7Ps of Marketing & Its Application In Different Context

Prepared By: Sheik Shami Ullah Chowdhury (ID-2012121015) Raju Kumar Saha (ID-2012121012) Shaida Yesmin (ID-2012121008) Najeb Islam (ID-2011421006) HND Business Intake 1, 2012

Prepared For: Mr. Irfan Jahangir Faculty, Marketing School of Business BAC

Marketing & Market: According to the definition approved by AMA: Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. And Market simply means a set of actual & potential buyers.

Marketing Mix: Successful marketing depends on a number of key issues. These include: what a company is going to produce; how much it is going to charge; how it is going to deliver its product or services to its customer; and how it is going to inform its customer about the product or service. Traditionally these considerations were known as the 4Ps Product, Price, Place and Promotion. As marketing became a more sophisticated discipline People, Process and Physical Evidence were added. These considerations are now known as the 7Ps of marketing also referred to as the marketing mix.

 How products are developed to sustain competitive advantage: Competitive advantage is a term given to any factors that helps a business succeeds over its rivals. If a business has a better location than another rival business, that would be a competitive advantage. Another example of competitive advantage might be the company's products versus a rival's products or a company's total market share. Packaging: First your packaging can Identify any competitive differences in your product compared to others. It can identify a special SALES PRICE; it can identify a benefit or promise made to your potential buyers. Mostly, it can get the EYE of the consumer to notice that package before they reach for their usual brand of product. Packaging will create a good feeling about new products. One of the things which cannot miss in the packaging is the logo of the company. In addition, the weight can fluctuate among 50g, 100g, 150g, 210g, 250g and 500g. Then, some required information on package should be paid attention such as Serial number, ingredients, direction of usage, preservation, information about the brand, address and telephone no.. Example: RD Milk packaging is made by packed aseptically in 5 layers of packaging material to ensure the safety and quality of milk for human consumption and to lengthen its shelf life 3--6 months without refrigeration. Aseptic pouch is more cheap and durable and easy to handle for consumer compare to tetra pack. This pack concept for the 1st time introduced in Bangladesh in the milk industry and earned huge consumer acceptance by introducing this

pack concept ever in Bangladesh. Also its look attractive rather than any other competitive pack design like milk vita, Pran, Firm Fresh and Aarong etc.

How distribution is arranged to provide customer convenience: Distribution plays a very important role in enhancing the convenience of the customers therefore; distribution system of a company can appear as a major competency for the company. There are four elements of marketing mix including product, price, promotion and place. The distribution comes under the place category and the companies develop proper distribution system because accessibility of the customers enhances the potential sales for a company. For example, if Milk Vita Company does not outsource its distribution services and milk vita have their own giant distribution channels all over the country organized by cooperative society. Milk Vita has more than 20 milk tanker and each tanker carried 1000 ltr. Milk every morning around 5.30 am to 6.30 am and letter then van puller take 500 ltr. for each van. It is more convenient for the customers to get Milk vita from a nearby retailer as compared to getting it from a wholesaler. Therefore, distribution can become a major strength or a weakness for a company. Here is the chart of Milk vita distribution:

 How prices are set to reflect an organizations objective and market condition: Prices are always established with an organization's objectives or goals and market conditions in mind. Management decides the marketing strategy, sets the organizational goals and objectives, and decides on what product lines and services are worth pursuing. For this reason, prices are always subject to the character and beliefs of those who lead the organization. Prices are also established based on an organization's goals and the market conditions at any given time in the business's operations. Companies examine the market and look at the way certain products are performing. This is how they determine if a product is going to be included in their own product lines or services that they offer. This is also how they decide if they are going to continue to produce a particular product. Products that don't perform well are often discontinued. Sometimes, prices may be lowered, but this is difficult to do if production costs

