MARKETING MIX

The term 'marketing mix' was first used in 1953 when

Neil Borden, in his American Marketing Association
presidential address, took the recipe idea one step further
and coined the term "marketing-mix".
A prominent marketer, E. Jerome McCarthy, proposed a 4
Ps classification in 1960, which has seen wide use.
Marketing Mix
Marketing mix refers to the primary elements that
must be attended to in order to properly market a
product or service.
Marketing Mix is a term describing the key elements
used by an organization to help meet its marketing
objectives
Marketing Mix is a combination of marketing tools
that a company uses to satisfy their target
customers, and achieving organizational goals.
MARKETING MIX
McCarthy classified all these marketing tools
under four broad categories:
Product
Price
Place
Promotion
These four elements are the basic components
of a marketing plan and are collectively called
4 Ps of marketing.
4 Ps
Value perceived
in the mind of the
consumer

Cover location,
distribution, channels
and logistics

Marketing
communications
Collection of features and
benefits that provide
customer satisfaction

Characteristics of Marketing
Mix
Marketing-mix is the crux of marketing process
Marketing mix has to be reviewed constantly in
order to meet the changing requirements
Changes in external environment necessitate
alterations in the mix
Changes taking place within the firm too necessitate
changes in marketing mix.
All marketing decision-making can be classified
into four strategy elements, sometimes referred
to as the marketing mix or the four Ps.
Product: What are the benefits of this product
and service to its customers?
Price: Should this product and service be free or
funded by a grant? Should a price be charged to
cover costs only? Should the price allow for a
profit?
Place: What can be done to make this product
and service more accessible and available?
Promotion: What can be done to increase the
visibility of this product and service? What can
be done to increase its usage or exposure?

Product is the actually offering by the company to its targeted
customers which also includes value added stuff. Product may
be tangible (goods) or intangible (services).

For many a product is simply the tangible, physical entity that
they may be buying or selling.

While formulating the marketing strategy, product decisions
include:
What to offer?
Brand name
Packaging
Quality
Appearance
Functionality
Accessories
Installation
After sale services
Warranty

PRODUCT
Product
Classification
Durability
and
Tangibility
Nondurable goods
Durable goods
Services
Consumer
goods
Convenience goods
Shopping goods
Specialty goods
Unsought goods
Product Mix
The assortment of products that a company offers to a market
Width How many different product lines? ( Home care, Food, Personal Care)
A product line is a group of products that are closely related because they
function in a similar manner, are sold to the same customer groups, are
marketed through the same types of outlets, or fall within given price ranges.
Length The number of items in the product mix
Depth The no. of variants offered in a product line
Consistency how closely related the various product line are in end use
E.g. HUL (RIN, Surf Excel, VIM, Domex) (Kissan, BRU) (Vaseiline, Pepsodent, Lux)
A product mix (product assortment) is the set of all products &
items a particular seller offers for sale.

Product Mix
Width - number of
different product lines
Length - total number of
items
within the lines
Depth - number of
versions of each
product
Product Mix -
all the product
lines offered




P n G product mix


Product line 1 Product line2 Product line3
Beauty n grooming
brands
Health n well being
brands
House hold care
brands
1.Olay
2.sk-2
3.Venus
4.Pantene
5.Wella
6.Head n
shoulder
7.Rejoice
8.Dolce n
gabbana
9.Safegauard
10.Covergirl
11.Hugo boss
12.braun
1.Eukanuba
2.Always
3.Pringles
4.Vicks
5.oral-b
6.Lams
7.Tampax
8.Crest
9.Prilosec otc
10.Nuturella
11.Whisper
12.ausonia
1.Tide
2.Bold
3.Dawn
4.Dash
5.Charmin
6.Downy
7.Febreze
8.Pamper
9.Duracell
10.mr.clean
11.Ace
12.Ariel

Product mix width

Product
line
length
WIDTH -: 3 Product Line
LENGTH -: 36 Items in Product line
Depth -: Varieties of products in the same
group offer by the company is called product
depth. Under Head n Shoulder P n G offers
variety of compositions.

Five Product Levels
Product Levels
1. Core Benefit : the fundamental need or want that
consumers satisfy by consuming the product or service.
2. Generic Product: a version of the product containing only
those attributes or characteristics absolutely necessary for
it to function.
3. Expected Product: the set of attributes or characteristics
that buyers normally expect and agree to when they
purchase a product.
4. Augmented Product: inclusion of additional features,
benefits, attributes or related services that serve to
differentiate the product from its competitors.
5. Potential Product: all the augmentations and
transformations a product might undergo in the future.

