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The Marketing Mix
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Marketing
organisation
The Marketing Environment
Internal
Environment
xternal
nvironment
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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
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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
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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
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Product Mix
Core
benefit
Expected
productPotential product
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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
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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.
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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.
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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
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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
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5) Physical distribution :
involves inventory management , packaging ,in plant warehousing ,Outbound transportation ,sales forecasting etc.
SuppliersProcurementManufacturing
Physical distribution
channelscustomers
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Promotion
Strategiesto make theconsumer awareof the existenceof a productor service
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Promotion mix
Personalcommunication
-personal selling
Impersonal
Communication
- sales promotion- Trade fair & exhibition
- Public relation
- Advertising
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Price mix
Price is monetary value of the product
Price variables:
1)Pricing policies2)Terms of credit
3) Margin
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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
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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
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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
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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)
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Brand Name
A brand name is a word, group ofwords, letters, or numbers thatrepresent a product or service.
(Pepsi, Barbie)
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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
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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
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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
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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.
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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
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5) To meet legal requirements6) Helpful for companies servinginternational markets or diverse culture
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