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Presentation Tips:  Marketing Mix (4P) Analysis

This presentation tip is in the category:  Secrets in Top Consulting Firms' Million-Dollar Presentation

Marketing Mix Analysis is a very basic, commonly used, yet not easy-to-master strategic technique.  A few weeks ago, I was meeting with my very good friend Calia Wong, ex-Asia GM of Lego.  At the meeting, she has made a very interesting yet true comment: “majority of the people doing marketing in this world are only implementing one of the four P"s.  Very rarely did I see someone who could fully utilize the power of a full Marketing Mix analysis.”

I found this very true.  I have personally seen many managers being too focused on one of the four Ps and end up implementing ineffective strategies.  This happens all the time.  The key to avoid this problem actually is to always review the elements in this model.  Keep the model in mind so that when we are doing our project, we will not fall into the pitfall.

I have read over many Marketing related textbooks throughout my entire undergraduate and post-graduate studies.  And, I found the textbook Basic Marketing A Global-Managerial Approach written by Stanley J. Shapiro, William D. Perreault and E. Jerome McCarthy does the best job in explaining the Marketing Mix Analysis.  I will hereby summarize that specific section below.

A marketing mix consists of the following four elements:

1. Product - Product or service design that maximize your customers’ satisfaction.  This does not only limit to the physical product you provide but the entire experience.  For instance, when you are buying a computer from Dell, you are also buying their delivery services, packaging, warranty and the convenience online ordering experience.
  • Physical good
  • Service
  • Features
  • Quality level
  • Accessories
  • Installation
  • Instructions
  • Warranty
  • Product lines
  • Packaging
  • Branding

 

2. Place - Channel of distribution.  You could have multiple channel of distribution to get your product to the customer.  For instance, as a manufacturer, you can choose to go direct and sell your product via eBay.  Alternatively, you can also sell your product through a chain of wholesalers and retailers to the end customer.
  • Objectives
  • Channel type
  • Market exposure
  • Kinds of intermediaries
  • Kinds and locations of stores
  • How to handle transporting and storing
  • Service levels
  • Recruiting intermediaries
  • Managing channels

 

3. Promotion - Inform and persuade your customers to buy your product.  There are three major types: 1) personal selling, which involves a group of sales representatives to contact the customers directly via phone or face-to-face meeting; 2) mass selling, which include the typical advertising, editorials or publicity to inform a large group of customers all at once; 3) sales promotion, such as discounts and trials to speed up your customers’ purchasing decisions.

 

  • Objectives
  • Promotion blend
  • Sales promotion
  • Publicity
  • Salespeople
  • Kind
  • Number
  • Selection
  • Training
  • Motivating
  • Advertising
  • Targets
  • Kinds of ads
  • Media type
  • Copy thrust
  • Prepared by whom

 

4. Price - To set the ideal pricing scheme, you need to study your internal cost, know how much your customers are willing to buy and your competitors’ offerings.  Ask yourself the objective of your pricing strategies.  Is it about profit maximization? Or, is to about market share? Know how much your customers are willing to pay and the competitive environment.  Are you the only player in town? How lightly will your customer switch to your current or potential competitor?

  • Objectives
  • Flexibility
  • Level over product life cycle
  • Geographic terms
  • Discounts
  • Allowances

 

Source: Page 33, Basic Marketing A Global-Managerial Approach written by Stanley J. Shapiro, William D. Perreault and E. Jerome McCarthy

The Marketing Mix Analysis has the dignity to help you implement the right marketing strategies to satisfy and penetrate your customer group, which is phrased as target market.  As a marketer, our primary job is to constantly alter the sub-elements of each marketing mix to successfully compete with our competitors and offer the greatest value to our customers.