The Marketing MixThe Marketing MixThe Four P’s and Two C’s of The Four P’s and Two C’s of

MarketingMarketing

The Marketing MixThe Marketing Mix

The Four P’s of Marketing are:The Four P’s of Marketing are: Products and ServicesProducts and Services PricePrice PlacePlace PromotionPromotion

The Two C’s of Marketing are:The Two C’s of Marketing are: The Competitive MarketThe Competitive Market The Consumer MarketThe Consumer Market

Products and ServicesProducts and ServicesQualityQuality If Product or Service quality is high, you will If Product or Service quality is high, you will

attract more customersattract more customers Can you think of high quality products which Can you think of high quality products which

consumers will pay for?consumers will pay for? Products do not always have to be of high Products do not always have to be of high

qualityquality If products or services or low quality can meet If products or services or low quality can meet

demand then they also have a high chance for demand then they also have a high chance for successsuccess

Can you think of lower quality products which Can you think of lower quality products which consumers demand?consumers demand?

Products and ServicesProducts and Services

Design/StyleDesign/Style We often think of design and style in relation We often think of design and style in relation

to clothing, but all products have designto clothing, but all products have design We often buy products for the way they lookWe often buy products for the way they look As consumers we often identify a product by As consumers we often identify a product by

its designits designFor example the Coca-Cola bottle is one of the For example the Coca-Cola bottle is one of the most identifiable packages in the world most identifiable packages in the world

Can you name some identifiable packages?Can you name some identifiable packages?

Design/StyleDesign/Style

Design/StyleDesign/Style

Design/StyleDesign/Style

Design/StyleDesign/Style

Products and ServicesProducts and Services

FeaturesFeatures Features of the product may include what Features of the product may include what

materials are used in construction, the smell materials are used in construction, the smell of the product, the taste, etc.of the product, the taste, etc.

What are features for an automobile?What are features for an automobile? Service providers must outline what they doService providers must outline what they do If you were an office cleaner are windows If you were an office cleaner are windows

included? included?

Products and ServicesProducts and Services

BenefitsBenefits What are the benefits of purchasing one What are the benefits of purchasing one

product over the otherproduct over the other Each product or service has benefits that Each product or service has benefits that

attract different customersattract different customers The consumer must be aware of these The consumer must be aware of these

benefits in order to buybenefits in order to buy What benefits does Audi offer that Kia does What benefits does Audi offer that Kia does

not?not?

PricePrice

Pricing decisions can make the difference Pricing decisions can make the difference between success and failurebetween success and failure

With the advent of technology consumers With the advent of technology consumers are increasingly becoming price sensitiveare increasingly becoming price sensitive

It is important to know how price sensitive It is important to know how price sensitive consumers areconsumers are

If prices are similar in a competitive market If prices are similar in a competitive market then the other P’s will determine successthen the other P’s will determine success

PlacePlacePlace refers to the method that is used to Place refers to the method that is used to get the product of service to the consumerget the product of service to the consumerThis is referred to in Marketing as This is referred to in Marketing as Channels of DistributionChannels of DistributionThe three types of channels are:The three types of channels are: Direct – Producer to ConsumerDirect – Producer to Consumer Indirect – Producer to Wholesaler to Retailer to Indirect – Producer to Wholesaler to Retailer to

ConsumerConsumer Specialty Channel – Vending Machines or E-Specialty Channel – Vending Machines or E-

CommerceCommerce

PromotionPromotion

There are Five Types of Promotions:There are Five Types of Promotions: Coupons – Where do we find them?Coupons – Where do we find them? Contests – Can you name any?Contests – Can you name any? Premiums – Something consumers get free Premiums – Something consumers get free

with the purchase of a productwith the purchase of a productCan you name any Premiums?Can you name any Premiums?

Samples – Where do we get them?Samples – Where do we get them? Special Events – Can you name any?Special Events – Can you name any?

Competitive MarketCompetitive MarketThis consists of all the sellers of a specific This consists of all the sellers of a specific productproductThis is expressed as the total dollars spent This is expressed as the total dollars spent on this producton this product For example:For example: Soft Drink MarketSoft Drink Market The Fast Food MarketThe Fast Food Market

The percentage of the market that a The percentage of the market that a company or brand has is called its Market company or brand has is called its Market ShareShare

Competitive MarketCompetitive Market

Competitive Market•Other Businesses that compete with us for consumer dollars

Direct Competition

•Other sellers of products similar to ours

Indirect Competition

•Other spending needs that may draw customer dollars away from our products

Competitive MarketCompetitive Market

How do companies take away market How do companies take away market share from a competitor?share from a competitor?

The first is to increase the size of the The first is to increase the size of the marketmarket

For example energy drinks expanded the size of For example energy drinks expanded the size of the beverage marketthe beverage market

Can you think of any other examples?Can you think of any other examples?

Hybrids, Gaming Systems, Lowe’sHybrids, Gaming Systems, Lowe’s What is the risk with this strategy?What is the risk with this strategy?

Competitive MarketCompetitive Market

The second way to increase market share The second way to increase market share is by taking sales away from competitorsis by taking sales away from competitors

How is this done?How is this done?

PromotionsPromotions

AdvertisingAdvertising