Understanding the Marketing Mix
Understanding the Marketing Mix
The marketing mix is probably the most famous marketing term. Its elements are the basic,
tactical components of a marketing plan. Also known as the Four P’s (Product, Place,
Pricing, Promotion).
The marketing mix is the set of controllable, tactical marketing tools that a company uses
to produce a desired response from its target market.
1. Product
The product, service, or program includes both tangible and intangible elements.
The product is why marketing exists, and the best products are created to solve consumers’
real-world problems.
Sub-Elements:
Product design
Product positioning
Product name and branding
Packaging and labeling
Breadth and depth of product Line
Level and type of customer service
Product warranty
New product development process
Product like cycle strategies
2. Price
The price is what the customer pays. The benefits of the product must be great enough to
warrant the price.
Price includes all costs associated with the product, service, or program.
Sub-Elements:
3. Place
The place is where the customer receives the product, service, or program. The place of
delivery.
The organization must determine how much the target market is willing to pay for
atmosphere and physical resources of place.
Sub-Elements:
Channel length
Channel breadth (exclusive, selective or intensive)
Franchising policies
Policies to ensure channel coordination and control
4. Promotion
It includes all forms of communication you use to communicate the benefits of your offering
to the target market(s).
The objective is to persuade the customer in such a way that he or she recognizes that your
offering is uniquely qualified to meet his or her needs.
Sub-Elements:
Advertising
Sales force policies
Direct marketing (mail, catalog)
Public relations
Price promotions – for the consumers and the channel
Trade shows and special events
The term promotion mix is commonly used to refer to the types of communication that are
available: advertising, public relations, personal selling, publicity, and sales promotion. Some
authors include direct marketing.
Word of mouth, though seldom discussed, is powerful promotion.
Review:
1. Product: What you’re selling, how you package it, your brand messaging.
2. Price: How much your product is, price compared to competitors, price positioning
and discounts.
3. Place: Where you sell, which channels you sell through, location-specific products.
4. Promotion: How much you promote your product, which marketing channels you
use, brand awareness campaigns.
I-stores
Independent stores
Online
Second-Hand Market
iPhone Promotion Strategy:
iPhone has created a unique position in the market, with its innumerous differentiating
factors.
Its ads never compete with the competitors but show how the world is changing with each of
iPhone for its tech savvy customers.
Social media, YouTube etc. are some platforms highly utilized by the iPhone, to talk about
uniqueness of features, also used by tech gurus for spec comparisons, etc.
Other being knowledgeable sales staff and point of sale advertisement.
Thus, with its unique value proposition, iPhone, it sets a standard in the product and has no
close competitor as of now, reason being a vast local customer base.
1. Product
Core Offering: Turkish Airlines provides a range of services including economy,
business, and first-class travel options. Its focus is on offering high-quality in-flight
experiences such as gourmet meals (in partnership with Do & Co), comfortable
seating, and extensive entertainment systems.
Fleet and Routes: It operates one of the largest networks globally, connecting more
countries than any other airline, which is one of its key selling points. They also
maintain a modern fleet of aircraft to ensure reliability and safety.
Services: Turkish Airlines emphasizes customer-centric services, including a strong
loyalty program (Miles&Smiles), VIP lounges, and seamless online booking services.
Their offerings cater to different traveler types – leisure, business, and transit
passengers – tailoring their services to meet varying needs.
2. Price
Competitive Pricing: Turkish Airlines uses a competitive pricing strategy to attract
different segments of the market, from budget-conscious travelers to luxury travelers.
It offers frequent discounts, promotional fares, and early bird deals to retain price-
sensitive customers.
Value-based Pricing: Turkish Airlines often employs value-based pricing, where the
high quality of its services, extensive route coverage, and superior customer
experience justify higher price points in comparison to budget airlines.
Flexible Pricing Models: The airline offers different fare classes (economy,
business) with a range of inclusions, allowing passengers to select based on budget
and preference. Seasonal and demand-based pricing strategies are also common.
3. Place (Distribution)
Global Network: Turkish Airlines connects over 300 destinations across Europe,
Asia, Africa, and the Americas, making it one of the largest carriers in terms of
international destinations.
Digital Channels: The airline places significant emphasis on its online presence,
providing easy access to booking through its official website, mobile app, and third-
party platforms like travel agencies and OTAs (Online Travel Agencies).
