explains 4Ps of marketing and its importance. The presentation also explains product mix with an example, along with relevant strategies

1. MARKETING MIX
DR. DEEPA ROHIT, LLIM 1

2. Marketing Mix
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3. DR. DEEPA ROHIT, LLIM 3

4. IMPORTANCE OF MARKETING MIX (4PS)
Form foundation of any marketing strategy
Establishes brand strategy in a systematic & structured manner
Helps to sustain long term equity of the brand
Helps a marketer to establish linkages with focused target market
Product differentiation may not provide long term advantage
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5. PRODUCT MIX
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6. THE PRODUCT & PRODUCT MIX
What is product
Product levels
Product classification
Product mix, strategies
Product life cycle
New Product Development
Branding Strategies in brief
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7. WHAT IS PRODUCT
Product is anything that can be offered to a market to
satisfy a want or a need.
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8. Product Levels
Potential product
Augmented Product
Expected product
Basic Product
Core Benefit
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9. PRODUCT CLASSIFICATION
Classification
Durability & tangibility
Use
•Durable
•Non Durable
•Services
Consumer Goods Industrial Goods
Convenience Goods
•Staples
•Impulse goods
•Emergency
•Materials & parts
•Capital items
•Supplies & business
services
Shopping GoodsSpecialty
goods
Unsought goods
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10. PRODUCT MIX
A product mix (product assortment) is the set of all
products & items that a particular seller offers for sale.
e.g. HUL, Marico, Reliance ADAG
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11. PRODUCT MIX
A product mix consists of various product lines
A product line is a group of products within a product class that are
closely related because they perform a similar function, are sold to
the same customer group, are marketed through same outlets or
channels or fall within given price ranges
A product line may consists of different brands or a single family
brand or individual brand that has been line extended
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12. HINDUSTAN UNILEVER LTD.
PRODUCT MIX
Personal
Wash
Lux
Lifebuoy
Liril
Hamam
Dove
Pears
Hair
Care
Sunsilk
Clinic
Tressm
me
Oral
Care
Pepsodent
Close-up
Deo
Axe
Rexona
Dove
Cosmetics
Lakme
Elle 18
Laundry
Surf
Rin
Sunlight
Wheel
Comfort
Skin
Care
Ponds
Fair &
Lovely
Lakme
Vaseline
Dove
Beverage
Lipton
Brook
Bond
Taj
Mahal
Bru
Salon
Lakme
Food
Kissan
annapurna
Knorr
Kwality
Ice
creams
Water
Pureit
Product Mix Width
Product Line Length
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13. Width – how many different product lines the company carries
Length – total number of items in the mix
Average length of a product line – total length divided by the number
of lines
Depth – how many variants are offered by each product in the line
Consistency – how closely related the various product lines are in end
use, production requirement, distribution channels or some other way
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14. Width – how many different product lines the company carries
Length – total number of items in the mix
Average length of a product line – total length divided by the number
of lines
Depth – how many variants are offered by each product in the line
Consistency – how closely related the various product lines are in end
use, production requirement, distribution channels or some other way
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15. PRODUCT MIX ANALYSIS HELPS COMPANIES TO
EXPAND ITS BUSINESS IN FOUR WAYS
1. Company add new product lines
2. Company can lengthen each product line
3. Company can add more product variants to each product
4. Company can pursue more product line consistency
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16. PRODUCT MIX STRATEGIES
Expansion of product mix
Contraction of product mix
Altering existing products
Repositioning the product
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17. HOW TO MANAGE PRODUCT LINES
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18. KEY DECISIONS BASED ON PRODUCT LINE ANALYSIS
Product line analysis provides information for two key
decisions
1. Product line length
2. Product mix pricing
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19. HOW TO LENGTHEN PRODUCT LINES
1. Line stretching
Down-market stretch
Up market stretch
Two-way stretch
Line filling
Line modernisation
Line pruning
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20. 2. PRODUCT MIX PRICING
Product line pricing
Optional feature pricing
Captive product pricing
Two part pricing
By product pricing
Product bundling pricing
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21. PRODUCT MIX ANALYSIS HELPS COMPANIES TO
EXPAND ITS BUSINESS IN FOUR WAYS
1. Company add new product lines
2. Company can lengthen each product line
3. Company can add more product variants to each product
4. Company can pursue more product line consistency
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22. PRODUCT MIX STRATEGIES
Expansion of product mix
Line extensions and brand extensions
Contraction of product mix
Pruning certain lines/ brands/ products
Altering existing products
Repositioning the product
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23. PACKAGING, LABELING, WARRANTIES AND GUARANTIES
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25. PACKAGING AS A MARKETING TOOL
Why Packaging
Self service
Consumer affluence
Company and brand image
Innovation opportunities
Objectives of Packaging
Identify brand
Convey descriptive and
persuasive information
Facilitate product transportation
and protection
Assist at-home storage
Aid product consumption
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26. LABELING
Simple tag attached to the product
Identifies the product or brand
Grade the product
Describe the product
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27. WARRANTIES AND GUARANTEES
Warranties are formal statements of expected product performance
by the manufacturer. Products under warranty can be returned to the
manufacturer or designated repair center for repair, replacement or
refund. These are legally enforceable
Guarantees are "a formal assurance that certain conditions will be
fulfilled, especially that a product will be of a specified quality"
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28. PRODUCT LIFE CYCLE
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29. Product Life Cycle- PLC
Profit
Sales
Time
Introduction Growth Maturity Decline
S
a
l
e
s
&
P
r
o
f
i
t
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30. MARKETING STRATEGIES –
INTRODUCTION STAGE
The pioneer advantage
 Early users recall the pioneer’s brand name
 Customer inertia to change brands
 Long-term leadership
Product pioneer
Market pioneer
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31. GROWTH STAGE
Improve product quality
Add new features & improved styling
Add new models and variants
Enter new market segments
Increase distribution coverage, explores new channels
Shift from product awareness advertising to product preference
advertising
Lower prices to attract next level of buyers
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32. MATURITY STAGE
Three stages – growth, stable and decaying maturity
Market Modification
 Volume = no. Of users X usage per user
Product modification
 Quality, style or feature improvement
Marketing mix modification
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33. DECLINE STAGE
Increase firm’s investment
Maintain the firm’s investment level until the uncertainties
about the industry are resolved
Decrease firm’s investment level selectively
Harvest
Divest
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34. LIMITATIONS OF PLC
Some products may continue to be in same stage for longer time
Increase in marketing activities like promotion can alter shape of
PLC
PLC does not give indication of duration, hence limits its use as
forecasting tool
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