Unit II. MARKETING MIX
What is Marketing Mix?
 The mixing, blending or combining of the
four controllable forces, viz., the product,
price, promotion and place or distribution, is
called the marketing mix of the firm.
 Marketing mix refers to the kinds & the
amounts of marketing variables a business
firm uses to produce the response it wants in
the target market at a particular time.
COMPONENTS/ELEMENTS OF
MARKETING MIX
1) Product.
2) Price.
3) Place.
4) Promotion
5) People
6) Process
7) Physical Evidence
8) Productivity
PRODUCT
A product means all goods and services, tangible or intangible, of any
size, quality, color, packing or price, which may be exchanged for
money and accepted by the consumers to satisfy their needs and
wants.
 According to C.P Stephenson defines a product as “everything the
purchaser gets in exchange for money”
 According to Philip Kotler, “A product is anything that can be
offered to a market for attention, acquisition, use or consumption
that might satisfy a want or need.
CLASSIFICATION OF PRODUCTS/GOODS
CONSUMER GOODS OR CONSUMER
PRODUCTS:
 The American Marketing Association has defined the
term consumer goods thus: "Consumer goods are
the goods destined for use by ultimate consumers or
households and in such form that can be used
without commercial processing".
 From this definition, it is clear that consumer goods
are the goods, which can be sold to their
real consumers without any commercial processing.
 Daily use products such as soap, toothpaste. Brush
etc…fall under this category
Convenience/Shopping/Speciality
Goods
 Converse, Huegy and Mitchel have defined
convenience goods as "those goods for which
people do not shop and which they prefer to buy, at
places that are most accessible and that stock
the desired goods at satisfactory prices".
 William Stanton defines shopping goods as "those
goods for which a customer wishes to compare
quality price and style at several stores before
purchasing".
 The Committee on Definitions of American
Marketing Association defines specialty goods as
"those goods with unique characteristics and brand
identification for which a significant group of buyers
are habitually willing to make a special purchasing
effort".
INDUSTRIAL GOODS
 The American Marketing Association has
defined industrial goods thus: "Industrial
goods are goods which are destined to be
sold primarily for use in producing other
goods or rendering services. They include
equipment, component parts, repair and
operating supplies, raw materials
and
fabricating materials".
LAYERS OF PRODUCT
 Philip Kotler, an economist, devised a model that
recognises customers have five levels of need, ranging
from functional or core needs to emotional needs. The
model also recognises that products are merely a
means to satisfy customers' varying needs or wants.
He distinguished three drivers of how customers
attach value to a product:
 Need: a lack of a basic requirement.
 Want: a specific requirement of products to satisfy a
need.
 Demand: a set of wants plus the desire and ability to
pay for the product.
 The five product levels are:
 Core benefit:
The fundamental need or want that consumers satisfy by consuming the
product or service. For example, the need to process digital images.
 Generic product:
A version of the product containing only those attributes or characteristics
absolutely necessary for it to function. For example, the need to process digital
images could be satisfied by a generic, low-end, personal computer using free
image processing software or a processing laboratory.
 Expected product:
The set of attributes or characteristics that buyers normally expect and agree to
when they purchase a product. For example, the computer is specified to deliver
fast image processing and has a high-resolution, accurate colour screen.
 Augmented product:
The inclusion of additional features, benefits, attributes or related services that
serve to differentiate the product from its competitors. For example, the
computer comes pre-loaded with a high-end image processing software for no
extra cost or at a deeply discounted, incremental cost.
 Potential product:
This includes all the augmentations and transformations a product might
undergo in the future. To ensure future customer loyalty, a business must aim to
surprise and delight customers in the future by continuing to augment products.
For example, the customer receives ongoing image processing software
upgrades with new and useful features.
PRODUCT PLANNING
 Product planning is the process of searching ideas
for new products, screening them systematically,
converting them into tangible products and
introducing the new product in the market. It also
involves the formation of product policies and
strategies.
 Product planning includes improvements in
existing products as well as deletion of
unprofitable or marginal products. It also
encompasses product design and engineering
which is also called product development