• Accessing Internal and External sources of information
• Identifying information problems and providing solutions to prevent these problems
• Analysis and processing of data
• Provision of information for future decision making
• Communicating and Reporting Information
• Monitoring Deviations in Performance

According to Alder Lee, “Marketing information system is an interacting, continuing, future oriented structure of people, equipment and procedure designed to generate and process an information flow which can aid business executives in the management of their marketing programmes”

Marketing Information system is an integrated combination of data processing, data analysis, data specialists and reporting for the purpose of making informed marketing decisions.

Components of Marketing Information System

• Internal Marketing Information and Reporting System – It includes the internal records of a business like sales reports, order history, inventory levels, cost sheets, etc.
• Marketing Intelligence System – It refers to the systematic collection and analysis of the external marketing environment. It involves collection of information regarding the current market trends, competitor`s strategies, changing customer needs, changing market conditions, relevant developments etc. from publicly available information.
• Marketing Research System – It is a system of systematic collection, analysis and reporting of data and findings relevant to a certain marketing situation faced by a business. Information is collected through various research techniques such as questionnaires, market surveys, tests, observations etc.
• Analytical Marketing System / Decision support system – This component involves processing of data, analysis of data, conversion of raw data into meaningful information and interpreting and reporting information to make sound decisions. Many mathematical tools like time series analysis, linear programming, regression analysis, sensitivity analysis etc. are used to analyze and interpret data.

Importance of Marketing Information System

• It helps in understanding customer needs and wants
• It helps in monitoring the marketing environment and market trends
• It aids in making sound future decisions
• It helps in formulating marketing and strategic development plans
• It facilitates coordination of activities within the marketing department
• It helps in reducing costs and saving time by eliminating wastage

The post Marketing Information System – Components, Importance appeared first on BBA|mantra.

The post Sales Promotion Activities of Automobile Industry in India appeared first on BBA|mantra.

According to W.J. Stanton, “Sales promotion includes all those activities other than activities like advertising, personal selling, public relations and publicity that are intended to stimulate consumer demand and improve the marketing performance of the seller.”

It is the process of convincing a customer to buy a product by putting in various non-recurrent selling efforts. Sales Promotion activities are basically carried out to increase consumer demand and the sales volumes during a particular period of time. It can be classified into three types:

• Customer Promotion: All sales promotion efforts are targeted towards the end consumers to stimulate demand.
• Trade promotion: All sales promotion efforts are targeted towards the middlemen to push the product towards the end consumer.
• Sales force promotion: It involves efforts targeted towards the sales force to boost the morale of salesmen.

Objectives of Sales Promotion

Organizations usually carry out promotional activities to increase their sales volume. However, it is an activity carried out by organisations for achieving many purposes that are listed below:

• To stimulate consumer demand and attract prospective customers
• To increase market demand and market share
• To create new a market for a product
• To achieve stable sales pattern
• To encourage middlemen to store and supply products
• To increase the sales volumes
• To improve producer-retailer relations
• To counter competitors sales strategy
• To motivate the sales force
• To inform the market about the availability of the product
• To introduce a new feature added to an existing product or introduce a new product line
• To create brand awareness and build goodwill

Sales Promotion Strategies

Sales Promotion activities are carried out by organizations for the benefit of Sales Department, Retailers and Dealers who deal with the organisation’s products and end customers. Some Sales Promotion activities carried out by organizations are:

• Loyalty cards
• Competitions
• Free Gifts / Freebies
• Discount Coupons
• Gift Vouchers
• Free Samples
• Rebates
• Reward programs (for retaining customers)
• Repeat Purchase points
• Redeemable Reward Points
• Credit purchase programs
• Coupon Booklets
• Mobile refilling / recharging
• PAYTM Points
• Buy One Get One free offers
• Freebies signed by famous personalities

Some Sales Promotion activities carried out by organizations targeting large stores and super markets are listed below. Such benefits are passed on to the business partners to encourage them to stock their products in adequate quantities and promote their sales to customers.

