MODULE 3

The Marketing Mix (7P’s) in Relation to the Business Opportunity

What is It

Marketing Mix is a set of controllable and connected variables that a company gather to satisfy a
customer better than its competitor. It is also known as the “Ps” in Marketing. Originally, there were
only 4Ps but the model has been continually modified until it became 7P’s. The original 4 P’s stands for
product, place, price and promotion. Eventually, three elements have been added, namely: people,
packaging and positioning to comprise the 7 P’s.

The 7 P’s of Marketing Mix

1. PRODUCT

Marketing strategy typically starts with the product. Marketers can’t plan a Distribution system
or set a price if they don’t know exactly what the product will be offered to the market.

Product refers to any goods or services that are produced to meet the consumers’ wants, tastes
and preferences. An example of goods includes tires, MP3 Players, clothing and etc. Goods can be
categorized into business goods or consumer goods. A buyer of consumer goods may not have thorough
knowledge of the goods he buys and uses. An example of services includes hair salons and accounting
firms. Services can be divided into consumer services, such as hair styling or professional services, such
as engineering and accounting.

2. PLACE

Place represents the location where the buyer and seller exchange goods or services. It is also
called as the distribution channel. It can include any physical store as well as virtual stores or online
shops on the Internet.

STAGES OF DISTRIBUTION CHANNEL

Channel 1 contains two stages between producer and consumer – a wholesaler and A retailer. A
wholesaler typically buys and stores large quantities of several producers’ goods and then breaks into
bulk deliveries to supply retailers with smaller quantities. For small retailers with limited order
quantities, the use of wholesalers makes economic sense.

Channel 2 contains one intermediary. In consumer markets, this is typically a retailer. A retailer is a
company that buys products from a manufacturer or wholesaler and sells them to end users or
customers. In a sense, a retailer is an intermediary or middleman that customers use to get products
from the manufacturers.

Channel 3 is called a “direct-marketing” channel, since it has no intermediary levels.

In this case the manufacturer sells directly to customers.

3. PRICE

The price is a serious component of the marketing mix. What do you think is the meaning of a
Price?

In the narrowest sense, price is the value of money in exchange for a product or service.
Generally speaking, the price is the amount or value that a customer gives up to enjoy the benefits of
having or using a product or service. One example of a pricing strategy is the penetration pricing. It is
when the price charged for products and services is set artificially low in order to gain market share.
Once this is attained, the price can be higher than before. For example, if you are going to open a Beauty
Salon, you need to set your prices lower than those of your competitors so that you can penetrate the
market. If you already have a good number of market share then you can slowly increase your price.

4. PROMOTION

Promotion refers to the complete set of activities, which communicate the Product, brand or
service to the user. The idea is to attract people to buy your product over others. Advertising, Personal
Selling, Sales Promotion, Direct Marketing, and Social Media are examples of promotion.

5. PEOPLE

Your team, a staff that makes it happen for you, your audience, and your advertisers are the
people in marketing. This consists of each person who is involved in the product or service whether
directly or indirectly.

People are the ultimate marketing strategy. They sell and push the product. People are one of
the most important elements of the marketing mix today. This is because of the remarkable rise of the
services industry. Products are being sold through retail channels today. If the retail channels are not
handled with the right people, the product will not be sold. Services must be first class nowadays. The
people rendering the service must be competent and skilled enough so that that the clients will
patronize your service. Therefore, the right people are essential in marketing mix in the current
marketing scenario.

6. PACKAGING

Packaging is a silent hero in the marketing world. Packaging refers to the outside appearance of
a product and how it is presented to the customers. The best packaging should be attractive enough and
cost efficient for the customers. Packaging is highly functional. It is for protection, containment,
information, utility of use and promotion.

7. POSITIONING

When a company presents a product or service in a way that is different from the competitors,
they are said to be “positioning” it. Positioning refers to a process used by marketers to create an image
in the minds of a target market.

Solid positioning will allow a single product to attract different customers for not the same
reasons. For example, two people are interested in buying a phone; one wants a phone that is cheaper
in price and fashionable while the other buyer is looking for a phone that is durable and has longer
battery life and yet they buy the same exact phone.

Develop a Brand Name

Brand Name is a name, symbol, or other feature that distinguishes a seller’s goods or services in
the marketplace. Your brand is one of your greatest assets because your brand is your customers’ over-
all experience of your business. Brand strategy is a long-term design for the development of a popular
brand in order to achieve the goals and objectives. A well-defined brand strategy shakes all parts of a
business and is directly linked to customer needs, wants, emotions, and competitive surroundings.

Experts believe that a good brand can result in better loyalty for its customers, A better
corporate image and a more relevant identity.

As more customers continue to differentiate between emotional and Experienced companies, a

brand may be the first step forward in your competition instead of price points and product features.
The question is, can you build a brand which truly talks to your audience?

Branding is a powerful and sustainable high-level marketing strategy used to create or influence
a brand. Branding as a strategy to distinguish products and companies and to build economic value to
both customers and to brand owners, are described by Pickton and Broderick in 2001.
 Commonly Used Branding Strategy

1. Purpose

“Every brand makes a promise. But in a market in which customer confidence is little and
budgetary observance is great, it’s not just making a promise that separates one brand from another,
but having a significant purpose,” (Allen Adamson).

How can you define your business' purpose? According to Business Strategy Insider, purpose can
be viewed in two ways:

a. Functional. This way focuses on the assessments of success in terms of fast and profitable
reasons. For example the purpose of the business is to make money.

b. Intentional. This way focuses on fulfillment as it relates to the capability to generate money
and do well in the world.

2. Consistency

The significant of consistency is to avoid things that don’t relate to or improve your brand.
Consistency aids to brand recognition, which fuels customer loyalty.

3. Emotion

There should be an emotional voice, whispering "Buy me". This means you allow the customers
have chance to feel that they are part of your brand.

You should find ways to connect more deeply and emotionally with your customers. Make them
feel part of the family and use emotion to build relationships and promote brand loyalty.

4. Flexibility

Marketers should remain flexible to in this rapidly changing world. Consistency targets at setting
the standard for your brand, flexibility allows you to adjust and differentiate your approach from your
competition.

According to Kevin Budelmann, "Effective identity programs require sufficient consistency to be

identifiable, but sufficient variation to keep things fresh and human" so if your old tactics don't work
anymore, don't be afraid to change. It doesn’t mean it worked in the past it may still work now.

5. Employee Involvement
 It is equally important for your employees to be well versed in how they communicate with
customers and represent the brand of your product

6. Loyalty

Loyalty is an important part of brand strategy. At the end of the day, the emphasis on a positive
relationship between you and your existing customers sets the tone for what potential customers can
expect from doing business with you.

7. Competitive Awareness

Do not be frightened of competition. Take it as a challenge to improve your branding strategy

and craft a better value in your brand.

Remember

Marketing mix constitutes of the 7P’s in case of products – product, price, place and promotion.
In case of services it constitutes of 3 more P’s – people, packaging and positioning.

All P's should be compatible in marketing mix. The price is compatible with the product's
placement. The product must be consistent with the promotion. In general, all P’s are connected
intrinsically.

As a result, when you make a marketing mix, it becomes a chain of strong bonds. Then these
connections will lead you to lengthen the chain. Whenever you plan to add or change existing features,
you need to see the general image which helps create a fresh product in marketing mix.

Branding is absolutely critical to a business because of the overall impact it makes on your
company. Branding can change how people percept your brand, it can drive new business and increase
brand awareness.
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