MARKETING MIX THEORY MARKETING MIX .pptx

MARKETING MIXTHEORY
PRINCIPLES OF MARKETING

Objectives
 Define a product and
differentiates the product,
services and experiences;
 Identify and describe the factors
to consider when setting prices
and new products pricing and
its general pricing approaches.

Objectives
 Discuss the structure of distribution
channels, its functions, and the nature of
supply chain management.
 Define and identify relevant promotional
tools, namely, advertising, sales promotion,
personal selling, public relations, and
direct marketing to create awareness and
persuade the target market to buy the
product or patronize the service.

Marketing mix
 Marketing mix or 4P’s concept is vital in
designing a marketing strategy for a brand.
 It provides the companies in determining
the right products for the right markets.
 It is important for the marketer to have a
mastery of controlling these variables
because the success of the marketing
campaigns of companies is greatly relying
on the smart planning of the 4P’s.

4VARIABLES OF 4P’s
1.THE PRODUCT
2.PRICE
3.PLACE
4.PROMOTION

PRODUCT
It serves the major element in
the entire consumer offerings.
Has been defined as all things, may
goods or services, which are being
offered to the market for
information, purchase, and or
utilization that would answer and
satisfy the needs and wants.

PRODUCT
 Products are not just confined with the
offerings that consumers can touch it also
includes services, individuals, ideas,
happenings, locations and institutions or a
combination of these.
 According to Kotler and Armstrong, service
refers to activities, benefits or gratifications
offered for sale that is essentially intangible
and does not result in the ownership of
anything.

 The companies can offer both tangible
products and services.
 There are companies that offer products
only like juice, cologne and soap. There
are no services attach to the products.
 There are companies that offer service
only like tutorial service, massage in spa
and it is a simple service.

Classifications of Products and Services
Consumer Products- refer to
any products that are purchased
by customers for their
consumption.
Industrial Products- refer to
any products that are purchased
by individuals or institutions for
the purpose of implementing the

Types of Consumer Products
1. Convenience Products
 These are the products or services that
consumers buy regularly or usually.
 Bought without a great deal of
comparison and exert minimal buying
efforts.
 The price of the convenience products is
usually low/ or affordable.

1. Convenience Products
Marketers often put these
products in many places where
the customers can easily see and
buy them anytime.
Examples are toothpaste,
detergent soap, shampoo and
candies.

2. Shopping Products
 These are products or services that
consumers buy infrequently.
 Customers often make comparisons in
quality, design, style, sustainability, price
and brands
 Examples are clothes, bags, laptops,
cellphones

3. Specialty Products
 Products that have unique attributes and
brand recognition for which consumers
are ready to exert special effort.
 Example limited edition car that only
available in a certain country.
 The buyers have to go in a certain
country to buy a special car

4. Unsought Products
 Products or services that consumers
are either not aware of the brand
existence or have awareness of the
brand however not usually consider
buying it.
 Examples funeral services and
insurance policy.

Industrial Product Clusters:
1. Materials and parts- these are the raw
materials and parts. Examples are
cotton, paper, oil, iron, tires.
2. Capital Items- these are products that
help the companies in operation and
production, installation, and accessory
equipment Examples are generators,
manufacturing plant, lift trucks,
computers

Industrial Product Clusters:
3. Supplies and Services-
these include operating
supplies, repair and
maintenance. Examples
are coal, paint,
computer repair.

Developing Products and Services
 In developing products and services the
marketers should consider defining the
benefits being communicated and
delivering to the customers.
1. Design and Style- to add the value to
the product, companies enhance the
design and style of the product. Brands
will be more distinct and look special in
the eyes of the buyers.

2. Style- pertains to the physical
appearance of the product. Style may
catch or drop the attention of the buyer.
 Designs determine the usefulness of the
products that goes with its styles.
 Marketers must take into consideration
the consumer’s insights, which know their
needs.

2. Quality- the one major contribution of
marketers in positioning a product.
• Has a direct relationship with product
performance.
• Considered determinants of customer
value and satisfaction.
• Quality should be able to satisfy the
consumer’s needs.

3. Features- to establish product
distinction, companies may consider
developing product features.
 It helps the company to attain
competitive advancement.
 Introduce valued new features to create
market superiority.
 Examples instant noodles adding vitamins,
new flavours, user- friendly packaging.

Strategies in Establishing Products and
Services
1. Branding- refers to the name, term,
signs, symbols, design or combinations of
these, which serve as identification of
the products, services, or institutions
that separate them from their
competitors.
 A good branding can add value to the
product. Customers provide value to the
brand and establish brand relationships.

Services
2. Packaging- it pertains to the process of
designing and producing container or
wrapper for products.
 The fundamental role of the package is to
secure the products condition. However
in this highly competitive market,
packaging has become an essential tool in
marketing.

Services
 Packaging can attract attention of the
customers, help describe the
product, and create sales for the
company.
 Good packaging promotes strong
recognition of the brand.That is why
many companies invest much effort
to have good packaging.

Services
It is the most advantageous
moment for the company to
persuade customers in
purchasing the brand. Thus,
the packaging is one of the
most important promotional
tools in marketing a brand.