• Training programs to enhance their knowledge about the products so they can explain the same to the customers
• Trade Allowances for stocking specified quantities of stocks particularly during specified periods of time
• Trade Discounts for Distribution Channel partners
• Dealer Loaders for retail partners for displaying and selling their product
• Push Money to Employees of the Retailers for selling their products on priority
• Trade Contests for retailers who sell huge quantities of products

Advantages of Sales Promotion

Sales Promotion offers many advantages to organizations, dealers and retailers associated with the business and the end customers who buy the products. Some such advantages are:

• Boosts sales within a short period of time
• Makes customers switch between brands
• Helps customers feel comfortable with their purchase through trials
• Enhances Brand visibility
• Helps Sales people achieve sales volumes
• Enhances relations between the organizations, sales force, retailers and distributors 
• Helps retain customers
• Helps rope in new set of customers
• Helps publicize new features added to products

 Limitations of Sales Promotion

• The effect of sales promotion can be felt only for a brief period of time
• Sales promotions may set wrong expectation in customers who may start expecting such activities in a frequent manner.
• When sales promotion activities are not carried out as per the expectations of the customer, the brand image may get distorted
• Sales Promotion involves cost and so it may make a dent on the profitability aspects of the organization
• Sales Promotion activities may sometime get affected due to external factors that is not in the control of the organization

The post Sales Promotion – Objectives, Strategies, Advantages, Limitations appeared first on BBA|mantra.

It is determined on the basis of –

• Marketing objectives of the business
• Competitor`s Marketing Strategies
• Previous year budget
• Sales Volume and Revenue
• Return on investment

A business may prepare one or more than one budget for different activities like research budget, advertising budget, distribution budget etc. Many organizations simply prepare their marketing budget on the basis of their previous year`s budget or on the basis of their next year`s expenditure. However, there are many methods or basis of preparing a marketing budget like:

• On the basis of previous year`s budget
• On the basis of return on investment
• On the basis of all expenditure
• On the basis of a fixed percentage of sales/revenue
• What the business can afford
• On the basis of competitors budget

Marketing budget is influenced by many factors such as –

• The financial position of the business
• Consumer demand
• Product Life cycle
• Changing marketing objectives
• Responsiveness and effectiveness of previous marketing strategy
• Competitor`s budget and marketing strategy

Process of Creating a Marketing Budget

 The five steps involved in creating a budget for marketing are:

(1) Determining the budgeting approach – A top to bottom or bottom to top approach may be used to create a marketing budget.

(2) Selecting the target market and marketing mix – It involves segmenting the market into homogeneous groups, determining the potential target customer groups and then deciding the marketing mix elements to target those groups..

(3) Gathering relevant information – Relevant information about the product, tastes and preferences of the target market and the marketing mix elements is collected through various primary and secondary sources.

(4) Estimating cost of marketing – It involves estimation of the total cost of marketing activities. A marketing budget includes all the costs involved in implementing a marketing strategy like cost of:

• Marketing Staff
• Market Research
• New product development
• Distribution
• Thriving competition
• Advertising
• Personal selling
• Selling promotion
• Media
• Communications etc.

(5) Finalizing the budget – A budget draft is sent to the finance department or the top management who review, revise and finalize the marketing budget. The budget is reviewed from time to time and adjustments are made according to the changing marketing environment and needs of the organization.  

The post Marketing Budget, Process of of Marketing Budget Notes appeared first on BBA|mantra.

Price is the marketing mix element that produces revenue. Price refers to the exchange value in terms of money of products and services which provide a bundle of satisfaction to the consumer. The price of a product increases with increase in sales revenue.

According to Prof. K.C. Kite, “It is a managerial task that involves establishing pricing objectives, identifying the factors governing  the price, ascertaining their relevance and significance, determining the product value in monetary terms and formulation of price policies and the strategies, implementing them and controlling them for the best results.”

