Description
Marketing mix detailed
? 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 P’s classification in 1960, which has seen wide use.
? Marketing Mix is a combination of marketing
? ?
?
? ?
tools that a company uses to satisfy their target customers, and achieving organizational goals. 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 P’s of marketing.
? All marketing decision-making can be classified into four
strategy elements, sometimes referred to as the marketing mix or the four P’s.
? 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?
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
? 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
Product
? The CORE product is NOT the tangible, physical product. You can't touch
it. That's because the core product is the BENEFIT of the product that makes it valuable to you. So with the car example, the benefit is convenience i.e. the ease way at which you can go where you like, when you want to. Another core benefit is speed since you can travel around relatively quickly.
? The ACTUAL product is the tangible, physical product. You can get some
use out of it. Again with the car example, it is the vehicle that you test drive, buy and then collect.
? The Product Life Cycle (PLC) is based upon the biological life cycle. For
example, a seed is planted (introduction); it begins to sprout (growth); it shoots out leaves and puts down roots as it becomes an adult (maturity); after a long period as an adult the plant begins to shrink and die out (decline).
? Price includes the pricing strategy of the company for its products.
How much customer should pay for a product? Pricing strategy is not only related to the profit margins but also helps in finding target customers. Pricing decision also influence the choice of marketing channels.
? Price decisions include: ? ? ? ? ? ?
Pricing Strategy (Penetration, Skim, etc) List Price Payment period Discounts Financing Credit terms too. Consumers are often sensitive for price, discounts and additional offers. Another aspect of pricing is that expensive products are considered of good quality.
? Using price as a weapon for rivals is as old as mankind, but it’s risky
Price
? Price is one of the most complex marketing decisions.
It plays a number of roles in most marketing strategies: it can be a key component in product image (quality); a powerful sales promotion tool; or a versatile element in competition.
? Determining pricing strategy is a delicate task.
It requires that you assess customer demand and analyze cost in order to choose a price that will create customer satisfaction and yield a satisfactory level of profit.
? Pricing is related to the goals and objectives of your organization.
What are the objectives for your library? Are you a profit making institution or is cost recovery your goal? One thing is clear, nothing is free anymore, especially information.
? When thinking about pricing, you must consider all costs associated
with any given product. ? The final price is a marketing decision.
? It not only includes the place where the product is placed, all those
activities performed by the company to ensure the availability of the product tot he targeted customers. Availability of the product at the right place, at the right time and in the right quantity is crucial in placement decisions. Placement decisions include: Placement Distribution channels Logistics Inventory Order processing Market coverage selection of channel members retailers, the Internet, overseas distributors, direct marketing (from manufacturer to user without an intermediary), and many others.
? ? ? ? ? ? ? ?
? There are many types of intermediaries such as wholesalers, agents,
? Promotion includes all communication and selling activities to pursuade
future prospects to buy the product. Promotion decisions include: Advertising Media Types Message Budgets Sales promotion Personal selling Public relations/publicity Direct marketing Sponsorship
? ? ? ? ? ? ? ? ?
? The elements of the promotions mix are integrated to form a coherent
campaign. As with all forms of communication. ? As these costs are huge as compared to product price, So it’s good to perform a break-even analysis before allocating the budget. It helps in determining whether the new customers are worth of promotion cost or not.
? Marketing mix (4 P’s) was more useful in early 19’s when
production concept was in and physical products were in larger proportion. Today, with latest marketing concepts, marketing environment has become more integrated. ? So, in order to extend the usefulness of marketing mix, some authors introduced a fifth P’s and then seven P’s (People, Packaging, Process). ? But the foundation of Marketing Mix still stands on the basic 4P’s.
The first P is = Product
? Which means
? Anything that can be offered to
create an exchange ? It is looking at satisfying a customer problem ? Hence we say that a product is a customer solution
Kotler says
? At the heart of a great brand is a great product.
? Product is a key element in the market offering
? Market leaders generally offer products and
services of superior quality that provide unsurpassed customer value
Product decisions
? At the time of deciding your marketing plan you
will have to take a number of product decisions such as
? What will constitute the product ? How many variants of it should be there on offer
? How it should be different from competing products
? How it should be packaged
Levels of product
Levels of product (Extended)
Levels explained
? We take an example of a Hotel
Core benefit
? At the first level In a hotel (which is a product) the
core benefit is
? Rest and sleep (A hotel guest is basically buying
rest and sleep in a hotel) ? it is the basic benefit
Basic Product
? In case of hotel the basic product will constitute
? Hotel room (including a bed, bathroom, towels,
desk, TV etc) ? At this second level marketers must turn the basic benefit into a basic product. ? Match basic benefit with a basic product
Expected Product
? At the third level, the marketer prepares on
expected product ? A set of attributes and conditions buyers normally expect when they purchase this product.
