The marketing mix

The value delivering task

• Marketing a process of creating & delivering value
• Marketers delivers value thro market offers
• Mechanism of delivering value is established
• Tasks:
– Marketers create products and satisfied the stated needs
– Carries out functions of transportation to reach consumer
– communicates the benefits of the offer
• promotional activites
• personal selling
• advertising
• sales promotion
– tackling price mechanism accepted by the consumer
 The 4 P’s of marketing
• product • James Culliton,
• price marketing expert,
• place coined the marketing
mix term
• promotion
• said, “ the dynamics
constitute the sole of marketing process
vehicles for creating & and the versatility of
delivering the the marketing mix tool
customer value can not be described
any better ”
• Neil Borden • says, assembling and
popularized the managing marketing
concept of marketing mix is the crux of the
mix marketing task
• Jerome McCarthy, • the mkt manager
American professor achieve the marketing
used 4P’s of objectives thro
marketing marketing mix
 elements of marketing mix
• product: • place
– product design
– features – channel of distribution
– brand name • channel design
– models • type of intermediaries
– styles • location of outlet
– appearance • channel remuneration
– product quality • dealer-principal relations,
– warranty • etc
– package:
• design type – physical distribution:
• material • transportation
• size • warehousing
• appearance and labeling
– service: • inventory level
• pre sale and post sale • order processing
• service standards • \etc
• service charges
 elements of marketing mix
• price: • promotion:
– pricing policies – personal selling:
– margins • selling expertise
– • size of sales force
discounts and rebates
• quality of sales force
– terms of delivery
– advertising:
– payment terms • media mix
– credit terms • vehicles
– installment purchase • programmes
facilities – sales promotion
– resale price – publicity and public
maintenance relations
 environmental variables of
marketing
• besides marketing mix variables, manager
tackles another set of variable outside firm
• variable outside control of the firm:
– set of competition
– the set of consumers
– the government
– natural forces
– called environmental variables
 LIFEBOUY’S MARKETING MIX-1
PRICE PER 100 GM SALES ALLOCATION TO MARKETING MIX ELEMENT
PACK QUANTITY (Rs CRORES)
(MT) / PA Product place/ distribution promotion total
Rs 8.50 1,50,000 600 270 50 920

note:
• Allocation to product includes material cost, conversion cost, packaging
cost etc
• allocation to distribution includes margin to channels, transportation cost,
warehousing cost etc
• allocation to promotion includes cost of advertising, sales promotion,
publicity
• annual sales revenue of HLL is Rs.1275 crores
• suppose, HLL incurs total expenditure of Rs. 1070 cr to achieve above revenue
• Rs. 150 crs goes to fix cost
• i.e. HLL INCURES EXPENDITURE OF 920 Crs
 LIFEBOUY’S MARKETING MIX-2
PRICE PER SALES ALLOCATION TO MARKETING MIX ELEMENT
100 GM PACK QUANTITY (Rs CRORES)
(MT) / PA Product place/ distribution promotion total
Rs 8.50 1,50,000 580 260 80 920

PRICE PER SALES ALLOCATION TO MARKETING MIX ELEMENT

100 GM PACK QUANTITY (Rs CRORES)
(MT) / PA Product place/ distribution promotion total
Rs 9.00 1,50,000 620 260 90 970

PRICE PER SALES ALLOCATION TO MARKETING MIX ELEMENT

100 GM QUANTITY (Rs CRORES)
PACK (MT) / PA Product place/ distribution promotion total

Rs 9.250 1,50,000 660 300 100 1060