MARKETING MIX

- PRODUCT

Dr Oly Mishra
THE MARKETING MIX
REFERS TO THE SET OF
ACTIONS, OR TACTICS, THAT
A COMPANY USES TO
PROMOTE ITS BRAND OR
PRODUCT IN THE MARKET.
PRODUCT

A business starts with

This solution is a
a need. It is this need
product or a service
of a specific market
that the company
that the company
has the resources
should provide the
to provide.
solution to.
A PRODUCT CAN BE
TANGIBLE IN THE FORM
OF GOODS OR
INTANGIBLE IN THE
FORM OF A SERVICE.
Example of a product: car
Core benefit: The need to get from one place to another.
Basic product: A car on its own; on this level this basically means
that the car has 4 wheels.
Expected product: A car that is in working condition, so the owner
can use it for transportation, it has decent mileage, etc.
Augmented product: A Ford (or any other brand for that matter) that
is in fully working condition, has an attractive design, passed all safety
tests, has 4-wheel steering, built-in alarm and air condition, etc. The
car is also accompanied by other benefits provided by the motor
company like warranty, instalments, etc.
Potential product: The car is much safer than the competitors’
products; it tends to break down less frequently than other cars, has
the best mileage, etc.
Example of a service: a hotel room
Core benefit: the inner urge of customers to sleep and have some
privacy and silence.
Basic product: a hotel room with a single bed, and basically that’s all.
Expected product: a hotel room with a bed that is neat and clean, and
the room has at least a small bathroom.
Augmented product: a hotel room with a bed in a popular hotel; the
room has a nice bathroom with hairdryer, is air conditioned and has a
TV and a minibar.
Potential product: a hotel room with a huge double bed with water
mattress, LCD television, a big bathroom with a hydro-massage shower
cabin, etc.
Types of
Convenience goods
Consumer
Goods
Shopping goods

Specialty goods

Unsought goods
CONVENIENCE
GOODS
Convenience goods are those which
are readily available and do not require
much time or effort for the consumers to
make a purchase decision on.
•Generally non durable
•Purchased at convenient locations.
•Regular and continuous demands
•Generally small unit of purchase and
low prices
•Most of them are standardized in
prices
•Sales promotion, schemes etc. are
very important.
SHOPPING GOODS

These are high

Shopping goods are involvement products
those products that that require time and
consumers tend to effort for research
spend a little more time before customers can
deciding on. make an informed
purchase decision.
Shopping Goods


Generally durable

Generally high price in contrast with convenience
goods.

Comparison is main factor in making purchase
decisions.

Purchase is generally pre planned

Retailers have very important role to play
.
SPECIALTY GOODS
● Cater to the needs of a narrow segment of
the consumer market.
● These products have unique features and
consumers are usually prepared to pay a
premium price.
● Limited demand and limited number of
buyers.
● Generally costly products.
● Sold at few places.
● Aggressive promotion is required.
UNSOUGHT GOODS
•
Unsought Goods are goods that the consumer does not know
about or does not normally think of buying, and the purchase
of which arises due to danger or the fear of danger and lack of
desire.
•
The classic examples of known but unsought goods are funeral
services, encyclopedias, fire extinguishers and reference books
Width – It is also known as breadth.
refers to the number of product lines
offered.

Length- Length refers to the total

number of products in a firm’s
Dimensions of product mix

a Product Depth- Depth refers to the number of

variations within a product line.
Mix
Consistency- Consistency refers to
how closely related product lines
are to each other
PRODUCT
LINE
WIDTH
-4
Product
Line
Length -
11
PRODUCT
LINE
DEPTH
Product Line
Consistency

ITC’s product lines are less consistent as

these perform different functions for the
buyers.
• Product mix, also known as
product assortment or product
portfolio, refers to the complete
set of products and/or services
offered by a firm.

• The Product Line refers to the list

of all the related products
manufactured or marketed by a
single firm.
PRODUCT LIFE
CYCLE
PRODUCT LIFE CYCLE
All products will have a time span over
which consumers will want them. This
time span is called the product life cycle.
Each product has a life, that tracks time
and the level of sales.
It is wise to consider the profit levels
these stages will create for businesses.
STAGES OF PLC
Introduction: This is where the product is launched or first put on sale. At this stage the
product is unknown and the business needs to advertise it. The business still makes a loss, as the
small number of sales do not yet cover the money spent on research and development.

