Importance of Marketing Mix in the Development of Marketing Strategy by Teacher Lumaban
Summary
TLDRIn this educational video, Teacher Lumabun delves into the critical role of the marketing mix in crafting effective marketing strategies. She explains the traditional 'Four Ps'—Product, Price, Place, and Promotion—as well as the extended 'Seven Ps', which include People, Process, and Physical Evidence, emphasizing their significance in meeting customer needs and differentiating from competitors. The video also touches on the 'Four Cs' model, introduced by Robert F. Lauterborn, which shifts the focus to Customer, Cost, Convenience, and Communication. These frameworks guide entrepreneurs in aligning their marketing efforts with consumer expectations, ultimately driving sales, profitability, and brand recognition.
Takeaways
- 🔑 The marketing mix is a set of actions an entrepreneur takes to market a product effectively, ensuring the right product is offered at the right time, place, and price.
- 📈 Marketing is critical for an entrepreneur's success, helping to grow the business and reach a larger audience by persuading customers to choose their products over competitors'.
- 🎯 The marketing mix is a combination of various approaches that should reflect the reality of business operations and the entrepreneur's goals for the product line.
- 🛠️ The importance of the marketing mix includes clean mix creation, support for new product development, strengthening the product portfolio, guiding business enhancement, differentiation, and adaptability.
- 🌟 A clean marketing mix involves all elements being well-suited and interrelated, such as price matching placement, and products aligning with promotions.
- 💡 The marketing mix supports new product development by inspiring ideas for related products through the refinement of pricing, placement, and promotions.
- 📚 Altering the marketing mix can lead to an enlarged product portfolio, as it involves making changes to product features, pricing, and promotions.
- 👥 The marketing mix highlights the importance of people and processes within an organization, as optimizing these can improve the overall functioning of the business.
- 🔄 The marketing mix framework, historically known as the four Ps (Product, Price, Place, Promotion), has evolved to include seven Ps with the addition of Process, People, and Physical Evidence, especially for service marketing.
- 📈 The four S's of marketing (Solutions, Savings, Simplicity, Satisfaction) offer a customer-centric alternative to the four Ps, focusing on consumer wants, needs, and the overall cost and convenience of a product or service.
Q & A
What is the marketing mix and why is it important in developing a marketing strategy?
-The marketing mix is a set of actions an entrepreneur takes to build and market their product to customers, ensuring the right product is offered at the right time, place, and price. It's important because it helps entrepreneurs reach a larger audience and persuade customers to choose their products over competitors'.
What does the old saying about marketing imply about the marketing mix?
-The old saying implies that the marketing mix is about getting the right product in front of the right people at the right time and for the right price, which is crucial for an entrepreneur's success.
How does the marketing mix support new product development?
-The marketing mix supports new product development by providing a framework for entrepreneurs to refine ideas for related products. Pricing, placement, and promotions might be distinctive for such products, leading to good ideas for new product development.
How does the marketing mix help in strengthening a product portfolio?
-The marketing mix helps in strengthening a product portfolio by allowing for minor changes to the product features, pricing, and promotions, which can result in an enlarged product line and depth.
What is the significance of physical evidence in the marketing mix?
-Physical evidence is significant in the marketing mix as it can improve the perception of a business, especially in service industries like restaurants or interior design, by enhancing the tangible aspects of the service provided.
How does the marketing mix guide businesses to enhance their operations?
-The marketing mix guides businesses to enhance their operations by optimizing people and processes, which are essential factors in the organization, thus improving the overall working of the business.
What is the role of differentiation in the marketing mix?
-Differentiation in the marketing mix plays a role by helping businesses analyze their competitors' marketing mix to identify weaknesses and create better campaigns, leading to a competitive advantage in the market.
How does a dynamic marketing mix help a business during challenging times?
-A dynamic marketing mix helps a business during challenging times by allowing the company to respond with agility, understanding its product, processes, people, promotions, and other factors to adapt quickly to changes in the business environment.
What are the four Ps of the marketing mix and what do they represent?
-The four Ps of the marketing mix are Product, Price, Place, and Promotion. They represent the controllable marketing variables that firms use to pursue the sought level of sales in the target market.
What is the origin of the four Ps model and who is credited with popularizing it?
-The four Ps model originated in the late 1940s and was first proposed in 1960 by E. Jerome McCarthy. It was popularized by Philip Kotler and has been widely adopted by marketing academics and practitioners.
How does the four S's model of marketing differ from the traditional four Ps model?