Airport Hubs: Turkish Airlines primarily operates out of İstanbul Airport, which serves
as a major transit hub for flights between Europe, Asia, and Africa. This hub-and-
spoke model helps the airline manage operations efficiently while capitalizing on
İstanbul’s geographic location.
4. Promotion
Advertising Campaigns: Turkish Airlines invests heavily in global advertising. Their
campaigns often feature renowned celebrities (e.g., Morgan Freeman) and highlight
their extensive route network, safety and luxurious services. The airline also sponsors
major global events and sports teams, such as a partnership with UEFA and NBA.
Public Relations: The airline actively engages in public relations and CSR
(Corporate Social Responsibility) initiatives to strengthen its brand image. During
crises (e.g., COVID-19), Turkish Airlines highlighted its contributions to repatriation
and cargo transport for essential goods.
Social Media & Digital Marketing: Turkish Airlines has a strong presence on social
media, using platforms like Instagram, Twitter and YouTube to interact with
customers, promote offers, and highlight unique travel experiences. They also run
personalized marketing campaigns through email and mobile notifications.
Loyalty Programs: Its Miles&Smiles loyalty program is a major promotional tool,
offering rewards, exclusive access to airport lounges, and partnerships with other
brands, which encourages customer retention.
2. Strategic Decision-Making
Understanding the Marketing Mix enables businesses to make informed and strategic
decisions about how to position their products or services. Decisions about pricing,
distribution channels, and promotional tactics must align with the overall marketing strategy
and goals, and the Marketing Mix serves as a guide for these choices.
3. Customer-Centric Focus
Each element of the Marketing Mix revolves around meeting customer needs and
preferences. By studying it, businesses learn to align their products, pricing, and distribution
with what the target market desires, thereby increasing customer satisfaction and loyalty. It
also helps in understanding market segmentation and targeting different customer groups
effectively.
4. Competitive Advantage
A well-crafted Marketing Mix helps businesses differentiate themselves from competitors. For
example, a company can offer unique products (Product), employ competitive pricing
strategies (Price), or use innovative distribution channels (Place). Studying the Marketing Mix
allows businesses to understand how to use these elements to create a competitive edge in
the market.
6. Optimization of Resources
The Marketing Mix helps companies allocate their resources efficiently. For example,
understanding the most effective promotion methods or the right pricing strategy ensures that
marketing budgets are used effectively. Studying the mix allows for better planning and
resource optimization across various marketing activities.
7. Consistency in Branding
The 4Ps help businesses maintain a consistent brand message across all marketing
activities. By ensuring that the product, price, place, and promotion are all aligned with the
company’s brand values and goals, businesses can build a stronger brand identity and
image in the minds of consumers.
Digital Marketing:
Digital marcom takes place online in new media spaces (rather than within traditional media,
such as televisions and radios, newspapers and magazines) and is separate from advertising
– although both may be used in combination. For example, a brand may advertise its
products and services through paid-for adverts on social media platforms such as Facebook
or Twitter, while also maintaining a business account on these platforms to engage with
customers, answer questions, and educate people about its business, products and services.
In addition to social media, other important areas of digital marketing include:
- Official websites. An organization’s website is essentially its digital window to the
world. It highlights important information about the business – its brand, its purpose
and its values – and frequently operates as an online shop for e-commerce.
- Email campaigns. Email marketing campaigns are a popular tool for both attracting
new customers and encouraging repeat customers. They can be used to remind
people about products and services, offer discounts and promotions, and share
helpful tips and information that are relevant to the target consumer.
- Virtual multimedia campaigns. Multimedia campaigns that take place online are a
growing area of digital marketing. They can be highly sophisticated, working with
different messaging and assets to target different people on different platforms, and
due to the instantaneous wealth of analytics and feedback metrics information
available to markets online, campaigns can be adjusted and tweaked on-to-go to
deliver the very best results. They can also be effective in creating viral reactions and
positive word-of-mouth responses.
- Content marketing. Content marketing is a strategic area of marcom. Brands
develop and distribute valuable and relevant content – such as blogs, videos and
webinars – to attract people within their target audience, and in the process, build
brand awareness and position themselves as an expert in the field.
Public relations:
Sales promotion:
Sales promotion is the area of marketing communications that aims to stimulate business
revenue through a promotional mix of providing incentives, short-term discounts, and other
promotional offers, displays, demonstrations, and sales presentations.
Branding:
An organization’s brand is its identity, and one of its most lasting marketing communication
tools. A brand image includes everything from its logo to its packaging, and sets a business
apart from its competition. A brand message should be consistent with the organization’s
purpose and persona.
