In this chapter we commence an examination of the marketing mix elements the so-called 4P's of
marketing, or if considering the extended marketing mix, the 7P's of marketing. 1st p of these 4PS
is Product is a complex concept that must be defined carefully.

A. 4PS
o Product
a. Marketing Mix

Marketing is a process that revolves around the customers and in order to meet the requirements
of the customer marketers formulate and design the marketing mix that is also known as 4Ps (–
Four marketing activities—product, Price, Place and Promotion—that a firm can control to meet
the needs of customers within its target market ). The marketing mix variables are: Product:
Goods, services, or ideas that satisfy customer needs, Price: Decisions and actions that establish pricing objectives and policies and set product prices. Place: The ready, convenient, and timely availability of products and finally the Promotion: Promotion can be defined as
activities that are used to inform customers about the organization and its products. These elements of the marketing mix and strategies

related to these elements or the variables are designed by keeping in view all the environmental factors either macro or micro that can
influence the marketing in any context. Today is the era of value driven marketing, Value can be defined as a customer’s subjective assessment of benefits relative to the costs in determining the worth of a product. Customer is ready to pay the cost of given product if that product is of some value. This value can be determined as a capability of the product to satisfy the customer’s needs and wants.
When ever customer or the consumer makes the purchasing decisions they (Consumers) don’t buy
products; they buy benefits that can be functional benefits( relating to the practical purpose a
product serves) or the Psychological benefits (relating to how a product makes one feel) for the
reason being products are always purchased in order to fulfill certain needs that are definitely
fulfilled through acquiring certain benefits of the product. Today, as products and services become
more and more commoditized, many companies are moving to a new level in creating value for
their customers. To differentiate their offers, they are developing and delivering total customer
experiences. Whereas products are tangible and services are intangible, experiences are memorable.
Whereas products and services are external, experiences are personal and take place in the minds
of individual consumers. Companies that market experiences realize that customers are really
buying much more than just products and services. They are buying what those offers will do for
them—the experiences they gain in purchasing and consuming these products and services.