-The four S's model, created by Robert F. Lauterborn, focuses on Customer, Cost, Convenience, and Communication, emphasizing a customer-centric approach rather than the product-oriented four Ps model. It adapts the elements to consider the customer's perspective more holistically.
Outlines
📈 Introduction to the Marketing Mix
Teacher Lumabun introduces the concept of the marketing mix, emphasizing its importance in developing a marketing strategy. The marketing mix encompasses a set of actions taken by entrepreneurs to market their products effectively, ensuring the right product is offered at the right time, place, and price. The paragraph discusses the significance of the marketing mix in business, including its role in creating a clean mix, supporting new product development, strengthening the product portfolio, guiding business enhancement, aiding differentiation, and maintaining dynamism.
🔍 The Evolution and Components of the Marketing Mix
This section delves into the history and evolution of the marketing mix, tracing its origins to the late 1940s with Professor James Culliton. It discusses the four Ps (Product, Price, Place, Promotion) as the foundational elements, and how the concept was popularized by Professor Neil Borden. The paragraph also covers the extension of the marketing mix to include the seven Ps, with the addition of Process, People, and Physical Evidence, particularly relevant for service marketing. The eight Ps model, which includes Performance, is also mentioned.
🛠️ The Practical Application of the Marketing Mix
The paragraph discusses the practical application of the marketing mix, detailing the four Ps: Product, Place, Price, and Promotion. Each 'P' is explained in terms of how it should align with customer expectations and business objectives. The extended model, including People, Processes, and Physical Evidence, is also described, highlighting their importance in service industries. The concept of the eighth 'P' for Performance and Quality is introduced, emphasizing customer fulfillment and execution of business offerings.
🌟 The Four C's: A Customer-Centric Approach
Introducing the Four C's model by Robert F. Lauterborn as a customer-centric alternative to the Four Ps, this paragraph focuses on Consumer Wants and Needs, Cost, Convenience, and Communication. It underscores the importance of understanding and addressing customer demands, the total cost beyond just price, the ease of access to products, and the cooperative dialogue between the customer and the business. The paragraph contrasts the Four Ps with the Four C's, highlighting the shift from a product-oriented to a customer-oriented marketing approach.
🔄 The Interplay of Marketing Mix Elements in Strategy
The final paragraph reinforces the importance of the marketing mix in formulating and implementing marketing strategies. It discusses how the marketing mix, including both the traditional Four Ps and the extended models, interacts with other marketing decisions such as positioning, targeting, and segmentation. The paragraph concludes by emphasizing the marketing mix's role in achieving sales, profitability, customer satisfaction, and brand recognition, inviting viewers to engage with the content through likes and shares, and to look forward to future videos.
Mindmap
Keywords
💡Marketing Mix
💡Product
💡Price
💡Place
💡Promotion
💡New Product Development
💡Competitive Advantage
💡Customer-centric
💡Segmentation
💡Positioning
💡Dynamic Marketing
Highlights
The marketing mix is essential for an entrepreneur's success in reaching a larger audience with their products.
The marketing mix includes tools and strategies to get products to customers who can obtain them.
Marketing is critical for persuading customers to choose a business's products over competitors'.
The marketing mix should have all elements well suited with each other for a clean mix creation.
The marketing mix supports new product development by refining ideas related to the existing product.
Altering the marketing mix can lead to an enlarged product portfolio by making minor changes to the product features.
Physical evidence is necessary for the marketing mix, especially for businesses like restaurants or interior design.
The marketing mix is a guide for enhancing a business by optimizing people and processes.
Analyzing the competitor's marketing mix can reveal ways to differentiate and gain a competitive advantage.
A well-planned entrepreneur is prepared to respond dynamically during challenging times like recessions.
The marketing mix, also known as the four Ps, includes product, price, place, and promotion.
The origins of the four Ps can be traced back to the late 1940s with contributions from marketing professors.
The four Ps model was popularized by Philip Kotler and has been widely adopted by marketing academics and practitioners.
The extended marketing mix includes seven Ps, with the addition of process, people, and physical evidence, making it more applicable for services marketing.
The four Ss of marketing, created by Robert F. Lauterborn, is a customer-centric alternative to the four Ps.
The four Ss focus on consumer wants, needs, cost, convenience, and communication, shifting the focus from the product to the customer.
The marketing mix is crucial for creating a plan that increases sales, profitability, customer satisfaction, and brand recognition.
