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By

DSK

Marketing Mix Decisions – Part


2

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Differentiation

 To be branded,
products must be
differentiated.
 There can be various
ways and means of
differentiation

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Methods of product differentiation

 Form Differentiation
 The size, shape, or physical structure of a product
 Features differentiation
 Calculate customer value and company cost
 Avoid feature fatigue
 Trim levels (variants)
 Customization
 Mass customization

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Contd..

 Performance quality
 Mercedes - Benz
 Conformance quality
 Conform to basic features of the product class
 Durability
 Reliability
 Reparability (after sales support)
 Style

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Design differentiation

 When the offering


has got a unique
design
 Design is a totality of
features that affect
how a product looks,
feels, and functions
in terms of customer
requirement
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Services differentiation
 Ordering ease (Domino’s Pizza)
 Delivery
 Installation (How to get the product fucntional)
 Customer training (Maruti Driving school)
 Customer consulting
 Maintainance and repair (Chevrolet Spark)
 Returns (Mobile store)

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Product and Brand relationships

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The product Hirarchy

 Need Family (Security)


 Product Family (Savings and Income)
 Product Class (Financial Instruments)
 Product line (a group of products within a
product class that are closely related because
they perform a similar function – Life Insurance)
 Product Type (Money back policy)
 Item or stockkeeping unit or product variant
(LIC Jeevan Anand)
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Product Line

 A product line may consist different brands or


a single brand family or individual brand

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Product mix

 Product mix (also Called product assortment)


 Consists of various product lines

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Product mix

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Product mix

 A company’s product mix has certain


 Width (How many different product lines)
 Length (Total number of items in the mix)
 Depth (How many variants are offered of each
product in the line)
 Consistency (How closely related product lines
are)

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Unilever

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Product line analysis

 BCG Matrix can tell you what to do with


different products
 Even advance tools can be utilized for that
 Product Mapping (similar to perceptual
mapping)

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Product Line length

 Company objectives influence product line


length
 Up selling (Maruti 800 to Maruti Alto)
 Cross selling (HP printers and computers both)

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How company lengthens its line

 Line stretching
 Line filling

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Line stretching

 It can be
 Down market stretch (lower priced versions to be
introduced)
 Up market stretch (High price versions to be
introduced)
 Two way stretch (High and low price versions
both)

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Line filling

 Line filling is over done if


it results in self
cannibalization and
customer confusion
 The needs to
differentiate well to
make it noticeable
 Relative and absolute
difference
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Line Modernization

 Intel keeps
coming with
newer variants
of
microprocessors

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Line featuring

 When a feature in a specific product item is


showcased to attract the customers
 Like the lowest priced version of car or bike is
advertised to bring you to the showroom

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Line prunning

 Unilever eliminated three quarters of its 1600


distinct brands by 2003.
 More than 90% of the profits come from just
400 brands
 Multi brand companies always like to correct
their product portfolio

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Any questions

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