Marketing Mix Product Final

8/2/2019 Marketing Mix Product Final

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Marketing Mix


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ProductVarietyDesign

FeaturesBrand namePackaging

PromotionAdvertising

Personal SellingSales PromotionPublic relations

Targetcustomers

PlaceChannelsCoverage

AssortmentsLocationsInventoryLogistics

PriceList priceDiscounts

AllowancesPayment period

Credit terms

Marketing Strategy


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Product

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


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Consumer Products end users.

Durable

goods

Non durablegoodsServices

Durable & Non Durable Consumer Products

Short Time of consumption


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CONSUMER PRODUCTS

Trans. 9-3

ConvenienceProducts

ShoppingProducts

UnsoughtProducts

SpecialtyProducts

frequently purchased, low cost, readilyavailable

usually compared for quality, price, and style

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 definingthe benefits that it will offer

These benefits are communicated through

quality freedom from defects to customer valueand satisfaction

Quality is when our customer comes back and ourcustomers 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 customervalue

e.g Tata Nano

Tata Nano, cool & smart,, Fuel efficient , environmental friendly ,Meets all safety requirements launched by Tata Motorsis

world's cheapest Car with a price tag of $ 2300.


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Brand:a name, term, sign, symbol, or design,or a combination of these, intended to identifythe goods or services of one seller or group ofsellers and to differentiate them from those ofcompetitors.

Branding
http://www.nike.com/main.htmlhttp://www.icrc.org/frehttp://www.thetube.com/content/pressreleases/


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Packaging

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


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Innovations in Packaging
http://www.webpackaging.com/


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Packaging Functions

Three functions of packaging:

Contain and protect the product

Physical protection

Promote the product Identify the brand, list the ingredients, specify

features, give directions, differentiate fromcompetition, influence consumer perceptions andbuying behavior.

Facilitate storage, use, and convenience 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 onthe promotional theme or logo and consumer information issecondary.

Informative Labeling: A type of package labeling designed tohelp consumers make proper product selections and lower theircognitive dissonance after the purchase.

Eye catchy artwork , unique web address

that linked customers to a microsite createdspecifically 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 orperformance of a good or a service. (FormalStatements )

Express Warranty: A written guarantee. (100percent cotton)

Implied Warranty: An unwritten guarantee thatthe good or service is fit for the purpose forwhich it was sold.

Products under warranty can be returned to manufacturers ordesignated repair center for repair , replacement , orrefund


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Classification of Products


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LAMPSTableCeilingTrackDesk

Product Line - a groupof closely related

products

Product Mix - the total group ofproducts offered

Product mix

Product line


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CONCEPTUALIZATION OF PRODUCT MIX

WIDTH How many product Lines

D

EP

T

HVariantsoffered

of each

product

in a line

# of lines = 4

# of items = 12=

Length

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


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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 Fourscents in two sizes . Therefore Depth=8


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Product Mix & Product Line

Product

Line

Length

Selected Procter &Gamble Products

Laundry cleaning products skin care Deodorant D

Ivory Snow Ivory Ivory Secret

Daz Camay Sure

Tide Joy

Ace Mr. Clean Olay Old Spice

Swiffer Coast

Cheer Zest

Safeguard

Product Mix Width


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Line Extension

Meet changing buyer needsCombat competitive new offerings

Simply to improve product satisfactionAllow up sellingCross sellingProtect against economic swings

HUL Launched - Surf ultra, Surf excel, Surf excel matic, International Surf excel

- Lifebuoy personal , Lifebuoy plus , Lifebuoy Gold , Liquid Lifebuoy , LifebuoyActive


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Kellogg's

Line Extensions


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Stretching

Lengthen beyondcurrent range.

Can be:

Downward

Upward

Both Directions

Product Line LengthNumber of Items in the Product Line

FillingLengthen withincurrent range

Product Line Decisions


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Product Line Decisions

Stretching

Lengthen beyond current range.

Downward Notice growth Opportunity , counterattacklower 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 sAriel to Ariel super soaker and Ariel bars , Honda Motors

with mid segment cars , Sony , Kodak Introduced KodakFuntime, 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 (15000-25000). It contributed 30% audio sales , Nirma enteringhigh end detergents with spray-dried blue colored washingpowder , Tata Indigo (the upgraded Sedan)

Both Directions(Two way stretch )- Texas firstcalculator 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 themarket and the TownePlace Suites line to serve the moderate and lower ends.


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Firm introduces more items to line to plug certain gapsin its current range of offers

The intension is to see that it is seen as full linecompany , extra profits, customers do not go to

competitors for offers in particular price slots, Satisfyingdealers, using excess capacity . May lead to

e.g Videocon air-conditioners 3 in split Acs , 2 in windowACs with rotary compressor and 6 models in window

ACs with reciprocators compressorsVideocon CTVs Bazooka-top end , Turbo tough middle,

Budgetline-lower middle, with11,14,20,21,25,29,32inch model

Filling

Lengthen within current range


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When companies find that their product lines have gotunduly 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 inproduction, distribution and promotion

E.g. P&G had 51 versioned of Head and Shoulder shampoowere reduced to 15 variants

P&G also tried to market separate disposable diapers for

boys and girls but later thy claimed that such anatomicaltargeting was not necessary In Japan Max factor brand in cosmetic items from 1,385

to 828 and sales went up by 6%

Pruning

Shorten within current range


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Brand:a name, term, sign, symbol, or design,or a combination of these, intended to identifythe goods or services of one seller or group ofsellers and to differentiate them from those of

competitors.

Brand Decisions
http://www.nike.com/main.htmlhttp://www.icrc.org/frehttp://www.thetube.com/content/pressreleases/


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A Brand represents everything that a product or servicemeans to consumers. As such brands are valuable assets toa company.

