Marketing Management — Marketing Mix (4Ps)
What is Marketing Mix?
Set of controllable marketing tools a firm uses to produce desired response in target market.
Philip Kotler's concept — 4Ps framework.
Product
Anything offered to market to satisfy a need or want.
Product Levels
1. Core Product — Basic benefit (e.g., drill = need holes)
2. Actual Product — Brand, features, design, packaging
3. Augmented Product — After-sales service, warranty, delivery
Product Life Cycle (PLC)
``
Sales
↑ /‾‾‾‾‾‾ | / Maturity | / Growth \Decline
| /Introduction |/_________________\→ Time
``
• Introduction: High cost, low sales, create awareness
• Growth: Increasing sales, profit rises, competitors enter
• Maturity: Peak sales, heavy competition, price cuts
• Decline: Falling sales, phase out or revive
BCG Matrix
| | High Market Share | Low Market Share |
|------------|-----------------|-----------------|
| High Growth | Stars ⭐ | Question Marks ? |
| Low Growth | Cash Cows 🐄 | Dogs 🐕 |
Price
Amount customer pays for the product.
Pricing Strategies
1. Cost-based: Price = Cost + Markup
2. Competition-based: Match/beat competitor prices
3. Value-based: Price what customer perceives as value
4. Penetration pricing: Low price to gain market share
5. Skimming: High initial price, reduce later (new tech)
6. Psychological: ₹999 instead of ₹1000
Place (Distribution)
How product reaches the customer.
Distribution Channels:
• Direct: Manufacturer → Consumer
• Indirect: Manufacturer → Wholesaler → Retailer → Consumer
• Online: E-commerce, D2C brands
Channel levels:
• Zero level (direct): Dell, Amazon
• One level: Manufacturer → Retailer → Consumer
• Two level: Most FMCG products
Promotion
Communication to inform/persuade customers.
Promotion Mix:
1. Advertising — Mass media, paid
2. Sales Promotion — Discounts, coupons, contests
3. Personal Selling — Direct interaction
4. Public Relations — Free publicity
5. Direct Marketing — Email, SMS, social media
Extended Marketing Mix (7Ps for Services)
Adding 3 more Ps:
• People — Service staff quality
• Process — Service delivery method
• Physical Evidence — Tangible aspects (decor, uniforms)
SWOT Analysis
| | Helpful | Harmful |
|--|---------|---------|
| Internal | Strengths | Weaknesses |
| External | Opportunities | Threats |
PYQ
Q: Explain 4Ps of marketing with example of any product of your choice.
Q: Describe PLC stages and marketing strategies at each stage.
Q: What is BCG matrix? Classify products using BCG matrix.