Marketing Module II

MODULE II
Marketing Mix
• Marketing Mix is the term used to describe
the combination of the four inputs which
constitute the core of a company’s marketing
system – the product, the price structure, the
promotional activities and distribution system.
Elements of Marketing Mix
Promotion Mix Price Mix

Personal selling Pricing strategy
Advertising Pricing policy
Publicity Basic price
Sales promotion Terms of credit
Dealers aids Discounts
Consumer aids Allowances
MARKETING STRATEGY
MARKETING MIX
FOCUSSED ON TARGET Place Mix
Product Mix
MARKET Distribution
Brand
Style Channels
Colour Wholesalers
Design Retailers
Package Mercantile agents
Warranty Physical Distribution
Product line Transport
Service Ware housing
Inventory
product
• A product is anything that can be offered to a
market for attention, acquisition, use or
consumption that might satisfy a want or need.
• Classification of products
1. Industrial goods
2. Consumer goods
a. Convenience goods
b. Shopping goods
c. Specialty goods
Product Mix
• A product mix is the set of all product lines
and items that a particular seller offers for sale
to buyers
• Length of product line refers to the total
number of items in its product line
• Width of the product mix refers to the number
of different product lines offered by the
company.
Product Life Cycle
Sales
Volume
Sales
Volume
Profit
Margin
Introduction Growth Maturity Saturation Decline

Product life cycle
• The PLC is also termed as product market life
cycle as it is related to a particular market.
• Every product moves a life cycle having five
stages: Introduction, growth, maturity,
saturation, and decline.
• The life cycle gives the sales revenue and
profit margin – history of a product over a
time frame.
Introduction
• Product is new: awareness in market is low: cost of marketing is high: profits
are low
Growth
• The product has given satisfaction to the first buyers.
• Others follow: sales increase rapidly and product starts generate profits.
• Competitors notice success and start planning competitive offering
Maturity
• The product reaching its maturity and sales are good.
• Battle for market share is about to begin
Saturation
• Total sales are not growing anymore
• The battle for market share is difficult
• Try for strong Brand loyalty and reduced price
Decline
• Sales and profits are starting to fall and future of the product does not look
healthy
• Remedial strategy – modifying, repositioning or even deleting the product is
New product Development
Steps
1. Idea generation
2. Screening
3. Business analysis
4. product Development
5. Test marketing
6. Commercialisation
Idea Generation
• The systematic search for new product ideas
Sources
Internal Sources – Professionals
- Technicians
- Scientists
- Engineers
- Encourage employees to
think and develop new ideas
• External Sources
– Customers
– Competitors
– Distributors and Suppliers
– Websites for anyone wants to send new ideas
Idea Screening
• Select the best option and drop the poor ones
• Ideas that are practical, economically feasible
and cost effective are selected
• All aspect of manufacturing process is taken
into consideration- the labour required, the
cost of the technology, and expense of the
material
Concept Development and Testing
• When an idea is selected it must be
transformed into a concept.
• Product Concept – a detailed version of the
idea stated in a consumer’s point of view
Concept testing – testing new product concepts
with a group of target consumers to find out if
the concept have a strong consumer appeal
Business Analysis
• A review of the sales, cost and profit
projection for the new product is made
- sales forecast analysis
- assess the range of risks
- estimate the cost and profit
- allocate fund for R & D, promotional
activities, etc.
Product development
• Develops the product concept into a physical
product
• The R & D department will develop one or
more physical versions of the product concept
Test marketing
• The product and marketing program are
tested in realistic market settings
• A sample size is selected and product is tested
• If there is any defects, it can be withdrawn
immediately without affecting the company’s
reputation
Commercialization
• The company must first decide on
– the timing of launching of the product
– Where to launch the new product – in a single
location, a region, the national market or the
international market
Brand
A name, term, symbol or design or a
combination of them which is intended to
identify the goods or services of one seller or
group of sellers and to differentiate them from
those of competitors.
Reasons for Branding
• It is an instrument for sales Promotion in the market, where
stiff competition exists
• It facilitates easy advertisement and publicity
• Creates special consumer preference over the product
• Sales can be increased through brands
• It invites the immediate attention of buyers
• Differentiates the goods of a product from the goods of

competitors
Features of a good brand
• Should suggest something about the product – purpose,
quality, benefit, use, action etc.
• It should be simple, short and easy to pronounce and
remember, eg: Lux, hamam
• It should be easy to advertise and identify
• Should be of permanent nature
• Clear and attractive
• Capable of being registered and protected legally
• Distinctive
• Economical to reproduce
• Original
• Should not be offensive
• Create a good image
Types of Brand
Individual Brand: A firm may decide upon a policy of
adopting distinctive brands for each of its products
Family Brand: Refers to one brand name which a firm

adopts for a variety of its products.
Company Brand: For all products the name of the

company
Combination Device: Products have individual names

and company brands to indicate the firm producing
Brand Equity
David Aaker defines brand equity as the unique set of
brand assets and liabilities that is linked to a brand.
- it is the net result of all the investment and effort

that a marketer puts into building a brand.
- usership of the brand, consumer loyalty

towards it, its perceived quality, positive symbols and
favourable associations around the brand etc.
together result in brand equity
- it is the value or the worth of the brand

Labelling
• Label is a part of the product, which carries verbal
information about the product or the seller
Functions of labeling
1. Enables the producer to give clear instructions
about the uses of the product
2. Price variations caused by the middlemen are
avoided because price is printed and maintained
3. Manufacturer – buyer Relation is established
4. It encourages producers to make only standard
products
5. Buyers can easily identify the product
A complete label gives the following information
1. Brand name
2. Address of the producer
3. Net quantity of the product
4. Ingredients in the product
5. Directions for the use
6. Precautionary measures
7. Nature of the product
8. Date of packing and expiry
Packaging
• An activity which is concerned with protection, economy,
convenience and promotional considerations.
Functions of Packaging
1. Product Protection - breakage, contamination, Pilferage,
chemical change, insect attack
2. Product Containment – using space in which the product
will be contained
3. Product Attractiveness – size, shape, colour, printed matter
4. Product identification – helps in understanding the product
in package
5. Product Convenience – easily handled, opened, moved by
consumer
6. Effective sales Tool – stimulates sales. People buy products,
for the sake of containers
Kinds of Packaging
Consumer Package: is a kind of package which holds
the required volume of product for the household
consumption
Family Package: Many similar units in one pack
Re- use Package: also known as dual package. Package
can be reused for other purposes after the product
is consumed.
Multiple Package: Placing several units in one
container
Eg: make up set, baby care set.
Assignment
1. Define a. Consumer b. Marketing Plan
2. What are the different strategies to be adopted at
various stages of PLC
3. What is societal marketing concept?
4. Who is a marketer
5. Explain the functions of marketing
6. Explain the types of branding and its importance
7. Explain the environmental factors affecting marketing
8. Explain the scope and process of Marketing Research

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MODULE II

Promotion Mix Price Mix

Introduction Growth Maturity Saturation Decline

• It facilitates easy advertisement and publicity

• Creates special consumer preference over the product

• Sales can be increased through brands

• It invites the immediate attention of buyers

• Differentiates the goods of a product from the goods of

Family Brand: Refers to one brand name which a firm

Company Brand: For all products the name of the

Combination Device: Products have individual names

- it is the net result of all the investment and effort

- usership of the brand, consumer loyalty

- it is the value or the worth of the brand

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