Importance of Marketing Mix in the Development of Marketing Strategy by Teacher Lumaban

Summary

In 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

00:00

📈 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.

05:01

🔍 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.

10:02

🛠️ 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.

15:04

🌟 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.

20:05

🔄 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.

Keywords

💡Marketing Mix

The marketing mix refers to the set of tactical elements that a company uses to market its product. It includes the four Ps: Product, Price, Place, and Promotion. In the video, it is emphasized as a critical tool for entrepreneurs to ensure they offer the right product at the right time, place, and price. The marketing mix is crucial for reaching a larger audience and differentiating from competitors.

💡Product

In the context of the marketing mix, 'Product' represents the actual goods or services offered by a company. The video mentions that the product should fit the task customers want it for, work as expected, and meet customer expectations. It's about ensuring the product is suitable for the market and aligns with consumer needs.

💡Price

Price in the marketing mix indicates the cost at which a product or service is sold. The video script suggests that the price should offer good value for money, not necessarily being the cheapest. It's about striking a balance between what customers are willing to pay and what covers the costs and desired profit margins.

💡Place

Place in the marketing mix refers to the distribution channels and locations where a product is made available to customers. The video underscores the importance of making products available where the target customers are, which could range from physical stores to online platforms, emphasizing convenience and accessibility.

💡Promotion

Promotion is about the various methods used to communicate the merits of a product to its target audience. The video mentions advertising, PR, sales promotion, personal selling, and social media as part of promotion. It's about creating awareness and interest in the product to persuade potential customers.

💡New Product Development

This concept in the video refers to the process of creating and introducing new products to the market. It's mentioned as a benefit of the marketing mix, as it can inspire ideas for new products through the refinement of existing marketing strategies and adjustments in the mix.

💡Competitive Advantage

Competitive advantage in the video is discussed in the context of how a well-planned marketing mix can help a business outperform its competitors. It involves differentiating one's product or service in the market through unique selling propositions, better customer service, or innovative marketing strategies.

💡Customer-centric

The term 'customer-centric' is used in the video to describe an approach that focuses on the customer's needs and preferences. It's related to the Four C's model, which emphasizes consumer wants, cost, convenience, and communication, shifting the focus from the product to the customer experience.

💡Segmentation

Segmentation in the video is part of the broader marketing strategy, where a market is divided into distinct groups of consumers with similar needs and characteristics. It's mentioned as a decision influenced by the marketing mix, allowing businesses to tailor their marketing efforts to specific segments.

💡Positioning

Positioning refers to how a company presents its product in the minds of the consumers relative to its competitors. The video suggests that the marketing mix, particularly the price element, can serve as a foundation for positioning, helping to shape how consumers perceive the product's value and quality.

💡Dynamic Marketing

The concept of 'dynamic marketing' in the video refers to a company's ability to adapt and respond to changes in the market or business environment. It's highlighted as a quality that businesses should embody, especially during challenging times, to maintain relevance and effectiveness in their marketing efforts.

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

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and god bless you always

[Music]

you