Transcripts
[Music]
a blessed day everyone
it's me again teacher lumabun
and if you are new in my channel
don't forget to subscribe and hit the
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to be updated in my videos
this time we will discuss the importance
of the marketing mix in the development
of marketing strategy
i can do all things through christ who
strengthens me
the marketing mix is a set of actions an
entrepreneur takes to build and market
its product to its customers
it helps to make sure that you can offer
your customers the right product at the
right time and the right place for the
right price
an old saying describes marketing as the
process of getting the right product in
front of the right people at the right
time and for the right price
the marketing mix refers to the number
of tools and strategies an entrepreneur
will use to get its products to
customers who are capable of obtaining
them
marketing is critical to the
entrepreneur's success
if an entrepreneur wants to grow and
reach a larger audience with its
products
it needs to take a different action to
help that audience find it
the entrepreneurs also require
persuading prospective customers to
choose
their products instead of those offered
by their competitors
marketing is the result of the tactics
and strategies an entrepreneur uses to
accomplish those goals
the entrepreneur is responsible for the
combination of the various approaches
into its marketing plan
these approaches should display the
reality of business operations as well
as the entrepreneur's goals for that
product line
importance of marketing mix there are
many benefits of the marketing mix that
make it significant in the business
the first importance of marketing mixes
it benefits in a clean mix creation
the next importance is it supports in
new product development
the third marketing mix importance is
it helps strengthen the product
portfolio
the marketing makes fourth importance is
it is a guide to enhance a business the
fifth
importance of marketing mixes it helps
in differentiation
finally the last importance of marketing
mixes
it helps in being dynamic
it benefits in a clean mix creation
the marketing mix should have all the
peas well suited with each other
the price should be compatible with the
placement of the product
then the products should be matching
with the promotions
in general all the p's must be
interrelated to each other
as a result when making a marketing mix
it becomes a chain of strong connections
and these connections then guide you
forward in making the chain longer
whenever considering adding a new
feature or changing existing things
it must have to look at the overall
design which helps in generating a clean
marketing mix for the product
it supports in new product development
while designing an existing product
there are several numbers of ideas that
can come up for a related product that
can be refined by the entrepreneur
the pricing place and promotions might
be distinctive for such a product
nevertheless it is typically a new
product
and therefore while refining the
marketing mix the entrepreneur can come
up with good ideas for new product
development as well
whenever there is an increase in the
product depth or product line and length
it must make minor changes to the
product
in essence it is making minor changes in
the marketing mix itself
there are making changes to the product
features
to its pricing and possibly to its
promotions
as a result by altering the marketing
mix and several features within it
it can end up with an enlarged product
portfolio
physical evidence was necessary for the
marketing mix
if a restaurant or an interior design
business realizes its importance
then certainly they can act on it and
improve the physical evidence of their
business in this manner
bringing in more business the importance
of the marketing mix is evident in more
than a single factor
people and processes are essential
factors to the organization
and optimizing both can improve the
overall working of the organization
hence the marketing mix is an excellent
guide if someone wants to improve their
business and is doing a gap analysis
when the competitors marketing mix is
analyzed
many different ways can differentiate it
from the competitor
the competitor might have weak
promotions and by
evaluating them it can create a better
campaign for the product
the competitor might have poor placement
of products or might have the wrong
process or the wrong people
in place all this can become better upon
giving a better marketing mix
and therefore a competitive advantage in
the market
an entrepreneur that is well planned is
also ready when disaster strikes
during a recession or a distressed
business environment
a company should be prepared to respond
at such times the company needs to be
dynamic
such a company needs to understand its
product
processes people promotions
and all other factors better if it
understands them
it will respond with better agility
the word marketing mix is a framework
model for businesses
historically focused on the product
price
place and promotion also recognized as
the four ps
the marketing mix is known as the set of
marketing tools that the organization
uses to pursue its marketing objectives
in the target market
therefore the marketing mix leads to
four broad levels of marketing decision
product price place and promotion
the origins of the four piece can be
traced to the late 1940s
the first known mention of a mix has
been attributed to a professor of
marketing at harvard university
professor james culleton in 1948
culleton published an article entitled
the management of marketing costs
in which culleton describes marketers as
mixers of ingredients
in the mid-1960s culleton's colleague
professor neil borden published a
retrospective article detailing the
early history of the marketing mix in
which he claims that he was
inspired by coleton's idea of mixers
and credits himself with popularizing
the concept of the marketing mix
according to borden's account he used
the term
marketing mix consistently from the late
