MARKETING MIX

SUBMITTED BY- SHIRIN

PARVEEN RIMSEE

CHHAJER POOJA

TALREJA SIMRAN

JABBAL

MARKETTING MIX

The term “Marketing Mix" was coined in 1953 by Neil Borden in his American Marketing Association.

It is also called as 4 P’s which includes product, price, promotion and place.

The marketing mix principles are the controlled variables which have to be carefully managed and must meet the need of defined target group.

PRODUCT

WHAT IS A PRODUCT? A product can be physical entity or service

which satisfies customer’s needs and wants.

When an organisation introduces a product into a market they must ask themselves a number of questions.

Who is the product aimed at? What benefit will they expect? How do they plan to position the product

within the market? What differential advantage will the product

offer over their competitors?

LEVELS OF PRODUCT Kotler suggested that a product should be

viewed at three different levels.

Level 1- Core product- what is the core benefit that your product offers?

Level 2- Actual product- The strategy at this level involves branding, adding features and benefits.

Level 3- Augmented product- What additional non-tangible benefits can you offer?

PRODUCT DECISIONS Variety- Product variety is defined as the

number of permutations offered to the customer of a particular model.

Quality- Quality has to be consistent with other elements of the marketing mix. A premium based pricing strategy has to reflect the quality a product offers.

Design- It is concerned with the efficient and effective generation and development of ideas through a process that leads to new products.

CONTD.. Product design must satisfy- Competitive advantage Production needs Aesthetics Features- what features will you add that

may increase the benefit offered to your target market?

Brand name- It is one of the most important decision. A brand is a tool which is used by an organisation to differentiate itself from competitors.

CONTD.. Packaging- The packaging and labels can

be used by marketers to encourage potential buyers to purchase the product.

Services- Selling a product is not the end of the process. To retain customer loyalty it is necessary to provide after sale services.

PRICE

WHAT IS PRICE?? Price is value this refers to the process of setting

a price for a product, together with discounts. The price need not be monetary; it can plainly be what is exchanged for the product or services.

e.g. time, energy, or attention. Methods of

setting prices optimally are in the domain of pricing art.

It is a most difficult task of a marketing manager to fix a right price to attract the customer & hence required to do lot of exercise to determine the price.

PRICING CONSISTS OF:- List price:- the basic price of an item as

published in a catalogue, price list, or advertisement before any discounts are taken.

Discount:- A discount is a difference between the price paid for an asset and the specified list price of a good or face value of an instrument.

Example - A quality pen that normally costs RS 20 is being sold for only Rs12. so discount offered is RS 8.

CONTINUED:- Allowances:- a share or portion allotted or

granted or a sum granted as a reimbursement or bounty for expenses salary includes cost-of-living allowance especially a sum regularly provided for personal or household expenses example- weekly stipend given by parent to child as spending money, often earned by doing chores.

Financing:- The act of providing funds for business activities, making purchases or investing. Financial institutions and banks are in the business of financing as they provide capital to businesses, consumers and investors to help them achieve their goals.

CONTINUED Leasing options:- Leasing is a process by which

a firm can obtain the use of a certain fixed assets for which it must pay a series of contractual, periodic, tax deductible payments. The lessee is the receiver of the services or the assets under the lease contract and the lessor is the owner of the assets.

example:- if you rent a car for four days, then the lease should state information about the car, such as its year and model, as well as clearly specify the daily rate (for example-Rs 2000 per day) and driving restrictions.

ADVERTISING promotion mix really successful because their are

various medias through which advertisement can be carried out like in-store displays, Web pages, banner ads, posters,  signs, motion pictures, Print ads, radio, television, and billboard.

Some of the common personal advertising tools are direct mail, brochures and catalogs, and emails.

Advertising makes the people aware of a product or service and it enhances buying in consumers. This shows that advertising can promote a product or service to a large audience and it enhances the sales volume of the company. 

PERSONAL SELLING

A purchase situation in which two ormore people communicate in an attempt toinfluence each other.

The traditional method of personal selling is a planned presentation.

PUBLIC RELATION The marketing function that

evaluates publicattitudes, identifies areas within the organization that the public may be interested in, and executes a program of action to earn public understanding and acceptance.

Publicity is public information about acompany, good or service appearing in the massmedia as a news item.

SALES PROMOTION Consists of all marketing activities

that stimulate consumer purchasing and dealer effectiveness.

Includes free samples, contests, premiums, trade shows, vacation give-away and coupons.

PROMOTIONAL STRATEGY Push strategy :

A “push” promotional strategy makes use of a company's sales force and trade promotion activities to create consumer demand for a product.

The producer promotes the product to wholesalers, the wholesalers promote it to retailers, and the retailers promote it to consumers.

.

PULL STRATEGY A “pull” selling strategy is one that

requires high spending on advertising and consumer promotion to build up consumer demand for a product.

If the strategy is successful, consumers will ask their retailers for the product, the retailers will ask the wholesalers, and the wholesalers will ask the producers.

PLACE The means by which products and

services get from producer to consumer and where they can be accessed by the consumer

The more places to buy the product and the easier it is made to buy it the better for the business and the consumer

Channels Coverage Assortments Locations Inventory Transportation Logistics

CHANNELS Direct

Distribution Indirect

Distribution

Manufacturer

Consumer

Manufacturer

Retailer

Consumer