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More about theMore about theMARKETING MIXMARKETING MIXMore about theMore about theMARKETING MIXMARKETING MIX

KRITHIKA G.KKRITHIKA G.K

Asst. ProfessorAsst. Professor FMSFMS

NIFT, BangaloreNIFT, Bangalore


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PRODUCT MIXPRODUCT MIXPRODUCT MIXPRODUCT MIX


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Product mix / assortment is theset of all product lines and items

that a particular seller offers forsale.

- Kotler & Armstrong


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4 Dimensions of Product Mix

Width

Length

Depth

Consistency


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HUL Product MixHome & Personal Care Foods

PersonalWash

Laundry SkinCare

HairCare

OralCare

Deos. Ayur.&

Health

Care

ColourCosmetics

Tea Coffee Foods Ice-Crea

m

Lux

Lifebuoy

Linil

Hamam

Breeze

Dove

Pears

Rexona

Surf Excel

Rin

Wheel

Fair &Lovely

Ponds

Vaseline

SunsilkNaturals

Clinic

Pepsodent

Close-Up

Axe

Rexona

Ayush Lakme BrookeBond

Lipton

BrookeBondBru

Kissan

Knorr

Annapurna

KwalityWalls


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INDIVIDUAL PRODUCTINDIVIDUAL PRODUCTENTITIESENTITIESINDIVIDUAL PRODUCTINDIVIDUAL PRODUCTENTITIESENTITIES


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Individual Product Decisions

Product

AttributesBranding Packaging Labeling

Product

Support

Services


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Product AttributesProduct AttributesProduct AttributesProduct Attributes


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Product Quality

Product Features

Product Style & Design


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Characteristics of a

ServiceIntangibility Inseparability

Variability Perishability

Services


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PRICINGPRICINGPRICINGPRICING

Krithika G.KKrithika G.KAsst. ProfessorAsst. ProfessorFMSFMS

Topic 7


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The amount of money charged for aproduct or service, or the sum ofthe values that consumers exchange

for the benefits of having or usingthe product or service.

- Kotler & Armstrong


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Factors affecting Price

Decisions

INTERNAL FACTORS

Marketing Objectives

Marketing Mix Strategy

Costs

Organizational

Considerations

EXTERNAL FACTORS

Nature ofthe

marketand demand

Competition

OtherEnvironment

factors (economy,resellers, government)

Pricing

Decisions


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Steps in setting the Pricing

Policy1. Selection the

Pricing Objective

2. Determining Demand

3.Estimating Costs

4. Analyzing

competitors

costs, prices & offers

5. Selecting a

Pricing Method

6. Selecting the

Final Price


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DISTRIBUTIONDISTRIBUTIONCHANNELSCHANNELSDISTRIBUTIONDISTRIBUTIONCHANNELSCHANNELS

Krithika G.KKrithika G.K

Asst. ProfessorAsst. Professor

FMSFMS

Topic 8


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Marketing Channelsare a setof interdependentorganizations involved in theprocess of making a product or

service available for use orconsumption.


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Five Marketing Channel Flows for ForkLift Trucks

Suppliers CustomersManufac-

turersDealers

2.Title Flow


turersDealers

Advertising

Agency

Advertising

Agency

5. Promotion Flow

Transporters,

Warehouses,Banks

Transporters,

Warehouses,Banks

Suppliers CustomersManufac-turers

Dealers Transporters,Banks

4.Information Flow


turersDealersBanks Banks Banks

3. Payment Flow


turersDealers

Transporters,

Warehouses

Transporters,

WarehousesTransporters

1. Physical Flow


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Channel Levels

Zero-level Channel / DirectMarketing Channel

One-level Channel

Two-level Channel

Three-level Channel


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PROMOTIONPROMOTION

MIXMIX

PROMOTIONPROMOTION

MIXMIX

Krithika G.KKrithika G.K

Asst. ProfessorAsst. Professor

FMSFMS

Topic 9


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The Communication Process

Thought Encoding Reception Decoding Understanding

Transmission

ofMessage

Feedback

Noise

Sending Receiver(Target Audience)

Selective Attention

Selective Distortion

SelectiveR

etention


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Developing EffectiveDeveloping EffectiveCommunicationsCommunicationsDeveloping EffectiveDeveloping EffectiveCommunicationsCommunications


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8 Steps in Developing EffectiveCommunications

1. Identify Target Audience1. Identify Target Audience

2. Determine Objectives2. Determine Objectives

3. Design Communications3. Design Communications

4. Select Channels4. Select Channels

5. Establish Budget5. Establish Budget

6. Decide on Media Mix6. Decide on Media Mix

7. Measure Results7. Measure Results

8. Manage Integrated Marketing Communications8. Manage Integrated Marketing Communications


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Communication ChannelsCommunication ChannelsCommunication ChannelsCommunication Channels


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1. Personal Communication Channels

Channels through which two or more peoplecommunicate directly with one another whether faceto face, by telephone, mail or the internet

2. Non-Personal Communication Channels

Media that carry messages without personal contact

or feedback, including major media, atmospheres andevents.


