Marketable

Marketing mix

A marketing mix (alternatively known as product offering, product model, marketable compound, and, when already marketed, marketed compound; hereinafter, the Mix) is a model representing distinguishable components of any marketable. In other words, the Mix is a combination of components of a marketable that a business controls in order to influence consumers to purchase this marketable.

Components

Deliverable

deliverable, which can be divided in an unpackaged deliverable and packaging

Delivery

Product delivery. The action of delivering marketables either ordered or for sale. Delivery personnel may be incorporated and important for this delivery.

Charge

Product charge. A payment asked for a marketable. Not only its price, but also financing and acceptable payment methods may be incorporated in and important for this charge.

Presentation

Product presentation. The proffering or giving of a marketable to its potential consumers, particularly, through product manuals, official website, and public relations. Branding is the marketing practice of creating a name, symbol, or design that identifies and differentiates a marketable from other marketables.

Basic tools

Several business tools are used to capture the Mix in marketing products.

The 4Ps

1. Product refers to the deliverable that its seller offers for sale. This may include its features, benefits, style, design, branding, packaging, services, warranties, guarantees, life cycles, investments and returns.
2. 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 spent in acquisition. The product charge such as list pricing, discount pricing, special offer pricing, credit payment or credit terms".
3. Place refers either to the physical location where a business carries out business or the distribution channels used to reach markets. They include the direct or indirect channels to market, geographical distribution, territorial coverage, retail outlet, market location, catalogues, inventory, logistics, order fulfillment, virtual stores such as a call center and a website.
4. Promotion refers to the marketing communications mix used to make the offer known to potential customers and persuade them to investigate it further.

The 4Cs

If the 4Ps tool reflects the seller's side, the 4Cs tries to capture the buyer's one:

1. Consumer demands as opposed to the product. Consumers buy products to solve particular problems and satisfy particular needs.
2. Cost as opposed to the price, which is only a part of the total cost to satisfy customer's demand.
3. Convenience as opposed to the place. In the era of Internet, convenience takes into account the ease of buying the product, finding the product, finding information about the product, and several other factors.
4. Communication as opposed to the promotion. The buyers look for cooperation rather than manipulation.

The 4As

Although the 4Cs tool tries to capture the buyer's side, the 4As attempts to capture its drivers:

1. Acceptability is the extent to which the Mix exceeds customer expectations. This includes the core benefits, reliability, and other properties of the deliverable, as well as its psychological acceptability that resulted from its branding, packing, and positioning.
2. Affordability is the extent to which customers in the target market are able and willing to cover the product's costs. Affordability has two dimensions, which are (a) economic affordability or ability to pay and psychological affordability or willingness to pay.
3. Accessibility is the extent to which customers are able to readily acquire the deliverable. Accessibility has two dimensions, which are (a) availability and (b) convenience.
4. Awareness is the extent to which customers are informed regarding characteristics of the deliverable, persuaded to try it, and reminded to repurchase. Awareness has two dimensions, which are (a) brand awareness and (b) product knowledge.

The combination of acceptability and affordability determines the value proposition.

Special tools

The 7Ps

In addition to the 4P's, the following three P's might be added to describe the Mix of a service,

1. People (or personnel) refers to the personnel that stand for the service. In the professional, financial or hospitality service industry, people are not producers, but rather the products themselves.
2. Process refers to a set of activities that results in delivery of the product benefits including greetings and customer service actions.
3. Physical evidence refers to the tangibles or non-human elements of the service encounter, including equipment, furniture and facilities.

The 7Cs

t was expanded to the 7Cs Compass Model to provide a more complete picture of the nature of marketing in 1979. The 7Cs Compass Model is a framework of co-marketing (commensal marketing or Symbiotic marketing). Also the Co-creative marketing of a company and consumers are contained in the co-marketing. Co-marketing (collaborate marketing) is a marketing practice where two companies cooperate with separate distribution channels, sometimes including profit sharing. It is frequently confused with co-promotion. Also commensal (symbiotic) marketing is a marketing on which both corporation and a corporation, a corporation and a consumer, country and a country, human and nature can live.[38][39][40][41][42]

   The 7Cs Compass Model comprises:

(C1) Corporation – The core of 4 Cs is corporation (company and non profit organization). C-O-S (competitor, organization, stakeholder) within the corporation. The company has to think of compliance and accountability as important. The competition in the areas in which the company competes with other firms in its industry.

The 4 elements in the 7Cs Compass Model are:

A formal approach to this customer-focused marketing mix is known as 4 Cs (commodity, cost, channel, communication) in the 7 Cs Compass Model. The 4 Cs model provides a demand/customer centric version alternative to the well-known 4 Ps supply side model (product, price, place, promotion) of marketing management.[43]

   Product → Commodity
   Price → Cost
   Place	→ Channel
   Promotion → Communication

"P" category (narrow) "C" category (broad) "C" definition Product (C2) Commodity (Latin derivation: commodus=convenience, happiness) : Co-creation. The goods and services for consumers or citizens. Price (C3) Cost (Latin derivation: constare= It makes sacrifices) : There is not only producing cost and selling cost but purchasing cost and social cost. Place (C5) Channel (Latin derivation: canal) : marketing channels. Flow of goods. Promotion (C4) Communication (Latin derivation: communis=sharing of meaning) : marketing communication : Not only promotion but communication is important. Communications can include advertising, sales promotion, public relations, publicity, personal selling, corporate identity, internal communication, SNS, MIS.

The compass of consumers and circumstances (environment) are:

   (C6) Consumer – (Needle of compass to consumer)

   The factors related to consumers can be explained by the first character of four directions marked on the compass model. These can be remembered by the cardinal directions, hence the name compass model:

       N = Needs
       S = Security
       E = Education: (consumer education)
       W = Wants

   (C7) Circumstances – (Needle of compass to circumstances )

   In addition to the consumer, there are various uncontrollable external environmental factors encircling the companies. Here it can also be explained by the first character of the four directions marked on the compass model:

       N = National and International (Political, legal and ethical) environment
       S = Social and cultural
       E = Economic
       W = Weather

Related lectures

• Business Modeling Quarter.