NILAMADHAB MOHANTY

CIMP
 Marketing mix
 What is marketing mix?
 How marketing mix is important?

 Products
 What are the characteristics of products and how do marketers
classify products?
 How can companies differentiate products?
 How can a company build and manage its product mix and product
lines?
 EXCHANGE
 MARKET SEPARATION
 MARKETING PHILOSOPHY
 CORE CONCEPTS
 Popularly referred to as the “4Ps”
 A means of translating marketing planning into practice
(Bennett, 1997)
 A conceptual framework that identifies the principal decision
making managers make in designing the marketing offering to
cater to consumer needs
 Borden (1965) first to have used the term “marketing mix”
 Suggested by Culliton (1948) who described a business executive as “mixer of
ingredients”
 Borden’s original marketing mix had a set of 12 elements viz.,
 product planning;
 pricing;
 branding;
 channels of distribution;
 personal selling;
 advertising;
 promotions;
 packaging;
 display;
 servicing;
 physical handling; and
 fact finding and analysis

 McCarthy (1964) refined Borden’s (1965) idea further and defined the marketing mix
as
 “A combination of all of the factors at a marketing manger’s command to satisfy the target
market”
 He regrouped Borden’s 12 elements to four elements or 4Ps viz.,
 Product, Price, Promotion and Place
 Judd (1987) proposed a fifth P (people)
 Booms and Bitner (1980) add 3 Ps (participants, physical
evidence and process) to the original 4 Ps - SERVICES
MARKETING MIX
 Kotler (1986) adds political power and public opinion formation
- SOCIAL MARKETING MIX
 PRODUCT
 A product is anything that is of value to a consumer and can be offered through a
voluntary marketing exchange
 In addition to goods or services products might be places, ideas, organisations,
people, or communities (e.g. Facebook) that create value for consumers in their
respective competitive marketing arenas
 PRICE
 Additional monetary costs associated with service usage (e.g., travel to service
location, parking, phone, babysitting, etc.)
 Time expenditures, especially waiting
 Unwanted mental and physical effort
 Negative sensory experiences

 PLACE
 Delivery Decisions: Where, When, How
 Time is of great importance as customers are physically present
 Convenience of place and time become important determinants of effective service
delivery
 PROMOTION
 Provide information and advice
 Persuades the target customers of merit of service product or brand
 Encourages customer to take action at specific time
MARKETING MIX SERVICES SOCIAL
MARKETING MIX MARKETING MIX
PRODUCT PRODUCT PRODUCT
PRICE PRICE PRICE
PLACE PLACE PLACE
PROMOTION PROMOTION PROMOTION
PROCESS POLICY

PHYSICAL PARTNERSHIP
ENVIRONMENT
PEOPLE PEOPLE
PURSE STRING
4Ps 4Cs 4As
PRODUCT CUSTOMER SOLUTION- ACCEPTABILITY
CUSTOMER NEEDS AND
WANTS
PRICE COST AFFORDABILITY :
willingness to pay,
ability to pay
PLACE CUSTOMER ACCESSIBILITY :
CONVENIENCE availability and
convenience

PROMOTION COMMUNICATION AWARENESS : brand

and product
 Decision on marketing mix will vary according to
 A firm’s resources, market conditions and changing needs of clients

 Decisions on one element of the marketing mix is dependent

on its impact on other elements of marketing mix
 The number of possible strategies of the marketing mix is
infinite
 My own model/ idea
 You can contest it
 Can be used to analyse marketing problem and set marketing
strategy
 A product is anything that can be offered to a market to satisfy
a want or need, including physical goods, services,
experiences, events, persons, places, properties, organizations,
information, and ideas
 CORE BENEFIT
 Commuting, Transportation

 BASIC PRODUCT
 Two wheels, handle, seat, pedals, brakes

 EXPECTED PRODUCT
 Proper pressure in wheels, handle appropriately set on the body,
seat intact, pedals in right condition
 AUGMENTED PRODUCT
 Disc brake, GPS system

 POTENTIAL PRODUCT
 Connected bicycles
 Basis
 Tangibility
 Durability
 Use ( consumer goods vs. industrial goods)

 Durability and Tangibility

 Nondurable goods
 Tangible, purchased frequently
 Better milk, Ice cream,
 Durable goods
 Tangible goods, survive many uses
 Textile, e-book, furniture
 Services
 Intangible, inseparable, variable and perishable
 Health care, education, travel
 Convenience
 Shopping
 Specialty
 Unsought
Convenience Products
Buy frequently & immediately
> Low priced
> Many purchase locations
> Includes:
• Staple goods
• Impulse goods
• Emergency goods
Shopping Products
Buy less frequently
> Gather product information
> Fewer purchase locations
> Compare for:
• Suitability & Quality
• Price & Style

