The Marketing Mix of the 4P's and 3P's. A Compilation of Products and Services

TABLE OF CONTENTS

Cover

Introduction

Acknowledgment

About the Author

Table of Contents

Figure of Content

Chapter 1. Marketing
What is Marketing
Main Concepts of Marketing
Basic Marketing Plan
Key Points Summary
Review Questions
Discussion Questions

Chapter 2. What and how Products
Definition
Product Diversity
Product Marketing Mix
Key Points Summary
Review Questions
Discussion Questions

Chapter 3. What and how Services
Definition
Service Focus
Service Characteristics
Service Operation System & Service Delivery System
Service Marketing Mix
Key Points Summary
Review Questions
Discussion Questions

Chapter 4. Price Element
What is Price
Price Size
Pricing strategy
Key Points Summary
Review Questions
Discussion Questions

Chapter 5. Promotional Elements
Definition of Promotion
Promotion Element
Developing the Promotion Strategy
Key Points Summary
Review Questions
Discussion Questions

Chapter 6. Distribution
Definition
Distribution Strategy
Distributor
Key Points Summary
Review Questions
Discussion Questions

Chapter 7. People, Process, Physical Evidence
Customer Loyalty & Customer Satisfaction
Knowledge, Attitude and Motivation
Creating Loyalty
Process Components
Physical Evidence
Key Points Summary
Review Questions
Discussion Questions

Figure Content

Figure 1. Basic Elements of the Marketing Concept

Figure 2. Marketing Process

Figure 3. The marketing mix or the four Ps

Figure 4. Product Mix of Suzuki Magetan

Figure 5. Strategy Focus on Service Organization

Figure 6.Main Components of Service

Figure 7. Service Business as a System (Kotler, Marketing management : Analysis, Planning, Implementation, and Control.10th.ed, Millennium Ed, 2000)

Figure 8. The service Marketing System for a High Contact Service (Lovelock,C., & J.Wirtz, 2004)

Figure 9. Marketing Mix Expantion (Zeithaml, 1996)

Figure 10.The Service Product Mix in repaire Shop of Suzuki Magetan

Figure 11. Developing the Promotion Strategy

Figure 12. Pull Strategy

Figure 13. Push Strategy

Figure 14. Pull and Push Strategy

Introduction

Various fields of work cannot be separated from marketing, the government sector and the private sector carry out marketing to achieve goals. Marketing has always existed in human life. Technology benefits humans. Today's technology is getting more sophisticated. This makes it easier for companies to market their products and foster individual interest in becoming online marketers. Technology creates small business and self-employed startups.

Marketing is now growing rapidly. Students must be creative, active, experimenting in carrying out activities, especially entrepreneurship, so they need marketing knowledge to support these activities. This book contains materials for the marketing mix of products and services.

Chapter 1 deals with marketing. In this chapter, students are expected to understand what marketing is, be able to develop marketing concepts, and be able to draw up the steps of a marketing plan.

Chapter 2 discusses the what and how of the product. In this chapter, students are expected to be able to describe what a product is, product diversity, and create a product marketing mix.

Chapter 3 discusses the what and how of services. In this chapter, students are expected to understand what services are, service focus, service characteristics, and Service Operation System & Service Delivery System; able to create a sample service marketing mix.

Chapter 4 deals with the price element. In this chapter, it is expected to be able to mention price definitions, price indicators, be able to mention price strategies and make price strategies.

Chapter 5 discusses the elements of promotion. In this chapter, students are expected to understand what promotion is, be able to mention the components of promotion, be able to make stages of promotion strategies.

Chapter 6 deals with distribution. Students as prospective business practitioners are expected to understand what distribution is, be able to mention distribution strategies, and be able to explain what a distributor is.

Chapter 7 discusses the 3P’s. In this chapter, students as prospective business practitioners are expected to be able to explain customer loyalty & customer satisfaction; able to explain knowledge, attitude, motivation; able to mention how to create loyalty; able to understand what a process is; able to explain physical evidence.

