MM Unit - Iii

Marketing Mix Decisions
UNIT - III
Marketing Mix Decisions
UNIT - III
Product
Different
Size
Colour
Brand
Packing
Core Benefit: the need or want that people
have to satisfy by consuming a product or
service
Generic/Basic Product: the basic features of

a product or service that are necessary for it to
achieve its core benefit
Expected Product: a set of attributes that

consumers will expect when purchasing for a
product or service
Augmented Product: other attributes,

benefits, or related services that make the
product unique and exceed consumers'
expectation
Potential Product: any potential changes and
benefits that a product might achieve in the
future
Core Benefit – Sleep / Rest Basic Product / Service – Bed, Restroom,
Towels, Closet…
Expected Product/Service – Clean, Fresh Augumented Product/Service – TV, Fine

Towels …. Dining, Express Checkouts …
Product Planning
• Corporate plan and Marketing Plan
Product Development
• Is the process of finding out the possibility of producing a product
Objectives of product planning
• To meet consumer needs
• To guarantee firms survival
• To increase firms Sales
• To ensure better resource utilization
• To spot-light firms strengths and weakness
Elements of product planning
• Research before production
• Product innovation
• Possibility of production method
• Product diversification
• Modification of existing lines
• Price determination
• Product standardisation
• Product line
Product Diversification
Product line
Maturity
Stage
Growth Decline
Stage Stage
Introduction
Stage
New Product Development and Management
• A new product is one which is really innovative which is significantly
different from existing and imitative products that are new to the
company.
• New Product Development Stages

• https://www.youtube.com/watch?app=desktop&v=KWy4UgbzCBU
What is market segmentation?
• Market segmentation is a process that consists of sectioning

the target market into smaller groups that share similar
characteristics, such as age, income, personality traits,
behavior, interests, needs, or location.
Targeting
• The next step in the STP model is targeting in which you decide which
segments are worth focusing on for your marketing campaign. Ideally,
you should consider the following criteria to determine the most
attractive segments to target.
Positioning
• Positioning is a technique used by companies to shape the perception

of their product or service in the minds of their intended audience.
Through positioning, companies aim to highlight the distinctive
features and benefits of their brand’s offering that sets it apart from
competitors.
What is Brand
Positioning?
Brand positioning is the
method of positioning the
brand in the minds of your
target customers. More than
just a tagline or a fancy logo,
brand positioning is the tactic
used to set the company
apart from the rest.
Successful brand positioning
can be defined as the degree
to which a brand is viewed as
favorable, different, and
trustworthy in the minds of
consumers.
Brand differentiation
• Is a way to make a brand stand out from competitors by integrating
unique attributes into its products or services. Here are some
examples of brand differentiation strategies:
Distribution channel
• A distribution channel is a network of people and organizations that
help a product or service move from a producer to a customer.
Distribution channels are also known as marketing channels or
marketing distribution channels.
Channel management
• Is the process of developing and maintaining distribution channels
through which a company's products or services are marketed and
sold to customers. This includes managing relationships with
resellers, distributors, wholesalers, and retailers.
Retail management
• Retail management is the process of managing the day-to-day
operations of a retail business, including managing sales, inventory,
customer service, marketing, and employee relations.
Functions of Retailing
• Breaking Bulk
• Holding Stock
• Channel of communication
Importance
• Importance for producers and wholesalers
• Selling goods
• Assessing consumers tastes and preference
• Promoting new products
• Importance for Consumers
• Variety of goods
• Demand Creation
• Distribution
• Credit Facility
Managing Wholesaling
Wholesaling involves selling goods in bulk at a lower price than retail,
so that customers can then resell them for a profit.
Philip Kotler: It consists of the sale and all activities in selling goods or
services to those who buy for resale or business use.
Functions
• Sales and Promotion
• Bulk Breaking
• Warehousing
• Transportation
• Risk Bearing
Importance
• Importance for Retailers
• Promotion
• Market information
• Financial Aid
• Importance for Manufacturers
• Reducing Inventory Costs
• Avoiding Credit Risks
Managing Logistics
• Logistics management is an important business operation process
that involves the coordination, movement, and storage of goods
through efficient use of resources. It includes activities such as
sourcing, planning, tracking, warehousing, transportation, inventory
control and customer service.
Objectives
• Improving customer service
• Least Product Damages
• Inventory Reduction
Promotion
• It includes advertising,
personal selling, sales
promotion and other selling
tools.
• Significance / Importance of
Promotion
• Increasing Awareness
• Increasing Preference
• Increasing Retailers
Methods of Promotion
• Advertising and sales promotions are both marketing strategies that can
help a company sell products or services:
Advertising
• A long-term strategy that informs and influences people about a product or
service's qualities and advantages. Advertising can help build a brand's
image, value, and curiosity, and improve its position in the market.
Sales promotion
• A short-term strategy that offers incentives to buy a product or service
immediately. Sales promotions can help build customer relationships,
reach new customers, and boost sales.
• Sales promotions often attract brand switchers (those who are not loyal to
a specific brand) who are looking primarily for low price and good value.
• Importance of advertising
• Increased sales
• Maintain Demand
• Supplementing Salesmanship
• Creation of Goodwill
• Improvement in quality
Sales Promotion
• Process
Establishing Objectives
Selecting Tools (Consumer promotion, Trade promotion)
Developing the plan
Pre-testing the programme
Implementing and controlling the programme
Evaluating Results
Pricing
• Pricing is a process of fixing
the value that a
manufacturer will receive in
the exchange of services
and goods.
Objectives
• Profit Maximisation
• Price Stability
• Facing Competition
• Achieving a Target Return
• Capturing the Market
Pricing strategies include:
Penetration pricing
Skimming pricing
Cost-plus pricing
Bundle pricing
Pricing Methods
• Cost Based
• Customer Demand – Based
• Market / Competitor Based
• Other Pricing methods
• value based, affordability based, market and demand based
Pricing Procedure
• Selecting Pricing objectives
• Determining Demand
• Estimating Costs
• Analysing competitors costs, price and offers
• Selecting pricing methods
• selecting the final price

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Marketing Mix Decisions

Generic/Basic Product: the basic features of

Expected Product: a set of attributes that

Augmented Product: other attributes,

Expected Product/Service – Clean, Fresh Augumented Product/Service – TV, Fine

• New Product Development Stages

• Market segmentation is a process that consists of sectioning

• Positioning is a technique used by companies to shape the perception

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