Marketing mix The term "marketing mix" was coined in 1953 by Neil Borden in his American Marketing Association

presidential address. However, this was actually a reformulation of an earlier idea by his associate, James Culliton, who in 1948 described the role of the marketing manager as a "mixer of ingredients", who sometimes follows recipes prepared by others, sometimes prepares his own recipe as he goes along, sometimes adapts a recipe from immediately available ingredients, and at other times invents new ingredients no one else has tried. The marketing mix (price, product, distribution, promotion) forms the entire promotional campaign. As stated in Management of a Sales Force by Rosann L. Spiro, Gregory A. Rich, and William J. Stanton, when these are effectively blended, they form a marketing program that provides wantsatisfying goods and services for the companys market." The term became popular in the article written by Niel Borden called The Concept of the Marketing Mix, as explained on the site netmba.com. He started teaching the term to many after he himself learned about it with an associate. The marketing mix is a broad concept which includes several aspects of marketing which all inquire to obtain a similar goal of creating awareness and customer loyalty. The marketing mix is not only an important concept, but a guideline to reference back to when implementing the price, promotion, product, and distribution. Those are the four main ingredients of the marketing mix, but there are other components not already mentioned on the Wikipedia site, including, planning, branding, packaging, display, distribution channels, personal selling, advertising, servicing, and physical handling. All in all the current description of the marketing mix is accurate, but missing some vital pieces of information which will allow individuals to gain a better understanding and implement a more effective marketing mix.[1] A prominent marketer, E. Jerome McCarthy, proposed a Four P classification in 1960, which has seen wide use.

Four 'P's
Elements of the marketing mix are often referred to as the "Four 'P's", a phrase used since the 1960's

Product - It is a tangible good or an intangible service that is mass produced or manufactured on a large scale with a specific volume of units. Intangible products are service based like the tourism industry & the hotel industry or codes-based products like cellphone load and credits. Typical examples of a mass produced tangible object are the motor car and the disposable razor. A less obvious but ubiquitous mass produced service is a computer operating system. Packaging also needs to be taken into consideration. Every product is subject to a life-cycle including a growth phase followed by an eventual period of decline as the product approaches market saturation. To retain its competitiveness in the market, product differentiation is required and is one of the strategies to differentiate a product from its competitors. Price The price is the amount a customer pays for the product. The business may increase or decrease the price of product if other stores have the same product.

Promotion represents all of the communications that a marketeer may use in the marketplace. Promotion has four distinct elements: advertising, public relations, personal selling and sales promotion. A certain amount of crossover occurs when promotion uses the four principal elements together, which is common in film promotion. Advertising covers any communication that is paid for, from cinema commercials, radio and Internet adverts through print media and billboards. Public relations are where the communication is not directly paid for and includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events. Word of mouth is any apparently informal communication about the product by ordinary individuals, satisfied customers or people specifically engaged to create word of mouth momentum. Sales staff often plays an important role in word of mouth and Public Relations (see Product above). Place A way of getting the product to the consumer and/or how easily accessible it is to consumers.

Any organization, before introducing its products or services into the market, conducts a market survey. The sequence of all 'P's as above is very much important in every stage of product life cycle Introduction, Growth, Maturity and Decline. In recent years the 4 P's have been updated to include several more factors. Some people even go up to as many as 27 P's

Four 'C's
Robert F. Lauterborn proposed a four Cs classification in 1993.[2] The Four Cs model is more consumer-oriented and attempts to better fit the movement from mass marketing to niche marketing.

Product part of the Four Ps model is replaced by Consumer or Consumer Models, shifting the focus to satisfying the consumer needs. Another C replacement for Product is Capable. By defining offerings as individual capabilities that when combined and focused to a specific industry, creates a custom solution rather than pigeon-holing a customer into a product. Pricing is replaced by Cost reflecting the total cost of ownership. Many factors affect Cost, including but not limited to the customer's cost to change or implement the new product or service and the customer's cost for not selecting a competitor's product or service. Promotions feature is replaced by Communication which represents a broader focus than simply Promotions. Communications can include advertising, public relations, personal selling, viral advertising, and any form of communication between the firm and the consumer. Placement is replaced by Convenience. With the rise of internet and hybrid models of purchasing, Place is becoming less relevant. Convenience takes into account the ease of buying the product, finding the product, finding information about the product, and several other factors.