? Hotel guests expect a clean bed, fresh towels,
working lamps, and a relative degree of quite
Augmented Product
? At the fourth level, the marketer prepares an
augmented product that exceeds customer expectations
? In Developed countries, brand positioning and
competition take place at this level. ? However in developing countries like India and Brazil competition takes place mostly at the expected product level. ? In a hotel augmented prdt may be a PC in the room or the welcome drink to improve the position of the product in the eyes of the customer
Potential Product
? It includes all the possible augmentations and
transformations the product or offering might undergo in the future. ? Here is where companies search for new ways to satisfy customers and distinguish their offerings
? Like a Hotelier might look forward to add Gym or
swimming pool in future
Hence
? Differentiation arises and competition increasingly
occurs on the basis of product augmentation, which also leads the marketer to look at the user’s total consumption system: The way the user performs the task of getting and using products and related services.
However
? Each augmentation adds cost, and
? Augmented benefits soon become expected
benefits and necessary points of parity ? Today’s Hotel guests expect cable or satellite TV with a remote control and high speed internet access or two phone lines. ? This means competitors must search for still other features and benefits
And
? As some companies raise the price of their
augmented product, others offer a “stripped down version” at a much lower price
Example : ITC Welcome Group
? It has four set of properties
? Super Delux hotels (ITC Hotels) ? Five star hotels (Welcome Hotels) ? Budget hotels (Fortune Hotels) ? Palaces, Forts and Havelis (Welcome heritage)
Product Classification
? Basis
? Durability and tangibility ? Consumer goods classification ? Industrial goods classification
Durability and tangibility
? Nondurable (Soft Drink and soaps)
? Durable (Refrigerators, TV etc)
? Services (Intangible)
9/25/2013
Consumer Goods classification
? Convenience (Soft Drink, Soap)
? Staples (Purchase on regular basis) – toothpaste ? Impulse (without any planning or search effort) –
Chocolate, Candy etc ? Emergency Goods (Urgent need ) - Umbrella
? Shopping (Furniture, Clothing)
? Homogeneous (Similar in quality may be different in
price) – Lux and Rexona ? Heterogeneous (Differ in product features and services which happens to be more significant than price) – Lux and Dove
Contd..
? Specialty goods (a Mercedes)
? Unsought (Life insurance)
Industrial goods classification
? Materials and parts
? Raw Materials ? Farm products ? Natural products ? Manufactured materials and parts ? Component materials (pig iron, yarn – to be further processed) ? Component parts (finished products, small motor, light)
Contd..
? Capital items
? Installations (Buildings and heavy equipments) ? Equipments (Portable factory equipments and tools)
– hand tools, lift trucks etc
? Supplies and business services
? Maintenance and repair (Paints, nails)
? Operating supplies (Lubes, coal, writing paper)
Together they come under the category MRO
Contd..
? Business services include
? Maintenance and repair services ? Business advisory services
doc_722816015.pptx
Marketing mix detailed
? 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 P’s classification in 1960, which has seen wide use.
? Marketing Mix is a combination of marketing
? ?
?
? ?
tools that a company uses to satisfy their target customers, and achieving organizational goals. 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 P’s of marketing.
? All marketing decision-making can be classified into four
strategy elements, sometimes referred to as the marketing mix or the four P’s.
? 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?
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
? 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
Product
? The CORE product is NOT the tangible, physical product. You can't touch
it. That's because the core product is the BENEFIT of the product that makes it valuable to you. So with the car example, the benefit is convenience i.e. the ease way at which you can go where you like, when you want to. Another core benefit is speed since you can travel around relatively quickly.
? The ACTUAL product is the tangible, physical product. You can get some
use out of it. Again with the car example, it is the vehicle that you test drive, buy and then collect.
? The Product Life Cycle (PLC) is based upon the biological life cycle. For
example, a seed is planted (introduction); it begins to sprout (growth); it shoots out leaves and puts down roots as it becomes an adult (maturity); after a long period as an adult the plant begins to shrink and die out (decline).
? Price includes the pricing strategy of the company for its products.
How much customer should pay for a product? Pricing strategy is not only related to the profit margins but also helps in finding target customers. Pricing decision also influence the choice of marketing channels.
? Price decisions include: ? ? ? ? ? ?
Pricing Strategy (Penetration, Skim, etc) List Price Payment period Discounts Financing Credit terms too. Consumers are often sensitive for price, discounts and additional offers. Another aspect of pricing is that expensive products are considered of good quality.
? Using price as a weapon for rivals is as old as mankind, but it’s risky
Price
? Price is one of the most complex marketing decisions.
It plays a number of roles in most marketing strategies: it can be a key component in product image (quality); a powerful sales promotion tool; or a versatile element in competition.
? Determining pricing strategy is a delicate task.
It requires that you assess customer demand and analyze cost in order to choose a price that will create customer satisfaction and yield a satisfactory level of profit.
? Pricing is related to the goals and objectives of your organization.
What are the objectives for your library? Are you a profit making institution or is cost recovery your goal? One thing is clear, nothing is free anymore, especially information.
? When thinking about pricing, you must consider all costs associated
with any given product. ? The final price is a marketing decision.
? It not only includes the place where the product is placed, all those
activities performed by the company to ensure the availability of the product tot he targeted customers. Availability of the product at the right place, at the right time and in the right quantity is crucial in placement decisions. Placement decisions include: Placement Distribution channels Logistics Inventory Order processing Market coverage selection of channel members retailers, the Internet, overseas distributors, direct marketing (from manufacturer to user without an intermediary), and many others.