Print:
Print marketing materials may be used in a number of different marketing communication
areas – such as advertising and personal selling – but they’re also an important area of
traditional marketing in their own right. Examples of print marketing include:
Sponsorships:
Sponsorships are an effective method for reaching a large audience. Sponsorship marketing
avenues can include sports games, concerts, or conferences, and typically involve the
business providing financial or other support for the event in return for advertising that can
build brand awareness and recognition.
Events:
Event marketing aims to create positive interactions and experiences for consumers at
events such as trade shows and exhibitions.
Cultural values and social norms impact the way people communicate, think and make
decisions. Being aware of how culture influences different groups of people can help
marketers develop content that resonates with them. Culture marketing can also help brands
form positive connections with people around the world.
Cultural differences have a long and rich history of ruining marketing campaigns!
“Traficante” and Italian mineral water found a great reception in Spain’s underworld. In
Spanish it translates as “drug dealer”.
Glocalization
Glocalization is a combination of the words “globalization” and “ localization”. The term
describes a product or service that is developed and distributed globally but is also adjusted
to accommodate the user or consumer in a local market.
Born-Global:
Although they are all working in different industries, these firms have in common:
They were relatively new and unestablished firms when they were engaged in international
business, but they achieved global expansions very quickly form their inception.
These firms are known as a “Born Global” company that can be defined as business
organizations engaging in international business from their inception (or near their
establishment) for seeking superior performance.
This is a new form of organization.
Internationalizing Marketing:
- Widen Your Talent Pool.
- Diversity.
- Market Insight.
- Brand Recognition.
- Improve Employer Brand.
- Inclusive Workplace Culture.
- Multiple Languages.
- Increased Profitability.
When a firm ventures abroad into international business, it leaves behind the familiar and
tested business practices. Everything about the forces that govern the market has to be
learned anew. The consumers, competition, suppliers, government, labor market, capital
market, and, above all, culture are unfamiliar.
How do MNCs are managed?
- Ethnocentric Mentality: The domestic market’s values are superior so the values of
other markets are ignored.
Advantage: Standardization, no research cost for local markets.
Disadvantage: Loss of customers.
- Polycentric Mentality: The business adapts their marketing strategy to the local
market, providing products tailored for that market.
Advantage: Increase in sales and local brand loyalty.
Disadvantage: Costly products, loss against local competition.
- Regiocentric Mentality: The production is not based on the home or host nation.
Advantage: Understanding of host markets.
Disadvantage: Risky, difficult to choose a correct strategy.
Communication at MNCs:
When employees can communicate easily throughout all departments, they can work
together more effectively to achieve common goals. This leads to a stronger team spirit and
better working relationships on an international level.
When the company can communicate easily with its customers, it can increase its profits.
Most multinationals have an internal communication policy which aims at internal branding of
products so that the employees understand what the brand stands for.
Cultural Intelligence:
Cultural intelligence, or cultural quotient (CQ), is the ability to relate to others and interact
effectively across cultures. Since large companies often operate on a global scale, marketing
departments adapt to the respective cultures of their new customers.
As with emotional intelligence, cultural intelligence requires placing the interests, feelings and
cultures of other people into context. This means learning that people in different cultures
have different socially acceptable responses, consumption habits and lifestyles.
Though it’s difficult to measure cultural intelligence, people with high CQs can understand
unique behaviors based on culture.
Cross-Cultural Marketing
Humor: What may be considered funny in one country, may be offensive in another. You
always want to pay attention to the level of humor that is accepted. Europe and the United
States of America enjoy humor in advertising however some Asian countries find it offensive.
Colors: Different colors represent different things in different countries. For example, blue is
considered a safe color in Europe and America. People in these countries see blue and think
calm, soothing and trustworthy. In Mexico, however, blue represents mourning. A company
doesn’t want to make mistake of using the wrong color in their advertising.
In an advertisement, the slogan, is the most important unit, that constitutes the most difficult
to translate as well. This swing between three positions: the seduction one, the technical
information and the adaptation to the cultural context.
The interpreter should consider the problem of loyalty to the concept of advertising, which is
very interesting.
In advertising, language it is not simply a tool, so if you see it as such, you are in danger of
losing cultural identity.
