Marketing Sheet 2 - Study Notes

Marketing Sheet 2 - Study Notes

• Product Planning: The marketing mix comprises variables offered to the market. These variables change over time. Product variables include variety, quality, brand name, packaging, etc. Promotion variables include advertising, personal selling, sales promotions, publicity, etc. Price variables involve basic price, discounts, credit terms, etc. Distribution variables include targeting specific markets, sales force, time, coverage, transport, etc.

• The Marketing Mix: A product is anything offered to the market for consumption or use. Products can be goods or services. Customers prioritize benefits over features. Branding is vital, using names and symbols to provide a unique identity, for instance, Coca-Cola or Hoover. Packaging is a key aspect, serving as both protection and brand reinforcement, attracting the customer.

• 3 Levels of Product:

  • Core Product: The essential benefit a customer desires.
  • Actual Product: The physical/tangible attributes. Characteristics include materials, styling, and branding.
  • Augmented Product: Extras to make the product appealing. Includes things like warranties, services, delivery options, etc. Product planners should understand all three levels to design effectively.

• Product Classifications:

  • Industrial Products: Used in producing other goods. Raw materials, tools, machinery, and equipment are examples.
  • Consumer Products: Bought by final consumers. These are categorized further:

• Convenience Products: Frequent purchase, minimal comparison effort (e.g., tea, milk, sugar).

• Shopping Products: More planning and comparison, considering factors like suitability, price, and style (e.g., appliances, furniture).

• Specialty Products: Unique characteristics; customers willing to put in extra effort to purchase (e.g., luxury goods, high-end products).

• Unsought Products: Products customers don't usually think about buying initially (e.g., life insurance, blood donations).

• Marketing Considerations for Consumers:

• Customer Buying Behavior: Involves analysis of the purchase patterns/routines/frequency, planning, comparison, level of effort.

• Price: Convenience - low price, Shopping - higher price ranges, Specialty - very high pricing, Unsought - price varies.

• Distribution: Convenience - widespread availability, Shopping - selective outlets, Specialty - exclusive outlets, Unsought - varies.

• Promotion strategies: Convenience - mass promotion, Shopping - advertising, personal selling, Speciality - carefully targeted promotion, Unsought - aggressive advertising.

• Product Life Cycle: Describes sales and profits over a product's lifetime. Stages are Introduction, Growth, Maturity, and Decline. Each stage has unique characteristics (sales figures, customer segments, marketing strategies) and requires different approaches.

• Product Life Cycle Stages:

• Introduction: Slow sales growth.

• Growth: Rapid sales increase and rising profits.

• Maturity: Sales growth slows as the product is widely accepted.

• Decline: Sales fall and profits drop.

• Marketing Strategies by Product Life Cycle Stage:

• Introduction: Offer basic product and focus on creating awareness.

• Growth: Diversify and provide product extensions/services.

• Maturity: Diversify brand offerings and marketing strategies; increase profitability, phase out products

• Decline: Eliminate unprofitable products; reduce costs and marketing.

This quiz covers essential concepts of the marketing mix, including product planning, promotion variables, and the significance of branding and packaging. It delves into the three levels of product, highlighting the core product's benefits. Test your understanding of these critical marketing principles.