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Meaning of Marketing Mix:

The term Marketing mix was introduced by Prof. Neil H.


Borden of the Harvard Business School. Marketing mix is
one of the most fundamental concepts in marketing
Management. These are: product, pricing, distributive
channels (place) and sales promotion techniques.

Definition of Marketing Mix:

According to Philip Kotler, Marketing mix the mixture of


controllable marketing variables that the firm uses to
pursue the sought level of sales in the target market.
1. Combination of four marketing variables.
2. Useful for achieving marketing targets.
3. Flexible and dynamic concept.
4. Periodical adjustment of variables necessary.
5. Marketing manager acts as mixer of ingredients.
6. Customer is the focus point.
7. Variables are interrelated.
8. Wide applicability.
9. Consumer-oriented activity.
10. Core of Marketing System.
11. Four Ps of sellers correspond to four Cs of customer.

Four Ps Four Cs
Product Customer Solution
Price Customer Cost
Place Customer Convenience
Promotion Customer Communication.
1. Better Understanding of Marketing.
2. Better use of resources.
3. Solution to problem.
4. Prepares marketing strategy.
Meaning of Product Life Cycle (PLC):
A product introduced in the market has to move through different stages of
growth till the product goes out of the market.

The Factors responsible for the changes in the products


life cycles are:

a) Changing customers needs.


b) Introduction of better, more efficient and user-friendly products in the
market.

Products, like human beings, are mortal.


Human life cycle theory is applicable to product life cycle.
Introduction, growth, maturity, decline and withdrawal are five stages in
the product lie cycle.
Definition:
According to Philip Kotler, the product life cycle is an attempt to recognize
distinct stages in the sales history of the product.

PLC Curve
1. Gathering input.
2. Refining ideas.
3. Analyzing the market.
4. Deciding time frame.
5. Distinguished features.
6. Product Policy

New product development means introducing a new product in the market. In


other words, it is adding a new product to the existing product line of the
company.

Why New Product development is needed?


For meeting the growing and changing needs of consumers.
Pressures from environmental changes / threats.
Earning more profit.
Extending the product line
For facilitating of expansion of business
1. Generating new product ideas / discovery of product with promising
marketing prospects / Idea generation.
2. Idea screening / Screening concept.
3. Concept testing.
4. Business analysis and market analysis / feasibility study.
5. Actual development of a new product / product development.
6. Test marketing.
7. Commercialization / Large-scale production for marketing.
8. Review / Follow-up of Market Performance.
Meaning of Branding:
Branding is a commonly used trade practice by manufacturing of consumer and
industrial goods. A brand means a name, term, symbol, mark, design or picture
put on the product itself. It is an identification mark or stamp. It gives
independent status and identity to a product.

Advantages of Product Branding to Manufacturers:


1. Wide market.
2. Effective publicity.
3. Support from traders in marketing.
4. Control on marketing.
5. Reputation to manufacturer.
6. Independent.
7. Stability to Scale.
8. Easy introduction of new products.
9. Limited dependence on middlemen for marketing.
1. Degree of competition.
2. Size of market.
3. Element of novelty.
4. Availability of resources.
5. Innovation and Technology.

Meaning of Packaging:
Packaging is next to grading and branding. Packaging may be defined
as all activities of designing and producing the container or wrapper
for a product. It is a process of designing new and better packages.
Packaging is concerned with covering of the product properly for its
safety and easy handling.
1. Protects the articles.
2. It facilitates branding, advertising, and publicity.
3. Preserves the Quality.
4. Offers convenience in handling.
5. Keeps goods pure and clean.
6. Offers Convenience, safety and economy in the transportation of goods.
7. Wins the confidence of consumers.

Pricing is a very important and delicate area of marketing


management. Price is the base of the entire marketing system. It is
one of the 4Ps of marketing mix. Price means the expression of
value or utility in terms of money. Consumer prefer low or fair prices.
They are normally not favorable to frequent price rise.
1. Profit Maximisation.
2. Target Return on Investment.
3. Price Stabilisation.
4. Meet / Prevent Competition.
5. Sales Promotion.
6. Expedite Cash Collection.
Marketing strategies relate to four Ps of marketing mix. Strategies
are short term solutions to problems faced by marketing companies.
Strategy is for achieving specific objective.