are still high. A business that cannot see a profit or a sufficient profit on a particular product will simply discontinue it rather than lower the purchase price and lose money on production. Businesses also look at market conditions in terms of competitor performance and pricing in order to set their own success measures. This is why we will see many businesses producing similar products and pricing those products very similarly as well. Businesses that are well established with easily recognizable names are often the ones to set the standard prices within the market. Businesses that are not as recognizable and can't as easily gain new customers have to set lower prices in order to attract people to purchase their products. If businesses wish to increase sales and win customers from competitors, they have to produce good products and price their items lower than the competition. This is just one of the many ways in which prices are set by an organization's objectives and market conditions. How promotional activity is integrated to achieve marketing objectives: A promotional activity is integrated to achieve marketing objectives. From my view, Maggi Noodles is directing to its main objective that are leading the quality of product. The company always tries to create best quality products by using the high technologies in production although the company can afford high cost. It is quite clearly that the products of Maggi noodles in Bangladesh market usually are priced higher than the similar others. In fact, that Maggi noodles is known as the leading brand about dried fruit products also reflected its objective. To get such success, the promotional activities have been considered as a significant contribution and one of them is advertising such as product demonstration in front of the consumers, TVC, RDC (radio),

Billboard, newspaper, magazine etc. It is the fact that advertising is the quickest way to introduce new products to customers. It forms the awareness of customers about products by informing about maggi noodles product features and benefits. This will encourage the trial of customers. In addition, advertising also impacts the psychology of buyers and induces them to purchase products. As a result, sales and revenue will increase and the image of the company is widely promoted.

Additional Elements of the Extended Marketing Mix: There are three types of elements1. People 2. Process 3. Physical evidence

People:People are the stuff of a company. Some ways in which people add value to an experience, as part of the marketing mix - training, personal selling and customer service. 1. Training: on-the-job-assets you on the train or off-the-job-e.g. you are not working but you are learning. 2. Personal Selling: Internal & External. 3. Customer Service: face-to-face, over the telephone or using the Internet.

Process:Refers to the systems used to assist the organization in delivering the service. E.g. booking an international hotels room on the Internet -the process begins with you visiting an international hotel's website. You enter details of your arriving time and book them. Your booking reference arrives by e-mail. You arrive on time & refresh at your destination. This is all part of the marketing process.

Stage of the Process: Deliver value through all elements of the marketing mix. Process, physical evidence and people enhance services. Feedback can be taken and the mix can be altered. Customers are retained, and other serves or products are extended and marked to them.

Physical Evidence:It allows the consumer to make judgments on the organization. There are many examples of physical evidence, including some of the following: Packaging. Internet/web pages. Paperwork (such as invoices, tickets and dispatch notes). Brochures. Furnishings. Uniforms.

 Business cards. The building itself (such as prestigious offices or scenic headquarters). Mailboxes and many others.

Application of Marketing Mix In Two Different Segments: Now we are going to design marketing strategy and apply the marketing mix into two different segments of consumer market. In support of the FMCG (Fast moving consumer goods) segment we have chosen to provide tourism service to consumers on behalf of a Travel Company. And in favour of CDG (Consumer durable goods) segment we have selected architecture course intended for students and academics, which will be provide via university.

FMCG Segment Product Tourism service is the arrangement of tangible and intangible elements. The views of the location, the accommodation, facility & the entertainment at the destination all shape the tourism product. Here are the components of tours as a product: i. Core benefit Travelling. ii. Basic attributes Ticket & hotel reservation. iii. Expected product Customer friendliness & good food.

iv. v.

Augmented product Prompt services, comfortable trips, spectacular sights & music. Potential product Totally customized tour packages & top grade service at every stage.

Keeping these factors in mind, we are going to offer a range of tours which will include: i. ii. iii. iv. Tours for families with kids. Tours for senior citizens. Theme vacations (like beaches). Special packages (for individuals with unique needs).

Price Pricing in tourism is a compound process. Seasonality is the most important factor in pricing. Furthermore, price also depends on the Geographic location of the destination. Pricing will include the prices of all other services like Air travel, Bus, Railways, Hotels, etc. We will follow a Low Price Policy with a belief that the customer should not pay extra for excellent service and outstanding holidays. We will make it our rule to keep the prices as low as possible.

Place Tours as a product will be distributed as a travel. To meet our purpose, we can use the Internet repeatedly.

