The Marketing Mixsemi

THE MARKETING MIX
WHAT IS A product is defined as anything that can be offered in the
PRODUCT? market for attention, acquisition, use, or consumption to satisfy a

need, want, demand, or expectation. It may include physical
objects, persons, ideas, and services as well. There are three
levels that a product should be viewed.
Core Product – this is the “meat” or essence of the product.
Tangible or Actual Product – this includes the product’s name,

label, brand name, style, packaging, features, and quality level.
Augmented Product – this level is the part where seller provides

additional services and privileges to consumers of the product.
CLASSIFICATION OF PRODUCTS
Consumer Products – are goods that are purchased to satisfy personal and family needs.
There are four categories of consumer products, convenience, shopping, specialty, unsought.
Convenience Products – are items that consumers want to buy with the least possible
shopping effort.
Shopping Products – are items for which buyers are willing to spend considerable effort in
planning and making a purchase.
Specialty Products – are items for which there are no acceptable substitutes in the
consumers’ mind.
Unsought Products – are items that are purchased when a sudden problem has to be
solved or when aggressive selling is used to obtain a sale that otherwise would not take
place.
Industrial Products – are items that are bought for the use in a firm’s operations
or to manufacture other products. Compared to convenience products, industrial
products generally possess the following characteristics. They are the following:
• Derived Demand: one of the salient characteristics of industrial products is that
demand for these goods is essentially derived from consumer needs and
requirements.
• Price Sensitivity: an important characteristics of industrial products is that
industry demand is not a price sensitive as consumer demand.
• Fluctuating Demand: demand for most industrial products fluctuates more
widely and frequently than demand for consumer goods.
• Limited Market: while everyone is a potential customer for consumer products,
the number of industrial buyers is limited.
• Geographic Concentration of Market: unlike the consumer market, industrial
market tend to be concentrated in specific geographic regions.
• Rational Buying Behavior: the primary aim of an industrial marketer is to
satisfy their market’s needs. Although sometimes triggered by some form of
stimuli, industrial customers tend to have more rational reasons for
purchasing items than consumers.
• Long Negotiating Period: time frame is also likely to be extended in the
sale of industrial products, most especially if they are made to order.
• Infrequent Sales: besides the longer period that it takes to close an
industrial sale, marketers of industrial products make fewer sales due to the
nature of the goods. Many times, they are more expensive than consumer
products.
• Industrial Advertising and Personal Selling: because industrial sales are
infrequent and take a long time to negotiate marketers need to establish
effective and direct contact with their consumers.
7 CATEGORIES OF INDUSTRIAL
PRODUCTS
• Raw Materials – refers to the basic components that are actually part of the physical
product.
• Major Equipment – includes large tools and machines that are used for production
purposes.
• Accessory Equipment – is not a part of the final product but is generally used in
production or office activities.
• Component Part – become parts of physical products and are either finished items
ready for assembly or products that need little processing before assembly.
• Process Material – are used directly in the production of other products.
• Consumable Supplies – facilitate production and operations. However, they do not

become part of the finished products.
• Industrial Services – are intangible products that many organizations use in their
respective operations.
PRODUCT ENHANCEMENT
STRATEGIES
• Product Design
• Product Innovation
• Branding
o Brand
o Brand name
o Brand mark
o Trademark
• Brand Decision
o Brand sponsor decision
o Brand quality decision
o Brand extension decision
o Multi brand decision
o Brand repositioning
BRAND MANAGEMENT
One of the most effective approaches to product enhancement strategies is
effective brand management. However, the process of building a brand is a
difficult process. Organizations and companies work hard to build a brand but
oftentimes many of them do not succeed.
Here are some of the things to remember in brand building and management:
 Commonality of vision:
 Top management support
 Branding in a localized context
 Co-branding
 Reinventing
 Focus on women
 Simplicity but appealing
PACKAGING & LABELING
Packaging is the process of A label indicates the
product planning wherein the products’ brand name, the
company researches, designs, company logo, ingredients,
promotional messages,
and produces its package(s).
inventory control codes and/or
A package is any container instructions for use while
inserts consist of detailed
used to protect, promote,
instructions and safety
transport, and/or identify a information.
product.
BENEFITS OF PACKAGING
Communication Benefits – it conveys information to the consumer such as
disclosure of product components and directions on how to use the product. It
also presents other information like seals and symbols, whether government-
required or commercial approvals.
Functional Benefits – packaging often plays an important functional role, such

as convenience, protection, and storage.
Perceptual Benefits – a package can connote status, economy, and even

product quality.
Trends in Packaging: as mentioned earlier, packaging is becoming an increasingly

important aspect of marketing strategy. There are two differing trends in
packaging. One involves downsizing or reducing the package size. The opposite
trend is increasing the size.
• Product Line-Length Decisions: this product-line
Product line is a length, more or less, determines the company’s
group of products that objectives or vice versa. This line may be considered
too short if the manager can raise profits by
are closely related, dropping items.
either because they • Product-Line Stretching Decisions: it occurs
function in a similar when a company lengthens its product line beyond
manner or are sold to its current range. This method can be done in 3
ways: downward, upward or both ways.
the same group of
customer groups, are  Downward Stretch: it occurs when a company
initially establishes itself at the high end of the
marketed through the market and later on stretches its line downward.
same types or outlets,
 Upward Stretch: in this type of product-line
or fall within given stretching, companies positioned at the lower end of
prices. the market may soon find itself entering the higher
end.
 Two-way Stretch: it can be done by companies who

find themselves selling middle-range products and
then decide to stretch their lines each direction that
is either, downward or upward.
Product-Line Filling Decisions: a product line can also be developed by
introducing new products within the present range.
Product Mix Decisions: is the set of all product lines and items that a
particular seller offers for sale to buyers. A company’s product mix can
have a certain features: width, length, depth, and consistency. The width
refers to the different product lines; length of the mix refers to the total
number of items the company caries; depth refers to how many versions of
each product is offered in the line, and consistency refers to how closely
related the various product lines are in end use, production requirements,
and distribution channels, among others.
Thank you!

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THE MARKETING MIX

WHAT IS A product is defined as anything that can be offered in the

PRODUCT? market for attention, acquisition, use, or consumption to satisfy a

Core Product – this is the “meat” or essence of the product.

Tangible or Actual Product – this includes the product’s name,

Augmented Product – this level is the part where seller provides

• Process Material – are used directly in the production of other products.

• Consumable Supplies – facilitate production and operations. However, they do not

Functional Benefits – packaging often plays an important functional role, such

Perceptual Benefits – a package can connote status, economy, and even

Trends in Packaging: as mentioned earlier, packaging is becoming an increasingly

 Two-way Stretch: it can be done by companies who

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