Growth: This is where sales show their most rapid growth. The product is still new and is in
great demand. The business now breaks even and some successful products (e.g. Apple iPad or
Dyson vacuum cleaner) would be making profits. Copycat competitors start to launch similar
products.
Maturity: The product reaches its peak sales and is at its most profitable point for the
company. Competitors have now entered the market, which starts to slow sales.

Decline: The final stage in the life cycle. Sales start falling as consumers see the product as
old. The business needs to make a key decision:

●Does it replace the product before it starts losing money?

●Does it try to extend the life of the product?

●Does it cease production immediately?

ID VIDEO LINKS

[Link]
h?v=S_NlSSNGQvE

[Link]
watch?v=xe64V4mAYpo
NEW PRODUCT DEVELOPMENT
PROCESS
Idea Generation: In this stage, the company comes up with many different and unique ideas
based on both internal and external sources. Internal idea sources more often than not refer to the
in-house research and development teams of the company and external sources refer to
competitor innovations, the customer wants, distributors and suppliers, and so on. The company
thereby focuses on coming up with as many feasible ideas as possible.

Idea Screening: The next stage involves the screening of this often-large set of ideas. The
primary objective of this stage is to focus on ideas that are in line with the company’s customer
value and financial goals. The stage focuses on the filtering out of ideas that are poor or are not
feasible and retain those that have good potential. This is to ensure that the company does not
face losses by moving ahead with fickle ideas that do not promise adequate returns.
Concept Development and Testing: In this stage, the good product ideas
must be developed into detailed product concepts that are conveyed in
consumer-oriented terms. The concept must be made in order to project the
product in terms of how it is perceived by consumers and how it will
potentially be received in the market and by which set of potential
customers. This concept must then be tested by presenting it to the target
consumers and their response must be taken into account.

Development of Marketing Strategy: In this step, the company tries to

come up with strategies to introduce a promising product into the market.
The company must therefore come up with the price, potential revenue
figures as well as advertising and distributing channels in this step.
Business Analysis: The product concept is put through a vigorous
business analysis or test in order to ascertain projected sales and revenue
and also assess risk and whether the production of the product is
financially feasible. The company’s objectives are considered and if these
are satisfied, the product is moved on to the next step.

Product Development: This is the step that comes after the management
of a company declares a product concept to be in line with the goals of
the company and issues green light for development. The research and
development wing of the company then works on the product concept for
many months and even years in some cases, to come up with a working
and functional prototype of the product concept.
Test Marketing: This is the penultimate stage of the new product development
process and involves the testing of the product and its suggested marketing
program in realistic market settings. This stage provides an insight into how the
product will be introduced into the market, advertised, produced, packaged,
distributed, and eventually sold to the customers, and therefore any optimizations
if required can be made by the company.

Commercialization: Based on the information gathered during the test marketing

process, the business management may either decide to go ahead with the launch
of the product or put it on the backburner. In case the go-ahead is given, the
product is finally introduced into the market and this process is called
commercialization. This stage often leads to massive costs in terms of initial
infrastructural investments as well as sales promotions and advertisements.
Product sketch of
Bluetooth
Speaker
Prototypes of Angle Razor

3D Printed Kitchen Knife

PRODUCT
DIFFERENTIATION
• While many companies focus on cost
leadership as a competitive advantage
strategy, others’ main goal is to stand
out from the crowd with something
unique that differentiates them from
the rest.
• Product differentiation helps to gain a
sustainable competitive advantage.
ATTRIBUTES TO
DIFFERENTIATE
• Core Functionality : Keep innovating and stay relevant to deliver on the core benefit.
• Features : Identify and select appropriate features and prioritize them
• Performance Quality: Firms should design a performance level appropriate for the target market.
• Conformance Quality: Buyers expect that the product they purchase will meet promised
specifications.
• Durability: The expected operating life of the product
• Reliability: The probability that the product will not malfunction
• Form: Size, Shape, Physical structure.
• Style: Look and feel of the product
• Customization: A tailored product as per the needs of customer.
EXAMPLES