Market Mix

It is a mix or a combination of tactics used to market effectively to a target market.It can also be defined as the combination of elements, tools, or efforts used to achieve marketing objectives. The concept was given by Theodore Levitt who proposed the four p’s i.e ProductPlacePricePromotion

Expanded Market Mix

An expanded mix was proposed by Britner that added three more Ps :

People Process Physical evidence

Market Mix (contd)

Product Physical good features Quality level Accessories Packaging Warranties Product Lines Branding

Market Mix (contd)

Place Channel type Exposure Intermediaries Outlet locations Transportation Storage Managing Channels

Market Mix (contd)

Price: Flexibility Price levels Terms Differentiation Discounts Allowances

Market Mix (contd)

Promotion: Promotion blend Salespeople Advertising Sales promotion Publicity

Market Mix (contd)

People: Employees Cutomers

Market Mix (contd)

Physical Evidence: Facility design Equipment Signage Employee dress Other tangible

Market Mix (contd)

Process: Flow of activities Number of steps

Market Mix (contd)

Product- It is the offer of the marketer to satisfy a need & want. It includes the product variety & assortment, quality, features, style, brand name, packaging, warranties & guarantees, product logos, trademarks, & associated benefits.

Market Mix (contd)

Place- Refers to the distribution of the products to the consumers. It involves the movement of the product from the sellers to the buyers, as well as storage at different points to make these available at convenient time & locations to the buyers.

Market Mix (contd)

Price: It is the monetary value of the product. This is what the buyer pays to the seller, including discounts, allowances, credit terms, payment period etc.

Market Mix (contd)

Promotion- It refers to all methods & tools used to give product information to the buyers & persuade them to purchase it.

Market Mix (contd)

People- People imply the human elements involved in the service experience. The most visible elements are those engaged in exchange, i.e. sellers & buyers.

Market Mix (contd)

Process- Process of service delivery decides the satisfaction of the customers. It includes the procedures, task schedules, mechanisms, activities & routines by which a product or service is delivered to the customer.

Market Mix (contd)

Physical evidence- Physical evidence creates tangibility for the intangible services. I t portrays an image through physical presence such as building, décor, uniform etc.

Product

Def- A product is anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need. It includes physical objects, services, places, organizations & ideas.

Types of product

Core product/ Consumer product Facilitating product Supporting product Industrial product

Core Product/ Consumer product

It includes what exactly the consumer is buying, it could include a package of problem solving seervices

Facilitating Product

These are those services or goods that must be present for the guest to use the core product, eg hotel services & facilities

Supporting Product

These are extra products offered to add value to the core product & to help differentiate it from the competition. In a hotel a business centre or health spa is a supporting product

Industrial product

Are those products that are used for industrial consumption.

Product Planning & development/ New product planning & development

Acompany can obtain new products through two ways:

Acquisition New product development – setting

research & development department

Stages of product planning & development

Idea Generation Idea screening Concept development & testing Marketing strategy Business analysis Product development Test marketing Commercialization

Idea Generation

Internal sources Customers Competitors Distributors & suppliers Other sources

Idea Screening

The following are the objectives of idea screening:

Fulfilling mission Meeting corporate objectives Meeting property objectives Protect & promote core business Protect & please our key customers Better utilize existing resources Support & enhance existing product line.

Concept development & testing

Product Idea- envisions a possible product that company managers might offer to the market

Product concept- a detailed version of the idea stated in meaningful consumer terms

Product image- is the way that consumers picture an actual or potential product.

Marketing Strategy

Designing an initial marketing strategy for introducing the product into the market. It is divided into two parts:

Target market, planned product positioning, sales, market share & profit goals.

Planned price, distribution, marketing budget.

Business Analysis

It involves a review of the sales, costs & profit projections to determine whether they satisfy the company’s objectives.

Product Development

The product concept develops into a prototype of the product. It also means that it satisfies the following criteria:

Consumers perceive it as having the key features described in the product concept statement.

It performs safely under normal use It can be produced for the budgeted costs

Test Marketing

It is the stage in which the product & marketing program are introduced into more realistic market settings.

Commercialization

At the final stage, the product is rolled out in the market. It may be done in a phased manner moving from one market to another market in one go.