Marketing Mix (4p’s)

Product Price

Place Promotion

The marketing mix principles are controllable variables which have to be

carefully managed and must meet the needs of the defined target group.
All elements of the mix are linked and must support each other.
 Marketing Mix: Product

Product Decisions

Branding Quality Features

Benefits offered

We must remember that marketing is fundamentally about

providing the correct bundle of benefits to the end user,
hence the saying ‘Marketing is not about providing products or
services it is essentially about providing changing benefits to
the changing needs and demands of the customer’
 Marketing Mix : Pricing Penetration

Skimming

Pricing Strategies Competition

Product Line

Bundle
Pricing is the only mix which generates revenue
for the organisation. The remaining 3p’s are the Psychological
variable cost for the organisation. Price must
support other elements of the mix. Pricing is
difficult to determine and must reflect supply and
demand relationship.
Marketing Mix : Promotion
Advertising

Public
Relations

Sales
Promotional Mix Promotion

Personal
Selling

Direct
A successful product or service Mail
means nothing, unless the benefit
Internet/
of such a service can be E-commerce
communicated clearly to the target
market. An organisations
promotional mix can consist of:
 Marketing Mix : Place

Direct Distribution Indirect Distribution

Manufacturer

Manufacturer

Retailer

Consumer
Consumer

Choosing the right channel to reach the consumers

 Marketing Mix : Motorola

Product:
• Attractive design
• Excellent call-quality
• Ease of use
• Value-added features including music player, games,
camera, and video features
• High quality, reliable products
Price
• ‘Getting the price right’ is a vital
• Prices charged by Motorola are linked to the product life
cycle.
•Economies of scale is important
•State of-the art products are sold at premium prices
reflecting the high quality and innovation
•Prices of Motorola mobile phones are kept down because
they are subsidized by the network providers such as
Vodafone
Place

There are a number of distribution channels

 Promotion

• Companies like Motorola send communications

and consumers receive them.
•The type of promotion that is used depends on the
stage in the product life cycle
• Motorola works in close partnership to promote
its phones with retailers
Motorola has invested heavily in providing a range of
products that enable people to communicate on the move.

These products are supported by other elements of the

marketing mix – the right price, in the right place, with
appropriate promotion.

In a highly competitive market Motorola needs to

regularly adjust this marketing mix in line with the
changing requirements of millions of customers.
Mc. Donald

Product:
•McDonald’s places considerable emphasis on
developing a menu which customers want
• Customers’ requirements change over time in order
to meet these changes, McDonald’s has introduced
new products and phased out old ones
• Care is taken not to cannibalize the existing product
•At any time a company will have a portfolio of
products each in a different stage of its lifecycle
Price

• Customer’s perception of value is an important

Determinant
Promotion

• A thorough understanding of what the brand represents

is the key to a consistent message
•The more McDonald’s knows about the people it is serving
the more it is able to communicate messages which appeal to
them
 Place
•Place in the marketing mix, is not just about the physical
location or distribution points for products.

• For McDonald selection of an ideal location to physical layout

of the place is a crucial element in the entire planning and is given
its due
Nike

Product:

Nike offers a wide range of shoe, apparel and

equipment products, all of which are currently its top-
selling product categories. Nike started selling sports
apparel, athletic bags and accessory items
Price:

•Nike’s pricing is designed to be competitive to the other

fashion shoe retailers.
•The pricing is based on the basis of premium segment as
target customers. Nike as a brand commands high
premiums.
• Nike’s pricing strategy makes use of vertical integration in
pricing. This can control costs and influence product
pricing.
•Nike’s brand power is one reason for its high revenues
Place

• Nike shoes are carried by multi-brand stores and the

exclusive Nike stores across the globe.
•Nike sells its product to about 20,000 retail accounts in
the U.S. and in almost 200 countries around the world.
•In the international markets, Nike sells its products
through independent distributors, licensees and
subsidiaries.
Promotion

•Promotion is largely dependent on finding accessible store

locations.
• It also avails of targeted advertising in the newspaper
• Creating strategic alliances.
•Nike has a number of famous athletes that serve as brand
ambassadors such as Ronaldino, Renaldo, and Roberto
Carlos),
•Nike also sponsors events such as Hoop It Up and The Golden
West Invitational.
•Nike’s brand images, the Nike name and the trademark
swoosh, make it one of the most recognizable brands in the
world.
Nike’s quality products, loyal customer base and
its great marketing techniques all contribute to
make the shoe empire a huge success