Marketing Mix

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Marketing Mix
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The product

• Value of a product Value of a product means the
  relationship between the consumer's expectations
  of product quality, to the actual amount paid for
  it.
• Value Benefits / Price
• Or alternatively
• Value Quality received / Expectations.
• There are parallels between cultural
  expectations and consumer expectations the value
  in the marketplace varies from place to place as
  well as from market to market.

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The product

• For a firm to deliver value to its customers,
  they must consider what is known as the "total
  market offering." This includes the reputation of
  the organization, staff representation, product
  benefits, and technological characteristics as
  compared to competitors' market offerings and
  prices.
• The key to deliver high perceived value -- making
  consumers believe that what you are offering is
  beyond expectation -- helping them to solve a
  problem, offering a solution, giving results, and
  making them happy.

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Components of the market offering through product

• planning its market offering, the marketer needs
  to address five product levels
• The fundamental level is the core benefit the
  service or benefit the customer is really buying.
  
• At the second level, the marketer must turn the
  core benefit into a basic product.
• At the third level, the marketer prepares an
  expected product, a set of attributes and
  conditions buyers normally expect when they
  purchase this product.
• At the fourth level, the marketer prepares an
  augmented product that exceeds customer
  expectations.
• At the fifth level companies search for new ways
  to satisfy customers and distinguish their
  offering.

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• Requirements of a good advertisement
• The AIDA principle. Attention, Interest, Desire
  and Action
• Attract attention (awareness).
• Stimulate interest.
• Create a desire.
• Bring about action (to buy the product).

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• Planning for advertising
• Any advertising plan addresses the following
  stages
• Who is the potential target audience?
• What does the company wish to communicate to
  this target audience?
• Why is this message so important to them?
• What is the best medium for this message to
  take?
• What would be the most appropriate timing?
• What resources will the advertising campaign
  need?
• How does the company control its advertising and
  monitor success?

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• Personal sales
• Oral presentation given by a salesperson that
  approaches individuals or a group of potential
  customers
• Live, interactive relationship.
• Personal interest .
• Attention and response .
• Interesting presentation.
• Clear and thorough.

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• Sales promotions
• are Short-term incentives to encourage buying of
  products and to get the following advantages
• Instant appeal.
• Anxiety to sell.
• People are given an incentive to buy, but this
  does not build customer loyalty or encourage
  future repeat buys.
• Marketing Public Relations (MPR)
• Stimulation of demand through press release
  giving a favorable report to a product
• Higher degree of credibility
• Effectively news
• Boosts enterprise's image.

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• Pricing
• is the process of determining what a company
  will receive in exchange for its products.
  Pricing factors are manufacturing cost, market
  place, competition, market condition, Quality of
  product.
• What a price should do?
• A well chosen price should do three things
• Achieve the financial goals of the company (e.g.,
  profitability).
• Fit the realities of the marketplace (Will
  customers buy at that price?).
• Support a product's positioning.

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• An efficient price is a price that is very close
  to the maximum that customers are prepared to
  pay.
• Promotional pricing refers to an instance where
  pricing is the key element of the marketing mix.
• Reference prices Research has shown that
  although consumers may have fairly good knowledge
  of the range of prices involved. Reference prices
  when customers examining products, consumers
  often employ reference prices, comparing an
  observed price to an internal reference price
  they remember or to an external frame of
  reference.
• The price/quality relationship refers to the
  perception by most consumers that a relatively
  high price is a sign of good quality. The belief
  in this relationship is most important with
  complex products that are hard to test, and
  experiential products that cannot be tested until
  used (such as most services).

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• Distribution (or place) is one of the four
  elements of marketing mix.
• An organization or set of organizations
  (go-betweens) involved in the process of making a
  product or service available for use or
  consumption by a consumer or business user , we
  can name it as the distribution channel, or
  distribution chain.
• The distribution channel
• Frequently there may be a chain of
  intermediaries each passing the product down the
  chain to the next organization, before it finally
  reaches the consumer or end-user

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• A number of alternate 'channels' of distribution
  may be available
• Selling direct, such as with an outbound
  salesforce or via mail order, Internet and
  telephone sales.
• Agent, who typically sells direct on behalf of
  the producer.
• Distributor (also called wholesaler), who sells
  to retailers.
• Retailer (also called dealer or reseller), who
  sells to end customers.
• Advertisement typically used for consumption
  goods.

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• Channel decisions
• The channel decision is very important. the
  cost of using intermediaries to achieve wider
  distribution is supposedly lower. Many suppliers
  seem to assume that once their product has been
  sold into the channel, into the beginning of the
  distribution chain, their job is finished. but,
  if they have any aspirations to be
  market-oriented, their job should really be
  extended to managing all the processes involved
  in that chain, until the product or service
  arrives with the end-user. This may involve a
  number of decisions on the part of the supplier
• Channel membership.
• Channel motivation.
• Monitoring and managing channels.