Marketing Mix PDF

THE MARKETING MIX 4. Product Extension Approach - new product carries the brand name to all its products under the different Product - physical goods, servic...

THE MARKETING MIX 4. Product Extension Approach - new product carries the brand name to all its products under the different Product - physical goods, services, or ideas created by an categories. entrepreneur to serve the customers' needs and address their existing problems. Pricing - process whereby a business sets the price at which it will sell its products and services and may be part of the business's Types of Tangible Products marketing plan. 1. Consumer Products - Bought for personal use. 2. Industrial Products - Bought by other businesses, not Five factors to consider when pricing your products and services: consumers. 1. Cost 2. Customers Classification of Consumer Products 3. Competitors 1. Convenience Products (Frequently) - Low price. 4. Positioning -Many purchase locations. 5. Profit 2. Shopping Products (Less frequently) - Gather product information. Lesser purchase location. Pricing Strategies 3. Special Products - Unique characteristics. Few locations for 1. New Product Pricing purchase Market-skimming pricing - A strategy with high initial 4. New Innovations - Require more advertising and personal prices to “skim” revenue layers from the market selling. Market-penetration pricing - Sets a low initial price to penetrate the market quickly Four Service Characteristics 1. Intangibility - Services cannot be (5 senses) before 2. Product Mix Strategies purchase. Product line pricing - takes into account the cost 2. Variability - Quality of services depends on who provides differences between products in the line, customer them and when, where, and how. evaluation of their features, and competitors’ prices. 3. Inseparability - Services cannot be separated from their Optional-product pricing - takes into account optional providers products along with the main product. 4. Perishability - Services cannot be stored for later sale or Captive-product pricing - involves products that must be use. used along with the main product. Product bundle pricing - combines several products at a Types of Product Value reduced price. 1. Functional Value - Concerned with the extent to which a product is useful and performs a desired function. 3. Price Adjustment Strategies 2. Experimental Value - Concerned with the extent to which a Discount and Allowance Pricing - reduce prices to reward product creates appropriate feelings and emotions for the customer responses such as paying early or promoting the customer. product. 3. Symbolic Value - Concerned with the extent to which Segmented Pricing - when a company sells a product at two customers associate psychological meaning to a product. or more prices even though the difference is not based on cost. 5 Product Levels - PHILIP KOTLER Psychological Pricing - utilizes specific techniques to form a psychological or subconscious impact on consumers. 1. Core Product - Fulfills basic benefits customers want. Promotional Pricing - is when prices are temporarily priced 2. Generic Product - Provides actual products with tangible below the list price or cost to increase demand. qualities. 3. Expected Product - Offers generic products plus other 4. Other Pricing Strategy attributes customers want. Competitive Pricing - refers to the benchmarking prices 4. Augmented Product - Gives more than a physical product with the competitors. and sets it apart from competitors. Cost-Based Pricing - the basis markup is the cost of sales. 5. Potential Product - Provides additional tangible and Cost-Plus Pricing - the markup is based on a certain intangible features. percentage of the cost. Product Branding - creating a name, symbol, or design that identifies and differentiates a product from other products. Two Classification of Costs Variable Costs - these are costs directly proportional to the Branding Strategies number of products manufactured 1. Umbrella Brand Approach - all products carry the same Fixed Costs - these are costs not directly proportional to the brand name. manufacturing of a product 2. House Brand Approach - every product of the same business has a separate brand name that differentiates it Promotion - refers to any type of marketing communication used to from the rest of the company’s products. inform or persuade target audiences. It helps marketers to create a 3. Line Extension Approach - existing products have been distinctive place in customers' minds. modified resulting in a new product without eliminating the original product. 1. Advertising - Is a marketing practices used to bring products to public notice to persuade the public  Television, radio, and cinema (product 3. Customer Journey - involves understanding and visualizing placement) the steps a customer takes from awareness to purchase and Print (magazines, newspapers, brochures, leaflets) beyond. Packaging Ads, Billboard 4. Feedback and Improvement - Gathering customer feedback Transit Ads, Point-of-Purchase on their experience and making continuous improvements Social networking sites to the process based on this feedback. 2. Sales Promotion - These are activities that are intended to Key Aspects of “People” in the Marketing Mix boost the sales of a product,usually short-term. 1. Employees Two Types: 2. Customer Service Trade Sales Promotion 3. Training and Development Consumer Sales Promotion 4. Company Culture 5. Customer Interaction 3. Personal Selling - Is also known as face-to-face selling which uses in-person interaction Key Aspects of Physical Evidence in the Marketing Mix 4. Direct Marketing - performs a one-on-one approach to 1. Service Environment - physical space where a service is building consumer relationships, and sells the product delivered. online. 2. Tangible Items- any physical items 3. Signage - signs that provide information about the 5. Publicity - Is a communication tool produced by public business, directions, or promotions. relations professionals intended to create a favorable public 4. Online Presence - digital representation image for a client. 5. Customer Interaction Tools- any materials or tools used during customer interactions that reinforce the service PLACE - The process of moving products from the producer to the experience. intended user Account titles are the names used to describe accounts in an accounting system. They are used to categorize and record financial transactions. Each account title is uniquely identified by a code or MARKETING CHANNELS OF DISTRIBUTION number that represents the specific type of transaction. Some - A marketing channel consists of the people, organizations, and activities necessary to transfer the ownership of goods common examples of account titles include: from the point of production to the point of consumption. It is the way products get to the end-user, the consumer; and Assets: is also known as a distribution channel. anything that the business owns and has value. (Cash, Accounts Receivable, Inventory, Prepaid Expenses, Property, PROCESS - flow of activities that take place when there is an Plant, and Equipment) interaction between the customers and the businesses. PEOPLE - workers who are directly involved in the production, Liabilities: marketing, and sale of a product or service. debts the business owes. (Accounts Payable, Accrued Expenses, Short-term Loans, Long-term Debt, Deferred Tax Liability) Equity: amount of money invested in the company by shareholders. The difference between assets and liabilities, or the true value of your business (Common Stock, Retained Earnings, Additional Paid-in Capital, Treasury Stock) Revenues: show all income received by the company from its customers or other sources. (Sales Revenue, Service Revenue, PHYSICAL EVIDENCE Interest Income, Rental Income) Expenses: Cost of Goods Sold, Salaries Expense, Rent EXTENSION OF MARKETING MIX Expense, Depreciation Expense KEY ASPECTS OF THE PROCESS IN MARKETING MIX Cash flow statement accounts track money coming in and out of the company for operating activities, investing activities and 1. Service Delivery - methods used to provide services to customers. financing activities. 2. Efficiency and Effectiveness - process designed to operate efficiently (minimizing waste and time) and effectively The components are connected by the balance sheet formula (or (meeting customer needs and expectations). accounting equation): Assets = liabilities + equity A=L&E A=L A=E Debit vs. credit in accounting: Guide with examples for 2024