? ? ? ? ? ? ? ?
? There are many types of intermediaries such as wholesalers, agents,
? Promotion includes all communication and selling activities to pursuade
future prospects to buy the product. Promotion decisions include: Advertising Media Types Message Budgets Sales promotion Personal selling Public relations/publicity Direct marketing Sponsorship
? ? ? ? ? ? ? ? ?
? The elements of the promotions mix are integrated to form a coherent
campaign. As with all forms of communication. ? As these costs are huge as compared to product price, So it’s good to perform a break-even analysis before allocating the budget. It helps in determining whether the new customers are worth of promotion cost or not.
? Marketing mix (4 P’s) was more useful in early 19’s when
production concept was in and physical products were in larger proportion. Today, with latest marketing concepts, marketing environment has become more integrated. ? So, in order to extend the usefulness of marketing mix, some authors introduced a fifth P’s and then seven P’s (People, Packaging, Process). ? But the foundation of Marketing Mix still stands on the basic 4P’s.
The first P is = Product
? Which means
? Anything that can be offered to
create an exchange ? It is looking at satisfying a customer problem ? Hence we say that a product is a customer solution
Kotler says
? At the heart of a great brand is a great product.
? Product is a key element in the market offering
? Market leaders generally offer products and
services of superior quality that provide unsurpassed customer value
Product decisions
? At the time of deciding your marketing plan you
will have to take a number of product decisions such as
? What will constitute the product ? How many variants of it should be there on offer
? How it should be different from competing products
? How it should be packaged
Levels of product
Levels of product (Extended)
Levels explained
? We take an example of a Hotel
Core benefit
? At the first level In a hotel (which is a product) the
core benefit is
? Rest and sleep (A hotel guest is basically buying
rest and sleep in a hotel) ? it is the basic benefit
Basic Product
? In case of hotel the basic product will constitute
? Hotel room (including a bed, bathroom, towels,
desk, TV etc) ? At this second level marketers must turn the basic benefit into a basic product. ? Match basic benefit with a basic product
Expected Product
? At the third level, the marketer prepares on
expected product ? A set of attributes and conditions buyers normally expect when they purchase this product.
? Hotel guests expect a clean bed, fresh towels,
working lamps, and a relative degree of quite
Augmented Product
? At the fourth level, the marketer prepares an
augmented product that exceeds customer expectations
? In Developed countries, brand positioning and
competition take place at this level. ? However in developing countries like India and Brazil competition takes place mostly at the expected product level. ? In a hotel augmented prdt may be a PC in the room or the welcome drink to improve the position of the product in the eyes of the customer
Potential Product
? It includes all the possible augmentations and
transformations the product or offering might undergo in the future. ? Here is where companies search for new ways to satisfy customers and distinguish their offerings
? Like a Hotelier might look forward to add Gym or
swimming pool in future
Hence
? Differentiation arises and competition increasingly
occurs on the basis of product augmentation, which also leads the marketer to look at the user’s total consumption system: The way the user performs the task of getting and using products and related services.
However
? Each augmentation adds cost, and
? Augmented benefits soon become expected
benefits and necessary points of parity ? Today’s Hotel guests expect cable or satellite TV with a remote control and high speed internet access or two phone lines. ? This means competitors must search for still other features and benefits
And
? As some companies raise the price of their
augmented product, others offer a “stripped down version” at a much lower price
Example : ITC Welcome Group
? It has four set of properties
? Super Delux hotels (ITC Hotels) ? Five star hotels (Welcome Hotels) ? Budget hotels (Fortune Hotels) ? Palaces, Forts and Havelis (Welcome heritage)
Product Classification
? Basis
? Durability and tangibility ? Consumer goods classification ? Industrial goods classification
Durability and tangibility
? Nondurable (Soft Drink and soaps)
? Durable (Refrigerators, TV etc)
? Services (Intangible)
9/25/2013
Consumer Goods classification
? Convenience (Soft Drink, Soap)
? Staples (Purchase on regular basis) – toothpaste ? Impulse (without any planning or search effort) –
Chocolate, Candy etc ? Emergency Goods (Urgent need ) - Umbrella
? Shopping (Furniture, Clothing)
? Homogeneous (Similar in quality may be different in
price) – Lux and Rexona ? Heterogeneous (Differ in product features and services which happens to be more significant than price) – Lux and Dove
Contd..
? Specialty goods (a Mercedes)
? Unsought (Life insurance)
Industrial goods classification
? Materials and parts
? Raw Materials ? Farm products ? Natural products ? Manufactured materials and parts ? Component materials (pig iron, yarn – to be further processed) ? Component parts (finished products, small motor, light)
Contd..
? Capital items
? Installations (Buildings and heavy equipments) ? Equipments (Portable factory equipments and tools)
– hand tools, lift trucks etc
? Supplies and business services
? Maintenance and repair (Paints, nails)
? Operating supplies (Lubes, coal, writing paper)
Together they come under the category MRO
Contd..
? Business services include
? Maintenance and repair services ? Business advisory services
doc_722816015.pptx