UNDERSTANDING

MARKETING MIX
Marketing mix
It is a Definition: The marketing
dominant
idea mix refers to the set of
associated actions, or tactics, that a
with 4ps to
7ps
company uses to promote its
brand or service in the
market.
Product Planning Development
1. Product(offerings) and
Classifications
2. Products Mixes and Product Lines
3. New Product Development
4. Product Life-Cycle Concept
Product (offering) and Classifications
Product is anything
designed to meet
customer demand or
want, it can be either
tangible or intangible.
Products can be
Product Service
1. If we classify products it
should be:
Product Durability
classifications
(basis) Tangibility
Usage (if its consumer
or industrial)
Each type has its appropriate marketing
mix
Durability and Tangibility
Durable
Non Durable

A tangible product is a
physical object that can be
perceived by touch such as
a building, vehicle, or
gadget.
Durable product
It has a long life cycle, where the
useful life is more than three years.
It does not wear out, break down, or
rot quickly. It is not wholly consumed
once and provides optimal benefits
for at least three years. And after
that, the benefits may decrease, but
the consumers can still use it.
Non-durable goods

Non-durable goods are products that are

purchased for consumption, short-term use, or
items that are used up over time.

Non-durable goods often have a limited lifespan

as they are not meant to last or be used long-
term (over 3 years).
Service

Traditionally viewed as
intangible, inseparable,
variable and perishable
offerings. Examples
include hair cuts, legal
advice
Consumer goods classification
Convenience goods
Shopping goods
Specialty goods
Unsought goods
Convenience goods
Customers can buy
frequent, immediate and
with minimum effort e.g.
soft drinks, soap etc. it
can further be divided in
to staples, impulse and
emergence goods
Shopping goods
Goods that consumers
characteristically
evaluate on such
criteria as suitability,
quality, price, brand
and style.
Specialty goods
Goods that have unique
characteristics or brand
identification for which a
sufficient number of
buyers are willing to
make special purchasing
effort.
Unsought goods
Are those the customer
does not know about or
does not think of
buying, such as life
insurance, coffins.
Industrial goods classification
Materials and parts,
capital items
Supplies and Business
service (IT, Ac services
etc).
Materials and parts
Are goods that become part of
manufacturer’s product/market
offering.
Raw materials and manufactured
materials and parts. Raw materials
falls in to two parts farms products
(wheat, cotton, livestock etc. )and
natural products ( lumber, iron ore
etc)
Manufactured materials
Manufactured materials and parts fall
into two categories,
component materials (iron, cement,
wire etc.) and
components parts ( small motors,
tires, etc.).
Capital items
Long-lived business assets of
a firm; these items usually
include buildings, plants and
equipment.
Supplies and business service

Are short term goods and services that

facilitate developing or managing the
finished product. They are of two kinds;

 Maintenance and repair items (paint,

brooms, brushes etc.),

Operating supplies (lubricant, coal,

writing paper etc.)
2. Products mixes and product
lines
A product line is a group
of related products all
marketed under a single
brand name that is sold
by the same company.
The product mix is the
total range of products
offered by a company.
Products mixes and product lines
 Products mixes and product lines
The width of a market of a product
mix refers to how many different
product lines the company carries.
The length of a product mix referrers
to a total number of item in the mix.
3. New product development
New product development (NPD) is the process of
bringing a new product to the marketplace.

Your business may need to engage in this process

due to changes in consumer preferences,
increasing competition and advances in
technology or to capitalize on a new opportunity.

Can be:
By acquire franchising, or company
Own innovative development
NPD
Acquisition The acquisition route can
take three forms. The
company can buy other
companies, it can acquire
patents from other
companies, or it can buy
licenses or franchises from
another company.
Own innovative development

NPD
 This is where new product
NPD opportunities are identified or new
product ideas are generated based
Idea on unmet customer needs
generation

While customers are the most

obvious sources of unmet needs,
firms cannot afford to ignore their
key suppliers and their own
employees as valuable sources of
opportunities and ideas.
NPD
Coming up Experimental Interviews
with a
product
idea
Underlying meanings and
values

Empathic Design and User

Observation
NPD (Idea screening)
Look at the following criteria:
 Strategic fit(matching company
resources with opportunities),

 Technical difficulties, and

 Market opportunities.
NPD Drop unfeasible ideas as soon as
possible
Purpose
of idea
Does the product meet a need?
screening

 Would it offer superior in-use

value? Does the company have the
necessary know-how and capital?

