The term 'marketing mix' was first used in 1953 when Neil Borden, in his American Marketing Association The American Marketing Association is a professional association for marketers. As of 2008 it had approximately 40,000 members. There are collegiate chapters on 250 campuses presidential address, took the recipe idea one step further and coined the term "marketing-mix". A prominent marketer, E. Jerome McCarthy E. Jerome McCarthy was an American marketing professor at Michigan State University and others such as the University of Notre Dame. He is the author of the influential book Basic Marketing. A Managerial Approach . Professor E. Jerome McCarthy, in 1960, reduced the Marketing Mix concept to 4 elements: product, price, place and promotion, proposed a 4 P classification in 1960, which has seen wide use. The four Ps concept is explained in most marketing textbooks and classes.
Elements of the marketing mix are often referred to as 'the four Ps':
- Product The noun product is defined as a "thing produced by labor or effort" or the "result of an act or a process", and stems from the verb produce, from the Latin prōdūce '(to) lead or bring forth'. Since 1575, the word "product" has referred to anything produced. Since 1695, the word has referred to "thing or things - A tangible object or an intangible service that is mass produced Mass production is the production of large amounts of standardized products, including and especially on assembly lines. The concepts of mass production are applied to various kinds of products, from fluids and particulates handled in bulk (such as food, fuel, chemicals, and mined minerals) to discrete solid parts (such as fasteners) to assemblies or manufactured on a large scale with a specific volume of units. Intangible products are service based like the tourism industry Tourism is travel for recreational, leisure or business purposes. The World Tourism Organization defines tourists as people who "travel to and stay in places outside their usual environment for more than twenty-four hours and not more than one consecutive year for leisure, business and other purposes not related to the exercise of an activity & the hotel industry A hotel is an establishment that provides paid lodging on a short-term basis. The provision of basic accommodation, in times past, consisting only of a room with a bed, a cupboard, a small table and a washstand has largely been replaced by rooms with modern facilities, including en-suite bathrooms and air conditioning or climate control or codes-based products like cellphone load and credits. Typical examples of a mass produced tangible object are the motor car An automobile, motor car or car is a wheeled motor vehicle used for transporting passengers, which also carries its own engine or motor. Most definitions of the term specify that automobiles are designed to run primarily on roads, to have seating for one to eight people, to typically have four wheels, and to be constructed principally for the and the disposable razor A razor is a bladed tool primarily used in the shaving off of unwanted body hair. A less obvious but ubiquitous mass produced service is a computer operating system In computing, an operating system is an interface between hardware and user, which is responsible for the management and coordination of activities and the sharing of the resources of a computer, that acts as a host for computing applications run on the machine. One of the purposes of an operating system is to handle the resource allocation and.
- Price Pricing is a fundamental aspect of financial modeling, and is one of the four Ps of the marketing mix. The other three aspects are product, promotion, and place. It is also a key variable in microeconomic price allocation theory. Price is the only revenue generating element amongst the four Ps, the rest being cost centers. Pricing is the manual or – The price is the amount a customer pays for the product. It is determined by a number of factors including market share, competition, material costs, product identity and the customer's perceived value of the product. The business may increase or decrease the price of product if other stores have the same product.
- Place – Place represents the location where a product can be purchased. It is often referred to as the distribution channel. It can include any physical store as well as virtual stores on the Internet.
- Promotion Promotion involves disseminating information about a product, product line, brand, or company. It is one of the four key aspects of the marketing mix represents all of the communications that a marketer may use in the marketplace. Promotion has four distinct elements - advertising Advertising is a form of communication intended to persuade its viewers, readers or listeners to take some action. It usually includes the name of a product or service and how that product or service could benefit the consumer, to persuade potential customers to purchase or to consume that particular brand. Modern advertising developed with the, public relations Public relations is the practice of managing communication between an organization and its publics. Public relations gains an organization or individual exposure to their audiences using topics of public interest and news items that provide a third-party endorsement and do not direct payment. Common activities include speaking at conferences,, word of mouth Word of mouth is a reference to the passing of information from person to person. Originally the term referred specifically to oral communication , but now includes any type of human communication, such as face to face, telephone, email, and text messaging and point of sale Point of sale or checkout is the location where a transaction occurs. A "checkout" refers to a POS terminal or more generally to the hardware and software used for checkouts, the equivalent of an electronic cash register. A POS terminal manages the selling process by a salesperson accessible interface. The same system allows the creation. A certain amount of crossover occurs when promotion uses the four principal elements together, which is common in film promotion. Advertising covers any communication that is paid for, from cinema commercials, radio and Internet adverts through print media and billboards. Public relations are where the communication is not directly paid for and includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events. Word of mouth is any apparently informal communication about the product by ordinary individuals, satisfied customers or people specifically engaged to create word of mouth momentum. Sales staff often plays an important role in word of mouth and Public Relations (see Product above).
Packaging also needs to be taken into consideration. Broadly defined, optimizing the marketing mix is the primary responsibility of marketing. By offering the product with the right combination of the four Ps marketers can improve their results and marketing effectiveness. Making small changes in the marketing mix is typically considered to be a tactical change. Parm Bains says making large changes in any of the four Ps can be considered strategic. For example, a large change in the price, say from $19.00 to $39.00 would be considered a strategic change in the position of the product. However a change of $130 to $129.99 would be considered a tactical change, potentially related to a promotional offer.
The term 'marketing mix' however, does not imply that the 4P elements represent options. They are not trade-offs but are fundamental marketing issues that always need to be addressed. They are the fundamental actions that marketing requires whether determined explicitly or by default.
Four Cs
Consumer Cost Convenience Communication
The Four Ps is also being 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.[1][2] The product part of the Four Ps model is replaced by consumer or consumer models, shifting the focus to satisfying the consumer. Another C replacement for Product is Capability. By defining offerings as individual capabilities that when combined and focused to a specific industry, creates a custom solution rather than pigeon-holing a customer into a product. Pricing is replaced by cost, reflecting the reality of the total cost of ownership. Many factors affect cost, including but not limited to the customers cost to change or implement the new product or service and the customers cost for not selecting a competitors capability. Placement is replaced by the convenience function. With the rise of internet and hybrid models of purchasing, place is no longer relevant. Convenience takes into account the ease to buy a product, find a product, find information about a product, and several other considerations. Finally, the promotions feature is replaced by communication. Communications represents a broader focus than simply promotions. Communications can include advertising, public relations, personal selling, viral advertising The buzzwords viral marketing and viral advertising refer to marketing techniques that use pre-existing social networks to produce increases in brand awareness or to achieve other marketing objectives through self-replicating viral processes, analogous to the spread of pathological and computer viruses. It can be word-of-mouth delivered or, and any form of communication between the firm and the consumer.
References
| This article includes a list of references, related reading or external links, but its sources remain unclear because it lacks inline citations. Please improve this article by introducing more precise citations where appropriate. (March 2009) |
External links
| Wikibooks has a book on the topic of Marketing |
| Wikimedia Commons has media related to: Marketing Mix |
- British Broadcasting Corporation (BBC) Schools Marketing Mix (bitesize 4P's)
- 7Cs COMPASS MODEL(1981)in Japan[2]
Categories: Marketing Categories: Business | Service industries | Business economics | Strategic management
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