mm 3. marketing mix

7/31/2019 MM 3. Marketing Mix

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Chapter 3

Marketing Mix


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Topics

Elements, price, promotion, Distribution,

Product Mix and Product line Levels of products,

New product development, product life cycles strategies, branding,

packaging, labeling.

Pricing general pricing approaches, new product pricing strategies,

Public policy and Pricing.

Promotion and Place mix: Components of promotion mix, Marketing

communication, Publicity, Advertising and public relations, Personal

selling and sales promotion, Direct and online marketing, Distribution

channels and logistics management, Channel design and

administration, public policy and distribution decisions.


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.Marketing Mix:

The marketing mix a set of controllable, tactical

marketing tools that the firm blends to produce theresponse it wants in the target market.

It consists of everything a firm can do to influence

the demand for its products

Can be grouped into four main sets four Ps

4Ps 4Cs

Product Customer solution

Price Customer cost

Place Convenience

Promotion Communication


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.

PRODUCTVarietyDesign

FeaturesBrand namePackagingservices

PRICESList pricesDiscounts

AllowancesPayment period

Credit terms

TARGETCUSTOMERS

INTENDED

POSITIONING

PROMOTIONAdvertising

Personal sellingSales promotionPublic relations

PLACEChannelsCoverage

AssortmentsLocations

InventoryTransportationLogistics

THE FOUR P's OF THE MARKETING MIX


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.1. Product: The goods and services the firm offers to thetarget market. Ex- a Ford car offered by the firm includes

several models with dozens of features. Car comes fully

serviced and with a comprehensive warranty as a part of

the product

2. Price: It is the amount of money customers have to pay

to obtain the product or services. Firms may finalise the

retail price, but rarely they take printed price from the full

sticker price from the customers. They negotiate the

prices offering price discounts, trade-in allowances, and

credit terms to the customers


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.3. Place: Includes company activities that make theproduct available to target consumers. Selection of

dealers and supporting them is part of place. Dealers

will keep inventory of cars, demonstrate them to

potential buyers, negotiate the prices, close sales, and

service the vehicle after the sale

4. Promotion: Involves activities that communicate the

merits of products and persuade the customers to buy

it. Firms spend substantial amount on advertising

every year.


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.Product Mix:

Product mix consists of al the products all

the product lines and items that a particular

sellers offers for sale.

For ex- Colgates products mix consists of

four major product lines oral care, personal

care, home care and pet nutrition.

Each product line consists of several sub-

lines

Colgates product mix includes hundreds of

items


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.A product mix has four important dimensions

i. Width: Number of different product lines. Colgate two major

product lines, 3M 50000 products, Wal-Mart stocks

100,000 to 120000 items, GE manufactures as many as

250,000 items

ii. Length: The number of the total items within its product

lines. Colgate carries many brands in each line, Ex

personal care line includes liquid soaps, body washes, bar

soaps, deodorants, and aftershaves

iii. Depth: Refers to the number of versions offered of eachproduct. Colgate toothpaste come in 11 varieties

iv. Consistency: Refers to how closely related the end products

are in end use. Colgate products are consumer products and

go through same distribution channel


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.Levels of Product and Services: Product planners think

about products and services on three levels

1. Core benefit: The basic level addresses the question

what is buyer is really buying? Especially in a designer

product. Ex - Blackberryis not just wireless mobile, e-

mail, web browsing device, personal organise, it is

much more than that. Revlon

2. Actual product: Include product and service features

its name, parts, styling, features, and packaging

3. Augmented product: Additional consumer services and

benefits. Ex- Toll free number for service


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.AUGMENTED PRODUCT

DELIVERYAND

CREDIT

ACTUAL PRODUCT DELIVERY ANDCREDIT

BRANDNAME

FEATURES

CORE

PRODUCT

QUALITYLEVEL

DESIGN

PACKAGING

INSTALLATION WARRANTY

THREE LEVELS OF PRODUCT


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.Products and Services Classification:

1. Consumer products:

Convenience products: frequent purchase, little planning,

little comparison or shopping effort, low customer

involvement. Low price. Widespread distribution, mass

production by producer, Ex - food, soaps, news paperShopping products: Less frequent purchase, planned effort,

Prices and brands compared. Ex Home appliances TV,

Washing machine

Speciality products: Strong brand preferences. Ex luxury

goods Rolex watch

Unsought products: Little product awareness. Aggressive

selling and advertising. Insurance, donations etc,.


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.Idea screening:

To reduce the number of ideas. Companies proceed with

the product ideas that will turn into profitable products

Ideas are reviewed by new-product committee. They

prepare a write up to describe the product, the target

market, and the competition.

Concept Development and Testing:o Idea is developed into product concept

o Product idea is detailed version of idea stated in

meaningful consumer terms


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.Test Marketing:

The product and marketing program are tested in more

realistic settings

Commercialisation:

o Introducing a new product into the market, involve high

costs.

o May have to build or rent a manufacturing facility, spend

on packaging facility, advertising and promotion.o Procter and Gamble spent $ 1 million on global

marketing support while introducing Fusion six-blade

razor


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ELEMENTS OF COMMUNICATION PROCESS


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.

ELEMENTS OF COMMUNICATION PROCESS

SENDER ENCODING MESSAGE DECODING RECEIVER

MEDIA

NOISE

FEEDBACK RESPONSE

Senders field ofexperience

Receivers field ofexperience


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.ONLINE MARKETING

Company efforts to market products and services and

build customer relationships over the internet

From brick and mortar to click and mortar companies

Internet is a vast public web of computer networks that

connects users of all types all around the world to each

other and to an amazingly large information-

repository.

Examples are Amazon. COM, e-bay, Expedia, etc,.

B2B and B2C domains.


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.Companys decisions regarding expanding business

depends on effectiveness of distribution channels

Distribution channel decisions involve long-term

commitment to other firms

Companies can gain competitive advantage by

developing imaginative distribution system, Ex- are

FedEx leader in express delivery

Dell- directly selling PCs to consumers

Amazon. COM pioneered sales of books and a wide range of

goods via the internet

Calyx and Corolla fresh flowers and plants


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.MARKETING LOGISTICS:

Also called physical distribution

Involves- planning, implementing, and controlling, the

physical flow of goods, services, and related

information from points of origin to points of

consumption to meet customer requirement at a profit

Or involves getting the right product to the right

customer in the right place and at the right time

Todays marketer prefer customer-centred logistics it

starts with the marketplace and works backwards to

the factory or source of supply.


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mm 3. marketing mix

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