In addition, we can set up middle man who can be tour operators; they will buy tours in bulk and make them available to travel agents who will act as retailers. Promotion Advertising and sales promotion in Tourism is very efficient when supplemented by publicity and personal selling. Public or PR (Public Relation) plays an important role in tourism as well. To motivate and stimulate customers we must give printed ads on newspaper. In addition, we can tie up with leading publications for features on travel. People The travel agents, guides, staff, sales staff, etc of company are the people. Travel Company like Railways, Air, etc. is included in people as well. Additionally we must remember in people, local people and how they treat tourists are very crucial. Process The operation process of our company is given below in the form of chronological steps involved in the delivery of the tours as a product. Provision of travel information: The information concerning the travel will be provided at a suitable location where the prospective tourist seeks clarification about their projected tour.

Preparation of itineraries: The itineraries will be customized so that if the customer does not wish to visit a particular place that place can be replaced with a place the customer wants to visit. Liaison with providers of services: Before any form of travel is sold over to a customer we will enter into contracts with the providers of various services including transportation companies, hotel accommodation etc. Physical Evidence As the product travel in tourism is intangible. Thus, the tourist attractions must become tangible to customers with help of tangible items.

To meet this purpose we will provide: i. ii. iii. iv. v. Comfortable seats while travelling. Layout and design of the resort, natural service, etc. Route maps. Information regarding rules and regulations of the tourist spot. Printed matters such as brochures with the sign regarding the public utilities like toilets, telephone booth.

CDG Segment

Product Our product here is the programme of full architecture course which is of a minimum duration of 5 academic years or 10 semesters. Core benefit of the programme is a practical grasp at architectural knowledge & basic attributes of the programme is experienced lecturers for students. Keeping the above mentioned attributes intact we will be offering range of majors to the interested individuals.

Price A product is only worth what customers are prepared to pay for it. Architecture course is very expensive yet we must keep in mind that our customers here are mainly students without any source of income of their own. In order to provide suppleness we will use following methods: i. ii. Diverse payment agreements. Flexible tuition approaches.

Place In order to achieve customer satisfaction the premises must be convenient and comfortable.

We must provide premiums of: i. ii. iii. iv. Accommodation. Class. Computer facilities. Other residential requirements.

Promotion In order to gain attention and to give the customer a reason to choose our programme; we will be using appealing press advertising, publicity and electronic marketing methods containing consistent message about the course and university. In the mean time we must also communicate to our staff and fellow employee so that they can be knowledgeable and share expertise with their customers if needed.

People The stuff members who are going to provide our architectural programme are very closely related to the service itself, since many customers might be unable to separate the service from the staff members. Thus it is essential to make sure that all employees who have contact with customers are not only properly trained but also the right kind of people for the job. With these factors in mind we are going to arrange: i. ii. Open days Face to face tuition

Process Customers are not interested in the detail of how our business runs. Only thing matters to them that the system works. In order to keep our customers happy we must reduce their waiting time and in the mean time we should keep them informed as well. To meet these purposes following method can be pursued: i. ii. Hard copy of the prospectus on request. Use of direct mail for information.

Physical Evidence Physical evidence is very important in case of all service industry because a service cannot be experienced before delivered. In order to confirm the assumptions of customers and to establish prominence of the service; we can utilize the academic staff reputation and make use of on-line information toward creating awareness and credibility of architectural course.

Process of marketing products and services to business rather than consumers: 1) Promotional gift: Almost all the promotional gifts can be in the form of calendars, key chains, bags, stationeries, time pieces, and wrist watches etc which are sold like nothing in the retail shopping market. On these promotional gifts, the brands, logos or names of the companies and organizations will be written. This is a best way to adopt for promoting the range of any business corporate and other

organizations are opting for the promotional gifts to give their customers.

2) Promotional t-shirt: promoting t-shirt is a very successful idea for marketing products and services to a business man. These lines are used to promote messages or products in businesses and t-shirts are certainly one great appraise to reach people and convey the message. Perhaps it would be wise to say that corporate industries are usually found shopping in retail stores for imprinted apparels for purpose of advertising, promoting and to patronize clients.

