MM NOTES

UNIT 2

1)PRODUCT MIX
• Product mix or product assortment is a set of the total
number of product lines that a seller offers in
the market to its buyers. The company may have one or
several product lines, and each product line may have
several products. When these product lines get together
are known as the product mix of the company.

• Product mix consistency is the close relationship

between different product lines. The more product
variation means less product consistency. For example, a
dairy company has two product lines milk and yogurt.
Both lines have the same users and distribution
channels. Due to low product variation and high product
mix consistency. Take another example of Philips
Electronics with 7 product lines having high production
mix variation and low consistency.
2)FACTORS INFLUENCING PRODUCT MIX
• Change in demand of a product
• Change in purchasing power or behavior of
customers
• Change in company targets
• Development of by products by using residuals, at
low cost
• Competitors actions and reactions
• Spare marketing capacity
• Financial influences of the firm
• Advertising and distribution factors
• Goodwill of the firm
• Possibility of adding new product to product line
3)NEW PRODUCT DEVELOPMENT (NPD)
• New Product Development (NPD) refers to the complete
process of bringing a new product to market. This can
apply to developing an entirely new product, improving
an existing one to keep it attractive and competitive, or
introducing an old product to a new market.
• NPD consists of the creation of new ideas, their
evaluation in terms of sales potential & profitability,
production facilities, resources available, designing and
production testing and marketing of the product.

4)PRICING METHOD STRATEGIES

UNIT 2 PRICING FROM PPT
 5) PRODUCT LIFE CYCLE (PLC)
• Every product has its life.
• Some products have a longer life than others.
• Every product passes through certain stages,
collectively known as product life cycle stages.
• These stages include:
• Introduction
• Growth
• Maturity
• Decline

To introduce a new product, two methods may be

used:
• Skimming pricing X: Setting a high price for a new
product to capitalize on high demand.
• Penetration pricing X: Setting a low initial price to
encourage higher distribution and exposure.
Penetration pricing also requires a marketing strategy
that incorporates:
• Mass production
• Distribution
• Promotion
Sales of products introduced with skimming pricing
should be monitored. Once sales begin to level off, the
price should be lowered.
Very little price change will be made in the growth
state for products introduced with penetration pricing.
 UNIT 3 CHANNELS OF DISTRIBUTION
1)Factors affecting choice of distribution channel

1)Market Considerations
• Consumer or industrial market

• Number of potential customers (more the customers,

lower the channel)
• Size of order (low size, lower the channel)
• Buying habits of customer
• Geographical concentration of market

2)Product Considerations
• Unit value (lower the unit value, longer the channel)
• Product line (one item in product line, use longer
channel)
• Standardized channel (standardized products through
longer channels)
• Technical nature (Technical sold directly)
• Bulk and weight (Bulky and heavy goods sold directly to
users)
• Perishability (shorter channel in case of products are
subject to decay or fashion change)

3)Company Considerations
• Volume of production
• Financial resources
• Experience and competence of management
• Services provided by the channels
• Desire for control of channels

4)Middlemen Considerations
• Availability of desired middlemen
• Financial ability
• Attitude of middlemen
• Sales potential
• Cost
• Competition and legal constraints
 2)Promotion mix
• It refers to the combination of different promotional
tools used by a firm to advertise and sell its products.
• Important promotional tools are: personal selling,
advertising, public relations, publicity and sales
promotion.

3) Factors affecting Promotion Mix

. Product Considerations
• Nature of product (Consumer good- advertising, publicity
& sales promotion; Industrial good- personal selling)
• Product Image (coupons, freebies)
• Stage of PLC (next slide)
• Packaging
• Degree of customization (next slide)
4) Target Market Characteristics
• Level of Competition (advertising, sales promotion and
personal selling when highly competitive)
• Geographic Coverage (wide market coverage: advertising
and sales promotion; local area: personal selling)
• Buyer Readiness Stage (next slide)
• Promotional Budget (Personal selling is cheaper,
advertising is costly)
• Promotional Strategy (Push or Pull Strategy)

4) PUSH Vs PULL Strategy

• Promotional activities can be directed in two ways:
middlemen or towards end-users.
• When promotion is directed at middlemen, it is known
as push strategy, & when towards end users, it is pull
strategy.
• PUSH STRATEGY- quantity discounts, rebates, gifts, etc.
• PULL STRATEGY- advertising & sales promotion (
samples, coupons, freebies etc).

5)ADVERTISING
• Advertising is the dissemination of information
concerning an idea, product or service to induce
action in accordance with the intent of the
advertiser.

➢ Features of Advertising
• Paid form of communication
• Non personal presentation of message
• Promote ideas about the products and services
• Identified sponsor
➢ Types of Advertising
• Consumer oriented or Persuasive Advertising
• Informative Advertising
• Institutional Advertising
• Financial Advertising
• Classified Advertising
• Government Advertising

➢ Importance of Advertising
• Benefits to Manufacturers & Traders
(introduction of new products, create new taste,
increase sales, create demand, face competition,
increase goodwill, increase morale of employees,
facilitates mass production of goods)
• Benefits to Customers (awareness, educates,
increases the utility of existing products, deliver
superior quality of goods)
• Benefits to Society (generates employment,
promotes standard of living, educates the people
and increases knowledge, sustains media)
 (most imp ques)
6)Advertising a social waste?
Advertising may be a social waste if:
• It increases the price to be paid by the

customers.
• It involves wastage of national resources.

• It increases undesirable wants of

consumers.
• It promotes sale of inferior products.

• It is socially undesirable, e.g. undermines

social values.

7) Advertisement Copy
• Written or spoken material in the advertisement,
including the headline, coupons and message.
• ELEMENTS OF AN ADVERTISING COPY
• Heading
• Theme
• Picture
• Arguments
• Closing part
 8) PERSONAL SELLING
It is the process of assisting and persuading a
prospective buyer to buy a product in a face to
face situation.
➢Personal Selling Process
• Pre-sale preparation
• Prospecting
• Approaching
• Sales presentation
• Demonstration
• Handling objections
• Closing the sale

9) SALES PROMOTION
According to AMA, “Sales promotion includes those
marketing activities, other than personal selling,
advertising, and publicity that stimulate consumer
purchasing and dealer effectiveness, such as
displays, shows, demonstrations and various non
recurrent selling efforts not in the ordinary routine”

➢ Objectives of sales promotion

• Introduce new products in the market through

educating people
• Attract new customers by offering attractive gifts,
offers etc
• Increase sales during the slack season.
• Create goodwill among the present as well as
prospective customers.
• Create good public image of the product and the
firm.

➢Techniques of sales promotion

• Distribution of samples
• Discounts or price off
• Coupons discounts
• Gift offer
• Quantity deals
• Public relations
• Quiz contests
• Fair & exhibitions
• Display of products
• Free offer
• Exchange offer

10)Levels of distribution channel /marketing

channels
11) distribution intermediary /distributory
12)communication process
UNIT 4
SHORT NOTES

1)SUSTAINABLE MARKETING
2)DIGITAL MARKETING
3)RURAL MARKETING
4)SOCIAL MEDIA MARKETING
5)GREEN MARKETING