Page 20 - DMGT408DMGT203_Marketing Management

Unit 1: Marketing: Scope and Concepts

Notes
Table 1.1: Marketing Mix Elements (4Ps)
Product Price Place Promotion
Decisions Decisions Decisions Decisions
Brand name Pricing strategy Distribution channels (push, pull, etc.)
Functionality Suggested retail price
Styling Wholesale price Market coverage Advertising
Quality Various discounts - intensive Sales promotion
Safety Seasonal pricing - selective Personal selling
Packaging Bundling - exclusive PR/publicity
Repairs & support Price flexibility Inventory Promotional budget
Warranty Accessories Price discrimination Warehousing
and Services Order processing
Transportation

Three other marketing mix classifications by: (1) Albert Frey, (2) William Lazer and Eugene J.
Kelly, and (3) Mary Bitner and Bernard Booms are worth noting. Frey's two-factor classification
includes, (1) The Offering: product, packaging, brand, price, and service. (2) Methods and Tools
includes distribution channels, personal selling, advertising, sales promotion, and publicity.
The second classification proposed by Lazer and Kelly includes three factors: (1) Goods and
Services Mix, (2) Distribution Mix, and (3) Communications Mix, and Bitner and Boom's includes
7 Ps. However, the 4Ps remain the most popular classification in terms of marketing mix.

Did u know? A more recent marketing mix classification proposed by Robert Lauterborn
focuses on customer's point of view and includes: (1) Customer Benefit, (2) Customer
Cost, (3) Customer Convenience, and (4) Communication. Lauterborn's view is that 4Ps
correspond to customer's 4Cs.

!

Caution
McCarthy's Classification (4Ps) Lauterborn's Classification (4Cs)
1. Product. Customer Benefit.
2. Promotion. Communication.
3. Place (distribution). Customer Convenience.

4. Price. Customer Cost.
Marketing management strives to develop the most appropriate combination of marketing mix
variables for each product to match the needs of the target market. Marketing mix elements are
altered to accommodate the changing market conditions and changing marketing strategies
adopted by competing companies.

4Ps and 4Cs of Marketing

Product (Customer Benefit)

In the marketing mix, the product or service is the most important element. There is an old
saying in marketing: "Without a good product, you have nothing." Product is directly related to
satisfying the customer needs and wants in the target market. Customers acquire products for
the singular reason that they are perceived as the means to satisfying their needs and wants.

LOVELY PROFESSIONAL UNIVERSITY 13