Podcast
Questions and Answers
What is the main difference between a Level Two channel and a Level Three channel?
What is the main difference between a Level Two channel and a Level Three channel?
What is the 'extended marketing mix' also known as?
What is the 'extended marketing mix' also known as?
Services Marketing Mix
In the marketing mix, 'promotion' refers to the communications that occur between the company and the ________.
In the marketing mix, 'promotion' refers to the communications that occur between the company and the ________.
customer
Match the following with their descriptions:
Match the following with their descriptions:
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Define the term Marketing Mix.
Define the term Marketing Mix.
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Explain the importance of pricing strategy.
Explain the importance of pricing strategy.
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Briefly explain the term ‘distribution’ and ‘distribution channel’.
Briefly explain the term ‘distribution’ and ‘distribution channel’.
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What are the components of the Place Mix?
What are the components of the Place Mix?
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Product mix refers to the complete set of products and/or services offered by a firm, also known as product assortment or product portfolio.
Product mix refers to the complete set of products and/or services offered by a firm, also known as product assortment or product portfolio.
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Match the following distribution strategies with their descriptions:
Match the following distribution strategies with their descriptions:
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What does physical evidence in the context of services include?
What does physical evidence in the context of services include?
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Which of the following are examples of physical evidence in a hotel?
Which of the following are examples of physical evidence in a hotel?
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Satisfied customers can serve as effective marketing agents for a company.
Satisfied customers can serve as effective marketing agents for a company.
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Match the following dimensions of physical environment with their descriptions:
Match the following dimensions of physical environment with their descriptions:
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What is the purpose of using social marketing in relation to customer satisfaction?
What is the purpose of using social marketing in relation to customer satisfaction?
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Study Notes
Marketing Principles
What is Marketing Mix?
- A set of marketing tools or tactics used to promote a product or service and sell it in the market
- Involves positioning a product, deciding on the right price, place, and time to sell it, and promotional strategies
Elements of Marketing Mix
- Product Mix: The complete set of products and/or services offered by a firm
- Price Mix: The value of a product determined by the producer, including price level, discounts, and credit terms
- Place Mix: The arrangement of channels to make a product available to customers, including distribution channels and physical movement of goods
- Promotion Mix: The communications between the company and the customer, including messages sent by the company and customer feedback
Product Mix
- Dimensions: Width, Length, Depth, and Consistency
- Width: The number of product lines offered by a company
- Length: The total number of products in a firm's product mix
- Depth: The number of variations within a product line
- Consistency: How closely related product lines are to each other
Product Mix Strategies
- Expansion: Developing new uses for a product
- Contraction: Reducing the number of product lines
- Deepening: Increasing the number of variations within a product line
- Alteration: Changing the characteristics of a product
Price Mix
- Types of Pricing:
- Penetration Pricing: Low initial price to attract customers
- Skim Pricing: High initial price to maximize profits
- Competitive Pricing: Pricing based on competition
- Value-based Pricing: Pricing based on the product's value to the customer
Place Mix
- Components: Channels, Physical Distribution, Inventory Control, and Transportation
- Types of Distribution:
- Intensive Distribution: Selling through the widest possible channels
- Selective Distribution: Selling through a limited number of outlets
- Exclusive Distribution: Selling through a single outlet or a limited number of outlets
Distribution Channels
- Level Zero: Direct sale from manufacturer to consumer
- Level One: One intermediary between manufacturer and consumer
- Level Two: Two intermediaries between manufacturer and consumer
- Level Three: Three intermediaries between manufacturer and consumer
Promotion Mix
- Tools: Advertising, Sales Promotion, Personal Selling, and Public Relations
- Strategies:
- Push Strategy: Using intermediaries to push the product to the consumer
- Pull Strategy: Creating demand for the product through advertising and other promotional activities
Extended Marketing Mix (Service Industry)
- People: Employees, Management, and Customer Service
- Process: The systems used to deliver the service
- Physical Evidence: The tangible aspects of a service, such as facilities and ambience
Features of Services
- Intangibility: Services are invisible and cannot be touched
- Perishability: Services cannot be stored or reused
- Changeability: Services are variable and can be customized
- Inseparability: Services are produced and consumed simultaneously### Marketing Process
- At each stage of the marketing process, marketers deliver value through all elements of the marketing mix.
- The process itself can be tailored to the needs of different individuals, experiencing a similar service at the same time.
- Customers are retained, and other services or products are extended and marketed to them.
Types of Processes
- Technological process: creating tangible products, e.g., manufacturing the Phantom car of Rolls-Royce, adapted to individual client requirements.
- Electronic process: using receipts, barcodes, forms, or other methods to gather information about a particular product.
- Direct process: activities that add value at the customer interface, e.g., consumer experiences the service.
- Indirect process: back-office activities that support the service before, during, and after it has been finished.
Example Processes
- Booking a flight on the internet: visiting the airline's website, entering flight details, booking, and receiving a ticket via email.
- Going on a cruise: a highly focused marketing process that involves greeting, baggage handling, and providing services such as restaurants, entertainment, and shopping.
People Element in Marketing Mix
- Include people who are directly or indirectly involved in the trade of the product or service.
- Customer contact employees, management, and others who deliver a physical service with a visible result.
- Companies need the right people with the right attitude, available at the right time, and with the right training.
Physical Evidence in Marketing Mix
- Refers to an environment in which a service comes about from an interaction between an employee and a customer, combined with a tangible commodity.
- Helps in enhancing the customer's buying experiences.
- Includes physical elements that customers can use to validate the service, such as tickets, brochures, company stationery, business cards, reports, and company websites.
Dimensions of Physical Environment
- Environmental conditions: temperature, sound, smell, etc.
- Space and functions: map, equipment, decoration, etc.
- Signs, symbols, and artifacts: signature, decoration style, personal touch, etc.
Example of Marketing Mix
- A school:
- Product: name of the school, USP of the school.
- Pricing: fees collected from students.
- Place: building of the school where the service will take place.
- Promotion: newspaper advertisement, pamphlets, hoardings.
- Physical Evidence: schedules, class timetables, fee receipts, computer lab facilities.
- People: teachers, principal, counselors.
- Process: interactive lectures, parent-teacher meets, regular updates to parents.
Marketing Mix - Tesco
- Product: huge range of product offerings, including food, home electrical products, and baby and toddler products.
- Price: cost leadership strategy, lowest priced goods while maintaining quality.
- Place: 6,900+ stores in 11 countries, including Tesco Express, Tesco Extra, and Tesco Superstore.
- Promotion: strong brand image, low prices, hoardings, television ads, and charitable events.
- People: employs a large number of people, encourages employee support and development.
- Physical Evidence: logos, colors, labels, and equipment.
- Process: customer service processes, deviations from company policies kept to a minimum, dispute resolving measures highly maintained.
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Description
This quiz covers the fundamentals of marketing, including the concept and process, segmentation, targeting, positioning, and the extended marketing mix.
