a detail note on marketing mix

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2. Product Mix
•• Product Mix:
Product Mix:
– The total assortment of products
– The total assortment of products
and services marketed by a firm.
and services marketed by a firm.
•• Product Line:
Product Line:
– A group of individual products that
– A group of individual products that
are closely related in some way.
are closely related in some way.
•• Individual Product:
Individual Product:
– Any brand or variant of a brand in
– Any brand or variant of a brand in
a product line.
a product line.
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3. Product Mix Characteristics
• Product Mix Width:
– The number of product lines in the
product mix.
• Product Line Length:
– The number of products in a
product line.
• Product Mix Consistency:
– The relatedness of the different
product lines in a product mix.
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4. Product and Service Strategies
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5. Individual Product Strategies
•• Product Life Cycle (PLC):
Product Life Cycle (PLC):
– Describes the advancement of products through
– Describes the advancement of products through
identifiable stages of their existence.
identifiable stages of their existence.
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6. The Product Life Cycle
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7. The Product Life Cycle Concept
The Product Life Cycle Concept
is Based on Four Premises
is Based on Four Premises
Profits from a product
Products have a
vary at different stages
limited life.
in the life cycle.
Product sales pass through
Products require different
distinct stages, each with
strategies at different
different marketing
life cycle stages.
implications.
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8. The Diffusion Process
Innovators
(2.5%)
Early Adopters
(13.5%)
Early Majority
(34%)
Late Majority
(34%)
Laggards
(16%)
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9. The Diffusion Process
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10. PLC Stages and Characteristics
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11. PLC Length and Shape
Style Fashion Fad
Sales Sales Sales
Time Time Time
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12. PLC Marketing Strategies
Stage
Stage Objective
Objective Marketing Strategy
Marketing Strategy
Introduction
Introduction Awareness & trial
Awareness & trial Communicate benefits
Communicate benefits
Growth
Growth Usage of firm’s brand Specific brand communication,
Usage of firm’s brand Specific brand communication,
lower prices, expand distribution
lower prices, expand distribution
Maturity
Maturity Maintain market share
Maintain market share Sales promotion, drop price,
Sales promotion, drop price,
Extend life cycle
Extend life cycle expand distribution, new uses
expand distribution, new uses
& new versions of product
& new versions of product
Decline
Decline Decide what to do
Decide what to do Maintain, harvest, or divest
Maintain, harvest, or divest
with product
with product
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13. Limitations of the PLC
1. The life cycle concept applies best to product
1. The life cycle concept applies best to product
forms rather than to classes of products or
forms rather than to classes of products or
specific brands.
specific brands.
2. The life cycle concept may lead marketers to
2. The life cycle concept may lead marketers to
think that a product has a predetermined life,
think that a product has a predetermined life,
which may produce problems in interpreting
which may produce problems in interpreting
sales and profits.
sales and profits.
3. It is only a descriptive way of looking at the
3. It is only a descriptive way of looking at the
behavior of a product and the life cycle can
behavior of a product and the life cycle can
not predict the behavior of a product.
not predict the behavior of a product.
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14. Product-Line Strategies
•• Strategic Alternatives:
Strategic Alternatives:
1. To increase the length of a
1. To increase the length of a
product line.
product line.
2. To decrease the length of a
2. To decrease the length of a
product line.
product line.
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15. Increasing the Product Line
• Downward-stretch Strategy
• Upward-stretch Strategy
• Two-way-stretch Strategy
• Line-filling Strategy
Cannibalization occurs when a new
Product takes sales away from
existing products.
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16. Decreasing the Product Line
• Product Line Contraction:
– Firms must consider deleting products
when:
• They are not successful.
• They reach the decline stage of PLC.
• Long product line marketing costs are
too high.
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17. Product-Mix Strategies
The Product Mix consists of all
product lines and individual products
marketed by the firm.
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18. Strategic Alternatives
Add New
Product Lines?
Delete Existing
Product Lines?
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19. Branding Strategies
Individual Brand
Individual Brand Family & Individual
Family & Individual
Name Strategy
Name Strategy Brand Name
Brand Name
Product Mix
Product Mix Family Brands or
Family Brands or
Branding Strategies
Branding Strategies Product Types
Product Types
Family Brand
Family Brand Company
Company
Name Strategy
Name Strategy Name
Name
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20. Ethical Issues in Product and
Service Strategies
•• Is the product safe when
Is the product safe when
used as intended?
used as intended?
•• Is the product safe when
Is the product safe when
misused in a way that is
misused in a way that is
foreseeable?
foreseeable?
•• Have any competitors’
Have any competitors’
patents or copyrights
patents or copyrights
been violated?
been violated?
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21. Ethical Issues in Product and
Service Strategies
•• Is the product compatible with the
Is the product compatible with the
physical environment?
physical environment?
•• Is the product environmentally
Is the product environmentally
compatible when disposed of?
compatible when disposed of?
•• Do any organizational
Do any organizational
stakeholders object to the
stakeholders object to the
product?
product?
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