Will the product deliver the

expected sales volume?
Concept development and testing

A large food processing company

has the idea of producing a
powder to add to a milk to
increase its nutritional value and
test. This is a product idea, but
customer do not buy such ideas,
they buy product concept.
Concept development and testing
A product idea can be turned into
several concepts.
The first question is: who will use
this product? (target) The product can
be targeted to; infants, children,
teenagers, young or older
Concept development and testing
Second, What primary benefits should
this product provide? Test, nutrition,
refreshment, energy.

When will people consume this drink?

Breakfast? during exercise/or when
feels tired? After dinner?.
Concept development and testing
By answering Concept 1: an instant breakfast drink
the questions for adults who want a quick,
above, a nutritious breakfast.
company can
form several Concept 2: a tasty snack for people
concepts: who exercise or every time they feel
tired

Concept 3: a health supplement for

the older adult to drink in the late
evening before they go to bed.
Concept development and testing
Concept Concept testing involves
testing
presenting the product
idea concept, symbolically
or physically, to target
consumers and get their
reaction.
NPD
Marketing Following the successful
strategy
development
concept test, the firm will
develop a preliminary
three-part strategy plan
for introducing a new
product offering to the
market.
Marketing strategy development
1ST Part
The first part describes
the target’s market
size, structure and
behaviour; the planning
positioning and the
sales, market share and
profit goals sought in the
first few years.
Marketing strategy
development
Example
The target market for instant
breakfast drinks is families with
children who are receptive to a
new, convenient, nutritious, form
of breakfast.
The brand will be positioned at a
higher-price, higher-quality end of
instant breakfast drink category.
Marketing strategy development
Example
The company may aim to
sell 10 per cent of the
market with a profit of
2billion in the first year of
production with a margin
of 4% per product.
Marketing strategy
development
2nd Part The second part outline the
planned price, distribution
strategy and marketing
budget for the first year.
Marketing strategy development
The product will be offered in chocolate,
vanilla and strawberry in individual packets of
six to a box at a retail price of 2,000/- a box.

There will be 40 boxes per case and the case

price to distributors will be 64,000/-.

For the first two months, the dealer will be

offered one case free for every four cases
bought. Free samples will be distributed door
to door.
Marketing strategy
development
Promotion The promotion budget will be 200
million, an advertising budget will
be 400mil two-third of this will go
into television and one-third into
newspapers. 200 mil will be spent
on marketing research.

The total promotion budget will be

boosted each year by about 20%.
Marketing strategy
development
Price Price will be set
setting. gradually(higher/lower) to
expand the market and meet
competition.
Marketing strategy
development
The third part of the
marketing strategy plan
describes the long-run
sales and profit goals and
marketing mix strategy
over time.
Marketing strategy
development
Eg. The company intend to win a 25%
marketing share and realize the after-
tax return on investment of 12%. To
achieve this return, product quality
will start by being of higher quality
and be improved over time through
technical research.
NPD
Business After management develop
analysis
the product concept and
marketing strategy, it can
evaluate the business
attractiveness of the
proposal.
Business analysis
Management needs to prepare:
Sales,
Cost and Projections
Profit

To determine whether they satisfy the

company objectives. If they do the
company can move to the development
stage.
Product and Market development
At this stage, the company decided to
introduce a new product in the market.

The production department will make

plans to produce the product.

The marketing department will make the

plan to distribute the product.
Product and Market development
The finance department will
provide the finance for
introducing a new product.
The advertising department will
plan the advertisement for the
new product.
However, all this is done on a
small scale for test marketing.
However, if the product fails in
the test market, then the
company finds out the reasons for
its failure.

It makes necessary changes in the

new product and introduce it
again in a small market.

If the new product fails again the

company will reject it.
Physical evidence
How do we reassure our customers or your
customers can find you? e.g. impressive buildings,
well-trained staff, great website.
People
Who are our people and what are their skills gaps.
Processes
Is there an internal process barrier in the way to
delivering the best customer value.

More sales staff are now involved.