It refers to the task of translating into quantitative terms (monetary terms) the value of a product or a unit of service to customers. It involves –

• Establishing pricing objectives
• Identifying factors affecting price
• Determining the product value in monetary terms
• Formulating pricing policies
• Developing pricing strategies
• Setting prices and engaging in implementation and control of prices for maximum revenue

Objectives

• Maximize profits & return on investment
• Exploit competitive positioning
• Increase market share and market demand
• Face the competition
• Achieve price stability
• Resource mobilization
• Long run welfare of the firm

Factors influencing price:

Methods/Approaches to Pricing

(1) Cost based – Based on cost of production

Mark-up / Cost plus pricing – Selling price includes total cost plus mark-up /margin that the firm desires.

Mark up Price = Unit cost (VC + FC)/(1 – desired return on sale)

Full cost or Absorption cost pricing – Selling Price includes full cost of production and sales plus a mark-up required (desired) by the firm. It makes use of standard costing techniques. The cost includes –

Fixed Cost + Variable Cost + Selling and administrative cost + Advertisement cost

Break even or Target return pricing – Firm determines the breakeven point i.e. the volume of sales required to reach a no profit, no loss situation then sets prices in order to achieve a certain level of return on investment.

T.R.P = Unit Cost + (Desired return X Invested Capital)/Unit Sales

(2) Market / Customer / Demand based

What the traffic can bear – The seller sets the maximum price that the buyers are willing to pay under given circumstances.

Skimming Pricing – The seller sets a relatively high price when the product is introduced and then lowers the price over time.

Penetration Pricing – The product is introduced at low prices initially and the price is increased subsequently with increase in demand and market share.

(3) Competition based

Going rate or parity pricing – Price is determined on the basis of price of competitor’s product price is set similar to the price of competitor’s product.

Discount Pricing – Price of the product is set below the price of competitor’s product.

Premium Pricing – Price is set above the price charged by the competitors for similar product.

Tender / Sealed bid pricing – A contract or tender for the production of the product is floated in the market and many parties submit their proposals. The party with the lowest bid or quote gets the tender and the quoted amount is the price.  

(4) Other methods

Differentiated pricing – Different prices are charged from different customers on the basis of –

• Customer segments
• Time
• Location/Area
• Product Quantity
• Product attributes

Affordability / Social welfare – In case of essential commodities, prices are set in such a way that all sections of people in the society can afford it. Price may also be below the cost of product due to subsidies provided by the government.

Pricing strategies

Product line pricing – Prices are set on the basis of well-established price points of other products in the product line.

Optional Pricing – A base price is set for the basic product and prices are set for optional features, services along with the main product.

Bundle pricing – Sellers offer a bundle or package of different products or services for a lower price than they would charge if the customer bought all of them separately.

Penetration Pricing – The seller tries to penetrate the market with a low price and increases the price subsequently with increase in demand.

Skimming Pricing – The seller tries to skim the profit from the market by charging a high price in the initial stages and lowers the price in the long run.

Value based pricing – Seller sets the prices according to the value perceived by the customer of the product/service.

Loss leader Pricing – Prices are set very low, sometimes below cost to encourage sales of other products or a retail outlet.

Captive pricing – A special price is offered to loyal customers.

Psychological pricing – Prices are set according to emotional appeals that influence buying decisions. E.g. Prestige pricing, Odd/even pricing, Bata pricing, Leader pricing

Promotional pricing – Prices are set below MRP to stimulate purchases and increase awareness. It includes – Pricing for Special events, Low Interest Financing, Cash rebates, Warranties & Discounts

Discount Pricing – It involves reduction of price from MRP for performing certain activities. It includes cash discounts, quantity discounts and seasonal discounts.

Discriminatory Pricing – Seller sells a product at two or more prices based on Customer segments, Location, Time and availability of product, Product or brand image.

Going Rate Pricing – Price is set on the basis of prevailing market rate.

EDLP (Every Day Low Prices) – Retail stores offer low prices to customers every day in comparison with competitors to promote sales and increase footfall without any special occasion, event or discount.

