• The marketing mix describes the key elements of a marketing programme.
• The traditional marketing mix is the ‘4 Ps’:
• Product
• Price
• Place
• Promotion
• The emphasis placed on each element can be varied to create a marketing mix suited to the organisation.

3.1 PRODUCT

• The product or service must do what the customer wants it to do.
• If it fails to meet customer requirements, customers may not buy again and may discourage other potential customers.
• Road transport example: a ‘next day’ delivery service that regularly fails to deliver on time is failing to provide the promised product/service.

3.2 PRICE

• Price is a key part of the marketing mix.
• New businesses may be tempted to make price the only consideration, but price is not the only factor customers consider.
• Price should be determined in the light of the other elements of the marketing mix and should not be set in isolation.
• Being the cheapest does not automatically make a product or service the best choice for customers.

3.3 PLACE

• Place concerns where the organisation offers its products and services.
• The organisation must identify who and where its potential customers are.
• Products/services should be offered in places that customers find easy to use.
• Examples from the material include a groupage operator specialising in Scandinavian traffic or a truck-rental company concentrating on one or two regions.

3.4 PROMOTION

• Promotion covers activities used to encourage customers to buy products and services.
• Examples include:
• Personal selling
• Advertising
• Sales promotion
• Packaging
• Vehicle livery
• The organisation must decide how best to communicate with and persuade its target customers.

3.5 EXTENDED MARKETING MIX – THE 7 Ps

• For service industries such as road transport, three additional elements are added to the 4 Ps.
• The ‘7 Ps’ are:
• Product
• Price
• Place
• Promotion
• People
• Process
• Physical evidence

3.6 PEOPLE

• Every business needs people to function.
• Front-line sales and customer-service staff directly affect how customers perceive the product or service.
• Consider:
• Staff knowledge and skills
• Staff motivation
• Investment in supporting the company brand
• Marketing should be treated as an integral part of the way the business operates, not simply as a separate activity.

3.7 PROCESS

• Process is about being ‘easy to do business with’.
• Customers should have a straightforward route to obtaining the product or service.
• Poor processes can frustrate customers, particularly where processes are designed mainly for the provider’s convenience rather than the customer’s.

3.8 PHYSICAL EVIDENCE

• With tangible goods, customers can often see, touch or otherwise assess the product before buying.
• With services, customers may have to buy largely on trust unless a free trial is available.
• The business should provide evidence of the quality customers can expect.
• Physical evidence means the tangible, visible touchpoints encountered before purchase.
• Examples include reception areas, corporate logos and images in company brochures.

3.9 MARKETING MIX DECISIONS

• The elements of the marketing mix are dynamic: changing one element can affect the others.
• Organisations must create the best mix for their circumstances.
• Key decisions include:
• What range of products/services should be offered? – e.g. home delivery, warehousing and distribution, heavy haulage or refrigerated transport.
• What pricing policy should be adopted? – economical or expensive, standard prices or negotiated rates, quantity discounts.
• How should products/services be sold? – direct sales force or advertising, number and organisation of sales staff, and after-sales service.