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PRESENTED BY :Ms.Sophie D.AMHA FINAL YEAR, JNMC BELGAUMFunction of marketing and MARKETING MIXINTRODUCTION20/08/2015Ms.Sophie D.A2Marketing It is a societal process by which individuals & groups obtain what they need & want through creating, offering & freely exchanging products & services of valve with others.In marketing management, segmentation, targeting and position of product plays vital role & based on variables the marketer prepares the marketing mix. The market variables are;Decision on products or service.Decision on price.Decision on promotion.Decision on distribution / place.

Function of marketing 20/08/2015Ms.Sophie D.A3 The marketing process must accomplish nine important functions:BuyingSellingFinancingStorageTransportationProcessing

20/08/2015Ms.Sophie D.A4Risk-TakingMarketing InformationGrading and Standardizing20/08/2015Ms.Sophie D.A5Buying - people have the opportunity to buy products that they want.Selling - producers function within a free market to sell products to consumers.Financing - banks and other financial institutions provide money for the production and marketing of products.20/08/2015Ms.Sophie D.A6Storage - products must be stored and protected until they are needed. This function is especially important for perishable products such as fruits and vegetables.Transportation -products must be physically relocated to the locations where consumers can buy them. This is a very important function.20/08/2015Ms.Sophie D.A7 Transportation includes rail road, ship, airplane, truck, and telecommunications for non-tangible products such as market information.Processing - processing involves turning a raw product, like wheat, into something the consumer can use, for example, bread.

20/08/2015Ms.Sophie D.A8Risk-Taking - insurance companies provide coverage to protect producers and marketers from loss due to fire, theft, or natural disasters.Market Information - information from around the world about market conditions, weather, price movements, and political changes, can affect the marketing process. Market information is provided by all forms of telecommunication, such as television,the internet, and phone.20/08/2015Ms.Sophie D.A9Grading and Standardizing - Many products are graded in order to conform to previously determined standards of quality. For example, when you purchase US No. 1 Potatoes, you know you are buying the best potatoes on the market.Marketing Mix20/08/2015Ms.Sophie D.A10What is marketing? The definition that many marketers learn as they start out in the industry is: Putting the right product in the right place, at the right price, at the right time.It's simple! You just need to create a product that a particularly group of people want, put it on sale some place that those same people visit regularly, and price it at a level which matches the value they feel they get out of it; and do all that at a time they want to buy. Then you've got it made!

Marketing Mix contd...20/08/2015Ms.Sophie D.A11The term "marketing mix" became popularized after Neil H. Borden published his article in 1964. The Concept of the Marketing Mix. Borden began using the term in teaching in the late 1940's. The ingredients in Borden's marketing mix was product planning, pricing, physical handling (distribution channels), personal selling, promotions (advertising, display, servicing & branding), packaging, & fact finding analysis. E. Jerome McCarthy later grouped these ingredients into the four categories that today are known as the 4 P's.

20/08/2015Ms.Sophie D.A12Marketing Mix : The set of controllable tactical marketing tools- product, price, place, and promotion- that the firm blends to produce the response it wants in the target market.Everything the firm can do to influence the demand of its productsSellers viewCustomers view 4 Ps: 4 Cs:> Product> Customer solution > Price> Customer cost> Place> Convenience> Promotion> Communication 3 more Ps:>People>Process>Phycical evidenceUnderstanding the Marketing Mix Tool20/08/2015Ms.Sophie D.A13

Discussion on Marketing Mix20/08/2015Ms.Sophie D.A14Product Decisions; It refers to tangible, physical products & services. Examples of the product decisions to be made:Brand name FunctionalityQuality & StylingSafety &WarrantyPackagingRepairs and SupportAccessories and servicesPrice Decisions; Some examples of pricing decisions include:Pricing strategy - skim, penetration & neutral pricing.Suggested retail & wholesale priceVolume discounts & Cash discountsSeasonal pricing BundlingPrice flexibilityPrice discrimination

Discussion on Marketing Mix contd...

20/08/2015Ms.Sophie D.A15Promotion Decisions; Various aspects of Mktg communication, the information about the product. Its decisions include:Promotional strategy (push, pull, etc)Advertising & Sales promotionsPersonal selling & sales forcePublic relations & publicityMktg communications budgetDistribution (Place) Decisions; Examples includes; Distribution channelsMarket coverage (inclusive, selective, or exclusive distribution)Specific channel membersInventory management & WarehousingDistribution centers &Order processingTransportation & Reverse logistics

Discussion on Four Ps Vs Cs

20/08/2015Ms.Sophie D.A16The Four Ps is replaced by the Four Cs model, consisting of consumer, cost, convenience, and communication. The Four Cs model is more consumer-oriented and fits better in the movement from mass marketing to niche marketing. Cs Model provides a demand/customer centric version alternative to the well-known four Ps supply side model of marketing management.Product CommodityPrice CostPlace ChannelPromotion Communication

20/08/2015Ms.Sophie D.A17In the practice most of the companies considered marketing mix viz Ps in their marketing function for instance; Coca-Cola considered marketing mix as;Product.Price.Promotion.Place.Potential.Penetration, andProfit.The 7 Ps Extended Marketing Mix20/08/2015Ms.Sophie D.A18Marketing Strategy tool that expands the number of controllable variables from the four in the original Marketing Mix Model to seven.People Process Phycical Evidence The traditional Marketing Mix model was primarily directed and useful for tangible products. The 7-Ps model is more useful for services industries and arguably also for knowledge-intensive environments.

People

20/08/2015Ms.Sophie D.A19People here refers to the all human actors who play apart in service delivery and the influences the buyers perceptions: namely, the firm personnel, the customer, and the other customers in the service environment. Front line staff, Floor level staff etc.Examples:LIC AgentWaiter in five-star hotelClub membershipBanks

Process20/08/2015Ms.Sophie D.A20Process refers to the actual procedures, mechanisms and flow of activities by which the service is delivered the service delivery and operating system.Examples:MacDonaldDominoz PizzaATM- BankingWaiter of restaurant

Physical Evidence20/08/2015Ms.Sophie D.A21Physical evidence is the environment in which the service is delivered and where the firm and customers interact, and any tangible components that facilitate performance or communication of the services. Examples:Bank layoutInfrastructure - Education services Hospital/ Medical services

IMPORTANCE OF MARKETING MIX20/08/2015Ms.Sophie D.A22All the elements of the marketing mix influence each other. They make up the business plan for a company and handled right, can give a great success, But handled wrong could take business years to recover.Therefore, the marketing mix needs a lot of understanding, market research and consultation with several people from users to trade to manufacturing and several others.Limitations of the Marketing Mix Framework20/08/2015Ms.Sophie D.A23Marketing mix framework was particularly useful in the early days, when physical products represented a larger portion of the economy. Today, marketing is more integrated into organizations & wider variety of products & markets, some authors have attempted to extend its usefulness by proposing a fifth P, such as packaging, people, process, etc. Marketing mix most commonly remains based on the 4 P's. Despite its limitations and perhaps because of its simplicity, the use of this framework remains strong and many marketing textbooks have been organized around it.

THANK YOU !!!20/08/2015Ms.Sophie D.A24