CEO of Quaker oats :If this Business were split up, I wouldgive you the Land and Bricks and mortar, and I would keepthe Brands and trademarks, and I would fare better thanyou .

A former CEO of McDonalds" If every asset we own, everybuilding and every piece of equipment were destroyed inthe natural disaster, we would be able to borrow all themoney to replace it very quickly because of the value of ourBrand is more valuable than the Totality of all theseassets


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Brand Equity

Brand is more than a names or symbols : key elements in company's relationshipswith consumers

Brand equity : A differential effect that knowing a brand name has on customerresponse 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 withits Pampers Brand fluid absorption , fit , disposability (whatattribute will do for them)

Benefit : beyond technical products. skin health benefits fromdryness. there are fewer wet bottoms because of us P&Gs GlobalMarketing officer

Beliefs and Values: emotional wallop. Cadbury, Starbucks,kingfisher, Apple creates surprise , passion and excitementsurrounding a Brand

Marketers should establish Mission & Vision of the BrandBrand is promise by the company

It should be simple and Honest


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Brand names

Should suggest something aboutproduct benefit

Pronounceable Tide , Nirma , Ipod

Distinctive Lexus , FedEx

Extendable Amazon.com

Easily translate in foreign language

Not mean anything rude in anotherlanguage

-Build Brands that have realmeaning like Barbie , Mangola ,

Sona

-Brand Name must be

protected


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Brand names

Vodafones decision to change the Hutch brand name to itsown makes complete sense.

When you pay billions of dollars for a company, wontyou want it to reflect your association with it?

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


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Brand-Sponsor Decision

National Brands VS store Brands

The product may be launched as one of thefollowing options: Manufacturer (or national) brand Bajaj , Godrej ,

Philips , Cadbury , J&J

Distributor (or private) brand Spencer , Stop ,Basic Rules , Food world
http://www.presidentschoice.ca/home.aspxhttps://www.sears.com/sr/framework/home.jsp?BV_SessionID=@@@@1847165951.1069364544@@@@&BV_EngineID=ccejadcjmghfghlcehgcemgdffmdflk.0&targetPage=%2fmisc%2fsears%2fspecialty%2fordercat.jsp&vertical=SEARS&bidsite=CRAFT&default=5


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Licensing

Apparel and accessory sellers pay large royaltiesto adorn their products- Calvin Klein , TommyHilfiger , Gucci , Armani

Sellers of Children products Dora , Powerpuffgirls ,
http://www.presidentschoice.ca/home.aspxhttp://www.presidentschoice.ca/home.aspxhttp://www.presidentschoice.ca/home.aspxhttp://www.presidentschoice.ca/home.aspxhttp://www.presidentschoice.ca/home.aspxhttp://www.presidentschoice.ca/home.aspxhttp://www.presidentschoice.ca/home.aspxhttp://www.presidentschoice.ca/home.aspxhttp://www.presidentschoice.ca/home.aspxhttp://www.presidentschoice.ca/home.aspxhttp://www.presidentschoice.ca/home.aspx


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Co-branding

Big Bazar and Citi

Citibank and jet AirwaysMaruti car using JK tyres , Compaqs PC using Intel chips,

Volvo Advertises That it uses Michelin Tires

Brand Development : Line and Brand
http://www.presidentschoice.ca/home.aspxhttp://www.presidentschoice.ca/home.aspxhttp://www.presidentschoice.ca/home.aspxhttp://www.presidentschoice.ca/home.aspxhttp://www.presidentschoice.ca/home.aspxhttp://www.presidentschoice.ca/home.aspxhttp://www.presidentschoice.ca/home.aspxhttp://www.presidentschoice.ca/home.aspx


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Brand Development : Line and BrandExtensions

Car Motor Cycle

EnginesMarine

Extending a current Brand name to new or Modified products to new categoryAcquire 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..antisepticwashPonds Dreamflower Talc , Pond Dreamflower soap ,Ponds face wash , Ponds cold cream ,Ponds

complexion defense moisturizer , Ponds Moisturizing lotion

Unrelated Brand extension or Category extensionAnchor electrical switches to Toothpaste (Gutfeeling of CEO Atul Shah)

Line Extension trap

Line extension occur when company extends existing Brand names to new forms, colors ,

Sizes, ingredients or flavors of an existing product category Bata , Lux
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Multi Branding

Seiko

Seiko LasalleSeiko Pulsar

Two or more brands in same product category.
http://www.presidentschoice.ca/home.aspxhttp://www.presidentschoice.ca/home.aspxhttp://www.presidentschoice.ca/home.aspxhttp://www.presidentschoice.ca/home.aspxhttp://www.presidentschoice.ca/home.aspxhttp://www.presidentschoice.ca/home.aspxhttp://www.diamond.com/detail.asp?Sn=111388046&nc=ID3C&pf_id=17203&kit_id=R1&md_id=2&ln1=11&lno=14http://www.diamond.com/detail.asp?Sn=111388046&nc=ID3C&pf_id=17203&kit_id=R1&md_id=2&ln1=11&lno=14http://www.diamond.com/detail.asp?Sn=111388046&nc=ID3C&pf_id=17203&kit_id=R1&md_id=2&ln1=11&lno=14http://www.masseysjewelers.com/store/product87.html


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New Brands

New CategoryNew 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 Strategiesweeding out weaker Brands and focusing their marketing dollars

on strong Brands


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Managing Brands

Managing Brands requires managing touchpoints. says a former Disney executive

A Brand is a living Entity and it is enriched orundermined cumulatively over time, the productof thousand gestures

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Marketing Mix Product Final

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