Services
3. Labeling – from simple tags to
intricate graphics, label plays a vital
role in creating an identity to the
brands. It serves as the identification
or ID card of the brand because it
tells many things about the
product’s name, origin, symbol,
content, dimension and usage.

Services
 As part of packaging, label and brand logos
can help brands to achieve positioning and
add personality to the product.
 Most companies develop and enhance their
brand companies logos to attain uniqueness,
which is essential to competition.
 It should be fresh, peasant and promising.
 Fonts, color and visual art are important
variables in labelling.

Services
4. Product Support Service
As part of the customers overall brand
experience, support service is essential in
building healthy relationship with customers.
 Marketers believe that marketing does not
stop by making sales. It is important to
ensure ultimate customers experience by
maintaining customers happiness even after
sales.

Strategy in in New Product
Development
Research and Development Office-
 Plays a vital role in creating a successful new
product.
 Through their researches and studies of
consumer insights, marketing environments
and competitive landscape, the company can
modify product features, benefits and
promotions.
 Companies can produce and develop
products with superior value to customers.

Stages in new product development
includes:
Idea Generation Stage
Idea Screening Stage
Concept Development and Testing Stage
Marketing Strategy and Development Stage
Business Analysis Stage
Product Development Stage
Test Marketing Stage
Commercialization

includes:
Idea Generation Stage
-marketers should be resourceful
in generating and gathering ideas
for new products.
- Potential ideas for new products
like market research, customers,
employees, consultants,
distributors and suppliers

includes:
Idea Screening Stage
-marketers should dive into the idea and
explore to find out the idea has the
potential to explore and find out the ideas
has bring triumph to the company.
-look feasible and practical ideas to develop
- Pursuing non- viable ideas is a waste of
time, effort and resources.

includes:
 Concept Development and Testing Stage
-after selecting potential ideas, it will go
through the process of conceptualization and
testing.
-the product concepts will be tested by a group
of target customers as participants to see the
feasibility.
-marketers may present the concepts to the
target customers using symbols or concrete
concept.

Concept Development and Testing Stage
- The insights that marketers
will get from the participants
will be an essential in
developing new products.

includes:
Marketing Strategy and Development
Stage- in this stage, marketers will
develop a marketing strategy based on
the tested and treated new product
concept.
Should identify critical strategic marketing
elements like target audience, marketing
objectives, product positioning, pricing,
distribution and promotional tools.

includes:
Business Analysis Stage
-should focus on the review of product
sales, cost, and profit.
-it is enough to think of the feasibility of
the product.
-marketers should also consider the
financial worth of the new product of the
company.

includes:
Product Development Stage
- The prototype od the product is being
designed and produced.
-the produced prototype will face series of
testing.
-it will presented to the selected people
representing the target segment of the market
to make sure that the product is ready, and
there is no need for further modification.

includes:
Test Marketing Stage
- Select a specific geographical area to checks
the product’s marketability.
-in this stage, the performance marketing
mix will be monitored and evaluated.
- The result of the observation will be basis if
the product needs adjustment or completely
passes the tests and ready for grand
launching in the national market.

includes:
Commercialization
-in this stage, the new product is
assumed to be ready for the national
launching.
-marketers must be conscious on the
timing of the launch, the distribution
and availability of the product and the
promotional tools to be used.

PRODUCT LIFE CYCLE (PLC)
Is an important concept that
should be understood by all
marketing practitioners.
PLC concept provides marketers
full description of the stages that
the product will go through, from
the conception of the product
reaches each stage,

PRODUCT LIFE CYCLE (PLC)
The marketers will have a
greater chance to strategize
its moves as the product
reaches each stage.

4 major stages of PRODUCT LIFE
CYCLE (PLC)
1.Introduction Stage
2.Growth Stage
3.Maturity Stage
4.Decline Stage

1. Introduction stage
Stage includes
research and
development, market
testing, and launching
of the product.

2. Growth stage
This stage is
characterized by
having sales increase
at a fast rate.

3. Maturity Stage
The stage when sales are near
their peak. However the rate
of growth is gradually going
down. This may be a result of
having new competitors in the
markett.

4. Decline stage
This is the final stage of
the cycle.
The sales of the brand
begin to fall, and the
profits of the company
start to drop.

Strategies in Marketing Mix to extend
the life of product:
1. Marketing experts may use
advertising and other promotional
tools to get new market or remind
the current market on the product
existence.
2. To attract customers, marketers
may reduce the price of the
product by offering best deals or
special discounts.

Strategies in Marketing Mix to extend
the life of product:
3. Companies may develop products by adding
new value. Example, offering new use, adding
new features, or improving the specification.
4. Marketers may discover new markets by
making the product launch new geographical
areas.
5. Redesign packaging that will show the new
position of the product or rebrand the
product.

ASSESSMENT
Classify the following products
into consumer goods and
industrial goods and further
classify them into convenience
goods, shopping goods and
speciality goods, if they are
consumer goods :

 (a) Stationery for the office
 (b) Washing machine for use at home
 (c) A car for the family use
 (d) Oil for manufacturing soap
 (e) A pair of shoes for yourself
 (f) An electric lift for lifting weight in the
workshop
 (g) A packet of biscuits for your breakfast

MARKETING MIX THEORY MARKETING MIX .pptx

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