When the process of advertising communication takes place between senders and receivers
of different contexts, the meaning and persuasive goal of the advertisement are realized
through a different signifier, the target text, in a different context. Therefore, the first element
to study is the acceptability criteria, i.e. whether the text is recognizable and acceptable by
the target market receivers. To adjust to the acceptability norm, the translator needs to know
the target culture conventions for such advertisements and to produce the translation
according to these. Legal or ethical constraints are some of the contextual norms affecting
the production and the reception of ads, for instance, there are local regulations about the
use of foreign words in advertisements or about the recommended age to allow access to
websites promoting vitamins.
Customer Behavior:
Understanding customer behavior is crucial for businesses and marketers because:
1. Tailoring Products and Services: By understanding what customers want,
companies can develop products and services that meet specific needs and
preferences, leading to greater customer satisfaction and loyalty.
2. Target Marketing: Insight into customer behavior allows businesses to segment their
audience and create targeted marketing campaigns that resonate with specific
groups, maximizing the effectiveness of their marketing efforts.
3. Improving Customer Experience: Analyzing customer behavior helps businesses
enhance the user experience by identifying pain points and areas of improvement in
their customer journey, from browsing to purchase.
4. Predicting Trends: Understanding behavioral patterns can help companies
anticipate future trends, enabling them to stay ahead of competitors and innovate
proactively.
5. Optimizing Pricing Strategies: Knowledge of how consumer perceive value and
make purchasing decisions can assist in setting prices that attract buyers while
maintaining profitability.
6. Building Brand Loyalty: Companies can foster stronger emotional connections with
their customers by aligning their offerings and messaging with customers’ values,
behaviors, and preferences, leading to greater loyalty and retention.
7. Effective Communication: Businesses that understand customer behavior can craft
messages that appeal directly to the motivations, needs, and desires of their target
audience, increasing engagement and sales.
Social Factors:
Reference Groups Influence: Reference groups consist of people an individual looks to for
advice, approval, or comparison. These can be friends, colleagues, or social media groups.
Reference groups set norms for behavior and can influence preferences and opinions on
brands or products.
Example: A person might choose a smartphone brand that their peers are using because it’s
seen as trendy or superior within their social circle.
Social Class Influence: Social class, determined by factors such as income, education, and
occupation, can influence spending patterns and preferences. Different social classes have
varying levels of disposable income, lifestyle expectations, and brand preferences.
Example: Low-income level can lead customers to prefer the affordable products.
Social Norms Influence: Social norms are the accepted behaviors within a society or group.
Consumers often make purchasing decisions that align with what is deemed acceptable or
fashionable within their social groups.
Example: In a workplace where everyone uses laptops, an employee may feel compelled to
buy a laptop instead of a desktop to conform to the norm.
Culture and Subculture Influence: Culture represents shared values, beliefs, customs, and
behaviors of a group of people. Subcultures are smaller groups within a larger culture that
have their distinct characteristics. Culture shapes what consumers consider essential,
ethical, or desirable, influencing their buying behavior.
Example: In cultures that emphasize environmental sustainability, customers may prioritize
purchasing eco-friendly or sustainable products.
Family Influence: Family members, especially parents and close relatives, have a
substantial impact on a person’s buying decisions. For example, parents influence children’s
purchasing habits, and spouses often influence each other’s choices in products like
groceries, household items, and financial decisions.
Example: A consumer may buy a specific brand of detergent, because their family has been
using it for years.
Social Status and Roles Influence: People’s roles and status within society influence their
behavior. A person’s social role (e.g., as a student, professional, or parent) can impact what
they purchase, as different roles come with expectations about behavior and consumption
patterns.
Example: A high-ranking corporate executive may prefer luxury brands to reflect their
professional status, while a college student may opt for more budget-friendly brands.
Social Networks and Online Communities Influence: In today’s digital age, social
networks and online communities play a significant role in shaping consumer opinions.
Reviews, recommendations, and social media influencers often guide consumer choices by
sharing experiences or endorsements.
Example: A customer may be swayed to buy a skincare product after seeing positive
reviews from social media influencers or in an online beauty community.
Variety seeking buying behavior happens when individuals decide to buy a different product
in the same product line, such as a new brand of toothpaste, not because they were
dissatisfied with their initial purchase, but because they want to try something new. Other
examples may include buyers opting for a new brand of cologne or a new type of hair styling
product.
Focus Groups:
- What it measures: In-depth insights into customer opinions, feelings, and
motivations.
- How to use: Organize small groups of target customers to discuss a product, service,
or marketing campaign. Use open-ended questions to stimulate discussion.
- Example: Getting detailed feedback on a new product concept or understanding
emotional connections with a brand.
