The marketing mix refers to the strategic tools and activities used by companies to market and sell their products, including the traditional 4Ps of product, price, promotion, and place. It has expanded to include additional Ps like people, process, and physical environment to encompass services. A product can be a physical good, service, experience, information, or idea and companies differentiate their products through various attributes related to the product itself, packaging, labeling, and after-sale services and support.
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 â Price, Product, Promotion, Place, People,
Process, Physical Environment
⢠Traditional 4Ps extended to encompass growth of
service industry
5. Marketing Mix
Product
**also includes services
The total product offering
(including user experience)
â Features
â Benefits
â Brand strength, influence
â Reputation
â Warranty
â Customer support
Product
Price
Promotion
Place
Target
Market
7. 12-7
What is a Product?
A product is anything that can be offered to a
market to satisfy a want or need, including
physical goods, services, experiences,
events, persons, places, properties,
organizations, information, and ideas.
13. Five Product Levels
⢠Core benefit âservice or benefit (e.g., hotel
guest is buying ârest and sleepâ)
⢠Basic product âturn core benefit into basic
product (e.g., hotel room includes a bed,
bathroom, towels, desk, dresser, and closet)
⢠Expected product â set of attributes and
conditions buyers normally expect (e.g., clean
bed, fresh towels, working lamps)
⢠Augmented productâexceeds customer
expectations (e.g., free health spa)
⢠Potential productâall the possible
augmentations and transformations (e.g., free
internet connections and use)
14. Product Differentiation
⢠Product formâsize, shape, or physical structure
⢠Featuresâsupplement basic functions
⢠Customizationâindividual versus mass
⢠Performanceâlevel at which the productâs
primary characteristics operate
⢠Conformanceâdegree to which all the produced
units are identical and meet the promised
specifications
⢠Durabilityâproductâs operating life
⢠Reliabilityâprobability that a product will not
malfunction or fail
⢠Repairabilityâthe ease of fixing a product when
it malfunction or fails
⢠Styleâproductâs look and feel to the buyer.
15. Service Differentiation
⢠Ordering easeâhow easy to place an order
⢠Deliveryâhow well (e.g., speed, accuracy, and care)
product or service is brought to the customer
⢠Installationâwork done to make a product
operational
⢠Customer trainingâtraining the customerâs
employees to operate the vendorâs equipment
properly and efficiently
⢠Customer consultingâdata, information, systems,
and advice that the seller offers to buyers
⢠Maintenance and repairâservice programs for
helping customers keep purchased products in good
working order
⢠Returns
19. "Engineered like no other car in the world"
Mercedes buyers value safety, high performance, and prestige.
Consumers might visualize a Mercedes as being a wealthy,
middle-aged business executive.
20. 12-20
What is the Fifth P?
Packaging, sometimes called the
5th P, is all the activities of
designing and producing
the container for a product.
21. 12-21
Factors Contributing to the
Emphasis on Packaging
Self-service
Consumer affluence
Company/brand image
Innovation opportunity
22. Packaging Objectives
⢠Identify the brand
⢠Convey descriptive and persuasive
information
⢠Facilitate product transportation and
protection
⢠Assist at-home storage
⢠Aid product consumption
25. 12-10
Small Business Management, 11th edition
Longenecker, Moore, and Petty
Š 2000
South-Western College Publishing
Product Strategy Options
One Market
Multiple Markets
One
Product
Modified
Product
Multiple
Products
(1)
(2)
(3)
(4)
(5)
(6)
Product Mix Strategy Alternatives Target Market(s)
Key to Strategy Alternatives
(1) One product/one market (4) Modified product/multiple markets
(2) One product/multiple markets (5) Multiple products/one market
(3) Modified product/one market (6) Multiple products/multiple markets
26. How Will Your Business
Position Your Products
â˘Prestigious â
âluxury seats vs bleacher seats
â˘Better Bargain â
âseason tickets vs single game
tickets
â˘Equal in Quality
â concessions, giveaways, merchandise