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Mix marketing concept practical application template. Marketing mix (marketing mix)

Marketing Rozova Natalya Konstantinovna

Question 18 Marketing-mix concepts

Answer

Marketing mix- a set of practical tools for adapting the company to the market situation and measures to influence the market. A good marketing mix helps the firm to gain a strong market position. The term "marketing mix" was introduced in the middle of the 20th century. N. Borden.

Classic marketing mix includes 4 elements and is called "4P models"(by the first letters of the elements):

Goods (Product);

Price (Price);

Sales or distribution (Place);

Promotion or communications (Promotion).

In marketing theory, the elements of the marketing mix are often considered as independent subcomplexes with their own strategies and policies (Table 12).

Table 12Tools of the components of the marketing mix

Other marketing mix models are given in Table. 13.

Table 13Marketing mix concepts

However, at the end of the 20th century, after the emergence of the concept of "value chains" (internal and external consumers), messages appeared among marketers about a new extension of pre-existing models. In 1999, D. Balmer published the YUR model (Fig. 13).

D. Ballmer called the new extended marketing mix corporate marketing mix.

The YUR model, or corporate marketing mix, contains the following elements.

1. Philosophy - the philosophy of the organization - ideas supported and developed by the company.

2. Personality - individuality or personalization - a complex of subcultures existing in the organization that are necessary to maintain the philosophy of the organization.

3. People - people - the staff of the company (an element borrowed from the classic models of the marketing mix).

Rice. 13. Model « 10R » marketing mix

4. Products - goods are the main element of any marketing mix model.

5. Prices - prices - an element borrowed from the classic models of the marketing mix.

6. Place - place - sales or distribution of goods (an element borrowed from the classic models of the marketing mix).

7. Promotion - promotion - a complex of marketing communications (an element borrowed from the classical models of the marketing complex).

8. Performance - execution - assessment of the organization's activities by interested groups and individuals in accordance with the declared philosophy of the company and in relation to competitors.

9. Perception - perception - the mental image of the organization, corporate reputation, product reputation and professional reputation of the company's employees.

10. Positioning - positioning (both the company itself and its products) - firstly, in the minds of the most significant interested groups, secondly, relative to the firm's competitors, thirdly, relative to the external environment.

Old ideas gradually become obsolete and need to be filled with new content. One of the creators modern technology integrated marketing communications R. Lauterborn replaced the traditional model "AR" characteristic of the period of mass consumption, to the "4C" model, more adequate to the current level of development of a highly competitive and segmented market. The elements of this model are:

Consumer - the consumer, his needs and desires;

Cost - consumer costs;

Convenience - ease of purchase;

Communication - communication with the consumer.

From what has been said, it is clear that the question of how many P (A or C) the marketing mix model actually consists of is meaningless.

It must be remembered that the main task solved with the help of the marketing mix, no matter what model it is described, is to ensure sustainable competitive advantage both the goods offered by the firm to the market, and the firm itself as a whole.

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marketing mix target market

The concept of marketing-mix 5Р:

1) Product, product policy of the company (product marketing ) -- market-oriented marketing policy for the formation of an assortment of goods (products and services), their commercial and consumer properties(quality), as well as packaging, branding, naming, brand image, etc.;
2) Price, pricing policy of the company (price marketing) -- a market-oriented pricing program: development of the level and behavior of prices, price mechanisms for influencing buyers and competitors, price methods of sales promotion;
3) Place, place and time of sale, commodity circulation and distribution (sales marketing) - selection of optimal distribution channels and resellers, organization of storage and transportation of goods (logistics);
4) promotion, product promotion (communications marketing) - a system of informing potential customers, creating a positive opinion about the product and the company through various methods of sales promotion (advertising, service, etc.);
5) People, manufacturers and suppliers, sellers and buyers of goods (relationship marketing) - mechanisms of interaction between subjects of market relations (manufacturer - seller, manufacturer - supplier, seller - buyer); development personnel policy companies (selection and training of personnel focused on the client and the goals of the company); generating potential customers. As a direction of marketing activity, it appeared relatively recently as an addition to the existing 4P concept.

Model 7P: A more modern, improved "4P" concept, complemented by elements:

1) People - manufacturers, suppliers, sellers and buyers of goods (relationship marketing);
2) Process - processes for the provision of services;
3) Physical evidence - physical characteristics.

The 4C model: the 4P concept evolved towards the consumer:

1) Customer value needs and wants - the value, needs and requests of the consumer;
2) Cost - costs (costs) for the consumer;
3) Convenience - availability (convenience) for the consumer;
4) Communication - communication with the consumer.

Born back in the 60s. and developed widely in the 1980s and 1990s. of the last century, the concept of "4P" was subsequently improved. Today, being a pivotal one in matters of organizing marketing in an enterprise, this concept is nevertheless more focused on tangible than on intangible goods (i.e. services). At the same time, the effectiveness of its application by most organizations is so obvious that it cannot be considered it would be very unreasonable in relation to hospitality enterprises. Table 1 presents characteristics each element of the integrated marketing concept "5P".

