The concept of marketing mix

THE CONCEPT OF MARKETING MIX

REALIZED: SALIANI Kawtar

BELKAID Mehdia

HSINA Hajar

PLAN:

• Introduction

I- The evolution of the marketing mix

II- The ingredients of the marketing mix

III-

IV-

• Conclusion

INTRODUCTION

In common with many other professions the practice of marketing is often

made complex and difficult due to the sheer diversity of the problems with

witch it is confronted.

THE EVOLUTION OFMARKETING-MIX

THE PRODUCTION ERA

From 1900 to 1930:

- the mass production economy.

- the demand supply.

- the absence of competition.

THE SELL ERA

• From 1930 to 1950:

-the supply the demand.

-the emergence of commercials actions.

- the apparition of the term marketing-mix.

THE MARKETING ERA

From 1950:

-Supply=demand.

-satisfaction of Customer needs.

THE INGREDIENTS OF THE MARKETING MIX

• A review of the literature suggests that there are many classifications of the

marketing mix elements ranging from the narrow classification.

• Albert Frey : The offering and the tools

• Lazer ,Kelley and Culley :Use a threefold classification:

The product and service mix

The distribution mix

The communication mix

• Mc Carthy, Stanton and Darling ; used a 4 classification:

Product

Price

Place

Promotion

PRODUCT

Product is the article which a manufacturer desires to sell in the open market.

It is the first element in the marketing mix. The product mix includes the

following variables.

PRICE

• Price is one more critical component of marketing mix. It is the valuation of the product mentioned by the seller on the product.

Price mix includes the following variables:

• Pricing policies

• Discounts

• Terms of credit sale

• Pricing strategy selected and used.

PLACE

• Physical distribution is the delivery of goods at the right time and at the right place to

consumers. Physical distribution of product is possible through channels of

distribution which are many and varied in character.

Physical distribution (place mix) includes the following variables:

• Types of intermediaries available for distribution,

• Distribution marketing channels available for distribution, and

• Transportation, and inventory control for making the product available to consumers

easily and economically.

PROMOTION

Promotion is the persuasive communication about the product offered by the

manufacturer to the prospect.

Promotion mix includes the following variables:

• Advertising and publicity of the product,

• Personal selling techniques used,

• Sales promotion measures introduced at different levels,

• Display of goods for sales promotion.

MANAGING THE MIX

There are two key decisions which are central to marketing management,

1) The selection of target markets : which determine where the firm willcompete.

2) The design of the marketing mix ( 4p methods) : which will determine itssucess in these markets.

HOW TO MANAGE IT ?

• Strategy identifies future objectives to which the firm aspires and which are likely to be modified due to changing circumstances.

• Thus strategy charts a direction to be followed to achieve a destination that will probably be changed as we approach it.

• However, to ensure that we remain on course we will set a series of sub-objectives which represent points along the way from where we are to where we want to be.

• Set performance targets on an annual basis and develop short-term plans for their achievement. In turn, short term plans are usually subset of a medium-term plan

HOW TO MANAGE THE MIX

• Marshalling evidence is a precondition for analysis but it does not follow that all decision-makers will draw the same conclusion from a given data set (perception)...

what matters is the quality of the plan devised by the manager based upon his analysis and the quality of the implementation. Central to all this is the understanding and deployment of the mix elements.

Coffee machines (Quality, 19 bar)

• Manufactured by 6 different companies

• Range: 3-4 machines each

• Different post-sales service

• Capsules– 12 different flavors

Accessories

• Cups, boxes, pots

Services (Distribution , information)

• In shops

• phone

• Internet

Marketing-Mix > Product

MIX MARKETING : CASE STUDY OF NESSPRESSO 19

• Pricing policy:

• Machines: expensive

• From 179 to 1749 €

• The capsules: not very expensive to consumers (≈ € 0.32)

Marketing-Mix > Price

MIX MARKETING : CASE STUDY OF NESSPRESSO 20

Machines

• Distributed appliance stores

• Also in the shops and Internet

Capsules

• Distributed only to members of the Nespresso Club

• Shops, internet or via phone (home delivery)

Marketing-Mix > Place

MIX MARKETING : CASE STUDY OF NESSPRESSO 21

• Mainly word of mouth

60% of new customers

• Internet, TV ads and sponsorship

• Message of differentiation

“ It offers a lifestyle with more quality

and comfort ”

• Attention Customer Service

Very attentive

Provides more information about

customers to provide a heterogeneous

service-oriented customer (CRM).

Marketing-Mix > Promotion

MIX MARKETING : CASE STUDY OF NESSPRESSO 22

CRITICISMS OF THE MARKETING MIX

• It focuses on what marketers do to customers rahter than FOR them

• It says nothing about interactions between the mix variables

• It takes a merchanistic view about markets

• It assumes a transactional exchange rather than relationship

CONCLUSION

All the elements of the marketing mix influence each other. They make up the

business plan for a company and handled right, can give it great success. But

handled wrong and the business could take years to recover. The marketing

mix needs a lot of understanding, market research and consultation with

several people, from users to trade to manufacturing and several others.

THANK YOU FOR YOUR ATTENTION

BIBLIOGRAPHY

• Marketing strategy and management – Michel J.BAKER « third edition »

• Introduction to marketing – John FRAIN

• http://kalyan-city.blogspot.com/2010/05/marketing-marketing-mix-4-ps-

of.html

• http://economictimes.indiatimes.com/definition/marketing-mix