The marketing mix is the combination of marketing activities that an organisation engages in so as to best meet the needs of its targeted market. Traditionally the marketing mix consisted of just 4 Ps. For example, a motor vehicle manufacturer like Audi:

Produces products that are of the highest quality and fit for the needs of different groups of consumers,

Offers a range of cars at value for money prices, depending on the market segmented they are targeted at,

Sells the cars through appropriate outlets such as dealerships and showrooms in prime locations, i.e. in the right places, and

Supports the marketing of the products through appropriate promotional and advertising activity.

The marketing mix thus consists of four main elements: 1. Product 2. Price 3. Place 4. Promotion. Getting the mix of these elements right enables the organisation to meet its marketing objectives and to satisfy the requirements of customers. In addition to the traditional four Ps it is now customary to add some more Ps to the mix to give us Seven Ps. The additional Ps have been added because today marketing is far more customer oriented than ever before, and because the service sector of the economy has come to dominate economic activity in this country. These 3 extra Ps are particularly relevant to this new extended service mix. The three extra Ps are:

1. Physical layout - in the days when manufacturing dominated the UK economy the physical layout of production units such as factories was not very important to the end consumer because they never went inside the factory. However, today consumers typically come into contact with products in retail units - and they expect a high level of presentation in modern shops - e.g. record stores, clothes shops etc. Not only do they need to easily find their way around the store, but they also often expect a good standard or presentation. The importance of quality physical layout is important in a range of service providers, including:

Students going to college or university have far higher expectations about the quality of their accommodation and learning environment than in the past. As a result colleges and universities pay far more attention to creating attractive learning environments, student accommodation, shops, bars and other facilities.

Air passengers expect attractive and stimulating environments, such as interesting departure lounges, with activities for young children etc.

Hair dressing salons are expected to provide pleasant waiting areas, with attractive reading materials, access to coffee for customers, etc.

Physical layout is not only relevant to stores, which we visit, but also to the layout and structure of virtual stores, and websites.

2. Provision of customer service - customer service lies at the heart of modern service industries. Customers are likely to be loyal to organisations that serve them well - from the way in which a telephone query is handled, to direct face-to-face interactions. Although the 'have a nice day' approach is a bit corny, it is certainly better than a couldn't care less approach to customer relations. Call centre staff and customer interfacing personnel are the front line troops of any organisation and therefore need to be thoroughly familiar with good customer relation's practice. 3. Processes - associated with customer service are a number of processes involved in making marketing effective in an organisation e.g. processes for handling customer complaints, processes for identifying customer needs and requirements, processes for handling order etc The 7 Ps - price, product, place, promotion, physical presence, provision of service, and processes comprise the modern marketing mix that is particularly relevant in service industry,

but is also relevant to any form of business where meeting the needs of customers is given priority.

2-PRODUCT
A good product makes its marketing by itself because it gives benefits to the customer. We can expect that you have right now a clear idea about the benefits your product can offer. Suppose now that the competitors products offer the same benefits, same quality, same price. You have then to differentiate your product with design, features, packaging, services, warranties, return and so on. In general, differentiation is mainly related to: -The design: it can be a decisive advantage but it changes with fads. For example, a fun board must offer a good and fashionable design adapted to young people. -The packaging: It must provides a better appearance and a convenient use. In food business, products often differ only by packaging. -The safety: It does not concern fun board but it matters very much for products used by kids. -The "green": A friendly product to environment gets an advantage among some segments. In business to business and for expensive items, the best mean of differentiation are warranties, return policy, maintenance service, time payments and financial and insurance services linked to the product.

