The marketing mix refers to the strategic tools and activities used by companies to market and sell their products, including the traditional 4Ps of product, price, promotion, and place. It has expanded to include additional Ps like people, process, and physical environment to encompass services. A product can be a physical good, service, experience, information, or idea and companies differentiate their products through various attributes related to the product itself, packaging, labeling, and after-sale services and support.

1. The Marketing Mix

2. The Marketing
Mix
• Strategies
& Activities
– Used by
companies
to sell
goods,
services

3. The Marketing Mix
• The tools available to a business to gain the
reaction it is seeking from its target market in
relation to its marketing objectives
• 7Ps – Price, Product, Promotion, Place, People,
Process, Physical Environment
• Traditional 4Ps extended to encompass growth of
service industry

4. Product

5. Marketing Mix
Product
**also includes services
The total product offering
(including user experience)
● Features
● Benefits
● Brand strength, influence
● Reputation
● Warranty
● Customer support
Product
Price
Promotion
Place
Target
Market

6. 12-6
At the heart of a great
brand is a great product

7. 12-7
What is a Product?
A product is anything that can be offered to a
market to satisfy a want or need, including
physical goods, services, experiences,
events, persons, places, properties,
organizations, information, and ideas.

9. Types of
Consumer
Products
Convenience
Shopping
Specialty
Unsought

10. 5 Product Levels

13. Five Product Levels
• Core benefit —service or benefit (e.g., hotel
guest is buying “rest and sleep”)
• Basic product —turn core benefit into basic
product (e.g., hotel room includes a bed,
bathroom, towels, desk, dresser, and closet)
• Expected product – set of attributes and
conditions buyers normally expect (e.g., clean
bed, fresh towels, working lamps)
• Augmented product—exceeds customer
expectations (e.g., free health spa)
• Potential product—all the possible
augmentations and transformations (e.g., free
internet connections and use)

14. Product Differentiation
• Product form—size, shape, or physical structure
• Features—supplement basic functions
• Customization–individual versus mass
• Performance—level at which the product’s
primary characteristics operate
• Conformance—degree to which all the produced
units are identical and meet the promised
specifications
• Durability—product’s operating life
• Reliability—probability that a product will not
malfunction or fail
• Repairability—the ease of fixing a product when
it malfunction or fails
• Style—product’s look and feel to the buyer.

15. Service Differentiation
• Ordering ease—how easy to place an order
• Delivery—how well (e.g., speed, accuracy, and care)
product or service is brought to the customer
• Installation—work done to make a product
operational
• Customer training—training the customer’s
employees to operate the vendor’s equipment
properly and efficiently
• Customer consulting—data, information, systems,
and advice that the seller offers to buyers
• Maintenance and repair—service programs for
helping customers keep purchased products in good
working order
• Returns

16. 12-16
Dunkin’ Donuts’
Differentiation

17. 12-17
Design Differentiation

18. 12-18
Maintenance and Repair

19. "Engineered like no other car in the world"
Mercedes buyers value safety, high performance, and prestige.
Consumers might visualize a Mercedes as being a wealthy,
middle-aged business executive.

20. 12-20
What is the Fifth P?
Packaging, sometimes called the
5th P, is all the activities of
designing and producing
the container for a product.

21. 12-21
Factors Contributing to the
Emphasis on Packaging
Self-service
Consumer affluence
Company/brand image
Innovation opportunity

22. Packaging Objectives
• Identify the brand
• Convey descriptive and persuasive
information
• Facilitate product transportation and
protection
• Assist at-home storage
• Aid product consumption

23. 12-23
Functions of Labels
Identifies
Grades
Describes
Promotes

24. 12-24
Innovations in Packaging

25. 12-10
Small Business Management, 11th edition
Longenecker, Moore, and Petty
© 2000
South-Western College Publishing
Product Strategy Options
One Market
Multiple Markets
One
Product
Modified
Product
Multiple
Products
(1)
(2)
(3)
(4)
(5)
(6)
Product Mix Strategy Alternatives Target Market(s)
Key to Strategy Alternatives
(1) One product/one market (4) Modified product/multiple markets
(2) One product/multiple markets (5) Multiple products/one market
(3) Modified product/one market (6) Multiple products/multiple markets

26. How Will Your Business
Position Your Products
•Prestigious –
–luxury seats vs bleacher seats
•Better Bargain –
–season tickets vs single game
tickets
•Equal in Quality
– concessions, giveaways, merchandise