MARKETING MIX(1)

Diksha Bedekar
PRODUCT

 A product is anything that can be offered to a market to satisfy the need and
want.

 Levels of product:
 Core benefit
 Basic product
 Expected product
 Augmented product
 Potential product
 Example of product levels:
 Mobile Handset:

Core product: communication

Basic product: Features-small size, sliding. Etc
Quality-excellent
Brand name-Nokia, sony
Expected product: looks good , light weight, color display
Augmented product : with FM radio, camera
Potential product :with internet,email,tv channels etc.
CLASSIFICATION OF PRODUCTS

 Consumer products
 Industrial products

Consumer products:
 Convenience products: these are the products which consumer buy frequently.
e.g.soaps,sweets,newspapers,bread etc.
 Shopping products: these are the products which are less frequently purchased.
e.g. furniture,clothing,major appliances.
 Speciality stores: only significant group of buyers will buy it.
e.g. luxury cars,jwellery etc.
INDUSTRIAL PRODUCTS

 These are the products which helps in production of goods in industry. These
products are further classified in to 3 parts.

 Materials and part(Raw Material)

 Capital items(PC,fax machines,desks,chairs)
 Supplies(house keeping, annual maintainance contract)
PRODUCT LIFE CYCLE

 Like human beings, products also have their own life-cycle. From birth to death
human beings pass through various stages e.g. birth, growth, maturity, decline
and death.

 A similar life-cycle is seen in the case of products. The product life cycle goes
through multiple phases, involves many professional disciplines, and requires
many skills, tools and processes. Product life cycle (PLC) has to do with the life of
a product in the market with respect to business costs.
 Introduction:
In the early stage when the product is introduced in the market, sales revenue
begins to grow, but the rate of growth is very low. Product requires heavy
advertising and promotion.
 Growth:
It is the second stage where the product is acceptable by the consumers. Profit
started increasing and also sales volume.
pricing is the strategy which leads the product to sustain in the market
 Maturity:
During this stage competition brings pressure on pricing. Increasing marketing
expenses and falling prices will reduce profits. Marketer have to adopt measures
to stimulate demand thru various promotions plus pricing strategies.

 Decline:
Once the product reaches to its peak point it starts declining. Sales drop severely
and product can not stand in the market. At this this stage price becomes key
weapon and also different strategies of product are adopted,to enter again in
introduction stage.
NEW PRODUCT DEVELOPMENT
PRODUCT SIMPLIFICATION

 Simplification of a product line means the elimination of all unnecessary or

marginal product features from it.
PRODUCT ELIMINATION

 Product elimination is the decision to drop a product from the portfolio

based on its poor market performance.
 The market demand for such products has been dipped to none and hence
product elimination or closure is carried out.

 Product elimination can also mean that only product under an umbrella
brand needs to be stopped and not the entire portfolio.
PRODUCT DIVERSIFICATION

 Diversification means that new products will be added for achievement of a well-
rounded, balanced line of products. Having a diversified line of products is more
essential for consumer goods producers than for machine tools builders or other
capital goods producers.
PRICE

 Importance
Price is the amount of money charged for a product or service. Its the total value
that customer exchange for the benefits of having or using products or service
 It is a highly risk decision area
 It is a only factor which generates revenue
 It is one of the most flexible ‘P’ of marketing mix.
 Any mistake in pricing will adversely affect the company, its profit, growth and
future.
IMPORTANCE OF PRICING

 The market price influences wages,rent,interest and profits.

 Price can decide the success or the failure of the firm
 It helps to achieve a particular market share
 It is the primary source of revenue
 It affects the competitive position
 It is an indicator of product quality
 It helps in bringing the stability of the business
OBJECTIVES OF PRICING

 Profit maximization
 Increase in Sales turnover
 New market entry
 Price leadership
 Improving Cash flow
 Sustain in market thru competition.
FACTORS INFLUENCING PRICING

 Internal factors:
Marketing objectives
Marketing mix strategies(3 P’s)
Costs
Organizational Behavior
 External factors:
Market demand
Competition
Environmental factors
VARIOUS PRICING STRATEGIES
 Price Leadership
 Psychological Pricing
 Value-based Pricing
 Penetration Pricing
 Cost plus Pricing
 Creaming or Skimming
 Demand Based Pricing
VARIOUS PRICING METHODS

 Cost Based
 Demand Based
 Cost Demand Based
 Competition Based
Thank you!