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. Product
‘Product’ refers to the functions and features of a good or service
Should satisfy the needs of the customer
May have a Unique Selling Proposition (USP)
‘Product’ also includes a range of factors such as packaging, quality,
warranties, after-sales service and branding
Products and brands may suggest certain images e.g. sporty,
sophisticated, value

6. Product
Methods used to
improve/differentiate
the product and increase sales or
target sales more effectively to gain
a competitive advantage e.g.
◦ Extension strategies
◦ Specialized versions
◦ New editions
◦ Improvements – real or
otherwise!
◦ Changed packaging
◦ Technology, etc.

7. 12-8
The Product Life Cycle
Sales Curve
Dollars
Time
Growth Maturity Decline
Profit Curve
Product
Development
Introduction

8. Product lifecycle
The product lifecycle looks at the sales of a product
over time

9. Stages of the product lifecycle
Development – high costs but no sales
Launch – high expenditure on promotion and
product development, low sales
Growth – sales increase and product should break
even
Maturity – sales stabilize, less expenditure on
promotion needed, revenue & profit should be high
Decline – sales decline, extension strategies can be
adopted or the product withdrawn

10. Extension strategies
Extension strategies should maintain or increase sales.
They include:
Modifying the product
Reducing the price
Adding a feature
Promoting to a
different market
sector
Extension
strategies

11. 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)

12. 5 Product Levels

13. 5 Product Levels

14. Product Positioning Chart
High price
High Quality
Low Price
Low Quality

15. Why Packaging is Important?