Maximizing Your Marketing Mix Strategies for Target Market Success

MARKETING MIX Our company s marketing tools and how we pursue them to pursue target market

MARKETING MIX 4PS VS. 7PS Place Price Product Price Promotion 7P 4P Product Physical Evidence Promotion Place People Process Classic Consumer Goods Marketing Expanded Service Marketing

Features Payment Terms Quality PRODUCT Discounts PRICE Branding & packaging Allowances Services & warranties Pricing & Strategy MARKETING MIX PROMOTION Sales promotion Location & Transport PLACE Advertising Assortment & Inventory Public relations Market Coverage Direct marketing Channels

4 PS MARKETING MIX EXISTING IN PROGRESS PR OD UCT Discounts PR ICE Features Quality Payment terms Packaging Allowances PR O MO TIO N Inventory PLACE Public relations Direct marketing Transportation Market coverage Advertising

04 PRODUCT 7 P S MARKETING MIX Design Technology 01 PLACE Usefulness Convenience Warranties Retail Wholesale 05 PEOPLE Mail Order Place Internet Direct Sales Employees Management Physical Evidence 02 Price PRICE Culture Customer Service Personnel Skimming Penetration 06 PROCESS Psychological TARGET Cost-Plus Loss leader, etc. Especially relevant to MARKET service industries Promotion Process 03 PROMOTION How are services consumed? Performance & analytics Validation Special Offers Advertising 07 PHYSICAL EVIDENCE Endorsement User Trials People Product Leaflets/posters Interface Comfort Facilities Foot traffic Store lines

7PS MARKETING MIX PHYSICAL EVIDENCE PRODUCT PROMOTION PEOPLE PRICE PLACE PROCESS Design Special Offers Employees Interface Technology Advertising Management Comfort Usefulness Endorsement Culture Facilities Skimming Retail Especially relevant to Convenience User Trials Customer Service Penetration Wholesale service industries Warranties Leaflets/posters Personnel Psychological Mail Order How are services Cost-Plus Internet consumed? Loss leader, etc. Direct Sales Performance & analytics Validation

7 PS MARKETING MIX WORKSHEET PHYSICAL EVIDENCE PRODUCT PRICE PLACE PROMOTION PEOPLE PROCESS Personal gadget Influencer marketing $40-$60 Online retail Tech experts Exterior signage Sales funnel SUGGESTIONS Brand awareness Brand awareness Trackable metrics Usefulness Affordability Less overhead Target group JUSTIFICATIONS ADDITIONAL FACTORS TO CONSIDER Market competition Marketing promotions Available team resources Delivery logistics Other channels User feedback Cost to produce

8PS MARKETING MIX PERFORMANCE PRODUCT Includes design, packaging, usability, quality, features, colors and size options How well the service competes in the marketplace, including measuring the company s financial goals PERFORMANCE PRODUCT PROCESS PROCESS PRICE Depends on packing, discounts, timing, location, shipping and other offer elements PRICE Activities and actions involved in delivery of the product to the customer TARGET CLIENT PHYSICAL EVIDENCE PHYSICAL EVIDENCE PLACE Includes retail, wholesale, internet, phone and other multi-channel options PLACE Environment in which service occurs and customers and service personnel interact PROMOTION PROMOTION PROMOTION PEOPLE PEOPLE PROMOTION Advertising, communications, messaging and content to persuade the customers to buy Includes employees, customer service, and everyone with customer contact

Product Price Place Promotion Prioritize Public Relations Politics 15P S OF MARKETING The largest extension of the original model Partition Performance Positive Implemen- tation People Position Profit Probe Plan

PROMOTION MIX MASS OR CUSTOMIZED PAYMENT STRENGTHS WEAKNESSES High absolute costs Efficient means for reaching Advertising Difficult to receive good Mass Fees paid for space or time large numbers of people feedback Immediate feedback Extremely expensive per Very persuasive exposure Fees paid to salespeople as either Personal selling Customized salaries or commissions Can select audience Messages may differ between Can give complex information salespeople Often most credible source in Difficult to get media Public relations Mass No direct payment to media the consumer s mind cooperation Effective at changing behavior Easily abused Wide range of fees paid, Sales promotions in short run Can lead to promotion wars Mass depending on promotion selected Very Flexible Easily duplicated Messages quick to prepare Declining customer response Cost of communication through Direct marketing Facilitates relationship with Database management is Customized mail, telephone, or computer customers expensive

