Marketing Mix

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Marketing Strategy
Product
Variety Design Features Brand name Packaging

Price
List price Discounts Allowances Payment period Credit terms

Target customers

Promotion
Advertising Personal Selling Sales Promotion Public relations

Place
Channels Coverage Assortments Locations Inventory Logistics

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Product

Anything that can be offered to a market to satisfy a want or need.

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Consumer Products

end users.

Durable & Non Durable Consumer Products

Durable goods Services

Non durable goods

Short Time of consumption

CONSUMER PRODUCTS
Convenience Products Shopping Products

frequently purchased, low cost, readily available

usually compared for quality, price, and style

Specialty Products

Unsought Products

goods specifically sought out-usually less available, more effort required to find and buy

not often thought about; require more personal selling

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Layers of the Product Concept

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Product and service decisions

Individual product Decisions Product line Decisions Product- mix Decisions

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Developing Product or service involves defining the benefits that it will offer These benefits are communicated through quality freedom from defects to customer value and satisfaction Quality is when our customer comes back and our customers dont Siemens Quality level support product positioning e.g Rolls-Royce , Rolex , Toyota

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features competitive tool for differentiation - Value vs cost

style and Design - Another way to add customer value e.g Tata Nano

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Tata Nano, cool & smart,, Fuel efficient , environmental friendly , 9 Meets all safety requirements launched by Tata Motors is world's cheapest Car with a price tag of $ 2300.

Branding

Brand: a name, term, sign, symbol, or design, or a combination of these, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.

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Packaging

All the activities of designing and producing the container for a product.

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Innovations in Packaging

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Packaging Functions

Three functions of packaging:

Contain and protect the product

Physical protection Identify the brand, list the ingredients, specify features, give directions, differentiate from competition, influence consumer perceptions and buying behavior.

Promote the product

Facilitate storage, use, and convenience

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Easy to ship, store, and stock, prevent spoilage or breakage, extend a products shelf life. Easy to handle, open and reclose, tamperproof/childproof, reusable, disposable.

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Package Labeling

Persuasive Labeling: A type of package labeling that focuses on the promotional theme or logo and consumer information is secondary. Informative Labeling: A type of package labeling designed to help consumers make proper product selections and lower their cognitive dissonance after the purchase.

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Eye catchy artwork , unique web address that linked customers to a microsite created specifically for that design

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Functions of Labels
Identifies
Grades Describes

Promotes
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Product Warranties

Warranty: A confirmation of the quality or performance of a good or a service. (Formal Statements ) Express Warranty: A written guarantee. (100 percent cotton) Implied Warranty: An unwritten guarantee that the good or service is fit for the purpose for which it was sold.

Products under warranty can be returned to manufacturers or designated repair center for repair , replacement , or refund
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Classification of Products

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Product mix

Product line

LAMPS Table Ceiling Track Desk

Product Mix - the total group of products offered
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Product Line - a group of closely related products 18

CONCEPTUALIZATION OF PRODUCT MIX

WIDTH How many product Lines D E P T H
Variants offered of each product in a line

# of lines = 4 # of items = 12= Length

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A wide product mix facilitates one stop shopping

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Product Mix & Product Line- HUL

Personal wash : Lux , lifebuoy , Liril , Hamam , Breeze , Dove , Pears , Rexona Laundry : Surf , Excel , Rin , Wheel Skin Care : Fair and Lovely , Ponds Hair Care: Sunsilk , Naturals , Clinic Oral care : Pepsodent , Close Up Deodrants : Axe , Rexona Color Cosmetic : Lakme Tea : Broke Bond , Lipton Coffee: Bru Foods: Kissan , Knorr , Annapurna Ice-Cream : Kwality Walls 04/03/2012

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Product Mix & Product Line- HUL

Width : How many product Lines , HUL= 11 Length : Total No. of items in a mix , HUL = 29
Average length of line = 29/11

Depth : Variants offered of each product in a line , LUX comes in Four scents in two sizes . Therefore Depth =8
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Product Mix & Product Line

Selected Procter &Gamble Products Product Mix Width Laundry cleaning products skin care
Deodorant D

Ivory Snow
Product Daz Line Length Tide Ace

Ivory

Ivory
Camay

Secret
Sure

Joy

Mr. Clean
Swiffer

Olay
Coast Zest Safeguard

Old Spice

Cheer
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Line Extension
Meet changing buyer needs Combat competitive new offerings Simply to improve product satisfaction Allow up selling Cross selling Protect against economic swings
HUL Launched - Surf ultra, Surf excel, Surf excel matic, International Surf excel - Lifebuoy personal , Lifebuoy plus , Lifebuoy Gold , Liquid Lifebuoy , Lifebuoy Active

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Kellogg's
Line Extensions

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Product Line Decisions

Product Line Length
Number of Items in the Product Line Stretching
Lengthen beyond current range.
Can be: Downward Upward
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Filling
Lengthen within current range

Both Directions

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Product Line Decisions

Stretching

Lengthen beyond current range.

