Assignment On

Marketing Mix

Submitted By: Bhavna(18127)

Manisha(18110)
Submitted To: Ms.Anupreet
Introduction
Marketing is the way in which a business uses price, product, distribution and
promotion to market and sell its product.

 The marketing mix is often referred to mix deals with customer

Promotion - how the customer is found and persuaded to

as the "Four P's" - since the most important elements of marketing are concerned with:

 Product - the product (or service) that the customer obtains

 Price - how much the customer pays for the product
 Place – how the product is distributed to the
 buy the product

It is known as a "mix" because each ingredient affects the other and the mix must overall be
suitable to the target customer.

For instance:

 High quality materials used in a product may mean that a higher selling price can be
achieved
 An advertising campaign carried in one area of the country requires distribution of the
product to be in place in advance of the campaign to ensure there are no disappointed
customers

What makes for an effective marketing mix?

An effective marketing mix is one which:

 Meets customer needs

 Achieves marketing objectives
 Is balanced and consistent
 Creates a competitive advantage for the business
 Promotion is needed to emphasise the new features and benefits of a product

Definition of Marketing Mix
  According to Philip Kotler - "Marketing Mix is the combination of four elements,
called the 4P's (product, Price, Promotion, and Place), that every company has the
option of adding, subtracting, or modifying in order to create a desired
marketing strategy"

Elements of Marketing Mix

The marketing mix for each business and industry will vary; it will also vary over time.

For most businesses, one or two elements of the mix will be seen as relatively more important
than the others, as illustrated below:

 PRODUCT MIX
What is Product ?
Anything that satisfies the need of the customer is called a product. A product can be
tangible as well as intangible.
 What is Product Mix ?
Product mix refers to the total number of products that a marketer offers in the
market.

EXAMPLE:
1. The Hindustan Unilever is dealing with soaps , detergents , tea , toothpaste etc.
2. Coca-Cola has product brands like Minute Maid, Sprite, Fanta, Thumbs up,
etc. under its name. These constitute the width of the product mix. There are a
total of 3500 products handled by the Coca-Cola brand. These constitute the
length. Minute Maid juice has different variants like apple juice, mixed fruit,
etc. They constitute the depth of the product line ‘Minute Maid’. Coca-Cola
deals majorly with drinking beverage products and hence has more product
mix consistency.

Components of Product Mix

The four dimensions to a company's product mix include width, length, depth and
consistency. Product mix, also known as product assortment, refers to the total number of
product lines a company offers to its customers. The important variables of product mix are
as follows:

1. The Product Line and Product Range

includes following:
Width: Number of Product Lines

The width, or breadth, of a company's product mix pertains to the number of product lines the
company sells. For example, if you own EZ Tool Company and have two product lines –
hammers and wrenches – your product mix width is two.

Length: Total Products

The product mix length is the total number of products or items in your company's product
mix. For example, EZ Tool has two product lines, hammers and wrenches. In the hammer
product line are claw hammers, ball peen hammers, sledge hammers, roofing hammers and
mallet hammers..

Depth: Product Variations

Depth of a product mix pertains to the total number of variations for each product. Variations
can include size, flavour and any other distinguishing characteristic. For example, if your
company sells three sizes and two flavours of toothpaste, that particular line of toothpaste has
a depth of six.

Product Market Mix Strategy

Small companies usually start out with a product mix limited in width, depth and length; and
have a high level of consistency. However, over time, the company may want to differentiate
products or acquire new ones to enter new markets. They may also add to their lines similar
products that are of higher or lower quality to offer different choices and price points.

This is called stretching the product line. When you add higher quality, more expensive
products, it's called upward stretching. If you add lesser quality, lower priced items, it's called
downward stretching.

2. Product Design: Product design as a verb is to create a new product to be

sold by a business to its customers. A very broad coefficient and effective generation and
development of ideas through a process that leads to new products. Thus, it is a major
aspect of new product development.

3. Product Package: The wrapping material around a consumer item that

serves to contain, identify, describe, protect, display, promote and otherwise make the
product marketable and keep it clean. Packaging is more than just your product's pretty
face. It is also known as silent salesman as it attracts a number of customers.