PRODUCT LEVELS Potential Product POTENTIAL PRODUCT This provides additional tangible and intangible features Augmented Product AUGMENTED PRODUCT Goes beyond physical product and sets it apart from competitors Expected Product EXPECTED PRODUCT This offers generic product plus other attributes consumer wants. Generic Product GENERIC PRODUCT This provides actual product with tangible qualities Core Product CORE PRODUCT This fulfills basic benefits consumers want

Penetration Pricing Product Line Pricing PRICING Skimming Pricing Bundle Pricing STRATEGIES Competition Pricing Psychological Pricing PREMIUM PRICING OPTIONAL PRICING COST PLUS PRICING COST BASED PRICING

PRICING STRATEGIES THE MOST COMMON APPROACHES 01 02 03 04 05 06 07 08 PENETRATION ECONOMY PROMOTIONAL COMPETITIVE VALUE-BASED COST-PLUS SKIMMING PREMIUM To enter the market Budget pricing of a Discounts, gifts, Price based on Price based on what Calculating prices Set a high price to Product is priced higher and gain market share product or a service coupons, buy-one- competitor prices customer believes based on costs and start and lower it as based on unique get-one-free offers the product is worth adding a markup market evolves branding strategy

PLACES / CHANNELS SELLING DIRECTLY TO CONSUMER Producer Consumer SELLING THROUGH RETAILER Producer Retailer Consumer SELLING THROUGH WHOLESALER Producer Wholesaler Retailer Consumer

MARKETING CHANNELS 500 450 400 350 300 250 200 150 100 50 0 YR 1 YR 2 YR 3 YR 4 YR 5 YR 6 YR 7 YR 8 Internet Television Outdoor Radio Newspaper Cinema

PHYSICAL EVIDENCE ELEMENTS FACILITY EXTERIOR FACILITY INTERIOR Exterior Design Interior Design 85% 60% Signage Equipment 75% 80% Parking Signage 82% 55% Landscape Layout 65% 85% Surrounding Environment Air quality/temperature 78% 70%

TARGET MARKETING PROCESS ATTRACT CONVERT CLOSE DELIGHT Strangers Visitors Leads Customers Promoters Blog Forms CRM Email Workflows Survey Keywords Social Publishing Call-to-action Landing Pages Smart Content Social Monitoring

MARKETING MIX - PROCESS Of customers use some type of 44% 50% Of customers no longer care if virtual assistant. 86% are they are interacting with humans satisfied with the experience or AI-enabled technologies their virtual assistants provide. Of customers, older than 55 believes 17% 27% intelligent interfaces. But for those Of customers who do not yet own between the ages of 18-34, 48% a digital assistant device are likely believe such new technologies can to purchase one in the next year change CX for the better.

MARKETING MIX - PEOPLE ACTIVATE EMPLOYEE VOICES: Company Voices YOY Change Percent who rate each source as very/extremely credible + 0 - +2 +2 +7 +6 +3 +2 +2 +2 +2 -3 0 65 63 61 53 53 52 48 47 44 36 35 Company Technical Expert Academic Expert A Person like yourself Regular Employee Successful Entrepreneur Financial Industry Analyst NGO CEO Board of Directors Journalist Government Official Representative

MARKETING MIX - PEOPLE What are the primary goals of our organization s personalization investments and initiatives? TOTAL Rank 1 Rank 2 Rank 3 14% 24% 20% 58% Build greater customer loyalty Target new customers with more effective digital campaigns increase customer satisfaction 21% 15% 16% 52% 25% 10% 7% 42% Increase order values (e.g. cross-sell/upsell) Reduce customer churn with more effective experiences increase conversion rates 13% 16% 7% 36% Reduce markets effort in personalization 33% 6% 14% 13% Increase relevancy of the branded experience; increase brand relevancy 32% 11% 9% 12%