Product Mix

Decisions & Strategies

Marketing Mix

The Four P’s of Marketing

Product Price Place Promotion

Price Mix
Decisions & Strategies
© 2009 UST Faculty of Pharmacy: BJA – Pharmaceutical Marketing
Marketing Mix

PRODUCT
Anything that can be offered to a market for
attention, acquisition, use, or consumption
that might satisfy and delight a need or
want of a target clientele

BRAND
A name, term, sign, symbol, design, or
combination of these, intended to identify
the goods or services of one seller or group
of sellers and to differentiate them from
those of competitors
Price Mix
Decisions & Strategies
© 2009 UST Faculty of Pharmacy: BJA – Pharmaceutical Marketing
Product-Brand Analysis

PRODUCT BRAND

Product Mix
Decisions & Strategies
© 2009 UST Faculty of Pharmacy: BJA – Pharmaceutical Marketing
Role of Brand

Bestows Identity to the Product

Provides Legal Protection

Represents the Manufacturer

Communicates the Product

Gives Value

Product Mix
Decisions & Strategies
© 2009 UST Faculty of Pharmacy: BJA – Pharmaceutical Marketing
Brand Equity
Gerber Products Co.
Tangible Net Worth < US$ 300 million

Excerpt from
Strategic Marketing:
Resource Based View of the Firm (RBV)
by Ban Joseph Ang, RPh, MBA
A Swiss Pharmaceutical Firm

Paid US$ 3.7 billion = 33 x Gerber’s annual profit

Product Mix
Decisions & Strategies
© 2009 UST Faculty of Pharmacy: BJA – Pharmaceutical Marketing
Brand Power

For the period ended March 28, Apple

recorded $8.16 billion in revenue, up from
$7.5 billion in revenue during the same period
last year. Net profit was $1.21 billion, or
earnings per share of $1.33. Analysts had
been expecting revenue of $7.96 billion and
earnings per share of $1.09.
Apple sold 2.22 million Macs, 11 million
iPods, and 3.79 million iPhones during the
quarter, meeting or exceeding expectations
from financial analysts. CFO Peter
Oppenheimer called it "the best nonholiday
quarter revenue and earnings in our history,"
in a statement announcing the results.

Product Mix
Decisions & Strategies
© 2009 UST Faculty of Pharmacy: BJA – Pharmaceutical Marketing
Brand Power

APPL Market Cap (intraday) 180.67B Price/Sales (ttm):4.94 P/B 6.49

HPQ Market Cap (intraday) 116.10B Price/Sales (ttm):1.01 P/B 2.87
DELL Market Cap (intraday) 27.66B Price/Sales (ttm):0.54 P/B 5.5
Source: NASDAQ

Product Mix
Decisions & Strategies
© 2009 UST Faculty of Pharmacy: BJA – Pharmaceutical Marketing
Market VS Perceptual Share

Market Perceptual
Share Share

Short Term Stability Long Term

High Business Low

Risk
Customer
Logical Decision Emotional
Making
Product Mix
Decisions & Strategies
© 2009 UST Faculty of Pharmacy: BJA – Pharmaceutical Marketing
Shrinking the Value

Excerpt from
Strategic Marketing:
Resource Based View of the Firm (RBV)
by Ban Joseph Ang, RPh, MBA

First 10 Years Scarcity Appropriation

1994 Onwards Scarcity Appropriation

Suffered indignity of the hostile take-

over bid of Cable company Comcast in
early 2004 Product Mix
Decisions & Strategies
© 2009 UST Faculty of Pharmacy: BJA – Pharmaceutical Marketing
Building & Sustaining of Brands

Product Performance

Society/Environment Sales & Marketing

Channels People

Product Mix
Decisions & Strategies
© 2009 UST Faculty of Pharmacy: BJA – Pharmaceutical Marketing
Managing Brand Equity
Parent
Brand Revitalization Brand
Sub Family
Brand Reinforcement Brand Brand
Brand
Brand Crisis
Extension

Line Category
Extension Extension

Product Mix
Decisions & Strategies
© 2009 UST Faculty of Pharmacy: BJA – Pharmaceutical Marketing
Managing Brand Equity
Parent
Brand
Sub Family
Brand Brand
Brand Brand
Line Extension

Brand
Line Category
Line Extension Extension

Brand Branded
Mix Variants
Product Mix
Decisions & Strategies
© 2009 UST Faculty of Pharmacy: BJA – Pharmaceutical Marketing
Product Life Cycle
Product

Sales &
Profits STYLE
FASHION
FAD

INTRODUCTION GROWTH MATURITY DECLINE

Time
Product Mix
Decisions & Strategies
© 2009 UST Faculty of Pharmacy: BJA – Pharmaceutical Marketing
Product Life Cycle
Product

Sales
STYLE

Time

Product Mix
Decisions & Strategies
© 2009 UST Faculty of Pharmacy: BJA – Pharmaceutical Marketing
Product Life Cycle
Product

Sales

FASHION

Time

Product Mix
Decisions & Strategies
© 2009 UST Faculty of Pharmacy: BJA – Pharmaceutical Marketing
Product Life Cycle
Product

Sales

FAD

Time

Product Mix
Decisions & Strategies
© 2009 UST Faculty of Pharmacy: BJA – Pharmaceutical Marketing
BCG Growth-Share Matrix

Source: Boston Consulting Group

Product Mix
Decisions & Strategies
© 2009 UST Faculty of Pharmacy: BJA – Pharmaceutical Marketing
Top Ten Global Brands

Source:
Interbrand

Product Mix
Decisions & Strategies
© 2009 UST Faculty of Pharmacy: BJA – Pharmaceutical Marketing
End of Presentation