Part 5 Elements of Marketing Mix Resource Person MATHISHA - - PowerPoint PPT Presentation

Part – 5 Elements of Marketing Mix

MATHISHA HEWAVITHARANA MBA (Col),BBA Sp.Mktng (Col), PPG DIP. In Mktng (UK), MCIM (UK), Chartered Marketer (UK), Practicing Marketer (SL), ACMA, CGMA CIMA (UK), DBF (IBSL), AIB (IBSL), MSLIM(SL), Head of Branches - Siyapatha Finance PLC

Resource Person

Chapter Contents

• Introduction to Marketing Mix
• Product
• Price
• Place
• Promotion
• People
• Process
• Physical Evidence
• Integration of the Marketing Mix

Marketing Mix

• “ The Set of Controllable Variables and their levels

that the firm uses to influence the Target Market ”

• Kotler & Keller
• “ Collection of Tools Used By the Marketer In

Achieving Predetermined Marketing Objectives / Strategies ”

Elements of Marketing Mix

 Product  Price  Place  Promotion  People  Process  Physical Evidence

Extended Elements For Goods Marketing For Services Marketing

What is a Product

A product can be defined as ……

Product

• “ Core Benefits / Attributes Sought by the Customer ” Can

be Defined As a Product Product

Tangible (Goods) Intangible (Services) There are Some Characteristics Which Differentiates Products From Services

Characteristics of Goods Vs Services

Goods Services Tangibility Intangibility Separability Inseparability Standard Variable Can be Measured Can not be Measured Perish ability is less Perish ability is high Ownership No Ownership

Types of Products

• Consumer Products
• Organizational Products

Product

Product Line / Mix of the Company

A group of products which are closely related and are sold to a similar market segment. Collection of all product lines in the business.

Product Line Product Mix

Levels of Product

Classification of Products

Nondurable Goods Durable Goods Services Durabil ilit ity & Tangib ibil ilit ity

Classification of Products

Convenience Goods Shopping Goods Specialty Goods Co Consumer Goods Unsought Goods

Classification of Products

Material & Parts Capital Items Supplies & Business Services In Industria ial l Goods

Product

• Research & Development
• Introduction
• Growth
• Maturity
• Decline

This is the graphical presentation of different stages a particular product will move through during it’s economically valid life time. Product Life Cycle (PLC)

Product

Product Life Cycle (PLC)

Time Performance 2 3 4 5 1 Sales Profit

How to Differentiate Product

• Form
• Features
• Performance / Quality
• Durability
• Reliability
• Repairability
• Style
• Customization

Categories of Service Mix

• Pure Tangible
• Tangible with Minor Service Elements
• Hybrid
• Tangible with Major Service Elements
• Pure Service

New Product Development (NPD)

• Innovative Products
• Replacement Products
• Imitative Products

New Product Development is the systematic process of introducing new product concepts to the market under following three categories;

New Product Development (NPD)

Adoption of Innovation / Diffusion of Innovation

Product

Need for Packaging

• 1. Self Service Environments
• 2. Consumer Influence (Convenience / Appearance / Prestige)
• 3. Company Brand Image & Differentiation
• 4. Technology & Innovation
• 5. Legal Requirements

Packaging

Price

• Price is the exchange value / economic value /

transaction value of a particular product or service.

• The amount a customer pays for the product.
• The quantity of one thing that is exchanged or

demanded in barter or sale for another.

• The amount of money given or set as consideration for

the sale of a specified thing.

Price

Organizations are Pricing their offer with the purpose of achieving following primary objectives;

• Profit-Maximizing Objective
• Market Penetration Objective

Determining Prices

Pricing Strategies

• Market Penetration Pricing
• Market Skimming Pricing
• Loss Leader Pricing

Pricing Strategies

• Competitor Based Pricing
• Cost Orientated Pricing
• Psychological Pricing

Distribution

A marketing channel / Distribution system is the particular set of interdependent

• rganizations involved in the process of making

a product or service available for use or consumption.

Distribution

Intermediaries tend to play a very significant role in the process of distribution but will result in pushing up the price of the product at the point of reaching the end consumer.

Distribution

Intermediaries tend to play a very significant role in the process of distribution but will result in pushing up the price of the product at the point

• f reaching the end

consumer.

Distribution

Number of Intermediaries

• Exclusive
• Selective
• Intensive

Distribution

E-Commerce in Managing Channel Strategy

Virtual Marketing Strategy

Distribution

M-Commerce in Managing Channel Strategy

Mobile Based Marketing Strategy

Promotion / Marketing Communication

Techniques of communicating information about the organization / products / services to stakeholders through a Communication Mix.

• Advertising
• Personal Selling
• Direct Marketing
• Sales Promotions
• Public Relations
• Sponsorships

Promotion / Marketing Communication

Communication Mix

• Advertising
• Personal Selling

Promotion / Marketing Communication

Communication Mix

• Direct Marketing
• Sales Promotions

Promotion / Marketing Communication

Communication Mix

• Public Relations
• Sponsorships

Promotion / Marketing Communication

How to Assess Return on Investment of Marketing Expenditure

• Corporate / Product / Brand awareness
• Sales Turnover
• Number of Inquiries Generated
• Level of Top of the mind recall rate
• Competitor Reactions
• Brand recognition and value

Promotion / Marketing Communication

Push, Pull & Profile Communication

In push communication strategy organization motivates the intermediary parties to sell more number

• f units to the end

user. In pull strategy organization persuades the end user / customer to pull the products from intermediaries by using promotional tools such as advertising and direct marketing. In Profiling, The Corporate Image, Reputation & Trust will be Emphasized.

Promotion / Marketing Communication

Integrated Communication Strategy

Entire communication strategy of the

• rganization must focus
• n a single coherent

corporate strategy / direction by maintaining the consistency of the message.

People

People factor refers to …….

Process

Process refers to …….

Physical Evidence

Physical Evidence refers to …….

Marketing Mix

Integrated Marketing

All the elements of the marketing mix must integrate with each other element and must focus on a single coherent corporate strategy / Brand Experience direction by maintaining the consistency of the approach without confusing the stakeholders of the business.

Marketing Mix

• Introduction to Marketing Mix
• Product
• Price
• Place
• Promotion
• People
• Process
• Physical Evidence
• Integration of the Marketing Mix

Thank You ! 0773 – 29 20 29 mathihewa@yahoo.com