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Marketing Management

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Marketing Mix - Elements

- The four 4 Ps.

- Product

- Place- Price

- Promotion

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Optimising Marketing Mix

- Distributing wisely marketing resourcesacross mix variables so as to gain a

maximum marginal profit on every rupeespent

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The First P

- At the heart of a great brand is a greatproduct

- What we will cover this session on the 1st

P- Characteristics / classification of products

- Differentiation of products

- Build and manage product mix- Co-branding, packaging, labelling, branding

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Product -Definitions

"goods and services offered to buyers withthe intent of providing value."

The customer experience is part of theproduct

Transcends beyond physical andtechnological characteristics

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Product Levels

Sivapriya Krishnan

Core Product

Potential Product

Augmented Product

Expected product

Basic Product

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Product Classification

Consumer Goods Industrial Goods

ProductDurability,

Tangibility

USE

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Product -Definitions

Consumer products can be classifiedinto : Durable, non durable, services

Durable survive many uses

Require more selling

Command a higher margin

Requires more seller guarantees

E.g. refrigerators, machines, textilegarments

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Product -Definitions

Consumer products can be classifiedinto : Durable, non durable, services Non Durable - consumed fast, few

uses

Required to be purchased often

Command a lower margin

Requires more advertising, promotions Trials and then purchase E.g. soaps, eatables, beverages

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Product -Definitions

Consumer products can be classified into :Durable, non durable, services Services intangible, inseparable from

product, variable and also perishable

Required to be purchased often Command a lower to medium margin

Requires more advertising, promotions

Trials and then purchase More quality control, supplier credibility

E.g. legal/ audit services, saloons, travel,repairs Sivapriya Krishnan

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Product -Definitions

Consumer products can be defined as: Convenience goods - consumers are willing to

invest very limited shopping efforts.

Shopping goods - consumer is willing to invest agreat deal of time and effort.

Speciality goods - are those that are of interestonly to a narrow segment of the population

Unsought goods

consumers do not know about

or do not actively seek

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Product -Definitions

Industrial products can be defined as: Capital Items long term investments,equipment,

machinery

Supplies and business services

maintainence and

repair services

Materials and parts raw materials, manufactured

materials

Business advisory services

legal , consulting,

advertising

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Product - Differentiation

Differentiation is done on the foll. basis : Form

Features

Performance Quality Conformance Quality

Durability

Reliability

Repairability

StyleSivapriya Krishnan

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Product - Differentiation

To be branded products require variation

Some can be differentiated, but otherscannot

Vegetables, meat cannot be differentiatedmuch

Autos, furniture, electronics can be

differentiated

Services marginal differentiationSivapriya Krishnan

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Product - Differentiation

Differentiation is done on the basis of designDesign : the integrative force

It is the totality of features that affect how

a product looks and functions in terms ofcustomer requirements

e.g. Italian design : style

Scandinavian : environmental

German : durabilitySivapriya Krishnan

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Product - Differentiation

Services Differentiation is done on the basisof :

Ordering Ease

Delivery Installation

Customer training

Customer consulting Maintainence and repair

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Product -Hierarchy

Need family

The core need that underlies the existence of productfamily

Product family All products that can satisfy a core need with

reasonable effectiveness

Product Class

Group of products within the product familyrecognised as having a certain functional coherence

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Product -Hierarchy

Product line

Group of products within a product class thatare closely related because they perform a

similar function, sold to same consumergroups, marketed thru similar channels, fallwithin a price range

Can be composed of different brands, singlefamily brand, individual brand that has beenline extended

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Product -Hierarchy

Product type

Group of items within a product line that shareone of several possible forms of the product

Items Distinct unit within a brand or product line

distinguishable by size, price, appearance, or

some other attribute

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Product Management - Functions

Planning the product mix

Management of new / old products

Positioning strategies Branding / packaging decisions

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Product Management - Tasks

Management tasks reporting, evaluation

Marketing Decisions advertising ,promotion

Budget and Marketing Plan

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Product Planning- PLC approach

The traditional S shaped logistic curve

4 Phase infancy, growth, maturity,obsolesence

PLC is more controlled than self evolved Depends on the strategies for the product

at a given time frame.

The major critique of PLC lacks theability to give a fixed sequence of stagesand length of each stage.

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Product Life cycle

Four staged cycle

Introduction

Growth

Maturity

Dec

line

Time

SalesandProfits Sales

Profits

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Product Line - Definitions

Product Mix Assortment set of allproducts and items that a particular sellerhas to offer for sale.

Under this assortment there can beseveral lines of products.

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Product Mix- Definitions

A product mix has width, length, depth andconsistency.

Width refers to how many lines the

company carries Length total number of items in the mix

Depth how many variants within the brandgroup

Consistency

how closely related thevarious lines are in end use, production,distribution

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Product Line - Definitions

Product Line A group of products withina product class that are closely relatedbecause they perform

A similar function Satisfy the same basic want

Sold to same / similar customer groups

Marketed through same distribution channels

Fall within given price ranges

Share some other common characteristics

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Product Line - Decisions

Product line lengthens by

Line Stretching

Line Filling

StretchingExtending beyond thecompany range

Filling Adding more items within therange.

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Product Development Process

Challenges faced in new productdevelopment

Stages in NPD Idea generation

Idea screening

Concept development & testing

Marketing strategy development Economic and business analysis

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Product Development Process

Booz, Allen and Hamilton identified sixcategories of new products:

New to the world

New product lines Addition to existing product lines

Improvements and revisions of existing products

Repositionings

Cost reductions

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