Classical Marketing Mix

Although the Marketing mix consisting of the 4P's (Price / Product / Placement / Promotion) still retains a core basis for developing a fundamental conceptual framework for marketing. In relation to modern marketing principles and especially service orientated economies and online trading the 4P's are starting to be considered less relevant and somewhat obsolete.

Originally conceived by James Culliton in 1948 and coined as the marketing mix by Neil Borden and eventually declassified as the 4's by Jerome McCarthy, this template has provided a foundation for marketing for the last 50 years plus.

The original marketing mix utilizes a mixture of the internal elements of an organization combined with the external factors such as the environment, supply and the demand.

Product: More than just a simple set of tangible features, physical products as well as services. Split into three different levels the product can refer to either; the core product, the actual product or the augmented product.

For more information on the three levels of a product feel free to visit: Marketingteacher.com

Price: Despite the increasing role of non pricing factors in the modern marketing process, price remains an important element in the marketing mix.

Placement: Producing a product or service and making it available to buyers requires building relationships not just with customers but also with key suppliers and resellers in the supply chain.

Promotion: In relation to the marketing mix, promotion represents the numerous aspects of marketing communication, informing customers about product benefits and carefully positioning these in customers minds. Utilizing a wide range of communication forms and mediums.

Since their original classification this simple template has helped marketers and companies gain a greater understanding of their target market and surrounding environment. However, the problem associated with the marketing mix is that in today's international economy there are several shortcoming associated with the marketing mix.

Service Marketing 7p's(Extended Marketing Mix)

In an world of increasing service based economics, interaction and trade. More and more consumers are engaging in a social exchange process whereby they form a greater connection with the product or service in question. Services are no longer a superficial part of economics but are increasingly becoming more mainstream within the market economics and trading.

One of the main shortcomings of the original marketing mix is that in general it does not take into consideration the human elements of transactions and subsequently falls short of providing a complete perspective of the market environment.

Therefore in order to understand the service elements of market orientation a broader perspective needs to be implemented. Therefore this is where the introduction of the service market comes into effect. Utilizing the additional 3p's of (people / process / physical environment) Service Marketing draws upon the principles of understanding the interaction involved between the customer and the suppler in order to understand how to improve services and how to build a greater rapport.This has subsequently lead to the increased development and understanding of new fields business such as Customer Relationship Management (CRM) Quality Management and Care.

People: For most services, people are a vital element of the marketing mix. The interaction between staff and customers can be the essential turning point between any decision making process.

Process: A service firm has no products, only interactive processes – Gronroos, 2001 cited from Adrian Palmer Principles of Service Marketing 4^th Edition. With services, a clear distinction cannot be made between marketing and operations management.

Physical Environment: Because of the intangible nature of a service this subsequently means that potential customers are unable to judge that service before it is consumed. An important element of marketing planning is therefore to reduce this level of risk by offering tangible evidence of the nature of the service. - cited from Adrian Palmer Principles of Service Marketing 4^th Edition.

With the incorporation of Web 2.0 and the greater interaction between users and companies via the internet and the virtual world, the marketing mix now can utilize the following additional 4 P's of Marketing.

Privacy: In accordance with the rules and regulations of data protection acts it is important especially in the online digital age. Privacy from unwanted spam, junk and telecommunications provides customers with a sense of anonymity and allows for more selective forms of marketing.

Personal Interest: As services are becoming more interactive, advertising and promotion are becoming more personalized with the incorporation of personal tastes. Personal interests are becoming an increasing important decision making process for customers. Personal interests can make the different between customer choosing a particular brand or product.

Personal (e.g. social) Networks: For instance Facebook, Myspace forum sites and social media. These sites generate a new form of marketing know as social media marketing.

Public Commentary: Important in the age of online trading and entrepreneurship. For instance online auction sites like E-Bay, Amazon have more credibility when providing market information that place a 2 directional form of communication (social exchange process)

Technomadic Age of Marketing New Ideas and Philosophies of Trade and Commerce

The concept of Nomadic Markets was developed out of the growing awareness that the statistically defined traditional markets were rapidly becoming more diverse and fragmented. In addition that the role of the customer is moving away from being a passive instrument in marketing towards a more engaging interactive approach.

Idris Mootee developed a “New 4Ps” model of Nomadic Marketing in 2001 to supplement the traditional marketing 4Ps of the marketing mix. They are Personalization, Participation, Peer-to-Peer and Predictive Modelling.

Personalization: With emerging social media and increasing development of Web 2.0 applications Through the combination of emerging technologies and the increasing form interaction between customers via the internet, there is a greater degree of customization of products and services.

Participation: This allows customers to participate in what a brand should stand for. What the direction of product should be and the style of advertisements, creating a free flow of information between customers and companies.

Peer to Peer: Now referred as social computing is becoming an increasing disruptive form of the traditional balance in marketing, as customers bases are being replaced by active customer communities. Rather than the companies imposing brand awareness and advertising it is increasingly engaging towards the customers as active instruments in the selling process.

Predictive Modeling: This refers to the neural network algorithms used in applied marketing problems. In essence to try to predict the best probability of an outcome on the basis of detection theory. Extensively developed in analytical customer relationship management helps plan out the expectations that a customer will take a particular action.

To find out more about the Technomadic Markets / Nomadic Markets feel free to visit:

Technomadic Markets

Summary of the 15 P's of Marketing

1.Product

2.Price

3.Place

4.Promotion

5.People

6.Process

7.Physical Evidence

8. Privacy

9.Personal Interest

10. Personal Social Networks

11. Public Commentary

12. Personalization

13. Participation

14. Peer to Peer

15. Predictive Modeling