4. Product Quality: Another variable of product mix is product quality.

Product quality means to incorporate features that have a capacity to meet consumer
needs (wants) and gives customer satisfaction by improving products (goods) and making
them free from any deficiencies or defects.
5. Product Labeling: Product Labeling is a key feature in marketing. It
helps to market the product allowing customers to know about the item and give
necessary messages including ingredients, instructions, and uses. Product labeling can be
done in a variety of sizes, materials, and shapes.

6. Product Branding: Product branding is a strategy that defines a unique

set of marketing elements to differentiate a given product. It is an activity that defines the
way the product's image is communicated to its customers. It basically refers to naming
the product.

7. After Sale Service: After sales service refers to all the things you do for
the care and feeding of your valued customers after they buy your product. This type of
customer aftercare is important for any business, but especially for small businesses
where every client counts.

 PLACE MIX
What is Place?
In the marketing mix, the process of moving products from the producer to the
intended user is called place. In other words, it is how your product is bought and
where it is bought. This movement could be through a combination of intermediaries such
as distributors, wholesalers and retailers

Place Mix includes following variables:

1. Transportation: Transportation is indispensible function of marketing.
Transportation provides the physical means of carrying goods and persons from one place
to another. In other words, it is concerned with carrying the goods from the places of
production to the places of their consumption.

2. Warehousing: A warehouse may be defined as a place used for the storage

or accumulation of goods. The function of storage can be carried out successful with the
help of warehouses used for storing the goods. Warehousing can also be defined as
assumption of responsibility for the storage of goods. By storing the goods throughout the
year and releasing them as and when they are needed, warehousing creates time utility.

3. Channels of Distribution: There are four main types of

distribution channels. These are:

Direct Channel:
In this channel, the manufacturer directly provides the product to the consumer. In this
instance, the business may own all elements of its distribution channel or sell through a
specific retail location. Internet sales and one on one meetings are also ways to sell directly to
the consumer. One benefit of this method is that the company has complete control over the
product, its image at all stages and the user experience.

Indirect Channel:
In this channel, a company will use an intermediary to sell a product to the consumer. The
company may sell to a wholesaler who further distributes to retail outlets. This may raise
product costs since each intermediary will get their percentage of the profits. This channel
may become necessary for large producers who sell through hundreds of small retailers.

Dual Distribution:
In this type of channel, a company may use a combination of direct and indirect selling. The
product may be sold directly to a consumer, while in other cases it may be sold through
intermediaries. This type of channel may help reach more consumers but there may be the
danger of channel conflict. The user experience may vary and an inconsistent image for the
product and a related service may begin to take hold.

Choice of Channel of Distribution:

Following factors govern the choice regarding channel of distribution:
1. Nature of product: For perishable goods, a shorter channel is preferred, whereas for
durable goods, channel 3 is roduct: more popular. If goods are made to order, direct selling
may be affected. For technical and costly products, manufacturers generally go for direct
selling through agents specially hired for this purpose.

2. Nature of market: If the market is concentrated and not scattered, producers may go for
direct selling, but for the scattered market, middlemen are involved. If there are more buyers,
there may be a need to include more middlemen. For consumer product market, retailers are
essential, but in case of industrial products, a shorter channel is preferred; therefore,
middlemen may be eliminated.

3. Middlemen: Middlemen who can provide desired marketing services are given preference.
The availability of middlemen also affects channel decision. The middlemen must be
cooperative and honest. The channel which generates largest sales volume at the lower unit
cost will be given priority.

4. Size and policy of the company: There are many factors related to the company which
influence channel decision. A big-sized company with a broader product line can afford to
have shorter channels. New companies heavily rely on middlemen. A company with
sufficient financial resources can spend heavily on advertisement and its own outlets. Hence,
need for middlemen is reduced. Companies desiring efficient control over channel members
will always prefer shorter channels.

5. Marketing environment: During recession or depression, shorter channels are preferred

because of being less costly. In times of prosperity, a wide choice is available. Technological
inventions also have an impact; for example, distribution of perishable goods to distant places
has become possible due to cold storage facilities in warehousing and transporting. Such
facilities have expanded the role of intermediaries.

6. Competitors: Channels of distribution used by competitors also influence this decision.

Some organizations may like to follow the same chains as used by competitors. On the other
hand, some organizations may avoid channels already customary. They may have their own
decisions. Thus, after visualizing the impact of these factors, a company adopts the best
channel from among the available alternatives.