Importance of Pricing

• It is an effective tool for product differentiation & sales volume
• It helps to deal with market competition, inter-firm rivalry, inflation in the economy etc.
• It acts as a tool to measure and compare products easily and qualitatively.
• It governs the type and quality of customers.
• It affects –
  • The marketing programme
  • Alteration of resources
  • Consumer’s perception of product
• It regulates –
  • Promotional activities
  • Extent of advertising
  • New product development
  • Improvement of product in terms of Quality, Sales volume / Revenue

The post Marketing Mix – Price/Pricing – Methods, Strategies, Importance appeared first on BBA|mantra.

According to Philip Kotler, “Market Research is the systematic design, collection, Analysis, and reporting of data relevant to a specific marketing situation an organization is facing”

Market Research involves systematic problem analysis, model building and fact finding for the purpose of improved decision making and control in the marketing of goods and services.

Objectives of Market Research

• Discovering new markets for products
• Increasing the market share for existing products
• Forecasting the future demand for products
• Analysing the tastes and preferences of consumers
• Reducing the cost of marketing activities
• Improving the quality of products
• Formulating effective marketing policies
• Determining competitors strategy
• Studying the internal and external marketing environment

Types of Market Research

• Market / Customer Research
• Product, Price, Promotion Research
• Channel Research
• Sales Research
• Advertising Research
• Policy Research

Information collected through Market Research

• Total size of current market
• Total size of potential market
• Growth rate
• Consumer demographics
• Consumer taste & preferences
• Consumer satisfaction
• Consumer expectations
• Consumer buying behaviour
• Price sensitivity analysis
• Internal and external marketing environment
• SWOT of the firm and its competitors
• Market Demand

Professional academic writers from SmartWritingService a research paper writing service can write an academic project in marketing for you.

Developing Information for Market Research / Techniques of Market Research

Market Research involves collection of primary and secondary data through various methods of data collection. They are:

Primary Data

• Surveys
• Questionnaire
• Interviews
• Observation
• Experiments
• Schedules

Secondary Data

• Government publications
• Trade journals
• Internal records
• Yearly reports of banks and businesses
• Public records
• National 5 year plans
• Historical documents
• Unpublished documentaries, biographies, letters, diaries etc.

Other methods of Data collection

• Warranty cards
• Store audits
• Pantry audits
• Consumer Panels
• Mechanical devices
• Content analysis
• Quiz, test, assignments
• In-depth interviews
• Projective techniques – Word association test, Sentence completion test, Story completion test, Verbal projection test, Pictorial techniques

Process of Market Research

(1) Identification and definition of Research Problem – It involves –

• Identification of Research problem
• Laying down objectives of the study, and
• Determining the extent of information required.

(2) Conducting situational analysis and informal investigation – Situational Analysis involves collecting information regarding business environment, market situation, competitions and industry surrounding the problem in general. An informal investigation includes an investigation with the people outside the organisation like suppliers, wholesalers, consumers, advertising agencies etc.  This is done to determine whether a detailed study in necessary and feasible or not.

(3) Planning and conducting formal investigation – It involves the following –

• Preparing a research design – exploratory, descriptive, casual
• Selecting the sources of information – Primary source or Secondary source
• Deciding methods of data collection – Survey, Observation, Experimentation etc.
• Planning the Sample Frames, Sample size and Questionnaire
• Collecting the data – Survey, Observation or Experimentation

(4) Analysing and Interpreting data – It involves classification, tabulation and interpretation of the data collected. Statistical techniques are used to draw conclusions and make recommendations. Efforts are made to generalize all the findings.

(5) Summarizing the findings and preparing a research report – The last step involves preparation of a written report that helps the management to make effective decisions based on the finding and recommendations of the report.

