The Marketing Book 5th Edition

Product

Brand

Quality

Design

Features

Variety

Packaging

Service

Support

Guarantees

Price

List price

Discounts

Allowances

Trade margins

Payment terms

Credit

Trade-in

Promotion

Sales force

Direct marketing

Sales promotion

Advertising

Public relations

Exhibitions

Internet

Place

Distribution channels

Coverage

Assortments

Locations

Inventories

Transport

Target

Market

CHAPTER 11

Managing the marketing mix

PETER DOYLE

Introduction

Managing the marketing mix is the central task
of marketing professionals. The marketing mix
is the set of marketing tools – often summ-
arized as the ‘four Ps’: the product, its price,
promotion and place – that the firm uses to
achieve its objectives in its target market
(McCarthy, 2001). The key elements in the
marketing mix are shown in Figure 11.1. The
design of the marketing mix normally forms
the core of all marketing courses and the
textbooks that support them.
The central assumption is that if marketing
professionals make and implement the right
decisions about the features of the product, its
price, and how it will be promoted and dis-
tributed, then the business will be successful.
Unfortunately, marketers have ignored the tau-
tological nature of this view. What is the ‘right’
decision when it comes to making these choices
concerning the marketing mix? Most marketing
professionals would answer that the right
marketing mix is the one that maximizes
customer satisfaction and results in the highest
sales or market share. But a moment’s reflection
reveals the fallacy of this approach. Customer
satisfaction and sales can always be increased
by offering more product features, lower prices
than competition, higher promotional budgets
and the immediate availability of the product,
of outstanding customer service and support.

But inadequate margins and excessive invest-

ment requirements would make this strategy a

quick route to bankruptcy.

Some writers have tried to get around this

problem by stating that the objective is to

devise a marketing mix that provides superior

customer satisfaction at a profitto the company.

Figure 11.1 The marketing mix