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UNIT – 3

Marketing Mix
 Marketing mix is the term used to describe the combination of the four inputs which constitute the core of a company's marketing system: the product, the price structure, the promotional activities, and the distribution system Product: Product is the article which a manufacturer desires to sell in the open market. It is the first element in the marketing mix. The product mix includes the following variables. Product line and range, Style, shape, design, colour, quality and other physical features of a product, Packaging and labeling of a product, Branding and trade mark given to the product, Product innovation, and Product servicing. Place: Physical distribution is the delivery of goods at the right time and at the right place to consumers. Physical distribution of product is possible through channels of distribution which are many and varied in character. Physical distribution (place mix) includes the following variables: Types of intermediaries available for distribution, Distribution marketing channels available for distribution, and Transportation, warehousing and inventory control for making the product available to consumers easily and economically. Promotion: Promotion is the persuasive communication about the product offered by the manufacturer to the prospect. Promotion mix includes the following variables: Advertising and publicity of the product, Personal selling techniques used, Sales promotion measures introduced at different levels, Public relations techniques used for keeping cordial relations with dealers and

Price mix includes the following variables: Pricing policies. It is the valuation of the product mentioned by the seller on the product. Services: Activities. benefits or satisfactions that offered for sale and are essentially intangible (i. places. services.consumers.e. Augmented product: additional consumer services and benefits built around the core and actual products (installation. features. Price: Price is one more critical component of marketing mix. use or consumption and satisfies a want or need. organizations and ideas. Actual Product: a product’s parts. brand name. Display of goods for sales promotion. Basic 3 LEVELS OF A PRODUCT Core Product: The problem-solving services or core benefits that consumers are buying when they obtain the product. – for example . packaging. quality. Terms of credit sale. and Pricing strategy selected and used product Product: bunch of benefits anything that is offered to a market for attention. delivery etc. hotel etc.). banking.. the Sony Camcorder) . staling etc. that combine to deliver core product benefits.. It includes physical objects. Discounts and other concessions offered for capturing market. design. Terms of delivery. haircuts. persons. acquisition.

product improvements. product modifications and new brands through the firm’s own R&D efforts.The three levels of a product Installation AUGMENTED RPODUCT Packaging Delivery and Credit Brand name Core Benefit Or service After Sales service Features CORE PRODUCT Quality Staling ACTUAL PRODUCT Warranty Another two more level of products Expected level of product Potential level of product New-Product Development: the development of original products. NEW PRODUCT STRATEGY o Giving direction to the new product team and focusing team effort o Helping to integrate functional or departmental efforts o Allowing tasks to be delegated to new product team members o Proactive management introduction .

THE NEW PRODUCT DEVELOPMENT PROCESS New Product Strategy Idea generation Idea screening Concept Development And testing Marketing strategy Business analysis Product development Test marketing commercialization The Product Life Cycle PRODUCT LIFE CYCLE: SALES AND PROFITS SALES Maturity Product development Introduction Growth Decline PROFITS .

)  Benefits: attributes translated into functional and emotional benefits (i. symbol or design or a combination of these. Branding Brand: a name. Mercedes suggests such things as “well engineered.e.. sign.  Introduction: the product is being introduced in the market – profits are absent  Growth: a period of rapid market acceptance – increased profits  Maturity: the product has achieved acceptance – profits start to decline  Decline: the period when sales fall off and profits drop.. safety and prestige)  Personality: a brand also projects personality. It involves the 5 stages below:  Product development: the company finds and develops a new product idea – costs mount. . intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors. Brand levels:  Attributes: (i. “I am safe in the event of an accident”)  Values: a brand may say something about the buyers values (i.e. wellbuilt” etc. Mercedes means high performance.e. term.The product life cycle is the course of a product’s sales and profits over its lifetime. the attribute “well-built” translates into the benefit.

name awareness. image transfer (required in case of strong brand image has to be changed. Brand Equity: The value of a brand based on the extent to which it has high brand loyalty. like shape. trademarks and channel relationships (i. Branding Decisions BRANDING DECISIONS To brand or not to brand Brand Name Selection Brand sponsor Brand strategy Brand positioning •Brand •No brand •Selection •Protection •Producer’s Brand •Private brand •Licensed Brand •Co-branding •New brands •Line Extensions •Brand Extensions •Multi-brands •Brand Positioning •No-brand positioning Brand Extension : it has three parts viz: 1.). washing machine etc. 3. fridge. Stouffer (US). taste. 2. Nestle and its Rowntree (UK). perceived quality. Buitoni-Perugina (Italy) and Perrier (France)). . flavours.e. Carnation (US). brand extension (giving the brand name to different product like LG has given the brand to tv. colours etc. line extension (change in existing product.. strong brand associations and other assets such as patents. size. like if haldiram will introduce haldiram bikes(automobiles) then problem will come).

 Nutritional labeling (stating the nutritional values in the product – low fat. light.PACKAGING Packaging involves designing and producing the container or wrapper for a product Types of packaging Primary (inner packing) Secondary (outer packing) Tertiary (shipper packing) The parts of Packaging  The product’s container (the tube holding Colgate toothpaste)  Secondary package (the box containing the tube of Colgate toothpastes)  Shipping package (a box carrying six dozen tubes of Colgates)  Tube print (printed information)  Unit pricing (stating the price per unit)  Open dating: stating the expected shelf life of the product. high-fibre) .