Lesson 1 Market Mix PDF

Market ing Mix  -The Produc t-  The Product  The success of an organization lies on the skills of marketers in selecting the right marketing mix.  The product should answer the needs, wants and expectation of the customers.  It should be priced reasonably and be...

Market ing Mix  -The Produc t-  The Product  The success of an organization lies on the skills of marketers in selecting the right marketing mix.  The product should answer the needs, wants and expectation of the customers.  It should be priced reasonably and be distributed to the right place.  All of these should be properly communicated to targeted customers  According to Philip Kotler, a product is anything tangible or intangible that can be offered to a market for attention, acquisition use or consumption that might satisfy a need or want. According to Kotler and Armstrong, service refers to activities, benefits or gratification offered for sale that is essentially intangible and does not results in the ownership of anything. ✗Generally, a PRODUCT is a Product and Services  Differences between products PRODUCTS and services SERVICES Concrete Activity to process Tangible Intangible Homogeneous Heterogeneous Product and distribution of goods is In service, the production, distribution and separated from consumption consumption is simultaneous The core value of products is produces in Service is produced in the buyer-seller the factory interaction Can be stored Impossible to store Transfer of ownership of goods from the Can have access to the service but manufacturer to the dealer to customer cannot own it  EXPERIENCES  EXPERIENCES of customers with brands should be considered as important value in delivering services.  Many customers patronized products and services because of the excellent experience with the brand’s services.  For instance, a customer regularly shops at a department store that he of she thinks to provide the most pleasurable shopping experience, considering that there are many department stores existing in the market that offers the same array of brands.  CLASSIFICATION OF PRODUCTS and SERVICES: 1. Consumer Products – any products that are purchased by customers for their consumption. 2. Industrial Products – any products that are purchased by individuals or institutions for the purpose of implementing the business.  TYPES OF CONSUMER PRODUCTS  Convenience Products -Products or services that consumers buy regularly or usually. Examples: Shampoo, Soap, Tooth paste,etc.  Shopping products-Products or services that consumers buy infrequently. Examples: laptop, cellphones, dress, accessories  TYPES OF CONSUMER PRODUCTS ✗ Specialty products Products or services that have unique attributes and brand recognition for which consumers are ready to exert special effort. Examples: a limited car edition that only available in a certain country. Thus, for the buyer to purchase the special type of car, the buyers have to go the particular country where the car is being sold ✗ Unsought products Products or services that consumers are either not aware of the brand existence or have awareness of the brand, however not usually consider buying it. Examples: funeral services and insurances policies.  TYPES OF INDUSTRIAL PRODUCTS 1. Materials and parts – raw materials or manufactured materials and parts. Example: cotton, paper, oil, iron, tires. 2. Capital items – products that help the companies in operation and production, installation and accessory equipment. Example: generators, manufacturing plant, lift trucks, computer 3. Supplies and services – products that includes operating supplies, repair and maintenance. Example: coal, paint, computer repair ✗Marketers should always consider the attributes and benefits that a consumer can get or experience from a product.  Developing Products and Services 1. Design and Style Design - determine the usefulness and add value to the product. Style – physical appearance may catch or drop the attention of the buyer. 2. Quality – major considerations of marketers in positioning a product.  Quality has a direct relationship with product performance.  It is considered determinants of customer value and  Developing Products and Services 3. Features – Established product distinction.  Help company attain competitive advancement.  Companies introduced valued new features to create market superiority. PRODUCTS AND SERVICES STRATEGIES  1. BRANDING  It refers to the name, term, signs, symbols, design or combinations of these, which serve as identification of the products, services or institution that separate them their competitors.  2. PACKAGING ✗ It pertains to the process of designing and producing container or wrapper for products. - Its primary purpose is to secure the condition of the product. - Attract the attention of the customers - Help describe the product - Good packaging promotes strong recognition of the product  3. LABELING - Simple tags to intricate graphs, creates identity to the brand. - Tells about the products, content, dimension, usage. - Helps brands achieved positioning and help add personality to the product.  4. PRODUCT SUPPORT SERVICE  This is essential in building healthy relationship with customers.  Marketer does not stop by making sales, it is important to ensure ultimate customer’s experience by maintaining customer’ happiness even after sales.  This may include comment drop boxes for customers feedback, active email for complaints, customer service counter and many more. A1Q2-Quiz 1 PERFORMANCE TASK ✗ Provide the following: ✗ Company Name ✗ Product Name ✗ Product overview ✗ Product Logo ✗ Make your own packaging ✗ Make your own labeling