Table 1

The essence of the concept of marketing-mix "5Р"

Product (product)	The implementation of the commodity policy is based on the production and sale of goods (products and services) in demand modern market. It is achieved by focusing companies on the needs and requirements of customers (both their own and potential). In this regard, there is a need to conduct a competent assortment policy, the purpose of which is to maximize the satisfaction of the needs of buyers and their preferences, which, in turn, should help attract new consumers. The life cycle of goods is also becoming important. Within the framework of a commodity policy, it is necessary to subtly capture the current trends of the market and respond in time to its changing market conditions. The products manufactured by companies and the services they provide must always be in demand, relevant and timely. This will allow not only to maintain, but also significantly increase the market share occupied by the organization.
Price (price)	In modern market conditions, the price is a fundamental factor at the stage of making a decision by the consumer regarding the expediency or inexpediency of purchasing a product. The process of managing pricing in an organization is extremely complex and time-consuming. There are a number of parameters to consider when developing an effective pricing strategy. First, it must be carefully planned. Secondly, it is necessary to take into account the peculiarities of the production of the product itself (its cost, position on the market, place and time of sale, pricing policy of competing companies; specific features potential buyers, etc.)
Place (place)	The concept of "place of service" is of paramount importance, since it is considered from the standpoint of the reach of services to consumers. Managing this variable in the 5Rs allows companies to achieve the most effective outreach. target audience by competently locating its branches and providing them with everything necessary for better provision of services.
Promotion (promotion)	Promotion is any form of communication used by organizations to inform, persuade or remind consumers of their products (products and services), their advantages and benefits. This includes the entire set of activities to promote products and services. Promotion includes: advertising, public relations (PR) activities, direct marketing, propaganda, sales promotion activities, personal selling, etc. only on the services themselves, but also on those specialists who work in this company and are engaged in its development and provision. This is especially true for hospitality industry companies engaged in consumer services (hairdressers, beauty salons), medicine, restaurant business, entertainment, etc.
People (people)	This multifaceted component (also called "relationship marketing") appeared relatively recently: in the 90s. last century. This component organically complements all four previous elements of the concept. Without such a component as “people” (and in the market these are not only producers and consumers, but also buyers and suppliers), it is impossible to implement any of the four policies presented in the table: neither product, nor price, nor distribution, nor communication. In such conditions, human resource management becomes a priority strategic objective organizations. The marketing and management of the company is faced with the task of forming an organizational (corporate) culture focused on the consumer. The term "people" is used in the marketing of services and to refer to the activities of managing the client base, resolving issues of streamlining and distributing visitor flows. In the field of b2b, relationship marketing contributes to the competent and effective establishment of contacts with potential partners and negotiations with them.

Some limitations of the presented model in view of its weak adaptability to the non-material sphere of activity led to its expansion from "5P" to "7P". Thus, the 7P marketing concept included two more components that have an important practical value for the service sector (Table 2).

table 2

Improved concept of marketing-mix ("7Р")

Process (service delivery process)

The degree of involvement of consumers in the processes of production and provision of services is much higher than in the production of tangible goods. In addition, the provision of services and their consumption, in comparison with the spheres of material production, occur simultaneously. With the existing inextricable relationship between the processes of providing and consuming services, the degree of contact between the producer and the consumer may be different. Thus, this element in the concept marketing mix is designed to pay special attention to the procedures for interaction between consumers of services and organizations that provide them.

Physical evidence (the physical environment of the service)

It includes all those tangible objects and visual images that allow a potential consumer to evaluate and predict the quality of a future service. The practical application of this element allows organizations to form their own stable and positive image in the eyes of customers. To achieve this goal, companies need to take measures to improve the level of service and quality of service to their customers.

It is this marketing model that most closely matches the intangible field of activity, reflects the specifics of services well, and can serve as the basis for the formation of a comprehensive marketing policy that includes the following main components. Thus, two additional element to the existing concept of "5P" (taking into account the component "People" attached to it) justify the need to study the "4C" model as the most client-oriented. This concept is usually used in cases where marketing is no longer considered in general, but only those of its tools that are able to form consumer sympathy and interest. Therefore, in his writings, one of the founders of modern marketing, Philip Kotler, interprets this model as follows: “The 4C concept, where the product is comparable with the value for the consumer (Customer value), the price - with the costs of the consumer (Customer costs), the place - with the availability of goods for the consumer (Customer convenience), and promotion - with consumer awareness (Customer communication). "Proposed in the late 80s. of the last century by Columbia University professor R.F. Lauterborn, the concept of "4C" due to its client focus has gained great popularity. Having reoriented the marketing mix from "4P" to "4C", Lauterborn received the following model (Table 3). As a result of a detailed analysis of the presented model, the reasons for its special popularity among service enterprises become obvious. The service is intangible, which means that the organization providing it has to use all its skill and ability so that the potential consumer turns to it for services, and not to competitors. Not having time to fully take shape and adapt in the scientific environment, the 4C model received recognition almost immediately further development. In the 1980s and 1990s, when the main markets were saturated and competition intensified, the manufacturer was forced to conduct research on consumer preferences in order to successfully compete for its customers, preventing them from moving to competitors.

