1. characteristics of goods
• Tangible: goods are tangible, meaning they can be touched.
• Consistent definition: The product definition of most goods is
consistent.
• Production is separate from consumption: Most goods are produced
in a physical location other than the place where they are consumed.
• Can be inventoried: You can hold goods in inventory because
production is separate from consumption.
• Low customer interaction: Customers are typically not involved in the
transformation process, so there is a low level of customer
interaction.
2. • The defining characteristics of a service are:
• Intangibility
• Heterogeneity/Variability
• Perishability
• Inseparability/Simultaneity of production and consumption
3. Intangibility
• Services are intangible and do not have a physical existence.
• Services cannot be touched, held, tasted or smelt.
5. Perishability:
• Services cannot be stored, saved, returned or resold once they have
been used.
• Once rendered to a customer the service is completely consumed and
cannot be delivered to another customer.
• eg: A customer dissatisfied with the services of a barber cannot
return the service of the haircut that was rendered to him.
6. Goods Services
A physical commodity A process or activity
Tangible Intangible
Homogenous Heterogeneous
Production and distribution are
separation from their consumption
Production, distribution and
consumption are simultaneous
processes
Can be stored Cannot be stored
Transfer of ownership is possible Transfer of ownership is not possible
8. • The marketing mix refers to the tactics (or marketing activities) that
we have to satisfy customer needs and position our offering clearly in
the mind of the customer.
• It involves the 7Ps; Product, Price, Place and and an additional three
elements that help us meet the challenges of marketing services,
People, Process and Physical Evidence
9. Product
• This refers to what the company produces (whether it is product or
service, or a combination of both) and is developed to meet the core
need of the customer.
• ‘bundle of benefits’ to improve the offering, create new versions of
existing products, or launch brand new products.
• When improving the product offering think beyond the actual
product itself – value can be added and differentiation achieved with
guarantees, warranties, after-sales or online support, a user-friendly
app or digital content like a video that helps the user to make the
most out of the product.
10. • A marketing mix always begins with a product to sell.
• It is extremely important to carry out extensive research on the life
cycle of the product you are creating.
• All products have their own life cycle including the growth phase, the
maturity phase, and the sales decline phase.
• Once a product reaches the sales decline phase, marketers need to
find new ways to increase sales again.
Product
11. PLACE
• In a marketing mix, place refers to the position and distribution of the
product you are selling in a place that is accessible to your target
audience, this could be a high street shop, an online store, or mail
order.
• Examples of distribution strategies include: intensive, exclusive,
selective and franchising.
• To make sure you position your product in the best possible place, it’s
vital to understand your customer and what their shopping habits
may be.
• Where do clients look for my product?
• Where do clients usually shop for products?
• Should I sell the product online?
12. PRICE
• Pricing is an extremely important component to your marketing mix
as it determines your profit and costing of your product.
• Altering the price of a product can affect the entire marketing
strategy
• Pricing also helps consumers to determine the perception of your
product.
• For example, a lower priced product is deemed less inferior in terms
of quality and ability, as opposed to a highly priced product.
13. PROMOTION
• Promotion is an element that can boost sales and brand recognition
through advertising, sales promotion, sales organization, and public
relations.
• When promoting a product, you may decide on all of the promotion
elements, or simply choose the techniques that will target your
audience more effectively.
• To create a successful product promotion strategy
• When is the best time to promote my product?
• What is the strategy my competitors are using?
• Should I use social media to promote the product?
• How can I send marketing messages to my target audience?
• What marketing channel is the best to promote my product for my audience?
14. • The promotional strategy is also dependent on the budget,
communication and how you want to get your message across, and
your target market.
15. PEOPLE
• Consumers aren’t the only important people to consider in your
marketing strategy, you also have to take into the account the people
who will be delivering the marketing and sales of your product.
• To make sure you deliver excellent service and marketing, you’ll need
people who are fully trained for the job, whether this is customer
service assistants, copywriters, designers or a sales representative
16. PROCESS
• Delivery of product to consumers
• Process of organization can affect the performance of the service you
provide.
• Efficient, helpful and timely
• By making sure your business has a good process in place, you will
also save time and money due to greater efficiency, and your
standard of service to customers will remain consistent, which is
excellent for developing a brand reputation and customer loyalty
17. PHYSICAL EVIDENCE
• It refers to everything your customers sees or hears when interacting
with your business.
• This includes your branding, your product packaging, a physical space
such as a shop, and even the way your staff and sales representatives
act and dress – it’s not all about the product!
• The way that you portray your brand physically has a great impact on
consumers and can either lead or an increase, or decrease, in sales.