The author will always develop this book so that students can become business practitioners who have critical and advanced analysis and small business owners can develop businesses. The author hopes that this book will provide knowledge and inspiration for students, small business owners, and self-employed beginners.

Acknowledgments

I thank to God, to my beloved family, especially Raya Suko and Lea Suko, to all creative students at the Communication Studies Program, Universitas Merdeka Madiun, to employees of Suzuki Magetan Group, to small business owners and self-employed wherever you are, and to Grin Verlag, thank you for supporting my book.

May be useful.

About the Author

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Veny Ari Sejati

- is entrepreneur of Suzuki Magetan Group since 2008, and lecturer in the Communication Department, Universitas Merdeka Madiun, East Java, Indonesia. She has been teaching Marketing Communication at least 10 years. Veny has Magister’s degree in Management Communication from Universitas Sebelas Maret Surakarta (UNS). She is working on research about marketing activities in digital era. She needs suggestion for improvement in her book by contact: sejativeny78@gmail.com or +62811302890.

CHAPTER 1. MARKETING

Purpose of this chapter:

Students as prospective business practitioners: Understand what marketing is, be able to develop marketing concepts, and be able to draw up the steps of a marketing plan.

A. What is Marketing?

Many people define marketing informally as selling, in other words selling means marketing. From the old point of view, marketing is a way of designing products, testing them, creating them, branding them, packaging them, pricing them, and promoting them (Moriarty, Sandra. Mithcell. Nancy. Wells, William, 2011). While the AMA (The American Marketing Association) in Morissan defines marketing as follows: the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives (Morissan, 2010). In this definition, the AMA focuses on the consumer. The purpose of traditional marketing in general is to sell products in the form of products and services / ideas. The process a business uses to satisfy consumer needs and wants by providing goods and services is called marketing (Moriarty, Mitchell, Wells, Crowford, Brennan, Spence-Stone, 2015). Marketing is an overall system of business activities aimed at planning, pricing, promoting and distributing goods and services that can satisfy the needs of both existing and potential buyers.

Asia has been and is undergoing three marketing eras (Kertajaya, 2008), before 1998 it was called pseudo marketing. In that era, many people learned to market but not many people applied it. Many monopolies in various business sectors. The company develops because it is close to the government, so competence is not needed. What is needed is a connection. After the Asian crisis, many companies realized that if they wanted to survive, they had to be more competitive. Marketing books are starting to reopen, marketing concepts are starting to be applied, entrepreneurs are doing refocusing so they can concentrate on running a business. market analysis is carried out; competition begins to take place fairly. After 1998, it was called the era of legacy marketing. After 2008, ten years after the Asian crisis, called the era of new wave marketing. In that era, humans were the main focus, supported and mediated by technology.

Current marketing developments include relationship marketing involving all company stakeholders, namely employees, distributors, distribution staff, consumers, agencies, investors, government agents, media, and community members; permission marketing, namely inviting potential consumers to become the target market in order to get marketing communications, for example Suzuki will launch a new product Type GSX series, Suzuki invites consumers to try to ride the motorcycle; experience marketing, namely involving consumers personally and actively so that consumers feel they have a strong bond with the brand; guerilla marketing has the goal of creating buzz or talk about a brand. The message is posted in a public place; Digital marketing is marketing using the internet to conduct e-business. The internet, in connection with other marketing activities, is a cost efficient and interesting alternative for offline market research (Weimann, 2001). Marketers are now marketing motorcycles and spare parts throughout Indonesia using digital media; viral marketing is where consumers create buzz about a product or brand via email or blogs, mobile marketing is using wireless communication to reach people who are on the move. Suzuki Magetan dealers also use Bluetooth to market Suzuki motorcycle products in the city of Magetan, both in public and in private; social network marketing is using social networks such as facebook.com to inform the product.

B. Main Concepts of Marketing

The marketing concept is a philosophy that companies use to achieve success, which is called the marketing concept. The marketing concept is a business philosophy which states that economic satisfaction is an economic and social requirement for the survival of the company (Dharmmesta.Basu S & Hani Handoko, 2016). Marketing concept aims to provide satisfaction to the wants and needs of consumers or consumer oriented.

