Marketing Mix - Introduction to Marketing, Marketing Management Video Lecture | Marketing Management - B Com

hi this is Simon from a stick training
today
we're going to be talking about the
marketing mix so what is the marketing
mix the marketing mix is a model based
on commonly accepted definition of
marketing by ab kal kal burg and ross
which says that marketing is all about
having the right product in the right
place at the right price and at the
right time the original model have four
key elements product price place and
promotion this then evolved into a
larger model which is called the
extended marketing mix this has seven
key elements it has the original product
price place and promotion that also has
new elements of people process and
physical evidence so let's look at each
of these in turn first of all we have
product this is the product or service
that you provide and this is all about
what makes your product or service what
it is it's about design technology
usefulness convenience value quality
things such as packaging branding and
accessories and warranties we then have
price there are various different
approaches that you can take to pricing
your product or service you have cost
plus pricing this is where you take the
total costs of producing and getting
your product or service to your customer
and add a percentage markup you have
consumer-led pricing which is about
researching your target customer base
and prior to providing them with a
product or service that you would
consider they would find a fair price
you have competitive pricing which is
about supplying your product or service
at a price that is competitive with
other businesses that are supplying the
same product or service to your target
market you have penetration pricing
which is
you're looking to obtain market share in
a target marketplace and you enter with
a low price and then once you've
obtained that market share you rise your
prices then we have skimming this is
almost the opposite of penetration
pricing this is where you have a price
that's very high initially for your
product or service and then this reduces
over time it's commonly used by
technology companies who have high
initial investments in production costs
but then over time as there's greater
uptake on their product this reduces
with the product life cycle
we have premium pricing which is
obviously high pricing to reflect a
luxury good or brand and then we have
economy pricing such as cheap flights
next we have the place in terms of
elements in the marketing mix this is
how your product or service is found and
is able to be purchased by your target
customer base so you may have your
product available through wholesalers
you may have your products available
through your own store you may have
direct sales as a channel through which
you sell your product you may have
online sales things such as party plans
or make use of mail-order the next
element looks at promotion this is all
about how the customer finds out about
your product it's about advertising it
it's about public relations
it's about sponsorship things like sales
promotion personal selling Direct Mail
digital content and social media then we
have people these are the people who are
involved in selling and supporting your
product or service to the customer it's
about advice and sales support
it's about customer service it's about
after sales back up we then have process
this is all about looking at how
everything fits together how your
product or service actually gets to the
customer and how successful those
processes are managed this is where you
can look at Quality Assurance and
quality management then we have physical
evidence this is all about the evidence
that proves that your marketing is
successful and then your product and
service is definitely out there and
doing what it should this is about
packaging paperwork things like invoices
tickets
dispatch notes it's about vehicle
signage your presence on the internet
such as webpages furnishings brochures
uniforms buildings such as your offices
or headquarters and things such as
awards that reflect the success of your
product service and brand okay so there
we have it an overview of the extended
marketing mix but how is this actually
used in the real world well let's look
at a major global brand
McDonald's well known everywhere here we
have how the marketing mix looks for
McDonald's they have their products
obviously the core for most one among
them being vegan hamburger but they
don't just do a hamburger they do a
range of options with their hamburger
they do chicken burgers and as markets
evolve where we've got things such as
consumers now who are looking for more
responsibly sourced meat more ethically
packaged goods and more healthier
options McDonald's have also adapted
their products to match pricing
McDonald's obviously with their range of
products that they have they have
different prices they also work
internationally so they work with
multiple currencies and they will have
different pricing for the different
countries that they deal with and they
will work to
a range of different pricing models
placement you can obviously find
McDonald's burgers in there McDonald's
restaurants so they have a clear place
you can buy their product or service you
can also look at information on them on
the Internet in terms of promotion
McDonald's have a range of different
means with which they communicate about
their product and service to their
potential customer and they gear them to
different target markets we have the
standardized promotion so things like
their McDonald's arches we have the
logos on their clothes clearly evidenced
in the different restaurants that they
have you can see them on the internet
and find information about the company
there you've got special promotions
things like Happy Meals and the free
giveaways that they give with the happy
meals for children different toys that
change every so often we have different
promotions in terms of the meals that
they provide so you might have a special
option one week and then a different
option the next week they also advertise
free Wi-Fi within their restaurants for
business customers or customers who
would like to access the internet while
they're there so they have a balance of
different promotions to suit the needs
of their different target markets ok so
the next element that we look at is
people McDonald's have lots of different
people involved in the organization who
are helping to get their product or
service to to market these include
management administration staff and
frontline customer service and sales
staff the next element is process and
McDonald's our market leader at
processor engineering they make sure
that they have processes for producing
their product the hamburger they make
sure that they have processes that make
it easy for the customer to get access
to the food in the way they want they
are a fast food industry and with having
things such as the fast drive-thru
section that helps their customer get
food quickly they also have ways of
making payments faster as well for the
customer such as contactless which they
have introduced in most of their
branches so overall they have extremely
focused on efficient processes so the
next thing that we've got is physical
evidence and it's clear that McDonald's
are extremely successful in terms of
getting their products and service to
market we can clearly see that through
the restaurants that they have through
the people that serve in those
restaurants with the clear branding on
their clothes we can see that they've
been successful by the fact that their
organization is global by the fact it's
used in business case studies and also
by the fact that there is actually a Big
Mac index by which the cost of living in
different countries is judged by the
cost of a Big Mac in those countries so
there we have it that looks at the
application of the 7ps as to how they're
used in the real world with a global
market leader so what are the key
applications well the key applications
in terms of the certain P's are
generally for strategic planning so this
is where you're looking at introducing a
new product or service or maybe your
business that's looking to get into a
new marketplace you use it so that you
can analyze what product or service is
needed how you fit into that marketplace
what sort of place should you be
promoting your product or service in how
should you be getting it to the customer
if you look at all of the individual
elements of the marketing mix this helps
define your strategy in a much more
successful way you also have a use in
gap analysis so say you're an existing
company and you have a product or
service that isn't performing as you'd
like within the marketplace this is
where you can look at each element of
the marketing mix
and see if there is an area where you
have gaps or where things are failing
and it helps you to correct this okay so
there we have it
the extended marketing mix as an
overview and why do we want to have the
marketing mix so that we can make sure
that we have the right product in the
right place at the right price at the
right time there you have it the
marketing mix