MARKETING MIX

DR. DEEPA ROHIT, LLIM 1

Marketing Mix

DR. DEEPA ROHIT, LLIM 2

DR. DEEPA ROHIT, LLIM 3
 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

DR. DEEPA ROHIT, LLIM 5

PRODUCT MIX
DR. DEEPA ROHIT, LLIM 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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WHAT IS PRODUCT
Product is anything that can be offered to a market to
satisfy a want or a need.

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Product Levels
Core Benefit
Basic Product
Expected product
Augmented Product
Potential product

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 PRODUCT CLASSIFICATION
Classification

Use
Durability & tangibility

•Durable
•Non Durable Consumer Goods Industrial Goods
•Services

Specialty Shopping Goods

Convenience Goods •Materials & parts
goods
•Staples •Capital items
•Impulse goods •Supplies & business
•Emergency Unsought goods services

DR. DEEPA ROHIT, LLIM 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

DR. DEEPA ROHIT, LLIM 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

DR. DEEPA ROHIT, LLIM 12

 HINDUSTAN UNILEVER LTD.
PRODUCT MIX
Personal Laundry Water Skin Hair Oral Deo Cosmetics Food Salon Beverage
Wash Care Care Care

Lux Pureit Ponds Lakme Lipton

Surf Sunsilk Pepsodent Axe Lakme Kissan
Lifebuoy Rexona Elle 18 Brook
Rin Fair & Clinic Close-up annapurna
Liril Dove Bond
Sunlight Lovely Tressm Knorr
Hamam Taj
Wheel Lakme me Kwality
Dove Mahal
Comfort Vaseline Ice
Pears Bru
Dove creams

Product Line Length

Product Mix Width DR. DEEPA ROHIT, LLIM 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

DR. DEEPA ROHIT, LLIM 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

DR. DEEPA ROHIT, LLIM 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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PRODUCT MIX STRATEGIES
Expansion of product mix

Contraction of product mix

Altering existing products

Repositioning the product

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HOW TO MANAGE PRODUCT LINES
DR. DEEPA ROHIT, LLIM 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

DR. DEEPA ROHIT, LLIM 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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2. PRODUCT MIX PRICING
Product line pricing
Optional feature pricing
Captive product pricing
Two part pricing
By product pricing
Product bundling pricing

DR. DEEPA ROHIT, LLIM 22

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

DR. DEEPA ROHIT, LLIM 23

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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PACKAGING, LABELING, WARRANTIES AND GUARANTIES

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DR. DEEPA ROHIT, LLIM 26
PACKAGING AS A MARKETING TOOL
Objectives of Packaging
Why Packaging
Identify brand
Self service
Convey descriptive and
Consumer affluence
persuasive information
Company and brand image
Facilitate product transportation
Innovation opportunities and protection
Assist at-home storage
Aid product consumption

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LABELING
Simple tag attached to the product
Identifies the product or brand
Grade the product
Describe the product

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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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PRODUCT LIFE CYCLE
DR. DEEPA ROHIT, LLIM 30
Product Life Cycle- PLC

S
a Sales
l
e
s
&
P
r
o Profit
f
i
t

Introduction Maturity Decline

Growth

DR. DEEPA ROHIT, LLIM 31

Time
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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 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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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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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

DR. DEEPA ROHIT, LLIM 36

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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