Marketing Thinking Challenge

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Chapter6-PowerPoint.pptx

Before beginning, visualize raking a pattern in the sand.

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M. E. Hill, Chapter 6

Thinking Through the Marketing Mix

The Marketing Mix Concept

Issues with the Marketing Mix/Offering Concept(s)

The Mixes

MT in Practice – Collaborative Marketing

The Marketing Offering Concept & a Possible Alternative

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M. E. Hill, Chapter 6

Okay. I’m ready to get things going. What’s the main question?

Alright. But, we’ll need to look behind the marketing concept and the emerging ones to understand their directional influence on strategy. Keep in mind, that a concept is a form of differentiation (a perspective) and as such, influences how you see and understand things. The role of a concept with thinking is to guide the thinking within the parameters of the concept (a conceptual box). While it may seem counter intuitive, in essence, the utility of concepts is to lessen the need for thinking – i.e., the need to think about fewer ideas, not more. From our thinking perspective, it’s important to recognize this about all concepts and to be prepared to challenge their applicability and limitations.

I guess I never of thought of concepts in that way.

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M. E. Hill, Chapter 6

M. E. Hill, Chapter 6

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How does the concept of a Marketing Mix (e.g., the 4Ps) affect marketing thinking and strategy?

M. E. Hill, Chapter 6

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What could be some of the problems you can think of that might be associated with the 4 Ps?

Problems with the 4 Ps

An internal perspective,

Assumes a passive view of consumers,

Doesn’t take into account consumer interaction,

Doesn’t consider relationships,

Doesn’t consider market opportunities and threats, and

Is viewed as an overly simplistic conceptual tool, narrowly restricting the marketer’s thinking in strategy development.

M. E. Hill, Chapter 6

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M. E. Hill, Chapter 6

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How many marketing mixes are there?

And, why do we have more than one marketing mix?

The Six Main Marketing Mix Areas

Consumers Marketing Mixes

Relationship Marketing Mixes

Services Marketing Mixes

Retailing Marketing Mixes

Industrial (B2B) Marketing Mixes

E-Commerce Marketing Mixes

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M. E. Hill, Chapter 6

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Figure : What is the marketer offering today?

Consumer Marketing Mixes

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(1) Product

Price

Promotion

(4) Performance

Penalty

Perception

Process

Place

(5) Value

Viability

Virtue

Variety

Volume

Capabilities

Customers

Competitors

Customer

(2) Product

Price

Promotion

Place

Political Power

Public Opinion

(3) Product

Price

Promotion

Place

Services

Staff

(6) Company

(7) Marketer

Employee

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Figure: Creating a Relationship

Relationship Marketing Mixes

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(1) Customer Needs

Costs

Communication

(4) Product

Price

Promotion

Place

Convenience

Physical Assets

Procedures

(5) Customization

(2) Product Extras

Reinforcing Promotions

Sales Force Connections

Specialized Distribution

Post-Purchase Communication

(3) Relationships

Interaction

Networks

Personalization

Personnel

Clairvoyance

Communication

Collaboration

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Figure: In the Restaurant

Services Marketing Mixes

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(1) Product

Price

(4) Differentiation via SPOT

Customer Contact

Unique Vision on Quality

Place

(5) Relevance

(6) Participants

Physical Evidence

Personnel

(2) Concept Mix

Cost Mix

Communication Mix

Channel Mix

(3) Participants

Physical Evidence

Process

Results

Relationships

Response

Promotion

Process

Actors

Audience

Setting

Performance

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Figure: In the Store

Retailing Marketing Mixes

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(1) Product Mix

Price Mix

(4) Store Location

Store Positioning

Store Image

Physical Environment

Place Mix

Retail Service

(5) Product Assortment

Target Market

Physical Distribution Mix

Presentation Mix

(2) Assortment

Price Policy

Promotion

Place

Shop Presentation

Personnel

Customer Costs

Communication

Convenience

Personnel Mix

Place Decision

Services & Store Atmospherics

Promotion Decision

Price Decision

Promotion Mix

(3) Customer Needs

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Figure: Manufacturing Process

B2B Marketing Mixes

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(1) Interaction w/customers

Interaction Strategies

Improvements in Customer Portfolios

Inter-Organizational - Personal Contacts

Network Mobilization

(2) Customer Service

Teamwork

Service Qualtiy

Excellence

Price: More Transparency

Promotion: More Control of the Customer Interaction

Place: Direct Contacts w/Customers

Organization Evolution

(3) Product : Co-Design & Production

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Figure: E-Commerce

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E-Commerce Marketing Mixes

(3) Potential Audience

Integration

Brand Migration

(6) Product: Inofrmation & innovation

Strategic Partnerships

Organization Structure

(4) Community Building

Original Event Programming

Convenience

Connectivity

Price: Discrimination, Cusomization & Transparency

Promotion: Action-Oriented, activities, & flexibility

Place: No Time & Location Restrictions & Direct Delivery

Place: Reach

Promotion: More Information & Direct Links

Price: Increased Competition

Market Support

(5) Product: New Options for Customized Information

(2) Web Planning: Mission & Goals

Access: Web Entry & Site Design

Implementation: Content & Site Promotion

Mgt. & Evaluation: Commercial & Mgt. Aspects

(1) Target Audience

Content

Timing & Updating

Findability

Unique Selling Propoosition

(7) Scope: Strategic Issues

Site: Operational Issues

Synergy: Organizational Issues

System: Technological Issues

(8) Product

Price

Promotion

Place

2Ps: Personalization & Privacy

2Cs: Customer Service & Community

3Ss: Site, Security & Sales Promotion

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What are the issues with the marketing mix concept?

And, how can we deal with the concept obstacle?

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In thinking about the issues with the mix concept, I found these keys which I think will unlock the original question.

It seems that the offering concept operationalized through a mix understanding has at least two difficulties for marketing thinking and strategy.

One is with the perspective originating from the marketers vantage point.

The second is also a perspective issue in that a mix understanding is really grounded in a thing like view of what is being offered (e.g., a mix). What do you think?

That’s very good. But, we’ll need to look at it in a bit more detail.

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What might the alternative view look like? Any ideas?

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I think if we look closer at the Collaborative Marketing idea we might be able to see what is emerging as the new, alternative view for marketing. What do you think?

You are getting much better at this. I agree.

Thinking Strategies to Maneuver Around the Concept Obstacle

The concept obstacle is a difficult one to completely avoid in that we tend to think conceptually. The following are some suggestions that might lessen its negative impact on your thinking:

 

Recognize that you are thinking conceptually and identify which concepts you are frequently utilizing.

Consider the limitations of the concepts you are using - think about their domains, scopes, directionalities, and the types of strategies that follow.

Look for other options, alternatives, or concepts. What do they suggest you consider?

Be creative with concepts, intermixing the best or most appropriate ideas adapting them to your situation as needed.

Be reflective with what worked and what didn’t. Sometimes what doesn’t work is more informative then what does. Similarly, problems are really opportunities to learn, to think more about situations and as such, are a resource for future strategies.

And, finally, be adaptable and flexible conceptually as things change in time.

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