Mkting Module 5(Mkting Mix)

7/31/2019 Mkting Module 5(Mkting Mix)

1/26

The Marketing Mix


2/26

Marketing

organisation

The Marketing Environment

Internal

Environment

xternal

nvironment


3/26

Marketing mix

The Marketing mix is a blend of four internalcomponents i.e. product , price ,place ,promotion.

Acc. to Mr. Jerome McCartly

Marketing mix is a pack of four sets of variables

namely- product variables, price variables,promotion variables and

place variables

Product Price

PromotionPlace


4/26

Product Mix1. Brand2. Style3. Colour4. Design

5. Product line6. Package7. labelling8. After sale service

Promotion Mix

1. Personal selling2. Advertising3. Publicity4. Sales promotion5. Public relation

Price Mix1. Pricing strategy2. Pricing policy3. Terms of credit

4. Terms of delivery5. RPM6. Discounts and

7. allowances

Place Mix

Distribution Channel1. Wholesalers

2. Retailers3. Mercantile agentsPhysical Distribution1. Transport2. Warehousing3. Inventory etc.

MarketingMix


5/26

Product

Product : anything that can be offered to the market to

satisfy the needs or wants of the customers. It includesphysical goods , services ,persons ,ideas ,places etc.

Levels of a product

1) Core benefit : fundamental benefit or service that

customer is really buying.2) Generic product : its core benefit in the shape of abasic product

3) Expected product : a set of attributes and conditions

that buyers expect from product.4)Augmented product: better than expectation &competitors that includes additional services & features

5)Potential product : means all possible features ,which

can be added to the product in future


6/26

Product Mix

Core

benefit

Expected

productPotential product


7/26

The Product Mix Variables

a)The product line :it is a set of closely related items ,whichare offered in the market to satisfy a set of related need. and

sold to the same consumer group through same distributionchannels or fall within a given price range

Elements of product line :

-The width : refers to various product line in product mix of aparticular company.

-The length of product mix: refers to the total no. of itemspresent in the product mix of a company.

Average length of a product mix = Total products offered- Total no. of product line

-The depth of product mix : refers to the varieties offered bythe product lines of a company.

-Consistency of product mix : means how closely related all


8/26

b) Product design : includes-1) external appearance size ,color ,shape ,texture2) Construction- arrangement of parts give the user convenience

,economy, in operation ,durability ,mobility and lower cost.3) Production capacity : the ability of plant and the personnel to

make design economic & profitable.4) Relationship to other products

5) Technological updation6) Service requirement

c) Product package: attractive ,protect the product, conveniencequick recognition

d) Product quality : quality standards for color ,texture ,weight,shape ,material used etc.


9/26

e) Product labeling :Labels are fixed to products to identifythem and to describe their ingredients, quantity ,quality andother characteristics.

f) Product Branding: Branding is use of a name ,logo ,symbol,mark or combination of all which is given to product andwhich communicates identity of a given product.


10/26

2) The Place Mix

- includes the means by whichproducts and services are transferredfrom producer to consumer andwhere they can be accessed by the

consumerThe more places to buy the product andthe easier it is made to buy it, thebetter for the business and the

consumerEmphasis on physical distribution and

selection of the proper channel


11/26

Variables of Place Mix1) Transportation:

-select the most economic and safer mode oftransportation

2) Warehousing :

creates time utility by adjusting the supply anddemand

3) Inventory level:

To maintain sufficient level of inventory

4) Distribution channel:

creates possession utility by making goods orservices available to consumers


12/26

5) Physical distribution :

involves inventory management , packaging ,in plant warehousing ,Outbound transportation ,sales forecasting etc.

SuppliersProcurementManufacturing

Physical distribution

channelscustomers


13/26

Promotion

Strategiesto make theconsumer awareof the existenceof a productor service


14/26

Promotion mix

Personalcommunication

-personal selling

Impersonal

Communication

- sales promotion- Trade fair & exhibition

- Public relation

- Advertising


15/26

Price mix

Price is monetary value of the product

Price variables:

1)Pricing policies2)Terms of credit

3) Margin


16/26

BRANDINGA brand is a name ,sign ,term ,symbol ,or design

or combination of them ,intended to identify thegoods and services of one seller or group ofsellers and to differentiate them from those ofcompetitors.

Philip Kotler


17/26

Essential features of good brand name

1) Easy to pronounce and remember

2) Simple ,short and sweet

3) Reflect product dimensions

4) Original

5) Economical6) Legally Protectable

7) Helpful in advertising


18/26

Advantages of Branding

1. Product gets individuality

2. Develops brand loyalty

3. Control of product price

4. Reduces advertising cost5. Helpful in introduction of new product

6. Powerful weapon of product differentiation

7. Increases bargaining power

8. Brand stands for quality


19/26

Brand Mark

A brand mark is recognizable visuallyand does not need to be pronounced.A trade character is a specific type of

brand mark, one with human form orcharacteristics. (Pillsbury Doughboy)


20/26

Brand Name

A brand name is a word, group ofwords, letters, or numbers thatrepresent a product or service.

(Pepsi, Barbie)


21/26

PackagingPackage A package may be specially designed

wrapper ,box ,carton ,cans ,crate ,bottle ,jar ,tube,barrel ,drum ,or pallet for convenient distribution.

Philip Kotler

Packaging is the use of containers and wrappingmaterial plus decoration and labeling to protect theproduct ,to help and promote its sale and to makeit convenient for the customer to use the product.

Mason and Rath


22/26

Factors considered while making packagingdecisions

1) Protection

2) Visibility

3) Added value

4) Distributor acceptance

5) Cost6) Expensive to create

7) Long term decision

8) Legal issues

9) Storing facility

10) Pollution free


23/26

Advantages of Packaging

1) Protects the content

2) Acts as a promotional tool

3) Provides user convenience

4) Facilitates product identification

5) Extends product life cycle6) Helpful in storage

7) Convenience in display


24/26

Product Labeling

Label may be a piece of paper ,printed statement , imprinted metalwhich is either a part of a package

or attached to it ,indicating contents,price ,product name , place ofproducers etc.


25/26

Importance of labeling

1)To know product features

2) To encourage self service

3) To facilitate product related servicea) Product support service

b) Product credit service

c) Product guarantees and warrantees


26/26

5) To meet legal requirements6) Helpful for companies servinginternational markets or diverse culture

Mkting Module 5(Mkting Mix)

Documents

Transcript of Mkting Module 5(Mkting Mix)