect are the motor car and the disposa,le ra5or# A less o,2ious ,ut u,i6uitous
Mr# 7ma 8ankar Mishra, Asso# )rofessor, 3B&8, 8 9:; A 7ni2ersit', Bhu,aneswar
mass produced ser2ice is a computer operating s'stem# Price < The price is the amount a customer pa's for the product# 3t is determined ,' a num,er of factors including market share, competition, material costs, product identit' and the customer's percei2ed 2alue of the product# The ,usiness ma' increase or decrease the price of product if other stores ha2e the same product# Place < )lace represents the location where a product can ,e purchased# 3t is often referred to as the distri,ution channel# 3t can include an' ph'sical store as well as 2irtual stores on the 3nternet# Promotion represents all of the communications that a marketer ma' use in the marketplace# )romotion has four distinct elements ! ad2ertising, pu,lic relations, word of mouth and point of sale# A certain amount of crosso2er occurs when promotion uses the four principal elements together, which is common in film promotion# Ad2ertising co2ers an' communication that is paid for, from cinema commercials, radio and 3nternet ad2erts through print media and ,ill,oards# )u,lic relations are where the communication is not directl' paid for and includes press releases, sponsorship deals, e"hi,itions, conferences, seminars or trade fairs
Mr# 7ma 8ankar Mishra, Asso# )rofessor, 3B&8, 8 9:; A 7ni2ersit', Bhu,aneswar
and e2ents# =ord of mouth is an' apparentl' informal communication a,out the product ,' ordinar' indi2iduals, satisfied customers or people specificall' engaged to create word of mouth momentum# 8ales staff often pla's an important role in word of mouth and )u,lic >elations#
PRODUCT Product Variation Product Differentiation Product Innovation Product !imination PRIC Cost Recover" Pricing Penetration Pricing Price #kimming
Marketing Mix
P$%C Distri&ution C'anne! Direct #a!es Indirect #a!es (Commerce PROMOTIO) Individua! Communication Mass Communication *rand Management Cor+orate Identit"
Mr# 7ma 8ankar Mishra, Asso# )rofessor, 3B&8, 8 9:; A 7ni2ersit', Bhu,aneswar
)ackaging also needs to ,e taken into consideration# Broadl' defined, optimi5ing the marketing mi" is the primar' responsi,ilit' of marketing# B' offering the product with the right com,ination of the four )s marketers can impro2e their results and marketing effecti2eness# Making small changes in the marketing mi" is t'picall' considered to ,e a tactical change# )arm Bains sa's Making large changes in an' of the four )s can ,e considered strategic# -or e"ample, a large change in the price, sa' from A19#++ to A39#++ would ,e considered a strategic change in the position of the product# Bowe2er a change of A13+ to A1.9#99 would ,e considered a tactical change, potentiall' related to a promotional offer# The term 'marketing mi"' howe2er, does not impl' that the () elements represent options# The' are not trade!offs ,ut are fundamental marketing issues that alwa's need to ,e addressed# The' are the fundamental actions that marketing re6uires whether determined e"plicitl' or ,' default#
Mr# 7ma 8ankar Mishra, Asso# )rofessor, 3B&8, 8 9:; A 7ni2ersit', Bhu,aneswar
Extended marketing mix There ha2e ,een attempts to de2elop an 'e"tended marketing mi"' to ,etter accommodate specific aspects of marketing# -or e"ample, in the 19/+s, )icke!s and ,o!son suggested the inclusion of +ackaging# 3n the 19C+s -ot!er proposed +u&!ic o+inion and +o!itica! +o.er and *ooms and *itner included three additional ')s' to accommodate trends towards a ser2ice or knowledge ,ased econom'0
People < all people who directl' or indirectl' influence the percei2ed 2alue of the product or ser2ice, including knowledge workers, emplo'ees, management and consumers# Process < procedures, mechanisms and flow of acti2ities which lead to an e"change of 2alue# Physical evidence < the direct sensor' e"perience of a product or ser2ice that allows a customer to measure whether he or she has recei2ed 2alue# $"amples might include the wa' a customer is treated ,' a staff mem,er, or the length of time a customer has to wait, or a co2er letter from an insurance compan', or the
Mr# 7ma 8ankar Mishra, Asso# )rofessor, 3B&8, 8 9:; A 7ni2ersit', Bhu,aneswar
en2ironment in which a product or ser2ice is deli2ered# Four Cs The -our )s is also ,eing replaced ,' the -our &s model, consisting of consumer, cost, con2enience, and communication# The -our &s model is more consumer!oriented and fits ,etter in the mo2ement from mass marketing to niche marketing# The product part of the -our )s model is replaced ,' consumer or consumer models, shifting the focus to satisf'ing the consumer# Another & replacement for )roduct is &apa,ilit'# B' defining offerings as indi2idual capa,ilities that when com,ined and focused to a specific industr', creates a custom solution rather than pigeon!holing a customer into a product# )ricing is replaced ,' cost, reflecting the realit' of the total cost of ownership# Man' factors affect cost, including ,ut not limited to the customers cost to change or implement the new product or ser2ice and the customers cost for not selecting a competitors capa,ilit'# )lacement is replaced ,' the con2enience function# =ith the rise of internet and h',rid models of purchasing, place is no longer rele2ant# &on2enience takes into account the ease to ,u' a product, find a product, find information a,out a product, and se2eral other considerations# -inall',
