Chapter 5 marketing mix i


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Chapter 5 marketing mix i

  1. 1. “Marketing mix is the set of marketing tools that the firm uses to pursue its marketing objectives in the market” Marketing mix is a combination for the variables. Product is the most important variables. Price, Promotion & place of distribution are thesupporting variables. The marketing manager must use
  2. 2. FEATURES Combination of marketing variables Used by business & non – business organization Organizations objectives (goals) Dynamic concept Focus on customer Variables are interrelated Proper mixing of variables needs imagination, intelligence, etc Interaction between marketing mix & environment variables
  3. 3. IMPORTANCE Helps to achieve companies Objectives Customer Satisfaction Helps to face competition It builds Brand loyalty It builds corporate Image It helps Business Expansion Helps to improve Brand image Optimum utilization of Resources Increases profit & maximizes shareholders wealth Helps to fulfill social Responsibilities
  4. 4. PRODUCT MIX Product mix refers to the set of MANAGEMENT OF PRODUCTION MIX : products which are offered for sale by a company.  Continuous Strategy Product mix consist of many  Product Modification Strategy product lines  Additional (Expansion) Strategy Product line is a group of related  Internal Resources products which share common  External Resources characteristics, channels, custom  Product Elimination Strategy ers or users  Additional – Cum – Elimination Strategy BREATH & DEPTH OF REASONS FOR PRODUCT MIX : PRODUCT MIX :  Take Advantage of Brand Loyalty Breath means number of product  To balance the seasonal sales lines in product mix, depth  To face the challenges of the competitors means the number of products in each product  To meet the demands of the customers  Use companies resources & capabilities more effectively
  5. 5. PRODUCT LIFEProduct have a life cycle. PRODUCT LIFE CYCLESome products have a PASSTHROUGH FIVE STAGES ASshort life STATED BELOW :cycle, while, others have along life cycle.All product may not pass  Product Developmentthrough all these stages.Product life cycle refers to  Introductionthe progression of aproducts sales and profits  Growthover its life time.  Maturity  Decline
  6. 6. BRANDINGA brand is a name or symbol ESSENTIALS :given to a product to identifyit and to distinguish it from  Simplethe competitors products.  Easy to RememberFUNCTIONS :  SuitableIt helps buyer to identify the  AppealingproductCreates a distinct image of the  Show the features of productproduct in the minds of the  ClearconsumersHelps to create & maintain  Permanent Usebrand image & company image  RegistrationHelps to create & maintain  Universal usebrand loyaltyIt gives protection to the buyers  Easy to PronounceGives a sense of pride to it  Adaptablebuyers  Class Apart
  7. 7. BRAND STRATERGIES :Brand selection means toselect or choose a suitable name  Individual Namesfir a product or service.  Blanket Family Names In most companies, brand  Family Brand Namesselection is done by themarketing managers.  Corporate name combined with individual product nameBut very large multi –national companies have special  Different Brand names in Internationalbrand managers to do a brand marketsselection  Names of foundersThe brand name must be  Typical numbersunique  Combination of names & numbersThe marketing managers has  Names with relevance to the productmost control over brand  Names of communicating Attributesselection compared to othermarketing activities
  8. 8. BRAND Brand extension or stretching ADVANTAGES : means the company uses its existing brand name for all its products or for a similar group  Equity / popularity of the parent / existing brand name  Consumer Acceptance of products.  Co –operation from Dealers  Lower Launching costs So when these brand names  Increases Revenue for company becomes popular, the company  Maintains customer loyalty extends or stretches or uses the  Creates super Brand same brand name for its other products DISADVANTAGES :  Dilutes the value of parent Brand  Brand Extension may not Always work  Confuses the Customers  Brand Extension loses Excitement Appeal
  9. 9.  STEPS IN BRAND POSITIONING :BRAND  Identify competitive difference  Product difference  Service difference Brand positioning means to  Selecting important differences give a position to the brand  Delivery Positioning Strategy in the minds of the  Communicating the companies positioning consumers.  Follow – up of positioning The best brand is given first position & the worst  POSITIONING STRATEGY : brand is given last position  Using specific product features  Positioning by price & quality The brand position is  Positioning by use given by the consumers  Positioning by competitor  Positioning by product benefits It is done by two parties :  Positioning by category user a) manufacturer (b)  Positioning by product class Consumer  Positioning by cultural symbols / names
  10. 10. BRAND Brand equity is the value of the business above the value of  FACTORS DETERMINING physical assets. BRAND EQUITY : So if the value of the business is  Brand loyalty rs. 10 lakhs & the value of its  Brand Awareness physical assets like land and building are Rs. 8 lakhs then the  Perceived Quality of the Brand brand equity is 2 lakhs  Brand Association The brand equity is wider than  Brand Assets the term brand personality & brand ADVANTAGES OF BRAND EQUITY : image . Brand equity covers all factors TO CONSUMER : a) consumer can purchase branded products with confidence (b) they get full information about the branded products (c)they get full satisfaction, pleasure & pride Today people do not buy from the branded products. products they buy brand names. So the brand equity is a very valuable TO MANUFACTURER : a) he can increase the price asset of the company of his product (b)he will earn profits (c)he can do brand extension (d)he can easily fight competition
  11. 11. PRICE MIXING OR Pricing means fixing the price FACTORS INFLUENCING PRICE : of a product or service Pricing is the base of the full marketing system. Marketing  Price of competitors Goods management & market demand  Government control depends on pricing. In the present money  Market Situation economy, goods & services are  Aims & objectives of the company purchased for money therefore  Characteristics of the consumer both buyers & sellers give great  Cost of production, selling & distribution importance to pricing. Buyers & sellers have  Demand different ideas about pricing  Channels of distribution Buyer wants the prices to be  Other factors low while sellers want it to be  Fashion high  Availability of substitutes However it should be reasonable  Climatic Conditions  Elasticity of Demand
  12. 12. PRICING Below-cost pricing Pricing as per customer ability to pay Pricing above the leaders Pricing below the leaders One price policy Variable price policy Target oriented pricing Psychological pricing Cost plus pricing Follow the leader pricing Skimming the cream policy Market penetration policy