Philip kotler pricing strategies pdf

Unsourced material may be challenged and removed. Thus the marketing mix refers to four broad levels of marketing decision, namely: product, price, philip kotler pricing strategies pdf, and place.

Marketing practice has been occurring for millennia, but marketing theory emerged in the early twentieth century. The contemporary marketing mix, or the 4 Ps, which has become the dominant framework for marketing management decisions, was first published in 1960. 4 Ps extended by process, people, and physical evidence. The origins of the 4 Ps can be traced to the late 1940s.

The first known mention of a mix has been attributed to a Professor of Marketing at Harvard University, Prof. Culliton describes marketers as ‘mixers of ingredients’. Some years later, Culliton’s colleague, Professor Neil Borden, published a retrospective article detailing the early history of the marketing mix in which he claims that he was inspired by Culliton’s idea of ‘mixers’, and credits himself with popularising the concept of the ‘marketing mix’. According to Borden’s account, he used the term, ‘marketing mix’ consistently from the late 1940s. Although the idea of marketers as ‘mixers of ingredients’ caught on, marketers could not reach any real consensus about what elements should be included in the mix until the 1960s. The 4 Ps, in its modern form, was first proposed in 1960 by E. Phillip Kotler, popularised this approach and helped spread the 4 Ps model.

The prospect of extending the marketing mix first took hold at the inaugural AMA Conference dedicated to Services Marketing in the early 1980s, and built on earlier theoretical works pointing to many important limitations of the 4 Ps model. Taken collectively, the papers presented at that conference indicate that service marketers were thinking about a revision to the general marketing mix based on an understanding that services were fundamentally different to products, and therefore required different tools and strategies. In 1981, Booms and Bitner proposed a model of 7 Ps, comprising the original 4 Ps extended by process, people and physical evidence, as being more applicable for services marketing. 8 Ps, comprising the 7 Ps above extended by ‘performance’. A product refers to an item that satisfies the consumer’s needs or wants. Price refers to the amount a customer pays for a product.

Price may also refer to the sacrifice consumers are prepared to make to acquire a product. Price is the only variable that has implications for revenue. Considers providing convenience for consumer. Product decisions include the “quality, features, benefits, style, design, branding, packaging, services, warranties, guarantees, life cycles, investments and returns”. Price refers to the total cost to customer to acquire the product, and may involve both monetary and psychological costs such as the time and effort expended in acquisition. Place refers either to the physical location where a business carries out business or the distribution channels used to reach markets. Place may refer to a retail outlet, but increasingly refers to virtual stores such as “a mail order catalogue, a telephone call centre or a website”.

Promotion elements include “advertising, public relations, direct selling and sales promotions. By the 1980s, a number of theorists were calling for an expanded and modified framework that would be more useful to service marketers. The prospect of expanding or modifying the marketing mix for services was a core discussion topic at the inaugural AMA Conference dedicated to Services Marketing in the early 1980s, and built on earlier theoretical works pointing to many important problems and limitations of the 4 Ps model. The environment in which service occurs. The space where customers and service personnel interact.

Artifacts that remind customers of a service performance. Human actors who participate in service delivery. Service personnel who represent the company’s values to customers. Interactions between employees and customers. The procedures, mechanisms and flow of activities by which service is delivered.

Personnel stand for the service. In the professional, financial or hospitality service industry, people are not producers, but rather the products themselves. When people are the product, they impact public perception of an organization as much as any tangible consumer goods. From a marketing management perspective, it is important to ensure that employees represent the company in alignment with broader messaging strategies. This is easier to ensure when people feel as though they have been treated fairly and earn wages sufficient to support their daily lives.

A process could be a sequential order of tasks that an employee undertakes as a part of their job. It can represent sequential steps taken by a number of various employees while attempting to complete a task. Some people are responsible for managing multiple processes at once. For example, a restaurant manager should monitor the performance of employees, ensuring that processes are followed.

scroll to top