- Evaluation: Qualitative analysis of the responses to identify key themes, emotions,
and motivations driving behavior.
Global Terminology:
- Brand Equity
- Competitive Advantage
- Consumer Behavior
- Customer
- Customer Journey
- Customer Loyalty
- Customer Citizenship Behavior
- Market Research
- Market Segmentation
- Marketing Mix (4Ps)
- Positioning
- Value Proposition
Brand Equity:
Brand Equity (Marka Değeri) is the value a brand adds to a product or service beyond its
functional benefits, influenced by consumers’ perceptions, emotions, and experiences
associated with the brand.
High brand equity indicates strong customer loyalty, trust, and preference, which often
translates to competitive advantages, such as the ability to charge premium prices, greater
customer retention, and market resilience.
Customer Journey
The customer journey is the complete experience a customer has with a brand, starting
from the first point of contact and continuing through to the post-purchase stage.
It encompasses every interaction a customer has with a business, across various
touchpoints, channels, and phases, capturing the steps they take to move from awareness to
purchase and beyond.
Customer Loyalty
1. High-Quality Products/Services – Consistently meeting or exceeding expectations
builds trust and loyalty.
2. Excellent Customer Service – Positive experiences with customer support, returns,
or problem resolution increase customer satisfaction and loyalty.
3. Consistent Brand Experience – Customers appreciate a cohesive brand image,
tone, and experience across all touchpoints, from website to in-store experience.
4. Rewards Programs – Offering loyalty programs, discounts, or exclusive perks gives
customers an incentive to stay engaged with the brand.
5. Personalized Experiences – Tailoring communication and offerings to individual
preferences makes customers feel valued and understood.
6. Emotional Connection – Brands that resonate with customers’ values, lifestyle, or
identity often build stronger loyalty.
Market Research
Market research is the process of gathering, analyzing, and interpreting information about a
market, including insights on target customers, competitors, and overall industry trends.
It’s a critical component of business strategy, helping companies understand consumer
needs, identify market opportunities, and make informed decisions.
Market research can help businesses minimize risks, shape products development, improve
marketing effectiveness, and optimize customer satisfaction.
- Testing Product Concepts – Allows businesses to test new ideas, packaging, pricing,
or features with real customers.
- Improving Marketing Strategy – Enables more effective messaging and channel
selection to reach the right audience.
- Reducing Business Risks – Ensures that decisions are based on reliable data rather
than assumptions, minimizing potential losses.
Market Segmentation
Market segmentation (Pazar bölümleme) is the process of dividing a broad target market
into a smaller, more specific groups of consumers with shared characteristics, needs, or
behaviors.
This enables companies to tailor their marketing strategies, products, and services to meet
the unique needs of each segment more effectively.
By focusing on smaller, well-defined groups, businesses can optimize their resources,
enhance customer satisfaction, and increase the likelihood of conversion.
Positioning:
- Unique Selling Proposition (USP): Identifying what makes the product or brand
unique and valuable. This could be an innovative feature, a specific benefit, or a
brand characteristic that competitors lack.
- Target Audience: Defining and understanding the specific customer segment that
the product aims to serve. Effective positioning considers the needs, values, and
expectations of the target market.
- Competitor Analysis: Analyzing competitors’ strengths, weaknesses, and
positioning strategies to identify gaps or opportunities for differentiation.
- Brand Image and Values: Creating a consistent message, tone, and visual identity
that reflects the brand’s values and appeals to the desired perception in customers’
minds.
- Consistent Messaging: Reinforcing the position through all communication
channels, ensuring that the message remains clear, cohesive, and aligned across
advertising, social media, packaging, and customer service.
Value Proposition
A value proposition (değer önerisi) is a statement that clearly explains the unique benefits
or value a product or service offers to its customers and why it’s better than competing
options.
It articulates how a brand’s offerings solve a specific problem, improve a customer’s
situation, or meet their needs in a way that resonates with the target audience.
A strong value proposition differentiates a brand and provides a compelling reason for
customers to choose it over others.
Target Audience – Identifying who the value or proposition is intended for, with a focus on
the specific needs or pain points of that customer segment.
Product or Service Benefits – Outlining the main benefits the customer will gain by
choosing this product, such as time savings, improved productivity, or enhanced experience.
Unique Differentiations – Highlighting what sets the product or brand apart from
competitors, such as innovative features, lower costs, convenience, or superior quality.
Proof or Credibility – Offering evidence or reasons why the brand can deliver on its
promise, like testimonials, case studies, or awards, to build trust.