Mixiplicity: The 4P’s of Your Marketing

MixMatthew A. Gilbert, MBA

matthewagilbert.com | @MatthewAGilbert

May 2014

Matt

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Welcome• Learning Objectives.

• Product

• Price

• Place

• Promotion

• The “5th P”

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This Presentation Was Adapted In Part from Principles of Marketing (14th Edition) by Philip Kotler and Gary Armstrong

Product

• Product: Anything offered in a market for attention,

acquisition, use, or consumption to satisfy a need or

want.

• Good: A durable or non-durable object that can be

physically used by the consumer immediately after its

purchase.

• Service: Activities, benefits or satisfaction that is

intangible and does not result in the ownership of

anything.

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Product

• Consumer Product Types

• Convenience products

• Newspapers, Candy, Fast food

• Shopping products

• Furniture, Cars, Appliances

• Specialty products

• Medical services, Designer clothes, High-end electronics

• Unsought products

• Life insurance, Funeral services, Blood donations 4

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Product

• Industrial Product Types

• Capital items

• Industrial products that aid in the buyer’s production or

operations

• Materials and parts

• Raw materials, manufactured materials and parts

• Usually sold directly to industrial users

• Supplies and services

• Operating supplies, repair and maintenance items, business

services

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Product

• Experiences: Represent what buying the product or

service will do for the customer.

• Word of Mouth Marketing: Passing along of

experiences and information about a product from one

consumer to another.

• Buyer’s Remorse: A sense of regret after making a

purchase.

• Social Media: Empowering the customer; increases

quality.6

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Product• Individual Product and Service Decisions

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Product• GoGurt

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BUSAD X411.1: Marketing Mix -- Product (GoGurt): http://youtu.be/rw9mro2vOpg

Price• Price: The sum of all the values consumers give up in

order to gain the benefits of having or using a product

or service.

• Price is the only element in the marketing mix that

produces revenue; all other elements represent costs.

• Before setting prices, the marketer must understand the

relationship between price and demand for its products

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Price• Elasticity of Demand: Response to a change in price.

• Inelastic demand occurs when demand hardly changes

when there is a small change in price

• Elastic demand occurs when demand changes greatly for

a small change in price

Price elasticity of demand =

% change in quantity demand

% change in price

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Price

• New-Product Pricing Strategies

• Market-skimming pricing

• Market- penetration pricing

• Product Mix Pricing Strategies

• Product line pricing

• Optional-product pricing

• Captive-product pricing

• Product bundle pricing 11

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Price

• Price Adjustment Strategies

• Discount and allowance pricing

• Segmented pricing

• Psychological pricing

• Reference prices

• Promotional pricing

• Geographical pricing 12

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Price• Smashburger

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BUSAD X411.1: Marketing Mix -- Pricing (Smashburger): http://youtu.be/xwjjEHlzSgk

Worksheet

• Product and Price

• Complete individually

(5 minutes)

• Discuss as a class

(5 minutes)

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Place

• Place: The distribution channels through which a product

or service is made available to consumers to purchase.

• Supply Chain Management: The process of managing

upstream and downstream value-added flows of materials, final

goods, and related information among suppliers, the company,

resellers, and final consumers.

• Impact of the Internet: The Internet is a distribution channel;

consider its impact on the music industry as a means of music

distribution (e.g. no more – or very few -- physical music stores).15

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Place

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• Number of Channel Levels

Place

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• Multichannel Distribution System

Place• Stew Leonard’s

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BUSAD X411.1: Marketing Mix -- Place (Stew Leonard's): http://youtu.be/YLTi0wfPJJQ

Promotion

• Promotion: The specific blend of advertising, public

relations, personal selling, and direct-marketing tools

that the company uses to persuasively communicate

customer value and build customer relationships.

• Advertising: Any paid form of non-personal presentation

and promotion. Reaches masses of geographically

dispersed buyers at a low cost per exposure, and it

enables the seller to repeat a message many times 19

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Promotion

• Direct Marketing: Making direct connections with

carefully targeted consumers through the use of direct

mail, telephone, direct-response television, e-mail, and

the Internet.

• Personal Selling: Personal presentation by the firm’s

sales force to prospective customers. Good for building

buyers’ preferences, convictions, actions, and developing

customer relationships.

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Promotion

• Integrated marketing communications:

Integration of a company’s channels to deliver a clear,

consistent, and compelling message about the

organization and its brands.

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Break• 15 minutes

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Promotion

• Public Relations: Building good relations with the

company’s various publics.

• Sales Promotion: A short-term incentive to

encourage a purchase or sale.

• Social Media: Reach customers and track results in

real time; empowering marketers and consumers alike. 23

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Promotion• Nestlė

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BUSAD X411.1: Marketing Mix -- Promotion (Nestle): http://youtu.be/YjUrP05tRp0

Worksheet

• Place and Promotion

• Complete individually

(5 minutes)

• Discuss as a class

(5 minutes)

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The 5th P• Brian Solis: People are the

5th P.

• “If we visit the traditional

4P’s of marketing…the key

ingredient of favorable

engagement and business

outcomes is the very thing

that’s been missing all

along, People – you, me and

the individuals who invest in

products and sometimes the

brands behind them.” 26

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Source: http://www.briansolis.com/2011/10/we-are-the-5th-p-people/

Global Marketing Quiz

• 20 minutes to take

in small groups.

• 10 minutes to grade

another group’s

answer sheet.

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Class Evaluations

• Complete the class evaluations.

• A Hero (Volunteer) shall rise!

• Your input is essential.

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Parting Words

• “The aim of marketing is to know and understand the

customer so well the product or service fits him and

sells itself.” -- Peter Drucker

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Matt

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