Specialty Products Unsought Products

Special purchase efforts
> Unique characteristics
> Brand identification
> Few purchase locations
New innovations
> Products consumers don’t
want to think about.
>Require much advertising &
personal selling
 Capital items
 Installations – buildings, heavy equipments
 Equipment – portable factory equipment and tools and office
equipment
 Materials and parts
 Raw materials, manufactured materials and parts

 Supplies/ business services

 Operating supplies
 Maintenance and repair services
 Product form
 Size, shape or physical structure of a product - shape of lifebuoy soap

 Features
 prof. Sutar’s activa, disc brake vs. Drum brake

 Customization
 Allowing customers to personalise and design their own products; e.g. clothes – printvenue

 Performance
 Performance quality is the level at which the product’s primary characteristics operate – low, average, high or
superior

 Conformance
 The degree to which all produced units are identical and meet promised specifications

 Durability
 Measure of products operating life under natural or stressful conditions

 Reliability
 Probability that a product will not malfunction or fail within a specified time period

 Repairability
 The ease of fixing a product when it malfunctions or fails

 Style
 Product’s look and feel
 Each product can be related to other products to ensure that a
firm is offering and marketing the optimal set of products
 The product hierarchy
 The product hierarchy stretches form basic needs to particular
items that satisfy those needs
 There are six levels of hierarchy – need family, product family,
product class, product line, product type, item
 Item/stock keeping unit/product variant
 A distinct unit within a brand or product line
distinguished by size, price, appearance, or some
other attribute.

 Product type
 A group of items within a product line that share
one of several possible forms of the product

 Product line
 A group of products within a product class that re
closely related because they perform a similar
function, are sold to the same customer groups, are
marketed through the same channels, or fall within
given price range
 May consist of different brands, or a single family
brand, or individual brand that has been line
extended

 Product class
 A group of products within the product family
recognised as having a certain functional
coherence, also known as product category

 Product family
 All the product classes that can satisfy a core need
with reasonable effectiveness.

 Need family
 The core need that underlies the existence of a
product family
 Transportation
 Product systems
 Product system is a group of diverse but related items that function in a compatible manner
 E.g. iPod product system : headphones and headsets, cables and docks, armbands, cases , power and
accessories, speakers

 Product Mix
 The complete set of all products and services offered by a firm is called its product mix.
 The product mix reflects the breadth and depth of the company’s product lines

 Product Line
 The product mix typically consists of various product lines, which are groups of associated
items that consumers tend to use together or think of as part of a group of similar products or
services

 Product Mix Breadth

 A firm’s product mix breadth represents a count of the number of product lines offered by the
firm.

 Product Line Depth

 equals the number of products within a product line. within BMW’s Rolls- Royce brand, for
example, it offers Phanton, Wraith, and Ghost models.
 Product line analysis
 To know the sales and profits of each item in their line to determine which items to build,
maintain, harvest, or divest
 BMW’ s product lines (brands) :
 BMW – cars targeted at middle aged professionals
 MINI – cars targeted to the young adult market
 Rolls-Royce – cars targeted at the ultra-wealthy market
 BMW Motorad – motorcycle line

 BMW’s product mix breadth

 BMW has product mix breadth four
 PRODUCT LINES
BMW MINI Rolls-Royce Motorad
2 series Clubman Ghost C Series
3series Convertible Phantom F Series
4series Countryman Wraith G Series
5series Coupe K Series
6series Hardtop R Series
7series John Cooper Works S Series
X series Paceman
Z4 series Roadster
M series
BMW i
Hybrid
 Width - number of
different product lines

Length - total number of Product Mix -

items all the product
within the lines lines offered

Depth - number of
versions of each
product
 Line Stretching
 Downmarket
 Introducing a lower priced line
 E.g. kodak funtime, Automobile market in India
 Upmarket
 Entering the high end market
 Toyota Lexus
 Two-way
 Titan sonata and Titan Nebula

 Line Filling
 Adding more items within the present range
 Good knight repellent mats, liquid vaporiser, mosquito repellent cream, mosquito coil

 Line Modernization
 Item improvisation
 E.g. smartphones, software

 Line Featuring
 Selecting one or a few items in the line to feature

 Line Pruning
 Packaging, sometimes called the fifth P, is all the activities of
designing and producing the container for a product
 Factors Contributing to the Emphasis on Packaging
 Self-service
 Consumer affluence
 Company/brand image
 Innovation opportunity

 Packaging Objectives
 Identify the brand
 Convey descriptive and persuasive information
 Facilitate product transportation and protection
 Assist at-home storage
 Aid product consumption
 The product life cycle describes the stages a
new product goes through in the
marketplace: introduction, growth, maturity,
and decline.