Example of Product Levels: Mobile handsets :
1. Core Benefit: Communication
2. Basic Product: Features and Design Small Size, Sliding, Flip Open,
etc. Quality level Excellent Quality Brand name Nokia, LG, Sony,
Samsung.
Packaging Attractive Outer Package
3. Expected Product: Looks Good, Light Weight, Easy to Operate, Battery
Durable with long Standby Time, Colour Display, Polyphonic Ring
Tones.
4. Augmented Product: With FM Radio, MP3 Player, Camera, Voice
Dialing, etc.
5. Potential Product: With Internet, E-mail, Camcorder for Videos, TV
channels, Global Positioning System (GPS)

Product Life Cycle
Introduction Slow Sales Growth.
Growth Rapid Market Acceptance & Substantial
Profit Improvement.
Maturity Slowdown in Sales Growth, Profit
Stabilizes or Decline.
Decline Sales Downward Drift & Profit Gets
Eroded.

The product life cycle is an important concept in marketing. It describes the stages
a product goes through from when it was first thought of until it finally is removed
from the market. Not all products reach this final stage. Some continue to grow and
others rise and fall.
Introduction Stage of the PLC
Sales
Costs
Profits
Marketing Objectives
Product
Price
Low sales
High cost per customer
Negative
Create product awareness
and trial
Offer a basic product
Use cost-plus
Distribution
Build selective distribution
Advertising
Build product awareness among early
adopters and dealers
Sales
Costs
Profits
Marketing Objectives
Product
Price
Rapidly rising sales
Average cost per customer
Rising profits
Maximize market share
Offer product extensions, service,
warranty
Price to penetrate market
Distribution
Build intensive distribution
Advertising
Build awareness and interest in the
mass market
Sales
Costs
Profits
Marketing Objectives
Product
Price
Peak sales
Low cost per customer
High profits
Maximize profit while defending
market share
Diversify brand and models
Price to match or best competitors
Distribution
Build more intensive distribution
Advertising
Stress brand differences and benefits
Sales
Costs
Profits
Marketing Objectives
Product
Price
Declining sales
Low cost per customer
Declining profits
Reduce expenditure and milk the brand
Phase out weak items
Cut price
Distribution
Go selective: phase out unprofitable
outlets
Advertising
Reduce to level needed to retain
hard-core loyal customers
New Product Development
Objective & Strategy
Idea Generation
Idea Screening (Evaluation & Selection)
Concept Testing
Market Strategy Development
Contd.
Business Analysis
The most customer appealing offer is not always the most profitable to
make

Estimate on costs, sales volumes, pricing and profit levels are made to
find out the optimal price volume mix.

Breakeven and Paybacks

Discounted cash flow projections
Product Development
Market Testing
Test markets

Test periods

What information to gather?

What action to take?
Commercialization



Packaging & Branding
Brand name

That part of the brand that can be spoken
Brand mark
The element of the brand that cannot be spoken,
such as symbols
Trade name
commercial, legal name under which a
company does business
Apple
Apple Inc.
Branding
The consumer

Easier product identification
Communicate features and benefits
Helps products evaluation
Establishes products position in the
market
Reduces risk in purchasing
The manufacturer
Helps create loyalty
Defends against competition
Creates differential advantage
Allows premium pricing
Helps targeting/positioning
Increases power over retailer
The retailer
Benefits from brand marketing
support
Attracts customer
Helps differentiate the product
from competitors
Benefits of
Branding
Packaging
A package is the physical container or wrapping for
a product.
Functions of Packaging
A package is a selling tool. Its functions include:
promoting and selling the product
defining product identity
providing information
meeting customer needs
ensuring safe use
protecting the product
Purposes of packaging and package labels
Physical protection
Barrier protection
Containment/ agglomeration
Information transmission
Marketing
Security
Convenience
Portion control
Labeling
A label is an information tag, wrapper, seal, or imprinted
message that is attached to a product or its package. A
labels purpose is to:
inform about a products contents and direction for
use
protect companies from legal liability
contain a brand name, logo, ingredients, special
promotional messages, and other useful information