Bagrova, I.V.

Kupriy, A.

English

Bagrova, I. V.

eLibrary National Mining University

Kupriy A.I.V. Bagrova, research supervisorNational Mining UniversityCOMPETITIVE MARKETING: WORK THE MARKETING MIXThe concept of the marketing mix was developed by Neil Border at theHarvard Business School about 60 years ago. It contained eight parts coveringwhat he called "The elements of marketing: advertising, promotion, selling, price,packaging, product, servicing and distribution." It was used by some marketers, butin the main it was a teaching aid in the classroom. That is, you could prepare yourlectures using each of the elements.Then, in the mid-60s, along came Jerome McCarthy with his "4 Ps"--product,price, place and promotion. A breakthrough in alliteration as well as in making histext a bestseller. And, as a mnemonic device, it worked perfectly--took the mix outof the classrooms--and into industry, turning it into a useful strategic and tacticaltool. (Unless, of course, you thought everything in marketing had to start with a P.)The problem with the "4 Ps" is that it tends to obscure the vital elements ofeach "P." For example, advertising, point-of-purchase and promotions were allunder the Promotion "P."So much for history. With the eight elements of the classical marketing mix,one can develop a checklist and then grade the marketing effort on a 1-10 scale,either on its own or in relation to major competition. While much of it may besubjective, it does pinpoint areas for further analysis. It is especially valuable as adiscussion tool to resolve differing opinions among marketing team members.PricingToday, "price" has the additional component of "value" in the consumer'smind. Let's take a new look at "pricing" in this broader context of "added value."(Note: Without a truly exclusive product or benefit, we have long maintained thatthe only differentiating factors between brands are price and image, with all of thelatter's many characteristics. In many cases, price may actually create, or besynonymous with the image. Note the host of very expensive, and cult-like anti-aging products, leaning on the psychology of, "if it's that expensive, it mustwork!")Advertising/PromotionMcCarthy put these together under one "P," but we have always looked atthem separately. As it is now evident that advertising has also morphed intodistribution, it is more obvious that they are truly separate entities. Of course, agreat deal of advertising is straightforward. Television, print and radio are the bigthree for straight ads. But where do you put sponsorship of a rock concert? A tiewith a movie? Free tickets to Disneyland if you buy xxx? Cause marketing? Theseare all attempts to spread the reach of the budget and/or appeal to a specific targetmarket. Here is where advertising and promotion become one.The big change, of course, is electronic. It is not our place to suggest aninfomercial or HSN, or MTV or The Food Channel, or any of the other 100channels, but rather to recommend that as you view the mix, consider all of thealternatives.ServicingOriginally, servicing referred to prompt delivery, the handling of returns,store credits and the like. Question for today. Doesn't "service" to the trade belongto the "distribution" component? (Thank you, Wal-Mart and technology.) And nowthe service component must include the consumer. Obviously, the originalmarketing mix names may not be working in today's environment.Using the MixThere is really only one factor to analyze when using the mix to contrast yourmarketing efforts with those of your competitor--a differentiating advantage. Orbetter still, a meaningful and sustainable, differentiating advantage. Having thatedge is like having a gun in a knife fight.

COMPETITIVE MARKETING: WORK THE MARKETING MIX

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COMPETITIVE MARKETING: WORK THE MARKETING MIX

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