EXTENDED

MARKETING MIX
INTRODUCTION
 A market is a group of existing and potential buyers or
users of a product or service.
 Marketing is all about identifying a need, producing a
product or service to meet that need, and then providing
that service or product to people as efficiently as possible.
 Marketing involves researching, promoting, selling, and
distributing your products or services.
MARKETING MIX:DEFINITION

 The 'marketing mix' is a set of controllable, tactical

marketing tools that work together to achieve company's
objectives
 The marketing mix is the combination of marketing
activities that an organization engages in so as to best meet
the needs of its target market.
 It is defined as the particular group of variables offered to
the market at a particular point of time, depending on
which the market behaves.
 The term ‘marketing mix’ becomes popularized after
Neil.H.Borden published his 1964 article, The Concept of
the Marketing Mix.
 The ingredients in Borden’s marketing mix included
product planning, pricing, branding, distribution channels,
personal selling, advertising, promotions, packaging,
display, servicing, physical handling, and fact finding and
analysis.
 E.JeromeMcCarthy later grouped these ingredients into the
4 categories that today are known as the 4P’s of marketing
MARKETING MIX:4 P’S
1.PRODUCT
 A tangible object or an
intangible service that is
mass produced or
manufactured on a large
scale with a specific
volume of units.
 Product Decisions

Branding Quality Features

2.PRICE
 The price is a characteristic of a product.
 The key objective of using a price is obviously to generate and maximize
revenues.
 Price = Cost the customer is prepared to pay.
 Price also must reflect the relationship of supply and demand within the
marketplace
 Penetration

Skimming

Pricing Strategies Competition

Product Line

Bundle

Psychological
 3.PROMOTION
 Promotion represents all of the communications that a
marketer may use in the marketplace
Advertising

Public
Relations

Sales
Promotional Mix Promotion

Personal
Selling

Direct
Marketing

Internet/
E-commerce
4.PLACE
 Place represents the location where a product can be
purchased.
 Refers to how an organisation will distribute the product or
service they are offering to the end user.
 What channel of distribution will they use?
 Two types of channel of distribution methods are
available.
 Channel design should take into account Cost and
Convenience for the customer.
INDIRECT DIRECT
DISTRIBUTION DISTRIBUTION
CRITICISM OF 4P’S
 It is too product focused and doesn't translate well into the
growing service based economy we live in.
 An equally relevant criticism is the internal focus
 The traditional marketing mix is pushing product into the
marketplace and not pulling products out of the potential
suppliers based on these needs and wants through market
research.
 So there have been attempts to develop an 'extended
marketing mix' to better accommodate specific aspects of
marketing.
 in the 1970s, Nickels and Jolson suggested the
inclusion of packaging.
 In the 1980s Kotler proposed public opinion and
political power
 While, Booms and Bitner included three additional 'Ps'
to accommodate trends towards a service or knowledge
based economy, altogether they form the Extended
Marketing Mix
EXTENDED MARKETING MIX
5.PEOPLE
 People are the most important element of any service or
experience.
 Services are performed by people whose performance
influences the quality of the service delivered and
perceived to be delivered.
 Recruiting the right staff and training them appropriately
in the delivery of their service is essential if the
organisation wants to obtain a form of competitive
advantage.
 Consumers make judgments and deliver perceptions of the
service based on the employees they interact with.
 Staff should have the appropriate interpersonal skills,
aptititude, and service knowledge to provide the service
that consumers are paying for.
 Some ways in which people add value to an experience, as
part of the marketing mix - training, personal selling and
customer service.
6.PROCESS
 Refers to the systems used to
assist the organisation in
delivering the service
 All Processes are concerned
with the consistent creation
and delivery of Customer
Value
 The Customer’s experience is affected directly at those
points at which s/he interacts with the Organisation
 Processes should be continuously reviewed and co-
ordinated to improve the customer experience and
demonstrate Customer Consideration
7.PHYSICAL EVIDENCE
 Provides Physical Evidence of delivered Quality
 The ambience, mood or physical presentation of the
environment
 Smart/shabby?

 Trendy/retro/modern/old fashioned?

 Light/dark/bright/subdued?

 Clean/dirty/unkempt/neat?

 Music?Smell?

 Especially important where customer is purchasing an

intangible (service)
 Provides Confirmation of Customers’ expectations
CONCLUSION
The 7 Ps The 7 Cs
< Organisation Facing Customer Facing >
Product= Customer Value
Price= Cost
Place= Convenience
Promotion= Communication
People= Caring
Processes= Co-ordinated
Physical Evidence= Confirmation
REFERENCES
 www.NetMBA.com
 www.bized.co.uk
 www.slideshare.net/extendedmarketing mix
 Barlon, Kimuli. (2006) "The concept of the marketing
mix" Presentation on marketing management
 Borden, N. H. (1964), “The Concept of the Marketing
Mix”, Journal of Advertising Research
THANK YOU
QUESTIONS???
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