Unit 1 Notes Ms Grade x
Unit 1 Notes Ms Grade x
CHAPTER:
CLASS: X SUBJECT: MARKETING & SALES
Q1.What is Marketing Mix?
Marketing mix represents a combination of the marketing methods, devices and tools – product, price,
promotion and place. These elements are inter-related because decision in one will usually affect actions
in the others.
Q2.Define Marketing Mix.
Marketing mix is the term used to describe the combination of the four inputs which constitute the core of
a company’s marketing system, the product, the price structure, the promotional activities and the
distribution system.”
Q3. Name the two broad categories of Marketing Mix.
Marketing mix is mainly of two types.
1). Product marketing mix – Comprised of Product, Price, Place and Promotions. This marketing mix is
mainly used in case of Tangible goods.
2). Service marketing mix – The service marketing mix comprises of Product, Price, Place and
Promotions and has three further variables included which are People, Physical evidence and Process.
Q4. What is the importance/ significance of marketing mix?
Determination of an effective marketing mix is an important decision for any manager of an
organization. The following benefits will accrue to the organization.
Marketing mix helps in pursuing consumer-oriented marketing as it serves as a direct link between the
organization and its customers thus focusing on the satisfaction of the customers.
It helps in increasing the sales and earning higher profits.
Marketing mix gives consideration to the various elements of marketing system. There is a balanced relation
between these elements. For instance, the price of a product depends upon is
features and branding, packaging etc. The different media required in promoting the product will depend upon
the product and its features. The channels of distribution will also depend upon the nature, utility etc of the
product.
Marketing mix facilitates meeting the requirement of different types of customers. Product design, pricing,
promotion and distribution will depend upon the needs and purchasing power of the customers.
Marketing mix signifies that its four elements are closely inter-related. Decisions or changes in one element
usually affect decisions or changes in the other.
Q5. Explain all the 4P’s and 3P’s(of Service Marketing Mix).
What is 7 P of Marketing:
The 7Ps model is a marketing model that modifies the 4Ps model. As Marketing mix 4P is becoming an old
trend, and nowadays, marketing business needs deep understanding of the rise in new technology and
concept. So, 3 more new P’s were added in the old 4Ps model to give a deep understanding of the concept of
the marketing mix.
5.People in Marketing Mix:
The company’s employees are important in marketing because they are the ones who deliver the service to
clients.
It is important to hire and train the right people to deliver superior service to the clients, whether they run a
support desk, customer service, copywriters, programmers…etc.
It is very important to find people who genuinely believe in the products or services that the particular
business creates, as there is a huge chance of giving their best performance.
Adding to it, the organisation should accept the honest feedback from the employees about the business and
should input their own thoughts and passions which can scale and grow the business.
6.Process in Marketing Mix:
We should always make sure that the business process is well structured and verified regularly to avoid
mistakes and minimize costs.
To maximise the profit, Its important to tighten up the enhancement process.
7. Physical Evidence in Marketing Mix:
In the service industries, there should be physical evidence that the service was delivered.
A concept of this is branding. For example, when you think of “fast food”, you think of KFC.
When you think of sports, the names Nike and Adidas come to mind.
1. Tangible products:
These are items with an actual physical presence such as a car, an electronic device,
and an item of clothing or a consumer good.
2. Intangible products: These are items that have no physical presence but can be felt indirectly. In
insurance policy is an example of this. Online items such as software, applications or even music and
video files are also intangible products.
3. Services: Services are also intangible products but they are the result of an economic activity that does not
result in ownership. It is a process that creates benefits for customers. Services depend highly on who is
performing them and remain difficult to reproduce exactly.
7. Pricing strategy is an important part of the marketing mix. There are a number of popular pricing
techniques to choose from:
1. Cost-plus pricing. A common way to make pricing decisions is to calculate how much it costs to do a particular job
or activity, and then add on a given percentage as a return for the job or activity. This is sometimes known as mark-up.
For example, a business may decide that to do a small repair job on a car, including use of premises ,infrastructure,
labor but excluding parts, etc, it will charge Rs 100. The business works on the basis of making a return of 25% on all
the work that it does. It therefore charges the customer Rs 125.
2. Hour-based pricing. Many small businesses are able to work out what their costs are on the basis of every hour of
work they do, e.g. for gardening, sign writing, photography, etc. The business owner is then able to charge a standard
rate per hour.
3. Penetration pricing. When a firm brings out a new product into a new or existing market, it may feel that it needs
to make quick sales in order to establish itself and to make it possible to produce larger quantities. It may therefore
start off by offering the product at a low price. When it sees that product has penetrated well in the market and market
penetration has been achieved, then he goes for price rise.
4. Skimming. When you bring out a new product, you may be able to start off by charging quite a high price. Some
customers may want to be the first to buy your product because of the prestige of being seen with it, or because they
want to be associated with your product before anyone else. Example mobile phones. Another example would be an
exclusive and unique dress could be sold initially at a particilar price to wealthier customers. The next season, the
price could be lowered making it accessible to a less wealthy group of customers. Later on, the dress could be mass
produced and made available at low prices to the mass market.
5. A premium price is an exclusive price charged for up market products.