MARKETING MIX

PRODUCT
 Marketing
It is communicating the value of a product,
service or brand to customers, for the purpose of
promoting or selling that product, service, or
brand.
Marketing techniques include choosing target
markets through market analysis and market
segmentation, as well as understanding
consumer behavior and advertising a product's
value to the customer.
 7P’S OF MARKETING
 The term "marketing mix" became popularized after Neil H. Borden published
his 1964 article, The Concept of the Marketing Mix.
 Borden began using the term in his teaching in the late 1940s after James
Culliton had described the marketing manager as a "mixer of ingredients".
 E. Jerome McCarthy later grouped these ingredients into the four categories
that today are known as the 4 Ps of marketing
 MARKETING MIX

“A framework for the tactical management of

the customer relationship” (Jobber, 2000)

“A blend of marketing tactics tailored to an

organization's chosen competitive role and its
strategic issues, which is aimed at increased
customer satisfaction, repeat business, positive
brand awareness, increased market share and
sustainable competitive advantage and thus
ultimately at continued business growth and
enhanced profitability.”
 The product is the primary component of the 7 Ps of the
marketing mix.
 A good, a service, or an idea received in an exchange
 It can be tangible (a good) or intangible (a service or an
idea) or a combination of both.
 It can include functional, social, and psychological
utilities or benefits.
 Some product decisions to be made:

• Brand name • Packaging

• Functionality • Repairs and Support
• Styling • Warranty
• Quality • Accessories and services
• Safety
 Three Levels of Product

The formal product The core product

•What customers think •What the customer is
they are buying actually buying
•Tangible and intangible •Defined in terms of
attributes that are easy benefits for the customer
to articulate •Is often described through
abstract, intangible terms

The augmented product

•The totality of all benefits received or experienced by customers
•Includes tangible and intangible elements, attributes that are easily to
articulate as well as abstract ones
 Classifying Products

Consumer Products
Products purchased to satisfy personal and
family needs

Business Products
Products bought to use in an organization’s
operations, to resell, or to make other products
(raw materials and components)
 1. Consumer Products
Convenience products
-low priced, many locations, bought frequently

Specialty products
-special purchase effort, unique, brand identification
-exclusive distribution

Shopping products
-bought on suitability, quality, price and style

Unsought products
-new innovation, requires advertising and selling
 2. Business Products
Installations
-facilities and nonportable major equipment

Accessory Equipment
-equipment used in production or office activities

Raw Materials
-basic natural materials that become part of a physical
product

Component Parts
-items that become part of the physical product
 2. Business Products
Process Materials
-materials that are not readily identifiable when
used directly in the production of other products

MRO Supplies
-maintenance, repair, and operating items that
facilitate production and do not become part of
the finished product

Business Services
-intangible products that many organizations use in
their operations such as cleaning, legal, consulting,
and repair service
 Product life cycle
• A product life cycle consists of the aggregate demand for all
brands comprising a generic product category over time.
• The product life cycle is the combination of these stages form the
time they are introduced until the time they are withdrawn.
 Product life cycle
• Introduction — most risky and expensive
• Growth — both sales and profits rise, often rapidly
• Maturity — sales increase at a decreasing rate and profits decline
• Decline — demand drops, often because of another product development.
 Product Line & Product Mix

Product Item – a specific version of a product

Product Line – a group of closely related product

items viewed as a unit because of marketing,
technical, or end-use considerations
 Product Mix
Product Mix – the total group of products that an organization makes
available to customers
–Width of product mix - the number of product lines a company offers
–Depth of product mix - the average number of different products in each
product line
Product Mix of Procter & Gamble
 Brand Strategy
• With existing brand name
• use brand extensions or develop a new brand name.
• With existing product category
• use line extensions with existing brands or develop multiple brands
• Good brand names:
• suggest product qualities or benefits
• are distinctive, but easy to pronounce and remember
• lack poor foreign language meanings
 + Core Product
+ Financing Terms
+ Delivery Options
= “Total Offering”

The total offering is created by a partnership between the

buying organization and the marketing organization.

The process creates an augmented product that is

specific to the buying unit’s needs and maximizes the
value creation capabilities of the marketer.

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 Why Some Products Fail and
Others Succeed
Reasons for Product Failure
• Product’s value or features did not match customer needs
• Ineffective or inconsistent branding that failed to convey
the right message or image to customers
• Technical or design problems
• Poor market timing
• Overestimation of market size
• Ineffective promotion
• Insufficient distribution