Mr# 7ma 8ankar Mishra, Asso# )rofessor, 3B&8, 8 9:; A 7ni2ersit', Bhu,aneswar
the promotions feature is replaced ,' communication# &ommunications represents a ,roader focus than simpl' promotions# &ommunications can include ad2ertising, pu,lic relations, personal selling, 2iral ad2ertising, and an' form of communication ,etween the firm and the consumer# Four Cs in 7Cs compass model A formal approach to this customer!focused marketing mi" is known as (&?&ommodit', &ost, &hannel, &ommunication@ in /&s compass model# This s'stem is ,asicall' the four )s renamed and reworded to pro2ide a customer focus# The four &s Model pro2ides a demandDcustomer centric 2ersion alternati2e to the well!known four )s suppl' side model ?product, price, place, promotion@ of marketing management#
o o o o
1#&ommodit'0 the product for the consumers or citi5ens# .#&ost0 total marketing cost# 3#&hannel0 marketing channels#
Mr# 7ma 8ankar Mishra, Asso# )rofessor, 3B&8, 8 9:; A 7ni2ersit', Bhu,aneswar
/&s &ompass Model is in a customer oriented marketing mi"# -ramework of /&s compass model
/&s0?&1@&orporation ?and &ompetitor@, ?&.@&ommodit', ?&3@&ost, ?&(@&ommunication, ?&5@&hannel, ?&*@&onsumer, ?&/@&ircumstances &ompass0 o to &onsumer0 N F Needs, = F =ants, 8 F 8ecurit', $ F $ducation o &ircumstances0 N F National and 3nternational, =F=eather, 8 F 8ocial and &ultural, $ F $conomic
?&1@ &orporation? and competitor@ is the core of (&s# 1@ 3t is necessar' to place more emphases on the organi5ation of the companiesG .@ 3t is necessar' to e"ecute marketing plans in con1unction with the compan''s o,1ecti2esG 3@ 3t is necessar' to tackle the internal communication related pro,lems like corporate communication or corporate identit' s'stem?&38@, etc# 3n the market, there are the companies of the same ,usiness, the competitors#
Mr# 7ma 8ankar Mishra, Asso# )rofessor, 3B&8, 8 9:; A 7ni2ersit', Bhu,aneswar
But at the time of economics downturn, companies or corporations produce the con2enient ?&.@HcommoditiesI for the consumers or citi5ens with the consideration of the total marketing?&3@ HcostI, and first of all gain their consents through the sufficient ?&5@HcommunicationsI and then their confidences ,' selecting the effecti2e?&(@ HchannelsI in con1unction with the uncontrolla,le e"ternal circumstances# This is the wa' to sur2i2e in the period of low growth economics# ?&*@ &onsumer &onsumers are those people encircling the companies# 3nstead of 1ust the customers of () marketing model, the' are the ordinar' citi5ens nurtured ,' the motto of the consumerism# Bowe2er of course the' are also including the customers and the potential customers#
four directions marked on the compass0 the factors related to the consumer can ,e e"plained ,' the first characters of four directions marked on the &ompass#?N,=,8,$@ N F Needs0 companies can offer more alternati2es to meet the 2arious needs of the consumers# = F =ants0 the su,stantiated needs to e"pect the accordingl' commodities#
Mr# 7ma 8ankar Mishra, Asso# )rofessor, 3B&8, 8 9:; A 7ni2ersit', Bhu,aneswar
8 F 8ecurit'0 the safet' of the commodities, the safet' of the production process and the ade6uate after!sell warrant'# $ F $ducation0 consumer right to know the information of the commodities#
?&/@&ircumstances Besides the customers, there are also 2arious uncontrolla,le e"ternal en2ironmental factors encircling the companies# The same as the factors of the consumers, the' can also ,e e"plained the first character of the four directions marked on the compass# ?N,=,8,$@
The National &ircumstances are related to politic and law# 3nternational en2ironment now also ,ecomes important#
=F=eather
-or most of the natural disasters, the companies can do little ,ut tr' to predict when the' will happen and ad1ust the marketing plans#
=hen e"ploring a new o2ersea market, it is essential to stud' the social circumstances of that nation#
Mr# 7ma 8ankar Mishra, Asso# )rofessor, 3B&8, 8 9:; A 7ni2ersit', Bhu,aneswar
$F$conomic &ircumstances0 economics climate is changing due to man' other uncontrolla,le factors like energ', resources, international income and e"pense, financial circumstances and economic growth etc safi#
Mr# 7ma 8ankar Mishra, Asso# )rofessor, 3B&8, 8 9:; A 7ni2ersit', Bhu,aneswar