Guidelines for effective report –

• There must be objectivity and clarity in presentation of data
• It must be concise and precise
• Charts and illustrations must be only used if necessary
• The layout of the report must be – Preliminary pages, Main Body and End Matter
• It must contain the following:
  • Title of Report
  • Date, Acknowledgement and Foreword
  • Table of Contents
  • Objectives of Study
  • Introduction
  • Summary of Findings
  • Main Report/Body
  • Suggestions and Recommendations
  • Conclusion, Appendices, Bibliography

Importance of Marketing Research

• It helps in formulation of marketing plans, policies and strategy
• It helps in Problem solving and Decision making
• It acts as a controlling technique for marketing activities
• It helps to understand market complications and opportunities
• It aids in understanding consumer behaviour and consumption patterns

The post Market Research – Objectives, Types, Process, Techniques, Importance appeared first on BBA|mantra.

According to Phillip Kotler – “It is a bundle of physical services and symbolic particulars expected to yield satisfactions or benefits to the buyer.”

Products are central to the marketing efforts of any business. Products are the building blocks of a marketing plan. According to Stanton, “It is a set of tangible and intangible attributes, including, packaging, colour, and retailer`s services which a buyer may accept as offering for satisfaction of needs or wants.”

Characteristics of a Product

• It may be tangible or intangible
• It consists of associated attributes such as brand, package, warranty etc.
• It has an exchange value
• It has the ability to satisfy consumer needs and wants

Classification of Products 

On the basis of Tangibility

• Tangible Products
• Intangible Products

On the basis of Durability 

• Durable Products 
• Non-Durable Products

On the basis of User

• Consumer Goods
• Industrial Goods 

Types of Products

On the basis of Nature

• Goods – Tangible and physical materials
• Services – Intangible benefits
• Ideas
• Experience
• Event
• Persons
• Place
• Property – Intangible right of ownership
• Information

On the basis of Consumer

• Consumer Products – Products bought by final consumers for personal consumption. They can be further classified into:
  • Convenience Products – Goods which a consumer buys frequently and that require minimum customer effort or thought eg. Toothpaste
  • Shopping Products – Goods that a consumer buys after careful selection from different alternatives.  Customers invest their time and effort to compare quality, price, style etc. of such products.
  • Specialty Products – Goods having unique characteristics and/or brand identification for which a significant group of buyers are willing to make an extra purchasing effort.
  • Unsought Products – Products about which potential buyers are unaware or do not wish to purchase.
• Industrial Products – Products bought by organisations for resale or further processing and value addition to make a final product.  They are sold primarily for producing other products. They consists of –
  • Raw materials
  • Capital Equipment
  • Components
  • Machinery & Equipment
  • Supplies
  • Industrial services

On the basis of Social Benefits

• Pleasing products – Products which give high immediate satisfaction but harm the consumer in the long run e.g. Cigarette
• Deficient Product – Out-dated products
• Salutary Products – Products that provide benefits in the long run but no immediate satisfaction.
• Desirable Products – Products that provide high immediate satisfaction and consumer welfare in the long run.

Levels of Product

A marketer has to plan products and its attributes according to different levels of the product. This must be done in such a way that it adds more value to the product and makes the offering more attractive to the customer.

These 5 levels of product are:-

• Core benefit – The fundamental service or benefit that the customer is actually buying.
• Basic Product – The benefit or attribute that the customer is buying that is derived from core benefit.
• Expected product – Set of attributes or benefits a customer already expects (normal features)
• Augmented Product – Set of attributes that exceeds customer expectations ( unique additional features)
• Potential Product – Possible augmentation or transformation the product might undergo in the future.

Decisions to be taken while making a strategy for products

• Product Line – A group of closely related products that are sold to same customer groups and marketed through same distribution channels
• Product Mix – Set of all product lines and items that a particular seller offers for sale to buyers
• Product length – Number of items in each product line
• Product Depth – Number of variants offered in each item of a product line
• Consistency – Relation between various product lines
• Branding – Symbolic and visual elements
• Packaging and Labeling 

Elements of Product Planning

Planning for products involves:

• Eliminating unprofitable and deficient products from the product line
• Developing plans for existing profitable products with respect to changing marketing environment
• Improving existing products to meet the changing market requirements
• Introducing new products on the basis of changing consumer demands

Factors influencing Product Mix

• Market Demand
• Competitors Strategy
• Cost and Quantity of Production 
• Use of Residuals
• Goodwill of the Company
• Changing Consumer Behaviour
• Purchasing power of Customers
• Advertising and Distribution Factors

The post Marketing Mix – Product – Characteristics, Types, Levels, Decisions appeared first on BBA|mantra.