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Figure 1. Basic Elements of the Marketing Concept

The marketing concept contains two stages:

a. Conduct research to determine consumer needs and wants
b. Develop, create, market, and provide product services that can meet these wants and needs, namely providing solutions to problems faced by consumers.

Marketing concepts include exchange, differentiation and competitive advantage, added value, and branding. Marketing helps create an exchange of products for something else. For this reason, for an exchange to exist, there must be two or more people who have something to exchange, the desire and ability to give something to others, and a way to communicate with each other. Competitive advantage arises when there is a brand that is different and superior to competitors. Honda has an advantage over other motorcycle brands. For most of the villagers, they refer to motorcycles as Honda, while urban people refer to motorcycles according to the brand or type. This concept in marketing is called product differentiation. Product differentiation can be done through price, design, performance, distribution, and brand image. Marketing and advertising activities can add value to the product, so that the product is more valuable, useful, and attractive to consumers. Branding or brand image or special meaning is the result of communication and consumer personal experience of a product. Branding is a way for marketers to create a special meaning for a product. Branding is an important contributor to product differentiation and value added. Branding makes products look different and unique, can transform products by creating an emotional connection between consumers and people's favorite brands.

C. Basic Marketing Plan

The process that must be carried out by marketers in selecting or determining the market is called the target marketing process, which includes four steps, namely: identifying markets or consumers whose needs have not been met, determining market segmentation, selecting markets to be targeted, determining product positioning through marketing strategies (Morissan M. 2010).

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Figure 2. Marketing Process

A marketing plan or draft is a document that contains strategies for using marketing elements to achieve marketing objectives. The steps in the marketing process (Moriarty, Sandra. Mithcell. Nancy. Wells, William, 2011) are:

Step 1:
a. Researching consumer markets and competitive markets. The goal is to know the market so that it is used to make the right decisions. Information was collected from primary research and secondary research. The information comes from consumers.
b. Develop a SWOT analysis (strengths, weaknesses, opportunities, threats). SWOT helps managers gain important insights from data.

Step 2:

Define marketing objectives. Marketing objectives are generally quantitative. For example, increasing the number of customers, increasing profits, and so on. Marketing objectives can be short term and long term. Examples of marketing objectives can be seen in the marketing and communication plan for Bournemouth (Paul, 2013), short term: establish new market and gain large part (about 10% of the market share within one year). Long terms: increase brand awareness by 8% within 5 years.

Step 3:

a. Assessing consumer needs and wants for a product
b. Segment the market according to groups that may respond. The target market is a certain group of consumers who are considered potential consumers for the company's products, while segmentation is to identify specific groups in the market whose wants and needs can be met by the company's products. Demographic segmentation is differentiating audiences based on demographic characteristics, such as age, gender, education, occupation, etc. Geographic segmentation is to distinguish audiences based on the area of ​​residence. Geodemographic segmentation in the sense that audiences living in a certain area are believed to have similar demographic characteristics. Psychographic segmentation is segmentation based on human lifestyle and personality.
c. Target a specific market. The target market is choosing one or several consumer segments that will be the focus of marketing and promotional activities (Morissan, 2010).

Step 4:

Differentiating and positioning products in the midst of competition. Positioning is the way consumers perceive and compare competing brands, the way people perceive one brand compared to other brands in the same category. According to Davidson & Rogers (2006) positioning is a vital element of a communication plan (Paul, 2013). Positioning is a communication strategy related to how the audience places a product, brand, or company in their brains, in their imagination, so that audiences have certain judgments (Morissan, 2010).

Step 5:

Developing a marketing mix strategy: selecting product designs and criteria for performance, pricing, distribution, and marketing communications.

