Marketing Mix 4P's model 5P's
4P's 5P's
McCarthy
The Marketing Mix model (also known as the 4 P’s) can be used by marketers as a tool to assist in implementing the M. strategy. M.
managers use this method to attempt to generate the optimal response in the target market by blending 4 (or 5, or 7) variables in an optimal
way. It is important to understand that the MM principles are controllable variables. The MM can be adjusted on a frequent basis to meet the
changing needs of the target group and the other dynamics of the M. environment.
Product
Historically, the thinking was: a good product will sell itself. However there are no bad
products anymore in today's highly competitive markets. Plus there are many laws
giving customers the right to return products that he perceives as bad. Therefore the
question on product has become: does the organization create what its intended
customers want? Define the characteristics of your product or service that meets the
needs of your customers.
Price
How much are the intended customers willing to pay? Here we decide on a pricing
strategy - do not let it just happen! Even if you decide not to charge for a service (a loss
leader), you must realize that this is a conscious decision and forms part of the pricing
List Price, Discounts,
strategy. Although competing on price is as old as mankind, the consumer is often still
Financing, Leasing Options,
sensitive for price discounts and special offers. Price has also an irrational side: something Allowances,
that is expensive must be good. Permanently competing on price is for many companies
not a very sensible approach.
Place
Available at the right place, at the right time, in the right quantities? Some of the
revolutions in business have come about by changing Place. Think of the internet and
mobile telephones.
Functionality, Quality,
Appearance, Packaging,
Brand, Service, Support,
Warranty
Locations, Logistics,
Channel members, Channel
Motivation, Market
Coverage, Service Levels,
Internet, Mobile
(How) are the chosen target groups informed or educated about the organization and its
Advertising, Public
products? This includes all the weapons in the marketing armory - advertising, selling,
Promotion
Relations, Message, Direct
sales promotions, Public Relations, etc. While the other three P's have lost much of there
Sales, Sales, Media, Budget
meaning in today's markets, Promotion has become the most important P to focus on.
The function of the MM is to help develop a package (mix) that will not only satisfy the needs of the customers within the target markets, but
simultaneously to maximize the performance of the organization. There have been many attempts to increase the number of P's from 4 to 5P's
in the MM model. The most frequently mentioned one being People or Personnel. Booms and Bitner have suggested a 7-Ps approach for
services-oriented companies.
Book: Nirmalya Kumar - Marketing As Strategy: Understanding the CEO's Agenda for Driving Growth and Innovation www.amazon.com/exec/obidos/ASIN/1591392101/valuebasedman-20
Book: David A. Aaker - Strategic Marketing Management - www.amazon.com/exec/obidos/ASIN/0471415723/valuebasedman-20
Compare with the 4-Ps: Extended Marketing Mix (7-Ps) | Ansoff | Porter | BCG Matrix | Bass Diffusion model | Positioning
More management models
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