MARKETING MIX - I

“Marketing mix is the set of marketing tools that the firm uses to pursue its marketing objectives in the

market”Marketing mix is a combination for the variables.

Product is the most important variables. Price, Promotion & place of distribution are the supporting variables. The marketing manager must use the four

variables for achieving the objectives of the company

FEATURESCombination of marketing variablesUsed by business & non – business organizationOrganizations objectives (goals)Dynamic conceptFocus on customerVariables are interrelatedProper mixing of variables needs imagination,

intelligence, etcInteraction between marketing mix &

environment variables

IMPORTANCEHelps to achieve companies ObjectivesCustomer SatisfactionHelps to face competitionIt builds Brand loyaltyIt builds corporate ImageIt helps Business ExpansionHelps to improve Brand imageOptimum utilization of ResourcesIncreases profit & maximizes shareholders wealthHelps to fulfill social Responsibilities

PRODUCT MIX

Product mix refers to the set of products which are offered for sale by a company.Product mix consist of many product linesProduct line is a group of related products which share common characteristics, channels, customers or users

BREATH & DEPTH OF PRODUCT MIX :Breath means number of product lines in product mix, depth means the number of products in each product

MANAGEMENT OF PRODUCTION MIX :

Continuous Strategy Product Modification Strategy Additional (Expansion) Strategy Internal Resources External Resources Product Elimination Strategy Additional – Cum – Elimination Strategy

REASONS FOR PRODUCT MIX : Take Advantage of Brand Loyalty To balance the seasonal sales To face the challenges of the competitors To meet the demands of the customers Use companies resources & capabilities more

effectively

PRODUCT LIFE CYCLE

Product have a life cycle. Some products have a short life cycle, while, others have a long life cycle.All product may not pass through all these stages.Product life cycle refers to the progression of a products sales and profits over its life time.

PRODUCT LIFE CYCLE PASSTHROUGH FIVE STAGES AS STATED BELOW :

Product Development

Introduction

Growth

Maturity

Decline

BRANDING A brand is a name or symbol given to a product to identify it and to distinguish it from the competitors products.FUNCTIONS :It helps buyer to identify the productCreates a distinct image of the product in the minds of the consumersHelps to create & maintain brand image & company imageHelps to create & maintain brand loyaltyIt gives protection to the buyersGives a sense of pride to it buyers

ESSENTIALS : Simple Easy to Remember Suitable Appealing Show the features of product Clear Permanent Use Registration Universal use Easy to Pronounce Adaptable Class Apart

BRAND SELECTION

Brand selection means to select or choose a suitable name fir a product or service. In most companies, brand selection is done by the marketing managers. But very large multi – national companies have special brand managers to do a brand selectionThe brand name must be uniqueThe marketing managers has most control over brand selection compared to other marketing activities

STRATERGIES :

Individual NamesBlanket Family NamesFamily Brand NamesCorporate name combined with

individual product nameDifferent Brand names in International

marketsNames of foundersTypical numbersCombination of names & numbersNames with relevance to the productNames of communicating Attributes

BRAND EXTENSION

Brand extension or stretching means the company uses its existing brand name for all its products or for a similar group of products.

So when these brand names becomes popular, the company extends or stretches or uses the same brand name for its other products

ADVANTAGES :

Equity / popularity of the parent / existing brand name Consumer Acceptance Co –operation from Dealers Lower Launching costs Increases Revenue for company Maintains customer loyalty Creates super Brand

DISADVANTAGES :

Dilutes the value of parent Brand Brand Extension may not Always work Confuses the Customers Brand Extension loses Excitement Appeal

BRAND POSITIONING

Brand positioning means to give a position to the brand in the minds of the consumers.

The best brand is given first position & the worst brand is given last position

The brand position is given by the consumers

It is done by two parties : a) manufacturer (b) Consumer

STEPS IN BRAND POSITIONING :

Identify competitive difference Product difference Service difference Selecting important differences Delivery Positioning Strategy Communicating the companies positioning Follow – up of positioning

POSITIONING STRATEGY :

Using specific product features Positioning by price & quality Positioning by use Positioning by competitor Positioning by product benefits Positioning by category user Positioning by product class Positioning by cultural symbols / names

BRAND EQUITYBrand equity is the value of the business above the value of physical assets.

So if the value of the business is rs. 10 lakhs & the value of its physical assets like land and building are Rs. 8 lakhs then the brand equity is 2 lakhs

The brand equity is wider than the term brand personality & brand image . Brand equity covers all factors

Today people do not buy products they buy brand names. So the brand equity is a very valuable asset of the company

FACTORS DETERMINING BRAND EQUITY :

Brand loyalty Brand Awareness Perceived Quality of the Brand Brand Association Brand AssetsADVANTAGES OF BRAND EQUITY :TO CONSUMER : a) consumer can purchase branded

products with confidence (b) they get full information about the branded products (c)they get full satisfaction, pleasure & pride from the branded products.

TO MANUFACTURER : a) he can increase the price of his product (b)he will earn profits (c)he can do brand extension (d)he can easily fight competition

PRICE MIXING OR PRICING

Pricing means fixing the price of a product or servicePricing is the base of the full marketing system. Marketing management & market demand depends on pricing.In the present money economy, goods & services are purchased for money therefore both buyers & sellers give great importance to pricing.Buyers & sellers have different ideas about pricingBuyer wants the prices to be low while sellers want it to be highHowever it should be reasonable

FACTORS INFLUENCING PRICE :

Price of competitors Goods Government control Market Situation Aims & objectives of the company Characteristics of the consumer Cost of production, selling & distribution Demand Channels of distribution Other factors Fashion Availability of substitutes Climatic Conditions Elasticity of Demand

PRICING METHODSBelow-cost pricingPricing as per customer ability to payPricing above the leadersPricing below the leadersOne price policyVariable price policyTarget oriented pricingPsychological pricingCost plus pricingFollow the leader pricingSkimming the cream policyMarket penetration policy