Step 6:

Evaluate strategy effectiveness. The process that must be carried out by marketers in selecting or determining the market is called the target marketing process, which includes four steps, namely: identifying markets or consumers whose needs have not been met, determining market segmentation, selecting markets to be targeted, determining product positioning through marketing strategies (Morissan M. ., 2010)

Key Points Summary

1. What is marketing? Marketing is an overall system of business activities aimed at planning, pricing, promoting and distributing goods and services that can satisfy the needs of both existing and potential buyers.
2. What is the Marketing Concept? Marketing concepts include exchange, differentiation and competitive advantage, added value, and branding.
3. What is the marketing plan? A marketing plan is a document that contains a strategy for using marketing elements to achieve marketing objectives. the steps are: (1). Research the consumer market and competitive market. Develop a SWOT analysis (strengths, weaknesses, opportunities, threats). (2). Define marketing objectives. (3). Assessing consumer needs and wants for a product. Segment the market according to groups that are likely to respond. Target a specific market. (4). Differentiating and positioning products in the midst of competition. (5). Develop a marketing mix strategy. (6). Evaluate strategy effectiveness.

Review Questions

1. Explain what is marketing?
2. Explain a series of marketing concepts!
3. Explain how the steps of a basic marketing plan!

Discussion Questions

1. Make a marketing plan for your food products.
2. Create a series of marketing concepts for your pet shop.
3. Ten minutes’ debate: a student thinks that the marketing plan is not important. If you are a marketer of automotive products, what is your view on a marketing plan that supports the achievement of marketing objectives? what do you say to support or oppose the argument of a fellow student? Create a small team, have a 10-minute discussion. Each student submits an opinion in 1 minute. Each team must present a new and different argument from the other teams. Then, all students will choose which group has a stronger argument.

CHAPTER 2. WHAT AND HOW THE PRODUCT

Purpose of this chapter:

Students as prospective business practitioners: Able to describe what a product is, product diversity, and able to create a product marketing mix

A. Definition

According to Kotler & Armstrong, a product is anything that can be offered to the market and get attention, purchase, use, or consumption that can satisfy a want or need (Indrasari, 2019). Conceptually, product is a subjective understanding of the producer on something that can be offered as an effort to achieve organizational goals through meeting consumer needs and activities, in accordance with the competence and capacity of the organization and the purchasing power of the market. Product according to Stanton (2006) is a collection of tangible and intangible attributes, including packaging, color, price, quality, and brand plus services and sales reputation.

Consumers buy products or services because they want to satisfy their needs and wants. Needs and desires arise due to social, economic, psychological, physical development, religious factors, etc. Products refer to general goods that are exchanged for consumers. The central point of the marketing mix is ​​the product. It includes features like size, shape, design, quality, brand name, packaging and service. A fundamental issue in international marketing concerns the degree to which the product should be adapted across national boundaries. One way is providing a standardized product to all markets (Haberer, 2008)

According to their intended use, products are classified into industrial products and consumer products. Industrial products are products or services purchased by companies to be processed into other products. Products purchased by producers or companies are used as raw materials for the production process so as to produce other goods, for example: chicken nuggets companies buy chicken as product ingredients, buy plastic for packaging. Consumable products are products that are purchased for direct consumption, or are no longer processed but are used alone. Products are used by final consumers and are not resold. Consumer products include: daily necessities, grocery products, specialty products. Students are a consumer market for companies that sell sports shoes, computers, school bags.

Based on the rate of consumption and tangibility, consumption products are classified as follows (Dharmmesta.Basu S & Hani Handoko, 2016):

a. Non-durable goods, namely tangible products that normally can only be used once or a few times, for example: food, soap, etc.
b. Durable goods, namely tangible products that can normally be used many times, for example: clothes, sandals, etc
c. Services, namely activities, uses, or satisfactions offered for sale, for example: haircuts, repairs, consulting services, car rental services, etc.

The classification of consumption products based on the buying habits of consumers:

a. Convenience goods, namely consumer products that are easy to use, purchased repeatedly, can be purchased at any time, easy to buy anywhere, for example: soap, newspapers, etc.
b. Shopping goods, namely consumer products that are selected and purchased by consumers after comparing on the basis of quality, price, model, and suitability, for example: home furnishings, clothing, etc.
c. Specialty goods, namely consumer products that have distinctive characteristics, can only be purchased at certain places, consumers are willing to take pains in purchasing, for example: art products, photography equipment, etc.

