The Marketing Mix

Product C

Promotion

Price

Place

The Marketing Mix

(The 4 Ps of Marketing)

Major Marketing Management decisions classification

Product Offering that satisfy the needs of the consumer Price - is the mutually agreed-upon amount that satisfies both sides in an exchange Place (distribution) availability of right product to the right market Promotion to promote a product to the target market through various
communication mixes

Product

Place

Target Market

Price

Promotion

The 4 Ps of Marketing

Product - function, appearance, packaging, service, warranty, etc Price - list price, discounts, financing, and other options such as leasing Place (distribution) - market coverage, channel member selection, logistics Promotion - advertising, public relations, media types, etc

Product

Place

Target Market

Price

Promotion

The 4 Ps converts in 4 Cs

Product Customer solution Price Customers cost Place (distribution) Convenience Promotion Communication

Product

Place

Target Market

Price

Promotion

Product Mix Decisions & Branding

Marketing Concepts

PRODUCT AND BRAND

A product is anything which is capable of satisfying customer need Branding is the process by which companies distinguish their product offerings from those of the competition

PRODUCT

Product is the most important element in the marketing mix Product provides the functional requirements sought by consumers Product is the reason the customer gets interested in the company Devote best people and systems to develop products for customers

Product
Anything that can be offered to a market to satisfy a want or need

Physical goods Services Experiences Events Persons Places Properties Organizations Information Ideas

Product Classification

Business products :

are used to manufacture other goods or services, to facilitate an organizations operations, or to resell to other customers are bought to satisfy an individuals personal wants

Consumer products

Note : Same product can be classified as business

product or consumer product depending on intended use

Product Classification

Non Durable goods : Tangible but consumed in one or few uses

Durable goods : Tangible but survive many uses

Services : Intangible goods

TYPES OF CONSUMER PRODUCTS

Convenience product / Non durable goods

Staples : Purchase on a regular basis Impulse : purchase without any planning or search effort Emergency : purchase when need is urgent

Shopping product / Durable goods Specialty product Unsought product

Product Levels

Product Mix
Product mix has a certain

Width different product lines Length Total no. of items Depth how many variants are offered to each product in the line

Consistency how closely related the various product lines

are in end use, production, distribution or some other way

Case Study
Product-Mix Width and Product-Line Length for PepsiCo India Product-Mix Width Beverages Pepsi Mountain Dew Aquafina Mirinda 7-Up Dukes Soda Dukes Mangola Slice Juice Tropicana Orange Nature Sweet Apple Grape Pineapple Tomato Mixed Fruit Snacks Lays Cheetos Lehar Numkeens Nutyumz Kurkure

Product-line Length

Case Study contd..

PepsiCo India - Landmarks 1990 - First Pepsi produced 1991 - Year of the Flavors 1993 - Fountain Pepsi, Slice, Teem 1996 - Mirinda attained leadership in Orange category 1999 - Launch of 500ml & 2 Ltr PET, Aquafina & Diet Pepsi 2000 - Launched 200 ml

2001 - Launched Mirinda Apple

2002 - Launched Pepsi Aha 2003 - Launched Mountain Dew, Pepsi Blue

Case Study
The Times Group

Print

Net

Entertainment

Retail

The Times Group contd..

Print

The Times Group contd..

Net

GROUP SITES

The Times Group contd..

Entertainment

The Times Group contd..

Retail

Product Line Decisions

A. Product Line Analysis
Market profile Sales and profits
80 20 rule

Product Line Decisions

B. Product line Length
a. Objectives

To create a product line to induce upselling To create a product line that facilitates cross-selling

1. Line Stretching

a. Down market Stretch b. Up market Stretch c. Two way stretch

2. Line Filling

Just-noticeable difference

Strategy of Product Mix

Expansion of product mix Contraction of product mix Altering existing products Positioning the product

Packaging

What is packaging Packaging Industry

Used materials : Metals, plastics, wood, paper, glass, laminates, polysters, etc. Protection, Appeal Performance Offer convenience to the end-users Cost effective Statutory requirements

Functions of packaging

Legal dimensions of packaging

Net weight, when packed Date of manufacture Date of expiry Directions of storage MRP Directions for use

The Product Life Cycle

PRODUCT LIFE CYCLE (PLC)

Stages of PLC
Introduction Growth Maturity Decline

Product Life Cycle (Contd.)

Stages of PLC
Introduction
Build sales by expanding market for the product
Heavy expenditure on promotion

Stimulate trial
Attract distribution channel partners Prices high or low depending on imminent competition

Product Life Cycle (Contd.)

Growth
Customers aware of the product Build sales and market share by building brand preference

Segmentation emerges Product redesigned to create differentiation Promotion lays stress on the benefits of the differentiated product Focused competitors emerge Distribution will be widened to serve new segments Product made available in different retail formats as customers of different segments buy differently

Product Life Cycle (Contd.)

Maturity
Market does not grow in this stage Sales only at the expense of competition Focus on ensuring repeat purchases Strong brand helps fight competition Maintaining brand loyalty, stimulate repeat purchases Intense competition, often price wars Company should focus on strengthening its brand by differentiation Lasts for a long time Companies should set realistic growth rates Low cost manufacturing and marketing infrastructure

Product Life Cycle (Contd.)

Decline
Anticipate the impending decline in sales Analyze changing customer requirements Exit immediately / gradual withdrawal / Exploit brand loyalty

Uses of PLC

Product Life Cycle (Contd.)

Emphasizes the need for product planning Planning for competition Products have limited life cycle

Plan for the future as growth phase will end

Adapt marketing strategies as market and competitive conditions change

Product Life Cycle (Contd.)

Limitations of PLC
Not all products follow the classic Sshaped PLC curve PLC is the result of marketing activities, and is not the cause of variability in sales Duration of PLC stages is unpredictable Strict adherence to PLC can lead a company to misleading objectives and strategy prescriptions