Downward Notice growth Opportunity , counterattack lower end competitor , Co. May find that middle market is stagnating or declining. HUL from surf to Wheel , parker with lower priced models , Prestige Prestige popular competing Hawkins , P&G s Ariel to Ariel super soaker and Ariel bars , Honda Motors with mid segment cars , Sony , Kodak Introduced Kodak Funtime, Mercedes with C-class at $30,000 Honda- Honda Jazz : 4,50,000

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Upward For more Growth , Higher Margins , position themselves as full line manufacturers

Philips power range in 1991 (6000-9000) then to (1500025000). It contributed 30% audio sales , Nirma entering high end detergents with spray-dried blue colored washing powder , Tata Indigo (the upgraded Sedan)
Both Directions (Two way stretch )- Texas first calculator in Mid-Market Lower End competing with Bowmar High End competing with HP

Market leader in Hand Held Calculators

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Two-Way Stretch

Marriott added the Renaissance Hotels line to serve the upper end of the market and the TownePlace Suites line to serve the moderate and lower ends.
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Filling
Lengthen within current range

Firm introduces more items to line to plug certain gaps in its current range of offers The intension is to see that it is seen as full line company , extra profits, customers do not go to competitors for offers in particular price slots, Satisfying dealers, using excess capacity . May lead to

e.g Videocon air-conditioners 3 in split Acs , 2 in window ACs with rotary compressor and 6 models in window ACs with reciprocators compressors Videocon CTVs Bazooka-top end , Turbo tough middle, Budgetline-lower middle, with 11,14,20,21,25,29,32inch model
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Pruning
Shorten within current range

When companies find that their product lines have got unduly long and complicated, with too many brands , variants and sizes Line is pruned ,trimmed to make it better organized line . Company here try to save cost and maximize efficiencies in production, distribution and promotion E.g. P&G had 51 versioned of Head and Shoulder shampoo were reduced to 15 variants P&G also tried to market separate disposable diapers for boys and girls but later thy claimed that such anatomical targeting was not necessary In Japan Max factor brand in cosmetic items from 1,385 to 828 and sales went up by 6%
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Brand Decisions

Brand: a name, term, sign, symbol, or design, or a combination of these, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.

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A Brand represents everything that a product or service means to consumers. As such brands are valuable assets to a company. CEO of Quaker oats :If this Business were split up, I would give you the Land and Bricks and mortar, and I would keep the Brands and trademarks, and I would fare better than you . A former CEO of McDonalds" If every asset we own, every building and every piece of equipment were destroyed in the natural disaster, we would be able to borrow all the money to replace it very quickly because of the value of our Brand is more valuable than the Totality of all these assets

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Brand Equity

Brand is more than a names or symbols : key elements in company's relationships with consumers Brand equity : A differential effect that knowing a brand name has on customer response to the product and its marketing. It is ability to capture customer preference and loyalty Powerful Brand has high brand equity e.g Coca cola , Nike , Disney , Sony , Mc. Donald's , Harley Davidson Google , You Tube , Apple Deep connections with customers Dimensions :
Differentiation , relevance , Knowledge, esteem

Customer equity the value of customer relationships that Brand creates Portfolio of products to portfolio of customers

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The King of Chocolates

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Brand Positioning

Product Attributes : P&G invited disposable Diaper category with its Pampers Brand fluid absorption , fit , disposability (what attribute will do for them) Benefit : beyond technical products. skin health benefits from dryness. there are fewer wet bottoms because of us P&Gs Global Marketing officer Beliefs and Values: emotional wallop. Cadbury, Starbucks, kingfisher, Apple creates surprise , passion and excitement surrounding a Brand

Marketers should establish Mission & Vision of the Brand Brand is promise by the company It should be simple and Honest

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Brand names

Should suggest something about product benefit Pronounceable Tide , Nirma , Ipod Distinctive Lexus , FedEx Extendable Amazon.com Easily translate in foreign language Not mean anything rude in another language

-Build Brands that have real meaning like Barbie , Mangola , Sona -Brand Name must be protected
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Brand names
Vodafones decision to change the Hutch brand name to its own makes complete sense. When you pay billions of dollars for a company, wont you want it to reflect your association with it?

Daimler Chrysler to consider a name change back to Daimler Benz-in an effort to disassociate from failure of Chrysler group.

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Brand-Sponsor Decision

National Brands VS store Brands

The product may be launched as one of the following options:

Manufacturer (or national) brand Bajaj , Godrej , Philips , Cadbury , J&J Distributor (or private) brand Spencer , Stop , Basic Rules , Food world

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Licensing

Apparel and accessory sellers pay large royalties to adorn their products- Calvin Klein , Tommy Hilfiger , Gucci , Armani Sellers of Children products Dora , Powerpuff girls ,

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Co-branding

Big Bazar and Citi Citibank and jet Airways Maruti car using JK tyres , Compaqs PC using Intel chips, Volvo Advertises That it uses Michelin Tires

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Brand Development : Line and Brand Extensions

Line extension occur when company extends existing Brand names to new forms, colors , Sizes, ingredients or flavors of an existing product category Bata , Lux
Extending a current Brand name to new or Modified products to new category
Acquire competitors customers Stimulate demand among current non-users. Related Brand extension/Category extension - Maggi Noodles to Maggi Ketchup ,Maggi soup etc. Dettol soap -----antiseptic soap , Dettol plaster-------Antiseptic bandage , Dettol Hand wash..antiseptic wash Ponds Dreamflower Talc , Pond Dreamflower soap ,Ponds face wash , Ponds cold cream ,Ponds complexion defense moisturizer , Ponds Moisturizing lotion Unrelated Brand extension or Category extension Anchor electrical switches to Toothpaste (Gut feeling of CEO Atul Shah)

Line Extension trap

Car

Motor Cycle

Marine
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Engines
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Multi Branding
Two or more brands in same product category.

Seiko
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Seiko Pulsar

Seiko Lasalle

New Brands
New Category New Brands
Power of the existing Brand is waning Enter New Product category with new Brand Tat motors created Ace Brand - Targeted at small transporters Mega Brand Strategies weeding out weaker Brands and focusing their marketing dollars on strong Brands

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Managing Brands

Managing Brands requires managing touch points. says a former Disney executive A Brand is a living Entity and it is enriched or undermined cumulatively over time, the product of thousand gestures

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