The Marketing Mix

The Marketing Environment

Internal Environment

Marketing organisation

External Environment

Marketing mix
The Marketing mix is a blend of four internal components i.e. product , price ,place ,promotion. Acc. to Mr. Jerome McCartly Marketing mix is a pack of four sets of variables namely- product variables, price variables ,promotion variables and place variables Product Price

Place

Promotion

Product Mix
1. 2. 3. 4. 5. 6. 7. 8.

Brand Style Colour Design Product line Package labelling After sale service Marketing Mix

Price Mix
1. 2. 3. 4. 5. 6. 7.

Pricing strategy Pricing policy Terms of credit Terms of delivery RPM Discounts and allowances

Place Mix
Distribution Channel 1. Wholesalers 2. Retailers 3. Mercantile agents Physical Distribution 1. Transport 2. Warehousing 3. Inventory etc.

Promotion Mix
1. 2. 3. 4. 5.

Personal selling Advertising Publicity Sales promotion Public relation

Product
Product : anything that can be offered to the market to satisfy the needs or wants of the customers. It includes physical goods , services ,persons ,ideas ,places etc. Levels of a product 1) Core benefit : fundamental benefit or service that customer is really buying. 2) Generic product : its core benefit in the shape of a basic product 3) Expected product : a set of attributes and conditions that buyers expect from product. 4)Augmented product: better than expectation & competitors that includes additional services & features 5)Potential product : means all possible features ,which can be added to the product in future

Product Mix
Potential product product Expected

Core benefit

The Product Mix Variables

a)The product line :it is a set of closely related items ,which are offered in the market to satisfy a set of related need. and sold to the same consumer group through same distribution channels or fall within a given price range Elements of product line : -The width : refers to various product line in product mix of a particular company. -The length of product mix: refers to the total no. of items present in the product mix of a company. Average length of a product mix = Total products offered Total no. of product line -The depth of product mix : refers to the varieties offered by the product lines of a company. -Consistency of product mix : means how closely related all

b) Product

1) 2) 3) 4) 5) 6)

design : includesexternal appearance size ,color ,shape ,texture Construction- arrangement of parts give the user convenience ,economy, in operation ,durability ,mobility and lower cost. Production capacity : the ability of plant and the personnel to make design economic & profitable. Relationship to other products Technological updation Service requirement

c) Product package: attractive ,protect the product, convenience quick recognition d) Product quality : quality standards for color ,texture ,weight ,shape ,material used etc.

e) Product

labeling :Labels are fixed to products to identify them and to describe their ingredients, quantity ,quality and other characteristics. f) Product Branding: Branding is use of a name ,logo ,symbol ,mark or combination of all which is given to product and which communicates identity of a given product.

2) The Place Mix

- includes the means by which products and services are transferred from producer to consumer and where they can be accessed by the consumer
The more places to buy the product and the easier it is made to buy it, the better for the business and the consumer Emphasis on physical distribution and selection of the proper channel

Variables of Place Mix

1) Transportation: -select the most economic and safer mode of transportation 2) Warehousing : creates time utility by adjusting the supply and demand 3) Inventory level: To maintain sufficient level of inventory 4) Distribution channel: creates possession utility by making goods or services available to consumers

5) Physical distribution :
Procurement Manufacturing Physical distribution

Suppliers

channels

customers

involves inventory management , packaging , in plant warehousing ,Outbound transportation , sales forecasting etc.

Promotion
Strategies to make the consumer aware of the existence of a product or service

Promotion mix
Personal communication -personal selling Impersonal Communication sales promotion Trade fair & exhibition Public relation Advertising

Price mix
Price is monetary value of the product Price variables: 1)Pricing policies 2)Terms of credit 3) Margin

BRANDING
A brand is a name ,sign ,term ,symbol ,or design or combination of them ,intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competitors. Philip Kotler

Essential features of good brand name

1) 2) 3) 4) 5) 6) 7) Easy to pronounce and remember Simple ,short and sweet Reflect product dimensions Original Economical Legally Protectable Helpful in advertising

Advantages of Branding
1. 2. 3. 4. 5. 6. 7. 8. Product gets individuality Develops brand loyalty Control of product price Reduces advertising cost Helpful in introduction of new product Powerful weapon of product differentiation Increases bargaining power Brand stands for quality

Brand Mark
A brand mark is recognizable visually and does not need to be pronounced. A trade character is a specific type of brand mark, one with human form or characteristics. (Pillsbury Doughboy)

Brand Name
A brand name is a word, group of words, letters, or numbers that represent a product or service. (Pepsi, Barbie)

Packaging
Package A package may be specially designed wrapper ,box ,carton ,cans ,crate ,bottle ,jar ,tube ,barrel ,drum ,or pallet for convenient distribution. Philip Kotler Packaging is the use of containers and wrapping material plus decoration and labeling to protect the product ,to help and promote its sale and to make it convenient for the customer to use the product. Mason and Rath

Factors considered while making packaging decisions

1) Protection 2) Visibility 3) Added value 4) Distributor acceptance 5) Cost 6) Expensive to create 7) Long term decision 8) Legal issues 9) Storing facility 10) Pollution free

Advantages of Packaging 1) 2) 3) 4) 5) 6) 7) Protects the content Acts as a promotional tool Provides user convenience Facilitates product identification Extends product life cycle Helpful in storage Convenience in display

Product Labeling
Label may be a piece of paper , printed statement , imprinted metal which is either a part of a package or attached to it ,indicating contents ,price ,product name , place of producers etc.

Importance of labeling
1)To know product features 2) To encourage self service 3) To facilitate product related service a) Product support service b) Product credit service c) Product guarantees and warrantees

5) To meet legal requirements 6) Helpful for companies serving international markets or diverse culture