1940s
for instance he is known to have used
the term marketing mix in his
presidential address given to the
american marketing association
in 1953
although the idea of marketers as mixers
of ingredients caught on
marketers could not reach any real
consensus about what
elements should be included in the mix
until the 1960s
the four ps in its modern form
was first proposed in 1960 by e jerome
mccarthy
who presented them within a managerial
approach that covered analysis
consumer behavior market research market
segmentation
and planning philip kotler popularized
this approach and helped spread the four
ps model
mccarthy's four ps have been widely
adopted by both marketing academics and
practitioners
the prospect of extending the marketing
mix first took hold at the inaugural ama
conference dedicated to services
marketing in the early 1980s and built
on earlier theoretical works pointing to
many significant limitations of the four
ps model taken collectively
the papers presented at that conference
indicate that
service marketers were thinking about a
revision to the general marketing mix
based on the understanding that services
were fundamentally different from
products and therefore require unique
tools and strategies
in 1981 bernard h booms and mary j
bittner proposed a model of seven ps
comprising the original four ps extended
by the process
people and physical evidence as being
more applicable for
services marketing occasionally service
marketers will refer to eight ps
comprising these seven ps plus
performance
the marketing mix four ps
product the product should fit the task
customers want it for
it should work and it should be what the
customers expected to get
place the product should be available
from where your target customer
it must be high street mail order or the
more current option via e-commerce or an
online
shop price the product should always
good value for money
it does not necessarily mean it should
be the cheapest available the tenets of
the marketing concept
customers are usually happy to pay a
little more for something that works
well
promotion advertising pr
sales promotion personal selling
and in more recent times
social media are all necessary
communication tools for an organization
it should put across the organization's
message to the correct audiences in the
manner they would most like to hear
whether informative or appealing to
their emotions
the marketing mix extended seven ps
people all companies reliant on the
people who run them from frontline sales
staff to the managing director
having the right people is essential
because they are as much a part of your
business offering as the products
offered
processes normally the delivery of the
service accomplish in the presence of
the customer
how the service is delivered is part of
what the consumer is paying
physical evidence almost all services
include some physical
elements of what the consumer is paying
for is intangible
for example a hair salon would provide
their client with a completed hairdo
and an insurance company would give
their customers some form of printed
material
even the material is not physically
printed like the digital copy
considered still receiving a physical
product by this definition
the marketing mix the eighth piece
in some spheres of thinking there are
eight ps in the marketing mix
the final p is about performance and
quality
it is originated from the old services
marketing mix and is folded into the
extended marketing mix by some marketers
performance and quality this p is about
the offering to the customer a good deal
it is less about the business improving
their performance for managing the cost
of the business operation
it is more about the fulfillment and
execution of the business product to the
customers
the four sis of marketing which was
created by
robert f lauterborn in 1990
each of the four elements consumer wants
and needs
cost convenience and communication
are an adaptation of their related p
robert f lauterbourne created this
method as a customer-centric alternative
to the four ps of marketing
he insisted that since marketing is
about the customer
the marketing mix shouldn't focus on the
brand but rather the people who buy the
product or
service as discussed in the early topic
the marketing mix is often crucial when
determining a brand's offering and is
often synonymous with the four ps
price product promotion and place
however the four ps represent the
elements of marketing that can control
internally
they depend upon givens such as your
budget
product creativity in the promotions
etc many marketing specialists now see
the four ps as
product oriented and have adopted the
forces marketing mix from the customer's
point of view
four sis of marketing fit marketing mix
correctly and
complements each other they describe
what should be the main focus in the
four ps of marketing mix
[Music]
consumer the consumer wants and needs
the business should focus on solving
problems for consumers rather than
creating products
it requires studying consumer behavior
and needs and interacting with potential
customers to find out what they want
the first c in this marketing mix is the
customer's wants and needs
instead of focusing on the product
itself
the first c focuses on filling a void in
the customer's life
businesses must understand the customers
to whom they are marketing
the more you understand your customer
the better you will be able to make
products that are useful and beneficial
to them
and the more you will understand how to
reach out to them in your marketing
endeavors
a company should only sell a product
that addresses consumer demand
so marketers and business researchers
should carefully study the consumer
wants and needs
cost the total cost of acquiring goods
or
services which goes beyond the price tag
cost involves the time it takes to
research a product
and make a purchase it also includes the
cost of trade-offs of the consumer
such as foregoing another purchase or
the cost of guilt they experience for
buying or not buying a product
according to lauterborne price is not