According to Philip Kotler – “Market Positioning is the act of designing the company’s offerings and image to occupy a distinctive place in the target market’s mind.”

According to William Stanton – “Positioning means developing the image that a product projects in relation to competitive products and to firm`s other products.”

Market positioning helps to simplify the buying decision of a customer by creating a complex set of perceptions, impressions and feelings about a product compared with competing products. The main questions that a marketer has to answer in order to formulate an effective market positioning strategy are –

• Who am I? — Individual, Business, Organization
• For whom am I? — Target Market
• What am I? — Product, Service, Event, Experience etc.
• Why me? — Product and Brand Attributes that influence customers

The main objective of Market Positioning is to create a favourable perception of a product or brand in the minds of the target segment. It involves positioning a brand or product in such a way that –

• It appears attractive to the customer
• It differentiates itself from what competitors are offering
• It has a positive image in the minds of the consumer
• It links the product offer with the target market
• It provides competitive edge

Process of Market Positioning

Identify a set of competitive advantages to differentiate the product from competitor`s product – A product can be differentiated on the basis of its design, performance, consistency, durability, reliability, superior quality, affordable price, easy availability, superior after sale service, innovative technology etc.

Select the most appropriate set of competitive advantages to formulate a positioning strategy – It involves selection of the number and type of advantages that must be promoted to create a unique selling proposition. It may be best quality, best price, best service etc. Efforts are made to differentiate the product from its competitors.

Effectively communicating the desired position to the target market – It involves adjustment in the marketing mix of the company to communicate the desired position to a target segment and implementation of the positioning strategy through various advertising and promotional measures.

Monitoring and reviewing the Market Position – This step involves monitoring of the market position from time to time and matching it with consumer demands and competitors strategies. Efforts are made to maintain or enhance the desired position through consistent performance and active communication.

Market Positioning Strategies

Market Positioning involves selection of an appropriate marketing mix for each target market segment. The following variables are studied to form a market positioning strategy –

• What image the company wants to project to its customer?
• The pricing strategy of the company
• The type of product and utility of product
• Product life cycle
• How competitors project themselves?
• Brand attributes
• Consumer expectations from the product/service/brand/business
• Consumer perception – the perceived quality and value of brand

Positioning strategies involve differentiating a product from its competitors in terms of:

• Product Attributes
• Price or Quality
• Application/Use
• Users
• Product class

Re-positioning – It refers to the process of changing brand identity and product identity in the minds of the target market. It involves creation of fresh positioning strategies for an existing brand or product:

• To position the brand or product differently
• To change consumer`s perception about the brand or product
• To introduce new innovation adopted by the company which differentiates them from their competitors

Branding – It refers to the process involved in creating a unique name and image for a product in the consumer’s mind through symbolic means and visual elements. It aims to –

• Establish significant and differentiated presence, and
• Create an emotional association with the product

It is essentially the process of building, maintaining and enhancing the image of a product or company through an attractive name, logo, images, fonts, colours, people etc. (symbolic and visual elements)

The post STP Approach – Market Positioning – Process, Strategies appeared first on BBA|mantra.

Basis for Market Targeting

Factor to be considered while identifying and evaluating a target market segment include –

• Segment size and growth potential
• Company’s objectives and resources – 
  • Resource capability of the firm
  • Cost advantage, if any
  • Technological edge
  • Managerial capabilities
• Market attractiveness –
  • Entry & Exit Barriers
  • Nature of competition
  • Social & political environmental
  • Environment & legal factors

Market Targeting Strategies

Market Targeting Strategies can be divided into two types – 

• Limited coverage market targeting
• Full coverage market targeting

Limited coverage market targeting – When only one or few segments are selected as target market.  This strategy is useful for small firms with limited resources or firms introducing a new product.  It can take the following forms –

• Single segment concentration – Only one single segment is selected and is served with expertise.
• Selective Specialization – It is a multi-segment strategy in which a firm selects a number of segments which seem attractive and appropriate.
• Product specialization – The firm specializes in making a certain product for different customer groups.
• Market specialization – The firm concentrates on serving many needs of a particular segment.

