marketing mix

1. Prepared by-Prepared by-
Sheik Mohammed NowheedSheik Mohammed Nowheed
IInd Sem MBAIInd Sem MBA
SIT MangaloreSIT Mangalore

2. Marketing ConceptsMarketing Concepts
Marketing is the process of planning and
executing the conception, pricing, promotion,
and distribution of idea, goods, and service to
create exchanges that satisfy individual and
organizational objective
Marketing Mix is the combination of products,
price, promotion, and distribution (place)used
to satisfy the needs of the target market

3. Product
Variety
Quality
Design
Features
Brand Name
Packaging
Services
Product
Variety
Quality
Design
Features
Brand Name
Packaging
Services
Price
List price
Discounts
Allowances
Credit Terms
Price
List price
Discounts
Allowances
Credit Terms
Promotion
Advertising
Personal Selling
Sales Promotion
Public Relations
Promotion
Advertising
Personal Selling
Sales Promotion
Public Relations
Place
Channels
Coverage
Assortments
Locations
Inventory
Transportation
Logistics
Place
Channels
Coverage
Assortments
Locations
Inventory
Transportation
Logistics
Target
Costumers
Intended
Positioning
Target
Costumers
Intended
Positioning
Marketing Mix Variables

4. Marketing ActivitiesMarketing Activities
Product:
Develop new
products
Modify existing
products
Test-market
products
Select brand name
Package product
Pricing:
Establish price
objectives
Conduct cost
analysis
Analyze
competitor’s price
Set actual prices

5. Marketing ActivitiesMarketing Activities
Promotion:
Determine types of
promotion
Design the
advertising massage
Selecting advertising
media
Schedule the
advertisements
Distribution:
Select wholesalers
and retailers
Establish procedures
for handling and
moving products
Find the best
locations for plants,
warehouses and
retail outlets

6. MarketMarket
Market is people with the authority,
financial ability, and willingness to
purchase a product
Types of Market:
Consumer market - for personal use
Industrial market - to use in the
production or resell

7. Target MarketingTarget Marketing
Target market - a group of people
that has similar wants and needs
which a firm directs its
marketing activities

8. Market SegmentationMarket Segmentation
Market segment – division of heterogeneous
market into homogeneous market based on
different characteristics
Segmentation Based:
Geographic bases - city, region
Demographic bases - sex, race, marital
Psychographic - a person’s attitude, lifestyle
Behaviour - brand loyalty, occasions

9. PRODUCTPRODUCT

10. PRODUCTPRODUCT
Product - a good, service or idea, including all
attributes provided in an exchange between
buyer and seller
Product Classification:
Consumer goods – products purchased by
consumers for personal use
Industrial goods – product purchased by
companies to produce other products

11. Brand - a name, sign, symbol, design, or
combination a company’s product to
distinguish it product from others
Packaging - the development of a
container and graphic design for a
product
 Labeling - the display of important
information on a product package

12. PRICINGPRICING

13. PRICINGPRICING
Price - the value that buyer exchange for
a product in the marketing transaction
Pricing Objective:
◦ Market share
◦ Profit
◦ Return on Investment
◦ Maintain price leadership
◦ Improving Cash Flow

14. Pricing Decision and MethodsPricing Decision and Methods
Factors in Pricing Decisions:
◦ Demand
◦ Consumer perception of price
◦ Cost of product
◦ Competition

15. Pricing Methods/StrategiesPricing Methods/Strategies
Pioneer pricing – leadership pricing in the
market
Price skimming – setting an initial high price to
cover new product cost and generate a profit
Cost Pricing- based on cost
Demand pricing- based on market demand

16. Penetration pricing – setting an initial low price
to establish a new product in the market
Psychological Pricing – setting an price like
399,449 etc…
Price Discounting – Price reduction offered as
an incentive to purchase
Competiton pricing
Value pricing

17. PROMOTION MIXPROMOTION MIX

18. The Promotion MixThe Promotion Mix
Promotion Mix - the combination of advertising,
personal selling, sales promotion, publicity used
to promote a specific product

19. Promotional Objectives:Promotional Objectives:
Informing about product
Increasing sales
Stabilizing sales
Positioning the product
Building a public image

20. Components of Promotion mixComponents of Promotion mix
Advertising
Sales promotion
Personal selling

21. AdvertisingAdvertising
Non-personal communication to a target
audience through a mass medium, such as TV,
Radio, newspapers, or magazines, and outdoor
display
Types of Advertising:
◦ Primary-Demand Advertising: for all products
◦ Selective Brand Advertising: for specific products

22. Advertising PromotionAdvertising Promotion
Advertising Media – variety of
communication devices for carrying
message to potential customers
Direct Mail – delivery message directly to
customer places
Internet Advertising – put the message
into website or mailed directly to
customer email

23. Personal SellingPersonal Selling
Person-to-person communication with one or
more prospective customers in order to make
sale
Telemarketing – using telephone to perform
the personal selling process

24. Sales PromotionSales Promotion
An activity that offers customers or marketing
intermediaries direct incentives for purchasing a
product
 Type of Sales Promotion:
◦ Coupon: reduces the price of a product by stated
amount at the time of purchase
◦ Rebate: an extra discount
◦ Free Sample
◦ Contest: consumer compete for prizes
◦ Trade show

25. Promotional Strategy:Promotional Strategy:
Push Strategy: promotion of a product
to wholesaler or retailers in the
marketing channel, who in turn promote
the product to consumers
Pull Strategy: promotion of a product
direct to consumers to stimulate strong
consumer demands

26. PLACEPLACE

27. Place stands for physical distribution
activities through which the product
moves from factory to the customer

28. WholesalingWholesaling
The marketing activities of intermediates who sell to
retailer, industrial users for resale or business use.
Types of Wholesalers:
Merchant Wholesaler: takes ownership of goods
and the risks associated with ownership
Sales Branch: a manufacture-owned wholesaler that
take title to products, risks, and provides service
Agent: a wholesaler hired by a buyer or seller on a
permanent basis and paid commissions

29. RetailingRetailing
The marketing activities involved in selling
products to final consumers for personal or
household use
Department Store: a large retailer organized
into separate departments and offering a full
line of services and wide product mix
Supermarket: a large self-service retailer that
stock a wide variety of groceries and a limited
assortment of nonfood products

30. Physical DistributionPhysical Distribution
Those activities that involve the movement of
products through marketing channels from
manufacturer to customer, including:
 Transportation: shipping goods to customers by rail,
air, truck, water, and pipeline
 Warehousing: the receiving, storing, and shipping
activities involved in the physical distribution of goods
 Order Processing: the receipt and preparation of an
order for shipment
 Material Handling: the physical handling of products
during transportation and warehousing

31. Basic Channels of DistributionBasic Channels of Distribution
Manufacturers/products
Agents/brokers
Wholesalers/distributors
RetailersRetailers
Consumers and organizational end users

32. THANKYOU…..THANKYOU…..