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Personal Communication Channels

Advocate Channels

Expert Channels

Social Channels

How to make them work?

1

. Identify influential persons/companies2. Create opinion leaders3. Work thru community influencers4. Use influential & believable people5. Develop ads with high conversation value6. Develop word-of-mouth referral channels7. Estb. an electronic forum


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Non-personal

Communication Channels

Media

Atmospheres

Events


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Deciding the MEDIA /Deciding the MEDIA /PROMOTION MIXPROMOTION MIXDeciding the MEDIA /Deciding the MEDIA /PROMOTION MIXPROMOTION MIX


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The Promotional Tools1. Advertising

2. Sales Promotion

3. Events &

Experiences

4. PR & Publicity

5. Personal Selling

6. Direct Marketing

7. Interactive

Marketing

8. Word of MouthMarketing


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1. Advertising Any paid form of non-personal

presentation and promotion ofideas, goods or services by anidentified sponsor.


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2. Sales Promotion Short-term incentives to encourage the

purchase or sale of a product or service

Characteristics:

Communications

Incentive

Invitation


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Some Examples of Fashion

Sales PromotionTRADE PROMOTIONS CONSUMER PROMOTIONS

Exhibitions

TradeFairsSales Competitions

Fashion Shows

Point of Sale

Special Discounts

Coupons

CompetitionsMultipacks

Special Offers

Tie-ins

Gifts

Source: Fashion Marketing, Edited by Mike Easey,1995, Blackwell Science Ltd.,USA, Fig 9.6, pp182


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3. Public Relations & Publicity

A major mass promotion tool for building goodrelations with the companys various publics byobtaining favorable publicity, building goodcorporate image, handling or heading off

unfavorable rumors, stories & events.

Characteristics:

High credibility

Ability to catch buyers off guard

Dramatization


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The Scope for Fashion Public Relations

Publicity Tools:

Press ConferencesPress ReleasesPress Kits / PacksPress ReceptionsPress Store &Factory Visits

Media Events

Example Activities

Store OpeningsCelebrity AppearancesDesigner AffiliationsPersonal ChangesFashionShowsSponsorships

Design Awards

Public

ConsumersSuppliersShareholdersEmployeesGovernmentCommunity

Unions

MEDIAMEDIA

COMPANYCOMPANY

Source: FashionMarketing, Edited byMikeEasey,1995, BlackwellScience Ltd.,USA, Fig 9.7, pp188


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4. Personal Selling Person-to-person communication in which

the seller attempts to assist and/orpersuade prospective buyers to purchase

the company's product or service or toact on an idea.

Characteristics:

Personal Confrontation

Cultivation

Response


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Major Steps in the Selling

Process

PROSPECTING& QUALIFYINGPROSPECTING& QUALIFYING

PRE-APPROACHPRE-APPROACH APPROACHAPPROACHPRESENTATION &DEMONSTRATIONPRESENTATION &DEMONSTRATION

HANDLINGOBJECTIONSHANDLING

OBJECTIONSCLOSINGCLOSING FOLLOW-UPFOLLOW-UP


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5. Direct Marketing

Direct Communications with carefully

targeted individual consumers toobtain an immediate response andcultivate lasting customer

relationships


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Characteristics of Direct Marketing:

Non-public

Customized

Up-to-date

Interactive


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Forms of Direct Marketing

Customers& Prospects

Tele-marketing

Direct MailMarketingCatalogue

Marketing

DirectResponseTelevision

Marketing

Kiosk

Marketing

OnlineMarketing Face-to-face

Selling


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Characteristics of PromotionalMethods

FACTOR ADVERTISING SALESPROMOTION

PUBLICRELATIONS

PERSONALSELLING

SOURCE

CREDIBILITY

Fair Fair & Variable Good Fair to Low

MESSAGE

CHARACTER

Standard Standard Standard Specific to

Buyer

MESSAGE

CONTROL

Total Total Limited by

Media

Controls

Total

TARGET

AUDIENCE

Mass Mass, but can be

limited

Mass Small

COST PER

TARGET

BUYER

Low Low Low High

Source: Fashion Marketing, Edited by Mike Easey,1995, Blackwell Science Ltd.,USA, Fig 9.3, pp171


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Factors involved in settingthe Promotional Strategy

Type of Product Market

Push vs. Pull Strategy

Buyer-Readiness Stage

Product Life Cycle Stage

Company Market Rank

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