External readings
Go to http://peerspectives.org and click on "Defining and serving a market" . Then click on "Launching a new product " and on "Product development" You will find a lot of articles about the subject. 1. Challenge 2. Product 3. Place 4. Price 5. Promotion 6. Sales strategy 7. Do it yourself 8. Coaching

3-PLACE-DISTRIBUTION
A crucial decision in any marketing mix is to correctly identify the distribution channels. The question " how to reach the customer" must always be in your mind.

-Definition: The place is where you can expect to find your customer and consequently, where the sale is realized. Knowing this place, you have to look for a distribution channel in order to reach your customer. In fact, instead of "place" it would be better to use the word "distribution" but the MBA lingo uses "place" to memorize the 4 Ps of the marketing mix!

4-PRICE
Price means the pricing strategy you will use. You have already fixed, as an hypothesis a customer price fitted to your customer profile but you will have now to bargain it with the wholesalers and retailers. Do not be foolish: They know better the market than you and you have to listen their advices.

41-Pricing strategies
In fact, you have to choose between three strategies: -Competitive pricing: If your product is sold at the lowest price regarding all your competitors, you are practicing competitive pricing. Sometimes, competitive pricing is essential. For instance, when the products are basically the same, this strategy will usually succeed. Remember that the success of competitive pricing strategy depends on achieving high volume and low costs. If your prices are lower than your costs, you are going straight to bankruptcy! To avoid such a mistake, you have to take notice of the break even ratio that you will find below. -Cost-plus-profit: It means that you add the profit you need to your cost. It is also called cost-orientated strategy and is mainly used by the big contractor of public works. The authority may have access to the costing data and should like to check if the profit added to the cost is not too high. In fact, this strategy is only good for a business whom the customers are public collectivities or government agencies. -Value pricing: It means that you base your prices on the value you deliver to customers. For example, when a new technology has a very large success, you can charge high prices to the customer. This practice is also called skimming. It is easy when you are in the introductory phase of the product life cycle. Value pricing is also common in luxury items. Sometimes, the higher the price, the more you sell: Fashionable clothing or restaurants for snob people. Of course value pricing is limited by the price elasticity as you have already learnt in Economics.

5-PROMOTION
Advertising, public relations and so on are included in promotion and consequently in the 4Ps. Sometimes, packaging becomes a fifth P. As promotion is closely linked to the sales, I will mention here the most common features about the sale strategy.

-Definition: The function of promotion is to affect the customer behavior in order to close a sale. Of course, it must be consistent with the buying process described in the consumer analysis. Promotion includes mainly three topics: advertisement, public relations, and sales promotions.

-Advertisement:
It takes many forms: TV, radio, internet, newspapers, yellow pages, and so on. You have to take notice about three important notions: Reach is the percentage of the target market which is affected by your advertisement. For example, if you advertise on radio you must know how many people belonging to your segment can be affected. Frequency is the number of time a person is exposed to your message. It is said that a person must be exposed seven times to the message before to be aware of it. Reach*frequency gives the gross rating point. You have to evaluate it before any advertisement campaign.

Public relations:
Public relations are more subtle and rely mainly on your own personality. For example, you can deliver public speeches on subjects such as economics, geo-economics, futurology to several organizations (civic groups, political groups, fraternal organizations, professional associations) These speeches will enable you to develop new relationships and their cost is nil !

-Sales promotion:
It includes fair trades, coupons, discounts and are linked to the sales strategy.

EG: S o n y C o r p o r a t i o n i s a m u l t i n a t i o n a l c o n g l o m e r a t e corporationheadquartered in Tokyo, Japan, and one of the w o r l d ' s l a r g e s t m e d i a conglomerate with revenue of US$88.7 billion (as of 2008) based in Minato, T o k y o . S o n y i s o n e o f t h e l e a d i n g m a n u f a c t u r e r s o f e l e c t r o n i c s , v i d e o , communications, video game consoles and information technology products for t h e c o n s u m e r a n d p r o f e s s i o n a l m a r k e t s . I t s n a m e i s d e r i v e d f r o m S o n u s , t h e Greek goddess of sound.Sony Corporation is the electronics business unit and the parent companyo f t h e S o n y Group, which is engaged in business through its fiv e operatingsegments e l e c t r o n i c s , g a m e s , e n t e r t a i n m e n t ( m o t i o n p i c t u r e s a n d m u s i c ) , financial services and other. These make Sony one of the most comprehensive e n t e r t a i n m e n t

