Marketing Mix

Question 1

Define the marketing mix

Answer 1

The specific collection of actions and associated instruments employed by an organisation to stimulate acceptance of its ideas, products and services

Question 2

Kotler et al 2001 marketing mix definition

Answer 2

‘Controllable tactical marketing tools that the firm blends to produce the response it wants in the target market’

Each element should be designed to add up to the positioning required

Question 3

To be effective it needs to

Answer 3

Match customer needs

Create a competitive advantage

Should be well blended

Should match corporate resources

Question 4

What is co-creation?

Answer 4

Joint creation of value by company and customer

Question 5

Features of co-creation

Answer 5

Co-construct service experience to suit context

Active dialogue

Joint problem definition and solving

Innovating experience environments

Experience variety

Question 6

Experience economy

Answer 6

Internal of experience society

• how you feel
• obtain better experiences
• work for meaning/challenge

External of production society

• what have/do
• work for money
• obtain material things

External vs internal orientated motifs

Question 7

What is Relationship marketing

Answer 7

Network approach (not just seller initiated)

Long term relationships (stems from services marketing)

Customer relationship economies

Relationship building and management

Question 8

8 Features of relationship marketing Gronroos 1994

Answer 8

• long term focus
• interactive marketing
• customers less sensitive to price
• quality of interactions important
• managing customer base
• real time customer feedback
• interface of substantial strategic importance
• internal marketing of substantial strategic importance

Question 9

4 stages of Total offer to the customer

Answer 9

1. Choose product to meet identified need of target segment
2. Right distribution channel used to make it available
3. Undertakes eye-catching promotion
4. Price platform is acceptable to the customer and firm

Question 10

Time scale of marketing mix

Answer 10

1960s 4Ps

1970s-1990s service aspects, 7Ps and consumer focus 4/7Cs

Question 11

What are the 4Ps?

Answer 11

Product
Price
Place
Promotion

Question 12

7Ps vs 7Cs

Answer 12

7Ps organisation facing

7Cs customer facing

Question 13

What is Price?

Answer 13

How much it’ll cost

Amount of money charged for product or service

Sum of value exchanged for benefits of having/using product or service

E.g discount supermarkets, low cost airlines

Question 14

What is place?

Answer 14

Where to sell your product

E.g convenience stores, coffee shops

Question 15

What is product?

Answer 15

What products to make and sell

Anything that can be offered to a market for attention, acquisition, use or consumption

Question 16

What is promotion?

Answer 16

Activities that communicate the product or service and its merits to the facet customers o persuade them to buy

Question 17

Promotion C

Answer 17

Communication

Question 18

Product C

Answer 18

Customer/consumer

Question 19

Place C

Answer 19

Convenience

Question 20

Price C

Answer 20

Customer cost

Question 21

4C’s

Answer 21

Customer/consumer (product)

Customer cost (price)

Convenience (place)

Communication (promotion)

Question 22

Nickels and Jolson 1970s suggested an extra P

Answer 22

Packaging

Question 23

1980s Kolter proposed Ps

Answer 23

Public opinion

Political power

Question 24

What is the extended marketing mix?

Answer 24

Accommodate specific aspects of marketing

Question 25

Booms and Bitner 3Ps extended marketing mix

Answer 25

Process Physical evidence People

Question 26

What is process?

Answer 26

Procedures mechanisms and flow of activities which lead to an exchange of value E.g drive thru

Question 27

What is people?

Answer 27

All who directly or indirectly influence the perceived value of product/service E.g apple staff build relationships Abercrombie model staff

Question 28

What is physical evidence?

Answer 28

The direct sensory experience of a product/service that allows a customer to measure whether he/she has received value E.g packaging, websites, paperwork, uniforms, buildings E.g treatment by staff, length of wait, environment

Question 29

Why did Booms and Bitner add 3Ps?

Answer 29

To accommodate trends towards a service or knowledge-based economy

Question 30

Strengths of 7Ps

Answer 30

More comprehensive More detailed More refined Broader perspective Includes participants/people and process Standardisation Signals marketing theory

Question 31

Weaknesses of 7Ps

Answer 31

More complicated Extra elements can be incorporated in 4Ps Controllability of the three new elements

Question 32

Weaknesses of 4Ps

Answer 32

Too simple, not broad enough Lack of services Lack of relationship marketing Lack of connection and integration Static nature

Question 33

Strengths of 4Ps | Lee Goi 2009

Answer 33

Simplicity Easy to memorise Good pedagogic tool Adaptable Useful conceptual framework

Question 34

Lee Goi 2009

Answer 34

Marketing managers are learning to cope with a whole host of new elements that have emerged from the online world of the internet

Question 35

Low and Kok 1997

Answer 35

Decisions can’t be made on one event without considering its impact on other elements

Question 36

McCarthy pointed out (1960)

Answer 36

The number of possible strategies of the marketing mix is infinite

Question 37

Particularly useful in early days of the marketing concept when

Answer 37

Physical products represented a larger portion of the economy

Question 38

Criticism of McCarthy 4Ps 1960

Answer 38

Interplay between components not taken into consideration

Question 39

Relationship marketing

Answer 39

More focused on customer retention than customer acquisition E.g EE, retain and spend more with them