Frameworks include the 4 Ps, 5 Ps, 6 Ps and 7 Ps.
Product: bundle of attributes that when exchanged have value for customers, clients or society. Can be a good, a service, an idea or a person. Cater to needs and wants. Needs are day-to-day survival requirements, while wants are desired but not required for survival.
Price: amount of money a business demands in exchange for its offerings. A complex marketing decision which must account for production, communication and distribution costs, required probability, partners' requirements, competitors' prices and customers' willingness to pay. Marketers must understand the relationship between price and quality.
Distribution (place): the means of making the offering available to the target market at the right time and place while managing the costs of making the products available. Many businesses sell directly to the public, but distribution usually also involves partners such as wholesalers and retailers.
Promotion: the marketing activities that make potential customers, partners and society aware of and attracted to the benefits of a business's products. The product might be already established, modified, new, or information designed to persuade. Promotional activities include advertising, direct selling, sales promotions and loyalty schemes.
People: all the people that may come into contact with the customer and affect their experience of the product. The people must be managed to maximise value for the customer.
Process: the systems used to create, communicate, deliver and exchange an offering.
Physical evidence: the tangible cues and physical environment a marketer can provide to help potential customers evaluate service quality.
Group factors compromise cultural influences and social influences. Cultural influences affect behaviours that operate at the level of the whole society or of major groups within a society, and include culture, subculture and social class.
Culture is the system of knowledge, beliefs, values, rituals and artefacts by which a society or other large group defines itself. National cultures can be described according to Hofstede's cultural dimensions: power distance, uncertainty avoidance, individualism, masculinity and long-term orientation.
A subculture is a group of individuals who share common attitudes, values and behaviours that distinguish them from the broader culture in which they are immersed.
A social class is a grouping defined by similar social ranking within the social hierarchy.
Social influences are those that impinge on the individual to behave in a way that reflects group norms.
A reference group is any group to which an individual looks for guidance, including membership, aspirational and dissociative reference groups. Within a reference group, some individuals take on the role of opinion leader on issues about which they are particularly knowledgeable. Opinion leaders are influential over the attitudes and behaviours of other group members.
Family influences are also important in consumer behaviour and many consumption decisions are traditionally made by particular members or combinations of members of the household.
Personal and psychological factors influence consumer behaviour independently of social circumstances. Personal characteristics include demographic, lifestyle and personality factors, Marketers consider all of them to have a close link to consumer behaviour, but it has proven notoriously difficult to demonstrate a reliable and predictable link between particular personal characteristics and consumer behaviour.
Psychological characteristics are internal factors that shape the thinking, aspirations, expectations and behaviours of the individual. They include motivation, which is the internal drive to satisfy unfulfilled needs, According to Maslow's hierarchy of needs, individuals generally try to satisfy lower-order needs such as food and sleep ahead of higher-order needs such as learning. Another psychological characteristic is perception, which describes how an individual filters, organises and attributes meaning to external stimuli, including marketing communications. Beliefs and attitudes are also an important personal influence on consumer behaviour, as they determine the context in which product evaluations are made. Effective marketing needs to appeal to the cognitive, affective and behavioural components of consumer attitudes, A final personal influence is the way in which an individual learns. Marketers can 'teach' individuals to have particular awareness of and attitudes towards their products using cognitive and behavioural learning approaches.
Business purchases take the form of a straight rebuy, a modified rebuy or a new task purchase, each of which leads to different levels of involvement in the purchase decision-making process. Most business purchasing decisions are group decisions. The group of people involved in the decision is known as the buying centre. A buying centre is made up of initiators, users, influencers, deciders, buyers and gatekeeper. Marketers need to identify and understand the structure and membership of the buying centre in target organisations and build relationships with those members of the buying centre who are accessible and influential. Marketers must also understand the stages in the buying centre's decision process and the criteria upon which the decision is likely to be made. The business purchasing decision-making process comprises five stages: problem/need recognition, information search and specification development, evaluation o options, purchase and post-purchase evaluation. The decision-making process is influenced by internal and external environmental factors, including the nature of the organisation, its structure and its people; political, economic, sociocultural, technological and legal forces; and the actions of competitors and customers. Market segmentation involves identifying variables that can be used to define meaningful market segments and then creating profiles of the market segments. The ideal market segmentation variables are those that are likely to be closely linked to purchasing behaviour. In consumer market, geography, demographics, psychographics and behavioural variables are useful for segmentation. In business markets, organisation size, product use and geography are typically used. Whatever the segmentation variables, the defined segments should be measurable, accessible, substantial and practical. Based on market segments, the marketeer can develop a market segment profile, which is a description of the typical customer in the market segment in relation to their shared characteristics and the characteristics that distinguish them from other segments. The concept of product life cycle proposes that a product passes through five stages: new product development, introduction, growth, maturity and decline. Products must be managed throughout the product life cycle to maximise their contribution to the organisation's marketing objectives.
