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