c o m p a n i e s i n t h e w o r l d . S o n y' s p r i n c i p a l b u s i n e s s o p e r a t i o n s i n c l u d e Sony Corporation (Sony Electronics in the U.S.), Sony P i c t u r e s Entertainment, Sony Computer Entertainment, Sony BMG Music Entertainment,Sony Ericsson and Sony Financial Holdings. As a semiconductor maker, Sony isa m o n g t h e W o r l d w i d e T o p 2 0 S e m i c o n d u c t o r S a l e s L e a d e r s . T h e c o m p a n y ' s slogan is Sony. Like no other. The first market mix element is Product. A product is anything that can beoffered to a market for attention, acquisition, use or consumption that mightsatisfy a need or want.Product decision normally base on brand name, Functionality, Styling,Quality, Safety, Packaging, Repairs and Support, Warranty, accessories andServices. These product attributes can be manipulated depending on what thetarget market wants. Also, customers always look for new and improved things,which is why marketers should improve existing products, develop new ones,and discontinue old ones that are no longer needed or wanted by the customer.Sony has a variety of products ranging from electronic devices, gamesand entertainment. So, briefly Sony products can be categorized in the followingmajor product categories

i.Television and Projectors.

i i . H o m e . i i i . H o m e i v . H o m e v . D i g i t a l vi.Hand

v i d e o A u d i o . s y s t e m .

T h e a t r e

P h o t o g r a p h y . camera

cam video

.vii.Computer Peripheral .v i i i . P o r t a b l e . i x . G a m e A u d i o

. x.In-Car entertainment.x i . M o b i l e p h o n e s . xii.Storage and Recording media.xiii.Batteries and Charger.x i v . O t h e r A c c e s s o r i e s .

J. Mobile Phones With Sony Ericsson, Sony has produced a variety of mobile phones for different people, lifestyle, usage, budget and profession. Also a series of mobilephone accessories have been produced by Sony so that customer can spruce uptheir mobile phones appearance, prevent them from damage, or enhance their usage.Among the subcategories are:P h o n e s i i . P h o n e A c c e s s o r i e s .

Sony Marketing Communication Mix: Sony India will spend Rs 200 crore in this financial year on advertising andpromotion (Promotional Budget) of the entire range of consumer electronics, outof which Rs 60 crore will be spent only on digital imaging products. The major elements of promotion mix include advertising, personal selling, sales promotion, direct marketing, and publicity. Sony Corporation has used all of these marketing communication mix elements. Advertising Advertising is any paid form of non -personal mass communicationthrough various media to present and promote product, services and ideas etc.by an identified sponsor. So far, SONY has advertised its products through many different waysand media. Through TV we have seen different advertisements of its products such as Bravia televisions or Sony wega TV. Sony also advertise its products bytargeting those favorable television programs, like sports, series and also it has its own channel called Sony TV channel. Sony uses some events like Miss India2008 to promote its products.Also, Sony has advertised its games like Playstation 3, Playstation 2and PSP using sports like football in England premiere league.Through newspapers like Times of India, Sony has advertised a widerange of products it offers to its customers. And also through Posters a messagehas been sent to a lot of people to be aware of the products which Sony offers.

Sales Promotion Sales promotion is a marketing discipline that utilizes a variety of i n c e n t i v e s t e c h n i q u e s t o s t r u c t u r e s a l e s r e l a t e d p r o g r a m s t a r g e t e d t o customers, trade, and/or sales levels that generate a specific, measurable actionor response for a product or service.S a l e s p r o m o t i o n s f o r e x a m p l e i n c l u d e s f r e e s a m p l e s , d i s c o u n t , r e b a t e s , coupons, contents and sweepstakes, premiums, scratch cards, exchange offers,early bird prizes, etc.