Product refers to bundle of benefits. Product includes design, warranty, branding, labelling, labour, texture, post-sale service, etc.
Price is amount taken in exchange.
Price is difficult to determine, but it has to be. It includes not only different pricing strategies but also discounts and allowances.
It is concerned with making available the right goods at right time at a right place. Place is concerned with selecting right channel(s) to reach customers, and also logistics or physical distribution.
Physical distribution is concerned with order processing, warehousing and material handling, transportation and inventory control.
To make customer aware of the product, its price and its availability promotion is required. There are four elements of promotion mix-advertising, sales promotion, public relations and personal selling with varying formats and combination. How to reach the target, what to message, how to communicate and when to communicate are all important decisions. How to score over competitors is very important.
It is connected with the physical setting which an exchange takes place. Kotler talks of atmospherics while talking about physical evidence. The colour, lighting, sounds, music, scents, temperature, furnishings, layout, and merchandising arrangement provide tangible cues to the customers of the indication of services.
Process is an element of service that sees the customer experiencing an organisation’s offering.
Processes are used to control marketing mix, i.e., processes that measure the achievement of marketing objectives. Process can be looked upon as a means to achieve an outcome.
Service delivery processes (the way things are done) have to be designed, implemented and monitored so that customers can have a good feel.
People refer to employees, dealing with the consumers, to keep the interests of consumers before their own interests. The nationalised banks in India are poor cousins of private sector banks, because they have developed an attitude of not to care of consumers.
One of the reasons why Indian Post Offices are suffering is because of the mindset of people. Customer’s perception of quality are very often influenced by the actions of the service personnel. It calls for internal marketing, which is nowadays receiving increasing attention.