Table 3

The essence of the 4C concept

Customer value, needs and wants (value, needs and requests of the consumer)	It is literally every component of a product (product or service). This element justifies the need for a more thorough study of consumer preferences, and is also closely related to the correct perception of its target audience.
Cost (costs, costs for the consumer)	As in other areas of activity, costs are divided into direct and indirect. Direct costs primarily include material and financial costs, while indirect costs include psychological, temporary and other costs. In other words, costs are not only cash spent on a product or service, but also the efforts associated with their acquisition: how ready a potential client will be, having spent time and some effort, to come to a particular company and purchase certain types of goods (products and services) from it.
Convenience (accessibility for the consumer)	For the consumer, the product must be in the right place at the right time. The indicator of product availability for the client implies that it must not only satisfy some basic need (for example, in rest, food, travel), but also carry whole line additional benefits and benefits intended for potential consumers. Therefore, it would be more correct to use the term “Value” instead of the term “Convenience”, which has already partially found its reflection in this model.
Communication (communications)	This element justifies the degree of consumer awareness. Consumers should not only hear about a particular product, but also be sufficiently aware of its significant characteristics, the benefits derived from its acquisition and further use, as well as availability and other advantages compared to similar products of competing companies. In many ways, this will depend on the effective marketing communication policy of the enterprise, which includes a wide range of various tools: advertising, PR, direct marketing, sales promotion methods, etc.

This model actually substantiated the need for the formation of various consumer loyalty programs. It is aimed at its consumers - at their desires and preferences, at joint fruitful cooperation and indispensable receipt from them feedback in order to further improve their products and services, as well as the mechanisms for their promotion.

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One of the most famous and popular marketing concepts is the 4P (Pi) or marketing mix concept. This idea originated in 1964 when Neil Borden published his article The Concept of the Marketing Mix, in which he tried to combine all the elements that need to be taken into account when compiling marketing plan companies. Initially, such a plan contained a much larger number of points, but Nel managed to reduce them to 4 and make them easier to remember. And so the 4P complex appeared. In the future, this complex will be expanded to 5, 7 and 10 Pi. The marketing mix complex combines those factors that a marketer can influence. A strategy developed on the basis of the 4P concept should increase the perceived value of the proposed product: product or service.

The basic model includes: cost, product, place of sale and promotion. Let's consider them in more detail:

Product - Product

A product is a product or service that a company offers to its customers (both potential and existing). This is the basis of the 4P concept, it is from this stage that the development of a marketing strategy should begin.

Determine what functions your product will perform? What is its unique advantage? Determine how high quality your product will be? For different categories of consumers, the quality indicator will be measured in different ways, for example, it is important for one consumer that carrots are even and clean, while another judges the quality by the region where the crop was harvested. Determine how wide the assortment will be, what the service will be for the end user.

Product branding also belongs to this section of the concept. It is necessary to develop a name that can be registered and protected, develop a logo and corporate identity. The packaging of the product is no less important, it should stand out from the competition, but not be too original, otherwise the consumer may simply not see it, even if he is purposefully looking for a specific product.

Price - Price

The price not only affects the profit that the company will receive, but also the perception of the product by the consumer. If the quoted price is much higher or much lower than expected, this can negatively affect the purchase decision and reduce consumer confidence.

The pricing policy of the company determines in which price segment the product will be placed. This directly affects the perception of the consumer. Price setting directly affects the market entry strategy.

When setting a price, you need to think about different pricing tactics for different distribution channels, for example, you can set special volume discounts or offer a special price for a certain set of goods, such a “package” offer will also help to cope with sorting. It is equally important to take into account the prices that are planned to be set for the duration of various promotions (if the company plans to hold them) or determine the conditions for promotional events.

Place

This component of the marketing mix considers the product distribution model. The product must be not only in the right place, but also at the right time for the consumer to decide to buy it.

It is necessary to determine the geography of the product, the planned expansion to other markets and territories. No less important are the channels through which the goods will be distributed, it is necessary to provide for the rules of display, its size and fines for dealers in case of violation of the requirements. Determine how much product you need to keep in stock in case of force majeure.

Promotion

This section includes all kinds of marketing communications. They can be aimed both at informing consumers about products, creating or correcting their image, and at creating a need to purchase or re-purchase.

This section defines the desired promotion strategy (push or pull). The communications budget and the planned share of the brand's voice in the total flow of advertising messages are determined. The result that is planned to be achieved as a result of the promotion is determined (it should be expressed in specific numbers, for example, the expected market share or an increase in customer loyalty by 10%). Communication channels are selected, necessary events are planned that the company plans to organize or in which it is necessary to take part. A media strategy and a plan for holding promotions and other promotional events are being developed.

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