3) Promotional marketing: promotional marketing is a very reliable marketing for a business man. One of the best promotional gift items is the calendar. The calendar is used all the days in a year. It can be hanged either in business place or at home. If it is small in size then it can also be carried away. Nowadays small pocket size calendar are also available that can be hanged in the front mirror of the car. One can use the companys logo and slogan in the calendar. Product name and picture can also be displayed if possible. It is used by most of the customer in an attempt to save money on purchase of promotional items.

4) Signs and banners: This is the simple way of advertising and promotional activity one can offer and invest in. this is why signs and banners retail business is an upcoming field. One will find many options and variations in the market you just need to look around while shopping.

Process of marketing products and services to consumer: The consumer market buys products for personal consumption. Individuals and families make up the consumer market. Consumer market buyers are as complex in their expectations as they are widely dispersed. TV adds: TV adds is one of the best ways of marketing in consumers. Because consumers are seeing TV and so that if your products are seen in TV then consumers are learning about your product, Logos: logo also plays very important process of marketing products to consumers. It helps that particular product and that company also. Cause when we see a logo then we can identify that is a those company, so that logos can help marketing products and services to consumer. Personal ads: personal ads means personally know or view that product. Personal ads helps consumer. Because if u see a lots of company contacting our phone and tell their promotional ads. Like airtel who calls their all customers and tell their promotional ads all the time. Product promotion: product promotion means, companies that product upgraded or new offers for the consumers. And it helps that particular product also consumers. Like banglalink always working on their product promoting, desh package, komolalebu package, rong package and etc. Product discount: product discount also improve marketing product to consumers. Like if we see Bata who often offers product discount, like 50% off in this month. So product discount also helps marketing product consumers.

How & Why International Marketing Differs From Domestic Marketing: Domestic Marketing Domestic marketing means selling within one's own country. Typically, this is the first area where companies seek to market their goods or services. Because the market, customer needs, tastes, geography, demographics, and distribution methods are likely familiar.

International Marketing When there are no boundaries for a company and it targets customers overseas or in another country and it is called international marketing

Benefiters and scopes of international marketing Scope: The scope of domestic marketing is limited and will eventually dry up; on the other hand international marketing has endless opportunities and scope. Example: when we sell 1 product in domestic then it only sell in this country, but when we sell this product in another country then it must be sell in those country. One country s peoples are limited but when it was extended in other country then it must be benefits for you. Benefits: As is obvious the benefits in domestic marketing are less than in international marketing. Example: if we sell one product in, another countries then it must be benefits on those product.

Sharing of technology: domestic marketing is limited in the use of technology whereas international marketing allows use and sharing of latest technologies Example: when we sell product in other country the both are sharing of technology. Like internet, email, facebook, fax, skype, etc. Political relations: domestic marketing has nothing to do with political relations whereas international marketing leads to improvement in political relations between two countries. Example: when marketing in internationally, then those countries politically relations are good.

Traits of domestic marketing: Scope: Our countries have lots of Phone Company like there are two companies are grameenphone and teletalk. Gp are international marketing company so they have lots of opportunity cause they are moving in lots of country but teletalk are domestic marketing company thats way they have not so far many opportunity. Benefits: grameen phone are an international marketing company so they have lots of benefits like they have lots of customers so they must profit too much and telelatk are domestic marketing company thats way they cant provide their facilities in other countries and so they cant profit so many. Sharing of technology: grameen phone have lots of sharing of technology like, 3g internet, fast call moving, network, etc. and teletalk company have not so many sharing of technonogy like, they have not 3g internet, call moving system too slow, poor network.

Political relation: grameen phone are international marketing company thats way there political relation are good but teletalk are domastic marketing company so that their political relation are not so good in other country.

References:
1. 2. 3. 4. 5. 6. 7. 8.

RD milk Project profile. Nestle Bangladesh Ltd. project profile on maggi noodles. Milk Vita distribution network process. http://www.cim.co.uk http://www.entrepreneur.com http://toostep.com http://www.scribd.com http://architectureideas.info