LECTURE 2 Expanded Mkt mix 2024.pptx

EXPANDED MARKETING MIX UNIT 2 J Kraa KNUST 2024  Learning objectives  After reading this unit you should be able to:  Evaluate the role of traditional marketing mix  Examine physical evidence and its roles  Examine service process and its roles  Understand people el...

EXPANDED MARKETING MIX UNIT 2 J Kraa KNUST 2024  Learning objectives  After reading this unit you should be able to:  Evaluate the role of traditional marketing mix  Examine physical evidence and its roles  Examine service process and its roles  Understand people element and its roles  Examine services environment in which these expanded mixes operate  Evaluate how managers are responding to the service environment J Kraa KNUST 2024  Traditional Marketing Mix Marketers usually address four basic strategic elements: product, price, place and promotion (4 Ps) when developing strategies for manufactured goods. Product: this consist of the core product that responds to the customer’s primary need and an array of supplementary service. Place: delivery product elements to customer involve decisions on where and when the products are delivered as well as methods and channels employed.  Price: for suppliers, pricing strategy is the financial mechanism through which income is generated to offset the costs of providing service and create surplus for profits.  Promotion: no marketing programme can succeed without effective communications.J Kraa KNUST 2024 The Marketing “Mix” J Kraa KNUST 2024  Product  Kotler defines a product as anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a need or want. Consumers do not just buy products; they are interested in the benefits. The product must meet customer expectation by providing the expected benefits. Key decision Physical good features of the product Quality level Packaging Branding the product etc J Kraa KNUST 2024 Pricing (cost to the customer)  Factors that determine pricing are as follows:  Target customers  Cost  Competition Key Decisions  Flexibility  Terms of payment  Differentiation  Discount  Allowances  etc J Kraa KNUST 2024  Promotion Key decisions (Communication)  Promotional blend  Sales people  Advertising  Internet/web strategy  Media types  Publicity  etc J Kraa KNUST 2024  Place (Convenience ) Key decisions  Channel types  Intermediaries  Outlet locations  Transportation  Storage  Managing channels  etc J Kraa KNUST 2024 Expanded Marketing Mix of Services  In addition to the conventional 4Ps, Services have additional 3Ps that makes it 7Ps.  Physical evidence, People and Process (Dibb and Simkin, 1994)  Some schools of thought are making a case for additional yet Ps. J Kraa KNUST 2024  Physical Evidence  Environment in which the service is delivered  Where the firm and customers interact  Any tangible components that facilitate performance  Communication of the service J Kraa KNUST 2024  Physical Evidence cont. The intangibility nature of services makes it difficult to be evaluated before consumption. Key decisions  Facility design  Equipment  Signage  Employee dress  Business cards  etc J Kraa KNUST 2024  Role of Physical Evidence  The appearance of buildings, landscaping, vehicles, interior furnishing, equipment, and  other visible cues all provide tangible evidence of a firm’s service quality  It serves as the packaging material for service.  It communicates the quality of service before consumption.  It serves as a brand or differentiation tool for the organization. J Kraa KNUST 2024  Processes  Procedures, mechanisms and flow of activities that take place during the consumption of a service.  Some processes are simplified whist others are cumbersome.  It is important for service providers to educate consumers on why some simplified procedures become complicated. Eg. security reasons.  It is the time-orientation part of services. J Kraa KNUST 2024  Processes cont. Key issues  Flow of activities  Standardized services  Customized services  Customer involvement  Number of steps  etc J Kraa KNUST 2024  Role of Processes  Processes brings about belongingness eg. placing an order or registration  They bring about the real interaction  They offer the consumer the opportunity to give inputs to the production process.  The provide security for the recipient  It serves as a record of dealings  Repeated buying brings about specialization J Kraa KNUST 2024  People  All human actors who play part of the service delivery process and influence buyers' perception.  Appearance and behaviour of both service personnel and customers.  This refers to the human factor of services.  They are people who are directly or indirectly involved in the provision of service.  Management, employees, suppliers, consumers and prospective customers. J Kraa KNUST 2024  People Key decisions cont.  Employee recruitment  Employee training  Motivation  Rewards  Teamwork  Customer education  etc J Kraa KNUST 2024  Role of People An extension of tangibles Source of customer loyalty Serves as brand Serve as the service firm Determines quality and customization J Kraa KNUST 2024 J Kraa KNUST 2024 THANK YOU J Kraa KNUST 2024