Marketing Mix - 4 Ps of Marketing - PDF

Product: What is a product? Should meet customer needs and wants (hedonic (pleasure or fun) and utilitarian - hybrids are possible) A solution to a problem Provide value Remember; customers buy want satisfaction in the form of product benefits Definition of a product: "a product...

Product: What is a product? Should meet customer needs and wants (hedonic (pleasure or fun) and utilitarian - hybrids are possible) A solution to a problem Provide value Remember; customers buy want satisfaction in the form of product benefits Definition of a product: "a product is anything that can be offered to a market for attention, acquisition use or consumption that might satisfy a need or a want" Good: a physical "tangible" offering Service: Intangible offering that does not involve ownership Industrial product: materials, capital items, services Experience: sporting event, festival Idea: concept, issue or philosophy ("slip, slop, slap and wrap!") Person (politicians, entertainers), place (tourism), organisation (not-for-profit) Total product concept: three core levels of a product 1. Core product (core customer value) - the key benefit they want from a product 2. Actual product - packaging, features, design, quality level, brand name (blend of form and function, attractive yet easy, safe to use, ability to consistently perform function, includes durability, reliability, ease of operation and repair 3. Augmented product - product support, after-sale service, symbolic and experimental, warranty, delivery and credit (cautions - augmented benefits can become expected) Definitions: Product item/individual product Product line ○ A set of closely related product items Product mix  ○ All product lines and items that a company offers for sale ○ Width - refers to the number of product lines ○ Consistency - how closely related the various product lines are ○ Extend the mix by adding a new line Product line: A group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets or fall within given price ranges Depth - concerns number of alternatives within product lines A company can expand its product line by; ○ Product line filling ○ Product line stretching (line extension) Tell me implications of this definition or of this classification Consumer product classifications (way in which the consumer buys them): Convenience products: ○ Willing to spend only minimal time and effort ○ Inexpensive, frequently purchased, widely available ○ Self-service, packaging important ○ groceries Shopping products: ○ Purchased relatively infrequently ○ Wishing to compare a few alternatives on a few criteria ○ Cameras, clothes, furniture, care, appliances Specialty products: ○ Willing to make special effort to obtain them ○ Possess one or more unique characteristics ○ Mac laptop, tesla, original artworks, iphone15 Unsought products: ○ Unaware of need of the product, sudden problem ○ Mechanic, health insurance Marketing considerations for consumer goods: Business to business products: Branding: Brand: ○ A collection of symbols such as name, logo, slogan and design intended to create an image in a customers mind the differentiates a product from a competitors product Brand image: ○ The set of beliefs a customer has in regarding a particular brand ○ Consumers perception of the brand Brand name: ○ A part of a brand that can be spoken, including words, letters and numbers  ○ Ideally should be distinctive, recognisable, relevant, suggestive, extendable and can be protected Brand mark: ○ The part of a brand not made up by words - it often consists of symbols or designs Trademark: ○ A brand name or brand mark that has been legally registered so as to secure exclusive use of the brand The benefits of brands to organisation: Company value ○ Company hopes to build brand equity Consumer preference and loyalty Barrier to competition High profits Base for brand extensions Coordinate channel behaviour The benefits of brands to customers: Can communicate features and benefits Reduces risk in purchasing Simplifies purchase decision Symbolic value Assure quality and reliability (promise to customer) What makes a brand successful? Branding decisions: Individual branding ○ A branding approach in which each product is branded separately Family branding ○ A branding approach that uses the same brand for several of the organisations products Brand sponsorships; Manufacturer brands ○ Brands owned by producers and identified with the product at the point of sale Co-brand ○ Where two established brand names of different companies are used on the same product Licensed brand ○ Where a company licenses names or symbols previously created by other manufacturers, or names of well known celebrities Packaging: Developing new products: Product life cycle: The PLC is the course of a products sales and profits during its lifetime. It involves 5 distinct stages ○ Product development - a period of slow sales, no profits and high investment costs ○ Introduction - a period of slow sales growth but with non-existent products ○ Growth - a period of market acceptance and increasing profits ○ Maturity - a period of slowdown in sales growth ○ Decline - the period when both sales and profits drop Style, fashion, fads: Marketing mix strategies in the PLC: Extending the PLC: Market modifications ○ Current customers consume more (market penetration) ○ Find new domestic customers (market development) ○ Find new foreign customers Product modifications ○ Feature modification ○ Quality modification ○ Style modification Mix modifications