Important pricing strategies relating to a new product are


as noted and briefly explained below:
1. Skimming the Cream Pricing.
2. Market Penetration Pricing Strategy.
3. Psychological Pricing.
4. Differential Pricing Strategy.
5. One Price Strategy.
6. Premium Pricing Strategy.
7. Discount Pricing Strategy.
8. Promotional Pricing Strategy.
Meaning of Physical Distribution:
Physical distribution is next to production and is essential for the
use of goods produced by consumers to meet their needs / wants.
Distribution systems creates place, time and price utilities.

Definition of Physical Distribution:

Physical distribution is the process of sending /


forwarding the product to the final consumers. It
encompasses all the activities involved in the physical
flow of products from producers to consumers.
1. Supports economics system.
2. Useful services.
3. Facilitates large scale product.
4. Generates demand.
5. Creates utility.
6. Provides distribution efficiency.
Meaning of Promotion:
Promotion is the process of marketing communication in
order to inform and persuade consumers in favour of
specific product. Such communication is essential to
support the making mix.

Definition:

Promotion is the coordination of all sellers initiated


efforts to set up channel of information and persuasion
to facilitate the sale of a product, service or acceptance
of an idea.

- Brink and Kelly


1. To Lubricate the marketing efforts.
2. It stimulate consumer purchasing and dealer effectiveness.
3. It supports advertising and personal selling.
4. Stimulating consumer purchasing at the point of sale.
5. Provides more sales and profits to producers and dealers.

1. Helps in creating demand for new products.


2. It Creates increasing demand from the existing customers.
3. Facilitates large scale production of goods.
4. Enables a manufacturer to face market competition effectively.
5. Helps in securing new customers.
6. It raising the goodwill / market standing of the manufacturing company.
7. Makes advertising and personal selling result oriented.
Meaning of Advertising:
The term Advertising originates from the Latin word advertere
which mean to turn the mind towards. It is useful for drawing the
attention of people towards a specific product.
1. Advertising is paid form of communication.
2. Non-personal presentation.
3. Provides publicity to goods / services.
4. Identified sponsor.
5. Provides information.

Meaning of Personal Selling:


Personal selling is one of the elements of promotion mix. The other
elements include advertising, sales promotion measures, public
relations, packaging and so on. In personal selling, a sales man /
salesperson personally presents the products to his customers.
1. Direct Contact.
2. Oral Conversation.
3. Oldest and Direct Method.
4. Personality.
5. Promoting Sales.
6. Important Information.

Meaning of Public Relations:


Public relations is a mass-promotion tool and acts as a good
supplement to advertising and publicity. Public relations can have a
strong impact on public awareness at a much lower cost than
advertising. Cordial public relations are useful in sales promotion and
also for favorable image building of the company.
According to Philip Kotler and Gary Armstrong, public relations means,
Building good relations with the companys various publics by
obtaining favorable publicity, building up a good corporate image, and
handling or heading off unfavorable rumors, stories, and events.

1. Press relations.
2. Product publicity.
3. Public affairs.
4. Investor relations.
5. Customer relations.
6. Publicity.
Meaning of Publicity:
Publicity acts as a major tool of sales promotion. It can be described
as a news or an editorial item rather than as a mode of persuasion.
The main purpose of publicity is to give wide exposure to a product or
a news item.

Meaning of Direct Marketing:


Direct marketing is always better than marketing through
intermediaries. This gives benefits to manufacturer and consumers.
However, such direct marketing is not possible in the present large
scale marketing over wide marketing area. The trend towards direct
marketing of merchandise from producer to the consumer is certainly
developing in recent times.
1. Direct Mail Communication (EG. Sales letters, folders, etc.)
2. T.V. advertising / Tele-Marketing.
3. Radio advertising.
4. Newspaper and Magazines.
5. Online Shopping.

TO CONSUMERS:
1. Convenience in Marketing.
2. Middlemen eliminated.
3. Save his time.
4. Easy Availability of Market Information.
TO SELLER:
1. Elimination of Middlemen.
2. Sales Promotion
3. The cost of marketing comes down considerable and this gives benefit to
seller.
4. Selectivity.