B. Product Diversity

Product diversity is related to consumer behavior in purchasing decisions. Product diversity is a collection of all products and goods that a particular seller offers to buyers. Product diversity according to Asep in Jenni Anggraeni (2016), et al, is a condition created from the availability of goods in very varied quantities and types, giving rise to many choices in the consumer shopping process (Indrasari, 2019). Hierarchically, each product is related to other products. The seven hierarchies are (Kotler, Marketing insight A to Z: 80 Concepts Every Manager Needs to Know, 2003):

a. Group needs. The core needs that underlie the existence of a particular group
b. Product group. All product classes that can effectively meet core needs
c. Product class. A collection of products within a group that is considered to have a certain functional bond
d. Product line. A group of products in a product class that are closely related because of the same function or because they are sold to an existing consumer group or because they are marketed through the same distribution channel, or because they are on the same scale.
e. Product type, is an item or thing that is in a product line and has a certain form from many other forms
f. Brand, is the name associated with the goods in the product line, and is used to identify the source or characteristics of the goods
g. Type of product, is something special in a brand or product line that can be distinguished by size, price, appearance, or other attributes.

The indicators of product diversity according to Benson are: various product sizes, various types of products, various product materials, diverse product designs, diverse product quality (Hendro.Y, Syamswana, 2017). Indicators of product diversity according to Kotler and Keller enable companies to expand their business. These indicators: companies can add new product lines, companies can extend each product line, companies can add more product variants to each product, companies can maintain a stronger product line consistency.

C. Product Marketing Mix

Marketers use four main elements of the marketing mix to achieve their goals, namely product, price, place (distribution), and promotion. These four tools are collectively referred to as the marketing mix or the four Ps. The tools available to marketing include the product (the way it is designed and packaged, and how it performs), its price, and the means used to distribute or deliver the product to a place where the customer can buy it (Moriarty, Mitchell, Wells, Crowford, Brennan, Spence-Stone, 2015)

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Figure 3. The marketing mix or the four Ps

The product mix is ​​product, price, distribution, and communication. The product is the object and reason why there is a marketing effort. The product includes design and development, branding, packaging, and maintenance. Products must always be innovative if consumers do not want to be left behind. “Brands astutely follow consumer trends…” (Hischer, 2013). Yamaha N-Max received an extraordinary response from the public. Duck and automatic motorcycle models with engine capacities below 125 make people bored and leave the model. Suzuki FU-150 / Raider is in demand by young men and women because of the innovation of models and engines.

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Figure 4. Product Mix of Suzuki Magetan

Combining sales of spare-part and repair sales makes the store attractive. Both complement each other and do not compete, can grow cross selling. This creates a one stop shop, there are supporting sales such as shop fit. Thus the store can be managed efficiently where the use of public facilities, shops, and stores can be managed by the same management.

Key Points Summary

1. What is a product? A product is anything that can be offered to a market for attention, purchase, use, or consumption that might satisfy a want or need.
2. Explain what is product diversity? Product diversity is a condition created by the availability of goods in very varied quantities and types, giving rise to many choices in the consumer shopping process.
3. State the product marketing mix. The product marketing mix is ​​4Ps, product, price, place (distribution), and promotion

Review Questions

1. Explain what is a product?
2. Describe product diversity.
3. Mention the product marketing mix.

Discussion Questions

1. Create a marketing mix in your bookstore.
2. If you are a new car marketer, describe the marketing mix that you think is effective.
3. Ten minutes debate: a student thinks that the product marketing mix is ​​not important. If you are a marketing in an electronic company, what is your view about the importance of the marketing mix to support the achievement of your marketing goals? what do you say to support or oppose the argument of a fellow student? Create a small team, have a 10 minute discussion. Each student submits an opinion in 1 minute. Each team must present a new and different argument from the other teams. Then, all students will choose which group has a stronger argument.

CHAPTER 3. WHAT AND HOW SERVICES?

