Unit 3

MARKETING MIX
-Dr. Manjushri Yadav

MARKETING MIX
• The marketing mix is the set of controllable, tactical

marketing tools that a company uses to produce a desired
response from its target market. It consists of everything that
a company can do to influence demand for its product. It is also
a tool to help marketing planning and execution.
ELEMENTS
ELEMENTS OF MARKETING MIX
PRODUCT
•Many authors define the term ‘product’ in the following manner:
 Philip Kotler: “A product is anything that can be offered to a market for attention, acquisition, use or
consumption. It includes physical objects, services, personalities, place, organizations and ideas.”
 Alderson: “A product is a bundle of utilities consisting of various features and accompanying services.”
 Schwartz: “A product is something a firm markets that will satisfy a personal want or fill a business or
commercial need and includes all the peripheral factors that may contribute to consumer’s satisfaction.”
 William J. Stanton: “A product is a set of tangible and intangible attributes, including packaging, colour, price,
manufacturers and retailers prestige and services, which the buyer may accept as offering satisfaction of wants
and needs.”
PRODUCT MIX
• The product mix is the total number of product lines a company offers.
• Many companies sell multiple product lines, which can be similar or vastly different.
ELEMENTS OF PRODUCT MIX
• Consistency: Shows how closely the company’s product lines are related.
• Width: The number of product lines a company sells
• Length: The total number of products in a company’s product mix
• Depth: The Total Variations, such as size, flavor and other distinguishing characteristics for
each product.
NEW PRODUCT DEVELOPMENT
• New Product Development refers to
the complete process of bringing a new
product to market. This can apply to
developing an entirely new product, improving
an existing one to keep it attractive and
competitive, or introducing an old product to a
new market.
STAGES OF NEW PRODUCT
DEVELOPMENT
PRODUCT LIFE CYCLE
• The product life cycle is defined as four distinct stages: product introduction, growth,
maturity, and decline
• For example, videocassettes are gone from the shelves. DVDs are in the decline stage, and
flat-screen smart TVs are in the mature phase.
MARKETING STRATEGIES OF
PLC
•Product introduction strategies
•Marketing strategies used in the introduction stages include:
 Rapid skimming - launching the product at a high price and high promotional level
 Slow skimming - launching the product at a high price and low promotional level
 Rapid penetration - launching the product at a low price with significant promotion
 Slow penetration - launching the product at a low price and minimal promotion
•During the introduction stage, marketing aims to:
 Establish a clear brand identity
 Connect with the right partners to promote your product
 Set up consumer tests, or provide samples or trials to key target markets
 Price the product or service as high as you believe you can sell it, and to reflect the quality level
you are providing
PRODUCT GROWTH STRATEGIES
 Improving product quality

 Adding new product features or support services to grow your market share
 Entering new markets segments
 Keeping pricing as high as is reasonable to keep demand and profits high
 Increasing distribution channels to cope with growing demand
 Shifting marketing messages from product awareness to product preference
 Skimming product prices if your profits are too low
PRODUCT MATURITY STRATEGIES
 Market modification - this includes entering new market segments, redefining target markets,
winning over competitor's customers, converting non-users
 Product modification - for example, adjusting or improving your product's features, quality,
pricing and differentiating it from other products in the marking
PRODUCT DECLINE STRATEGIES
 Reduce your promotional expenditure on the products

 Reduce the number of distribution outlets that sell them
 Implement price cuts to get the customers to buy the product
 Find another use for the product
 Maintain the product and wait for competitors to withdraw from the market first
 Harvest the product or service before discontinuing it
BRANDING
• Branding is the process of creating a strong, positive perception of your company, and its
products in your customers mind.
• This process also delivers materials that support the brand, like a logo, tagline, visual design,
or tone of voice.
PACKAGING
• Packaging can be described as a coordinated system of preparing goods for transport,
warehousing, logistics, sale, and end use. Packaging contains, protects, preserves, transports,
informs, and sells. In many countries it is fully integrated into government, business,
institutional, industrial, and for personal use.
LABELLING
• Labelling is a component of the product mix in marketing that involves designing and
preparing labels for the outermost part of the product package which displays information
and/or essential characteristics about the product.
PRICING
• “Pricing is the amount of money charged for a product or service or the sum of the values
that the consumers exchange for the benefits of having or using the product or service.” -
Philip Kotler
OBJECTIVES OF PRICING
• 1. Revenue Generation
• 2. Market Ruler
• 3. Survival
• 4. Profit Maximization
• 5. Attraction and Retention of Customers
FACTORS INFLUENCING PRICING POLICY
• 1. Customer’s Perception of Value

• 2. Competitors
• 3. Government Law and Regulations
• 4. Economy
• 5. Product Costs
• 6. Market Demand
• 7. Elasticity of Demand
• 8. Market Segmentation
• 9. Branding and Positioning
• 10. Distribution Channels
PROCESS OF PRICING
• Step 1: Selecting the pricing objective
• Step 2: Determining demand
• Step 3: Estimating costs – ensuring profits
• Step 4: Analysing Competitors’ Costs, Prices, and Offers
• Step 5: Choosing your pricing method
• Step 6: Determining the final price
PHYSICAL DISTRIBUTION
• Physical distribution is defined as the process of physical movement of goods from the
producer to the consumer.
• The activities that are included in the efficient movement of goods from producer to end user
or consumer include transportation, inventory control, warehousing, material handling,
forecasting, customer service, plant and warehouse location and order processing.
TYPES OF MARKETING CHANNELS
• A marketing channel is the type of medium used to advertise a product or service by a
company.
• Digital advertisements
• Events
• Influencer marketing
• Search engine optimization
• Content marketing
• Social media
• Word-of-mouth
• Traditional marketing- TV, Radio etc
FACTORS AFFECTING CHANNEL
SELECTION
• Product Type
• Characteristics of the Company
• Competitive Factors
• Environmental Factors
• Market Factors
PROMOTION
• Promotion refers to any type of marketing communication used to inform
target audiences of the relative merits of a product, service or brand.
• The aim of promotion is to increase brand awareness, create interest, generate
sales or create brand loyalty
IMPORTANCE OF PROMOTIONAL
MIX
• A promotional mix is a combination of tools that a company uses to promote its products or
services.
• To create brand awareness
• To reach wider audience
• To build Brand Loyalty.
• To generates Leads
• To stay ahead of the competition
PROMOTIONAL MIX
• Advertising
• Sales Promotion
• Personal Selling
• Public Relations and Publicity

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MARKETING MIX

-Dr. Manjushri Yadav

• The marketing mix is the set of controllable, tactical

 Improving product quality

 Reduce your promotional expenditure on the products

• 1. Customer’s Perception of Value

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