Marketing Fundamentals
Module 3: The Marketing Mix (The 4 Ps)
Learning Objectives
- Explain each element of the marketing mix
- Understand how the 4 Ps work together
- Apply the framework to real products
- Recognize when to use the 7 Ps
Key Concepts
The 4 Ps Framework A systematic approach to marketing decisions—the recipe for your marketing strategy.
Product: What You're Selling
Product Levels:
- Core: Fundamental benefit (hotel = rest away from home)
- Actual: Tangible features, quality, brand, packaging
- Augmented: Additional services and benefits
Key Decisions:
- Features vs. benefits (features are characteristics; benefits are outcomes)
- Quality level (premium, standard, budget)
- Design (aesthetics, functionality, user experience)
- Branding (name, logo, identity)
- Product line and mix
Product Life Cycle:
- Introduction: Building awareness
- Growth: Expanding market share
- Maturity: Maintaining position
- Decline: Deciding next steps
Price: More Than a Number
Pricing Psychology:
- Perceived value: Price signals quality
- Price anchoring: First price influences evaluation
- Charm pricing: $19.99 vs. $20.00
- Price endings: .99 suggests value, .00 suggests quality
Pricing Strategies:
- Cost-based: Cost + markup
- Competition-based: Relative to competitors
- Value-based: Based on perceived worth
- Penetration: Low initial price, raise later
- Skimming: High initial price, lower over time
- Premium: Consistently high for exclusivity
- Freemium: Basic free, advanced paid
Place: Distribution
Channels:
- Direct: Sell directly to customers
- Indirect: Use intermediaries (wholesalers, retailers)
- Omnichannel: Seamless across multiple channels
Key Decisions:
- Channel length (how many intermediaries)
- Market coverage (intensive, selective, exclusive)
- Logistics (transportation, warehousing, inventory, fulfillment)
Promotion: Communicating Value
Promotion Mix:
- Advertising: Paid, non-personal communication
- Personal Selling: Direct salesperson interaction
- Sales Promotion: Short-term incentives (coupons, contests)
- Public Relations: Managing public perception
- Direct Marketing: Targeted individual communication
- Digital Marketing: Online channels
Integrated Marketing Communications: Coordinate all promotional tools for clear, consistent, compelling messages across channels.
The 7 Ps (for Services) Add three more considerations:
- People: Everyone delivering the service
- Process: Procedures and activity flow
- Physical Evidence: Tangible elements helping evaluation
Exercise
Analyze a product's marketing mix. Identify each P, evaluate consistency, and suggest one improvement with necessary adjustments to other Ps.