[MUSIC] Hi, we are now introducing the third part of the marketing plan, which is the marketing mix. And I would like to begin the discussion with definition. Okay, so, we all know exactly what we're talking about when we refer to the marketing mix. Let me use the definition of Kotler and Keller which are the authors of our very well known marketing textbook which is Marketing Management. And what these authors says, the marketing mix is the set of controllable variables that the firm can use to influence the buyer's response. I don't know if this is clear, you know, for basically what they mean is the marketing mix are the tools that we are going to use in order to achieve the marketing strategy objectives. The marketing mix is also known and pretty much well-known as the 4 PS. The 4 P was a concept developed in 1960 by McCarthy, Jerome McCarthy which was a professor and also a very well known marketing scholar. That basically defined that the marketing mix is always about product, price, place and promotion that's why is called the 4Ps. What happen with this concept is that with time the concept evolved to be a more comprehensive concept and we change two of these Ps for another letter. So now we talk about problem, first P Price, second P, and instead of place we call this channel, and the fourth one instead of promotion we call it communication. Okay, so basically we are talking about four Ps but instead of 4 of them being Ps. Two of them are piece, product and price and then we use distribution channel and communication. The four piece is probably a very well known model, maybe a little old fashion or traditional, okay, but still use because it works. So if it works, probably don't fix it, here we have a piece of an interview with Phillip Cutler the very well known marketing scholar. He was asked if the four piece model was still relevant today. And he was actually answering yes and it's still working and it's still used. Why because it works. The thing is it describes very well what we do in terms of marketing mix. So, that's why we keep on using it and we keep on using the four piece concept. So, what is basically the difference between marketing strategy and marketing mix, remember marketing strategy was the second step. Marketing mix is the third one in the marketing plan process. The main difference is that the marketing strategy is basically defining target segment and position so it's long term. It's a strategic. While the marketing mix is by definition tactical. It's short term. It's implementation. Okay so the idea is that we analyze and define the marketing strategy for the long term. While we execute and implement the marketing mix in the short term. Okay, let me give you an example that we have here. Basically let's take a brand. I'm going to use, again an example that I think I have used before. Which is Volvo, the car maker. They through this cash car maker. Okay so what is marketing strategy that they have? Basically they define a target segment okay and the tact is the target segment definitionally they have is very clear. Current or past Volvo owners, married couples, young couples with newborns. Age between 25 and 50. So middle aged, educated, affluent, urban, concerned with safety. So that's basically the definition of the target segment.What is the positioning? Safety, safety and quality those are the two elements of the Volvo positioning. And what is the marketing mix? Well basically marketing mix is the product. Price distribution channel and communication that they tried to align with this target segment. So as you see with this very simple example the marketing strategies long term while the marketing mix is usually short term it's more related to the implementation. Okay so basically marketing means implementing the full piece according to a certain marketing strategy definition. So what is key in order to have a successful marketing plan. A good alignment. A good coherence and consistence. Between the marketing strategy and the marketing mix. So what is probably the most important part in the marketing plan. It's difficult to say but the marketing strategy is key but the marketing mix is actually implementation. They say the devil is in implementation so basically, what is going to finally decide your success or failure, probably, is a marketing mix, okay? One interesting way of looking at this is, for example, seeing what is the job description of a Marketing Director? So we know what they do, and if you look here, what you can see is in the job description what they say they have to do. Marketing manager or marketing director is basically marketing mix manager, management. So the marketing director holds responsibility of developing and implementing branding strategy, product developing, pricing, managing the channels, communication, advertising campaigns. So basically the different elements of the marketing mix. Okay, one final thought I would like to share with you is, some of you may ask yourself, does this apply for non-business organizations or non-profit organizations? I think it does. I mean the Marketing Mix model or structure, that's four P's. Product, price, distribution channel and communication, apply pretty much any type of business or non-business. Organization, for example think about I don't know, non-profit or a museum or a school, a university. Do they need a marketing plan? Definitely, okay? Because they need to attract the students or they need to attract visitors. Okay, do they need a marketing mix definition. They have to, they must have a marketing mix definition. We must find a product which is usually the product itself is delivered the museum, the school, the university. And they have a price, they do have a price, okay? They do have a channel of distribution for the product, yes usually they have that. And they do communication campaigns, they must do them. So the marketing mix concept pretty much applies to any type of business or non business organization. In the next videos we will explore in more detail the different elements of the marketing. So you should expect product strategy, pricing strategy, distribution channel strategy, and communication strategy. Thank you very much. [MUSIC]
