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The Marketing Mix
The Marketing Mix
Strategies & Activities
◦ Used by companies to sell goods, services
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
Product
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
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.
12-8
The Product Life Cycle
Sales Curve
Dollars
Time
Growth Maturity Decline
Profit Curve
Product
Development
Introduction
Product lifecycle
The product lifecycle looks at the sales of a product
over time
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adopted or the product withdrawn
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
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)
5 Product Levels
5 Product Levels
Product Positioning Chart
High price
High Quality
Low Price
Low Quality
Why Packaging is Important?

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Product

  • 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
  • 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)
  • 14. Product Positioning Chart High price High Quality Low Price Low Quality
  • 15. Why Packaging is Important?