Lecture 7 : The Marketing Mix & Product Flashcards
Marketing Mix
Product - the goods-and-services combination the company offers to the target market.
Price - the amount of money customers have to pay to obtain the product.
Place - includes company activities that make the product available to target consumers.
Promotion - activities that communicate the merits of the product and persuade target customers to buy it
Products can be seen to have 3 levels :
Core benefit
Actual
Augmented
3 Levels in shipping services
product in its own right = core benefit + actual + augmented product
e.g. passenger cruise berth on a cruise liner comprises
part of the an actual product
e.g. part of a total delivery package as in door-to-door container service
augmentation (or the augmented product) of another larger product
e.g. part of package of service in a CIF transaction
Consumer Product Classifications
Convenience
Shopping
Speciality
Unsought
Covenience Product
Buy frequently & immediately
Low priced
Mass advertising
Many purchase locations
Fast Food, Candy, Newspapers
Shopping Products
> Buy less frequently
Higher price
Fewer purchase locations
Comparison shop
Clothing, cars, appliances
Specialty Products
> Special purchase efforts
High price
Unique characteristics
Brand identification
Few purchase locations
Lamborghini, Rolex
Unsought Products
> New innovations
Products consumers don’t want to think about
Require much advertising & personal selling
Life insurance, blood donation
Industrial Products Classification
purchased for further processing or for use in conducting a
business
Materials and Parts
Capital Items
Supplies and Services
Other Marketing Entities
Change the perception of target consumers towards the following
1) Organisations - profit (businesses) and non-profit (schools and religious institutions).
2) Person - political and sports figures, entertainers, doctors, lawyers and business people.
3) Place - business sites and tourism.
4) Social ideas - reduce smoking, clean air, conservation
Individual Product Decisions
Product Attributes
Branding
Packaging
Labeling
Product Support Services
Product Attributes
Quality
Features
Style and Design
Branding
identifies the goods/services of one
seller and differentiates them
Branding provides benefits and advantages
- Sellers ( by providing brand equity)
* Promotes brand loyalty
* Provides legal protection against trade mark and copyright infringements
* Helps in the segmenting the market and positioning of the product
* Promotes the product and the company (as in a storyline) - Buyers
* Helps buyer to identify products that benefit them
* Indicates product quality, value and consistency
* Captures consumers’ attention
* Increases shopper’s efficiency - Society
* Relates to product quality
* Promotes innovation
* Increases shoppers’ efficiency
Criticism of branding are :
* Devise to raise prices
* Unnecessary differentiation
* Increases status consciousness
Packaging
design and production of the container or wrapper
Labeling
label or tags for carrying the product’s brand name
Product Support Services
after sales services and benefits supporting the product and
the mechanism for obtaining customer feedback
Shipping Services
not a pure service as voyage include some tangibles or minor service
- Stevedoring
- Cargo care
- Transhipment
- Reshipment
- Meals (cruise liner)
- Gambling
- Entertainment
- Adventure
Modal Competition
Performance Characteristics
Speed
Completeness
Dependability
Capability
Frequency
Cost
Product