Purpose of this chapter:

Students as prospective business practitioners: Understand and mention examples of what services are, service focus, service characteristics, and Service Operation System & Service Delivery System; able to create a service marketing mix.

A. Definition

Organizations providing music performance services by selling tickets in exchange, is one example of a service. As explained above, services are activities, uses, or satisfactions offered for sale. Service is any activity or benefit provided by one party to another which is essentially intangible and does not result in the ownership of anything and its production may or may not be associated with a physical product.

Services are intangible products that provide benefits, meet consumer needs, and can satisfy consumers. According to Kotler in Hendro and Syamswana (2017) the definition of service is any action or activity that can be offered by a party to another party, which is essentially intangible and cannot result in any ownership (Indrasari, 2019). Services provided by producers or companies that have good quality will result in high satisfaction and repeat purchases.

Services can be categorized into three forms, namely: verbal services, carried out by the fields tasked with providing written explanations or service descriptions, for example: public relations; written service, a form of service that is considered efficient due to several factors, such as long distance, so it is cost-effective. This service must pay attention to the speed factor in problem processing and problem solving; service with action, skill and skill factors will determine the results of actions or work.

B. Service Focus

Service businesses must still determine the choice of strategy. Companies must focus on serving customers well. Focus in the sense of providing a narrow service mix for certain market segments, namely groups that have similar characteristics, needs, buying behavior or consumption patterns. Focus (Widjaja, 2009) includes:

a. Market focus, illustrating the size of the market or the number of markets served by the company.
b. Service focus, illustrating the extent of services offered by the company

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Figure 5 . Strategy Focus on Service Organization

C. Service characteristics

Service characteristics include:

1. Intangibility: intangible and accepted by consumers as a performance that can only be felt. Although intangible, in an effort to provide fulfillment of consumer needs and satisfaction, services are packaged in four main components (Rust, R.T., A.J. Zahorik, & Valerie A. Zeithami, 1996).

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Figure 6.main components of service

a. Service delivery, which refers to the actual events experienced by consumers when buying services.
b. Service Product, is a tangible result and embodiment of the working paln. Guaranteeing sustained high-quality service delivery is the responsibility of management on an ongoing basis, including continuous training, motivating and monitoring activities to maintain the level of customer satisfaction. Service products describe the core performance purchased by consumers with the expectation that the outcome will be in accordance with their wishes, including experience and transfer in interactions with physical goods and people from service providers.
c. Service environment, is a physical backdrop that is around the delivery of messages and is often called the servicescape. Service environments often show segmentation classes and tags for company positioning. There are three distinctive elements related to the service environment: ambient conditions, the spatial layout, the signs & symbols.

2. Inseparability: inseparable between providers and consumers, consumer involvement in the service delivery process in the production process.
3. Variability: service performance is very difficult to control and is very relative in nature both from the provider's output and the perception of consumer acceptance.
4. Perishability: one of the limitations of the service, considering the process and use are carried out at the same time and do not allow storage (Czinkota, M.R., Ronkainen, M.H. Moffet., & E.O. Moynihan, 2001).
5. Lack of ownership: services do not allow consumers to permanently and personally own them, so a membership system is created.

D. Service Operation System & Service Delivery System

Service products must be able to provide benefits, meet consumer needs, satisfy consumers. In fact, customers do not buy products or services, but buy the benefits or value of something offered. Something that is offered shows a number of benefits obtained by consumers, both products and services (Hurriyati, 2005).

As a business, services have a system and mechanism for the relationship between subsystems, namely:

1. Service operation system, is a visible component, namely service personnel, matters relating to physical facilities, & equipment. The proportion of overall service will depend on the nature of the service offered.

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Figure 7 . Service Business as a System (Kotler, Marketing management : Analysis, Planning, Implementation, and Control.10th.ed, Millennium Ed, 2000)

2. Service delivery systems, answering "how", "where", and "when" deliver service products to consumers (Lovelock, 1991). The meeting point between consumers and service providers in service delivery occurs in tangibles factors in the form of interior and exterior facilities, equipment, and service people that are visible to consumers.

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