Part – 5 Elements of Marketing Mix
Resource Person MATHISHA HEWAVITHARANA MBA (Col),BBA Sp.Mktng (Col), PPG DIP. In Mktng (UK), MCIM (UK), Chartered Marketer (UK), Practicing Marketer (SL), ACMA, CGMA CIMA (UK), DBF (IBSL), AIB (IBSL), MSLIM(SL), Head of Branches - Siyapatha Finance PLC
Chapter Contents • Introduction to Marketing Mix • Product • Price • Place • Promotion • People • Process • Physical Evidence • Integration of the Marketing Mix
Marketing Mix “ The Set of Controllable Variables and their levels that the firm uses to influence the Target Market ” - Kotler & Keller “ Collection of Tools Used By the Marketer In Achieving Predetermined Marketing Objectives / Strategies ”
Elements of Marketing Mix Product Price For Goods Marketing Place Promotion For Services Marketing People Process Extended Physical Evidence Elements
What is a Product A product can be defined as ……
Product • “ Core Benefits / Attributes Sought by the Customer ” Can be Defined As a Product Product Tangible Intangible (Goods) (Services) There are Some Characteristics Which Differentiates Products From Services
Characteristics of Goods Vs Services Goods Services Tangibility Intangibility Separability Inseparability Standard Variable Can be Measured Can not be Measured Perish ability is less Perish ability is high Ownership No Ownership
Types of Products o Consumer Products o Organizational Products
Product Product Line / Mix of the Company Product Line Product Mix A group of products which are closely related and are sold Collection of all product to a similar market lines in the business. segment.
Levels of Product
Classification of Products Durabil ilit ity & Tangib ibil ilit ity Nondurable Goods Durable Goods Services
Classification of Products Co Consumer Goods Convenience Goods Shopping Goods Specialty Goods Unsought Goods
Classification of Products In Industria ial l Goods Material & Parts Capital Items Supplies & Business Services
Product Product Life Cycle (PLC) This is the graphical presentation of different stages a particular product will move through during it’s economically valid life time. o Research & Development o Introduction o Growth o Maturity o Decline
Product Product Life Cycle (PLC) Performance 4 3 5 Sales 2 Profit Time 1
How to Differentiate Product • Form • Features • Performance / Quality • Durability • Reliability • Repairability • Style • Customization
Categories of Service Mix Pure Tangible Tangible with Minor Service Elements Hybrid Tangible with Major Service Elements Pure Service
New Product Development (NPD) New Product Development is the systematic process of introducing new product concepts to the market under following three categories; o Innovative Products o Replacement Products o Imitative Products
New Product Development (NPD) Adoption of Innovation / Diffusion of Innovation
Product Packaging Need for Packaging 1. Self Service Environments 2. Consumer Influence (Convenience / Appearance / Prestige) 3. Company Brand Image & Differentiation 4. Technology & Innovation 5. Legal Requirements
Price Price is the exchange value / economic value / transaction value of a particular product or service. The amount a customer pays for the product. The quantity of one thing that is exchanged or demanded in barter or sale for another. The amount of money given or set as consideration for the sale of a specified thing.
Price Determining Prices Organizations are Pricing their offer with the purpose of achieving following primary objectives; Profit-Maximizing Objective - Market Penetration Objective -
Pricing Strategies Market Penetration Pricing Market Skimming Pricing Loss Leader Pricing
Pricing Strategies Competitor Based Pricing Cost Orientated Pricing Psychological Pricing
Distribution A marketing channel / Distribution system is the particular set of interdependent organizations involved in the process of making a product or service available for use or consumption.
Distribution Intermediaries tend to play a very significant role in the process of distribution but will result in pushing up the price of the product at the point of reaching the end consumer.
Distribution Intermediaries tend to play a very significant role in the process of distribution but will result in pushing up the price of the product at the point of reaching the end consumer.
Distribution Number of Intermediaries • Exclusive • Selective • Intensive
Distribution E-Commerce in Managing Channel Strategy Virtual Marketing Strategy
Distribution M-Commerce in Managing Channel Strategy Mobile Based Marketing Strategy
Promotion / Marketing Communication Techniques of communicating information about the organization / products / services to stakeholders through a Communication Mix. Advertising - Personal Selling - Direct Marketing - Sales Promotions - Public Relations - Sponsorships -
Promotion / Marketing Communication Communication Mix o Advertising o Personal Selling
Promotion / Marketing Communication Communication Mix o Direct Marketing o Sales Promotions
Promotion / Marketing Communication Communication Mix o Public Relations o Sponsorships
Promotion / Marketing Communication How to Assess Return on Investment of Marketing Expenditure o Corporate / Product / Brand awareness o Sales Turnover o Number of Inquiries Generated o Level of Top of the mind recall rate o Competitor Reactions o Brand recognition and value
Promotion / Marketing Communication Push, Pull & Profile Communication In push In pull strategy organization In Profiling, communication persuades the end user / The strategy organization customer to pull the Corporate motivates the products from Image, intermediary parties intermediaries by using Reputation & to sell more number promotional tools such as Trust will be of units to the end advertising and direct Emphasized. user. marketing.
Promotion / Marketing Communication Integrated Communication Strategy Entire communication strategy of the organization must focus on a single coherent corporate strategy / direction by maintaining the consistency of the message.
People People factor refers to …….
Process Process refers to …….
Physical Evidence Physical Evidence refers to …….
Marketing Mix Integrated Marketing All the elements of the marketing mix must integrate with each other element and must focus on a single coherent corporate strategy / Brand Experience direction by maintaining the consistency of the approach without confusing the stakeholders of the business.
Marketing Mix • Introduction to Marketing Mix • Product • Price • Place • Promotion • People • Process • Physical Evidence • Integration of the Marketing Mix
Thank You ! 0773 – 29 20 29 mathihewa@yahoo.com
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