MARKETING MIX

IN THIS UNIT YOU WILL READ ABOUT

• Product : Product Mix, New Product development,

levels of product, types of product, Product life
cycle, Branding and packaging.
• Distribution : Concept, importance, different
types of distribution channels etc.
THE MARKETING “MIX”
PRODUCT

• A product is a set of tangible and intangible attributes

including packaging, colour, price, quality and brand
plus the service and reputation of the seller. A product
may be a tangible good, service, place, person or idea.
W.J. Stanton
• Everything the purchaser gets in exchange for his money
C.P. Stephenson
A PRODUCT IS MORE THAN JUST A
PRODUCT
Color

Produc Product
t warranty
quality
Product

Pric Packaging
e

Brand
COMPONENTS OF PRODUCT

Symbolic
Product

Augmented
Product

Cor
e Product
PRODUCT MIX

• A company’s product mix (also called product assortment) is defined as the set of all
product lines and items that a particular seller offer for sale to buyers.
• A company’s product mix can be described as having a certain width, length, depth,
and consistency.
• Avon’s product-mix consists of three major product lines: cosmetics, jewelry,
and household items. Each product line consists of several sublines
• Example: cosmetics break down into lipstick, powder, and so on.
• All together Avon’s product mix includes 1,300 items. A large supermarket handles as
many as 10,000 items, General Electric manufactures as many as 25,000 items.
PRODUCT MIX WIDTH AND
PRODUCT LINE LENGTH SHOWN FOR
P&G
• width - how many different product lines the company carries
• length - the total number of items in its product mix.
• depth - how many variants are offered of each product in the line.
• consistency - how closely relate the various product lines are in end use, production
requirements, distribution channels or some other way.
• The four dimensions of the product mix provide the handles for defining the company’s
product strategy .
• Product-mix planning is largely the responsibility of the company’s strategic planners.
They must asses, with information supplied by the company marketer’s, which product
lines to grow, maintain, harvest and divest.
TYPES OF PRODUCT

Based on nature

Based on consumer
intentions

Based on social
benefit
BASED ON THE NATURE

• Goods
• Services
• Ideas
• Experiences
• Events
• Persons
• Places
• Properties
• Organisations
• informations
BASED ON CONSUMER INTENTIONS

Consumer
Product Industrial or
Business
Product
CONSUMER PRODUCTS

• Convenience Products: The consumer goods which a customer usually purchases frequently and
wants immediately and with minimum of efforts are called convenience goods.
• Shopping Goods: These goods are bought by the customer only after comparing quality, price
suitability and style.
• Speciality Goods: They are consumable products which can only be purchased from specialist
retailers and which consumer select deliberately.
• Unsought Products: Unsought products are those products about which potential buyers do not
know that they exist or do not want to purchase.
• Regularly Unsought Products: There are existing products that consumers do not want know,
although they may eventually purchase them.
• New Unsought products: Products that are totally new and unfamiliar to consumers are new
unsought products.
INDUSTRIAL GOODS

• A product bought for use in the production of other or in an organisational

operation is an industrial product.
• Raw material
• Capital equipment
• Accessory equipment
• Component parts
• Supplies
• Industrial services
BASED ON SOCIAL BENEFITS

• Pleasing Products: These give high immediate satisfaction, but do harm to consumers
in long run.
• Deficient Products: These have neither immediate appeal nor long run benefits
• Salutary products: They have long run advantages but have no immediate appeal to
consumers. Hence, firms are not primarily interested in such products.
• Desirable Products: They have a happy combination of high immediate satisfaction
and high long run consumer welfare.
FACTORS INFLUENCING CHANGE IN
PRODUCT MIX
• Change in market demand
• Cost of production
• Quantity of production
• Advertising and distribution factors
• Use of residuals
• Change in company desire
• Competitors actions and reactions
• Change in purchasing power
PRODUCT MIX STRATEGIES

• Product line expansion/contractions

• Product modification
• Product elimination