the only cost
incurred when purchasing a product
cost of conscience or opportunity cost
is also part of the cost of product
ownership
the cost of your product does not refer
to its price
the price is just a tiny part of the
overall cost that goes into buying a
product
from your customers perspectives
you must be able to determine the
overall cost of your product and deliver
this information to your customer
for example how much time will it take
for your customer to access your product
how much benefit does it provide
how much time will it take to use or set
up the product
this all factors into your determined
cost
convenience how easy or complicated it
is for customers to find and purchase a
product
the emergence of internet marketing and
procuring has made convenience and
essential in customer decisions than a
physical place
the product should be readily obtainable
to consumers
marketers should strategically place the
products in several visible distribution
points
after you have closely studied the
habits of your customers
you will know whether they prefer to
shop in stores or online
as well as the extent to which they will
go to purchase your product
the convenience of your product is
determined in part by its overall cost
if you can make your product more cost
effective and easy enough to get without
your customers having to go to great
lengths to get a hold of it
then you will set yourself up for
success
communication a dialogue that depends as
much on the customer as on the seller
it includes advertising marketing and
media appearances
however it comprises electronic mails
that customers either opt into or start
product ambassadors blog or vlog posts
websites sponsored product arrangements
and other social media platforms
according to lauterborne promotion is
manipulative while communication
is cooperative marketers should aim to
create an open dialogue with potential
clients based on their needs and wants
communication is crucial to the success
of your business marketing
you must understand how to interact with
your customers
one of the best communication tools that
exist for businesses today is social
media
this doesn't just mean constantly
promoting your business and products on
your social media networks
but focusing on developing relationships
and engaging in conversations with the
people who follow you
the easier it is for your customers to
communicate with you
the more likely it is they will keep
coming back
[Music]
how the four ps and the four c's compare
the four seas marketing model was
developed by robert
f lauterborn in 1990
it is a modification of the four ps
model
it is not a basic part of the marketing
mix definition
but rather an extension product
is very similar to customer wants and
needs
the main difference here is that
lauterborne believes that extensive
consumer research needs to accomplish
to understand if there is a need or
demand for the new product and how the
products serve it best
the wants and needs of customers should
drive the creation of a new product or
service lauterborne believed the word
cost
should replace price insisting that the
money isn't the only cost a customer
worries about when making the purchase
cost is the product price and the loss
of a potential gain from an
alternative or even the customer's time
spent to obtain the item choosing the
word convenience over place further
emphasizes
lotterborne's commitment to the customer
the effort a customer should make to
purchase a wanted or needed product
should be little to none
there should be multiple points of offer
visibility to ensure that the customer
is taking care of in the best way
in lauterbourne's opinion promotion is
manipulative while communication is
cooperative
a dialogue between the product and the
customer was thought to best
which is unusual from traditional
strategies that focus on a product's
qualities
this communication promotes constructive
feedback
questions and user-generated reviews
the importance of marketing mix in the
marketing strategy
a marketing mix is an essential
instrument for formulating the right
marketing strategy and its
implementation through effective tactics
the role of the product promotion price
and place play a vital part in your
overall marketing approach
the mix helps in determining which
marketing strategy is right for the
organization
it is the first step before creating a
business or marketing plan
the marketing mix decisions also have an
impact on the positioning targeting
and segmentation decisions
it can make targeting and segmentation
decisions based on the products
while positioning can be the foundation
of the price
these decisions also have an impact on
the decision made regarding the
promotion
and price therefore
the marketing mix strategy goes hand in
hand with positioning
targeting and segmentation
all the elements included in the
marketing mix and the extended marketing
mix interact with one another
whether you are using the four ps the
seven ps
eight ps or the four c's your marketing
mix plan plays a vital role
the marketing mix is a mixture of
controllable marketing variables that
firms use to pursue the sought level of
sales in the target market
even though the original four ps of
marketing mix developed in the 1960s and
seven ps of marketing mix was created in
the 80s
marketing mix is still very much
applicable to modern strategic
marketing planning four ps
the seven ps eight ps or the four cs
marketing mix is crucial for creating a
plan that
increases sales and profitability
customer satisfaction
and brand recognition
i hope you learned something about our
topic about the importance of the
marketing mix in the development of
marketing strategy
if you learned something in this video
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also learned about this topic
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thank you very much for watching my
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hoping that we meet again in my next
vlog
and god bless you always
[Music]
you
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