New product development has eight stages: idea generation, screening (eliminating unviable ideas), concept evaluation, marketing strategy, business analysis (how the new product will affect costs, sales and profits), product development, test marketing and commercialisation.
The product adoption process describes the stages through which a potential customer passes, from first becoming aware of the new product right through to deciding to adopt, or buy, the product. In this process the consumer who accepts a new product passes through five stages: awareness, interest, evaluation, trial and adoption.
Brand refers to a collection of symbols, such as the name, logo, slogan and design intended to create an image in the customer's mind that differentiates a product from competitors' products. Brands can play a major role in a consumer's choice of a product, particularly for high‐involvement products, as a well‐known brand with a good reputation will more likely be chosen than a cheaper, unknown brand. A brand can help speed up consumer decision making by identifying specific preferred products, and can provide a form of self‐expression and status, as well as denoting product quality. Brand equity is broadly defined as the added value that a brand gives a product. It is underpinned by brand loyalty. Brand equity metrics include brand assets (e.g. trade marks and patents), stock price analysis, replacement cost, brand attributes, brand loyalty and willingness‐to‐pay analysis. A high brand equity can be a valuable asset for a company and provide a strong competitive advantage. Demand is the relationship between the price of a particular product and the quantity of the product that consumers are willing to buy. Demand analysis is based on historical data, estimates of sales potential, and estimates of price-volume relationships and price sensitivity. The data enable the marketer to con- struct a demand curve. The traditional demand curve slopes downwards, indicating that as prices rise, quantity sold falls, and vice versa. Prestige products have a unique demand curve in which, up to a threshold point, increasing prices actually increases demand due to the perceived quality, prestige and exclusivity conveyed by the product's price. The sensitivity of consumer demand to price changes is known as the price elasticity of demand. In instances of price elastic demand, a particular percentage change in price will cause a greater percentage change in quantity demanded. In price inelastic demand, a particular percentage change in price will cause a smaller percentage change in quantity demanded. Public relations describes promotional efforts designed to build and sustain good relations between an organisation and its stakeholders. Stakeholders include customers, employees, neighbours, shareholders, regulators, governments, competitors, the media and society in general. In contrast to advertising, which often promotes products, brands or the organisation through direct paid com- munications in the media, public relations uses written materials, sponsorships, giveaways, good deeds and other ways to generate positive publicity and goodwill towards the organisation. Public relations is also used reactively to counter poor publicity or as a part of crisis management. The main outcome of public relations is publicity. Publicity is the exposure a marketing organisation receives when it obtains free coverage in the media. There are many promotional methods available to an organisation in addition to advertising, public relations, sales promotion and personal selling. Sponsorship is the paid association of a brand with an event or person. A company develops a sponsorship relationship with a particular event, pro- viding financial support in return for the right to display a brand name, logo or advertising. Ambush marketing is the presentation of marketing messages at an event that is sponsored by an unrelated business or even a competitor, and can be extremely successful. Product placement is the paid inclu- sion of products in movies, television shows, video games, songs and books. Guerilla marketing refers to highly creative, aggressive and unconventional marketing approaches, most commonly used by small businesses that cannot afford large‐scale marketing efforts. Viral marketing is the use of electronic social networks to spread a marketing message from one person to another. Permission marketing is where activities are centred around obtaining customer consent to receive information and marketing material from a company. The concept of 'place', or distribution, involves the way products can be eventually 'placed' in the hands of the final consumer through a supply chain between producers and consumers (or organ- isational buyers in the case of business‐to‐business markets). The chain of distribution is known as a distribution channel. The key organisations in the marketing channel, or intermediaries, include wholesalers, industrial buyers, agents or brokers, and retailers. Marketing intermediaries are useful and necessary when they can more efficiently connect producers with their customers than can the producers themselves. Even if a producer can manage to get their product directly to end users, they are often better off to concentrate on their core abilities (production) and rely on specialist intermediaries who can more efficiently move the product closer to customers. Because they have expertise, equipment, experience, contacts, skills and scales of economy, intermediaries help producers achieve better results than producers can achieve when acting alone. An organisation's marketing strategy should be a cohesive whole designed to achieve the organ- isation's overall goals. Therefore, any digital marketing strategy will be part of, and consistent with, a broader organisational marketing strategy. Many of the issues to be considered in a digital marketing strategy are the same as those considered in formulating the overall marketing strategy and marketing plan. In formulating a digital marketing strategy, consideration must be given to how e‐activities affect target markets, the marketing mix (product, price, promotion, distribution), and evaluating campaign effectiveness. In particular, customer relationship management (CRM) focuses on using information about customers to produce digital marketing experiences that create, build and sustain long‐term relationships.