Full coverage market targeting – Under this market targeting strategy, a firm attempts to serve all customer groups with all the products they might need. This strategy is usually used by large firms.  It may take the following forms –

• Undifferentiated marketing – This strategy involves standardization of a product. The firm offers the same product with same marketing strategies to all market segments.  It focuses on basic needs of the buyer rather than difference among different buyers. The product and marketing mix strategies are designed in a way that will appeal to the whole market. This strategy is also known as mass marketing as the organisation treats the whole market as a single segment.  Under this a business develops –
  • A single product
  • One pricing structure
  • One distribution system for mass audience E.g. coke, pepsi

• Differentiated Marketing – Under this strategy a firm targets several market segments and designs different marketing strategies for each segment. This strategy is also known as selective marketing. Here a firm differentiates its products according to the needs and expectations of different customer groups. The company attempts to appeal to different defined market segments with a specific product and unique marketing strategy tailored to suit each segment. E.g. Airlines, GM Motors

• Concentrated Marketing – It is also known as Focus marketing. It involves finding a niche market of consumers that has not been captured yet and developing goods and services for that market to appeal a large segment of consumers by offering a product/service that the competition does not. The firm goes after a large share of one or few sub markets thereby enjoying economies of scale as well as high market penetration and higher market share.

The post STP Approach – Market Targeting – Basis, Strategies appeared first on BBA|mantra.

Marketing Mix refers to the set of controllable factors that a firm can use to influence the buyer’s response within a given marketing environment. It is used to describe the combination of four inputs (product, price, place, promotion) which constitute the core of a company’s marketing system.

Marketing Mix is the combination of different marketing decision variables used by a firm to market its goods and services. These four marketing mix elements form the core of all marketing efforts.

Elements of Marketing Mix

Product – A product is anything that satisfies a consumer need. It may be a good, service, event, experience etc. The first step in marketing is to identify and develop a product that consumers`s demand. It involves decisions regarding:

• Physical Product
• Product mix
• Product variables
• Product Quality
• Branding
• Packaging etc.

Price – Price is the amount of money that a buyer has to pay in order to own a product. A marketer makes price alterations in order to attract the customers through discounts, allowances, coupons etc. The element of price is concerned with determining:

• Level of prices (low, high)
• Range of prices
• Price–Quality relationship
• Competitors pricing
• Government control over prices
• Psychological effect of pricing

Place – It is concerned with the delivery of a product from the place of production to the final consumer. A producer may sell a product directly or through intermediaries. It involves decisions regarding:

• Channel levels – Manufacturer to Wholesaler to Retailer to Consumer and creation of:
  • Time utility – Product must be available when needed
  • Place utility – Locate products where they can be easily acquired.
  • Possession – Minimize the number of obstacles between the manufacturer and consumer.
• Inventory management and control
• Physical distribution of goods
• Order processing and Transportation

Promotion – Promotion refers to communication of information about a product and its features to potential customers through various forms of media.  It is the process of educating customers through various forms of media about

• Product Quality
• Product Utility
• Product Price

It involves selection of a combination of tools of promotion like advertising, sales promotion, personal selling, publicity and public relations to persuade potential customers to buy a product or service.

Factors affecting Marketing Mix

Market related factors –

• Distribution system
• Consumer behaviour
• Government policies
• Nature of competition

Product related factors –

• Marketing research
• Product planning
• Sales promotion
• Branding
• Channel of distribution
• Advertising
• Personal selling

The post Marketing Mix – 4P`s – Elements, Factors appeared first on BBA|mantra.