MARKETING
MIX
Dr. Chitranshi Verma
Asst. Prof. , Dept. of Mgt.
St. Aloysius (Autonomous) College
Jabalpur
Marketing Mix
• The marketing mix refers to the set of actions, or tactics, that a
company uses to promote its brand or product in the market.
• The marketing mix has been defined as the "set of marketing
tools that the firm uses to pursue its marketing objectives in the
target market".
• The firm’s task is to find the best solution for its marketing decision variables ,that is
known as marketing mix.
• Marketing mix covers two things:
a. list of important elements that make up this marketing programme.
b. list of forces having bearing on the marketing operations .
Elements of Marketing mix
• Marketing mix is the blend of all marketing efforts revolving around the 4 ingredients :
• PRODUCT
• PRICE
• PLACE
• PROMOTION
PRODUCT MIX
A product provides psychological and physical satisfaction to the buyer.
Product mix or product assortment is the complete range of products that is offered for
sale by the company.
It refers to the number of product lines that an organization offers to its customers.
PRODUCT LINE
• Product line is a group of related products manufactured or marketed by a
single company.
• Such products function in similar manner, sold to the same customer
group, sold through the same type of outlets, and fall within a same price
range .
• For example, the product lines of ITC are FMCG, Hotels, Paper Board and
Packaging, Agribusiness.
PRODUCT MIX
• The product mix has four dimensions:
• Breadth
• Length
• Depth
• Consistency
PRODUCT MIX
• The Breadth of a product mix shows the different kinds of product lines that
firm carries.
• This dimension of the product mix represents the extent to which the activities
of the firm are diversified.
• In the example below, there are 4 product lines that show the width of the ITC.
PRODUCT MIX
The Length of a Product mix refers to the number of items in
the product mix.
In the example below the length is 11. As in the foods line, the
number of items is 3, in cigarettes is 3 and so on. On adding all
the items, we get the length of a product.
PRODUCT MIX
The Depth of a product mix refers to the variants of each product in
the product line. For example, in the example below, curry, pastes,
biryanis, conserves, etc. shows the depth of the foods product line.
PRODUCT MIX
• The Consistency of a product mix shows the extent to which the
product lines are closely related to each other in terms of their end-use,
distribution requirements, production requirements, price ranges,
advertising media, etc.
• In the given example, it is clear that ITC’s product lines are less
consistent as these perform different functions for the buyers.
PRODUCT MIX
PRODUCT MIX
These terms in a product assortment help the firm to take a
decision regarding the addition or removal of the product items
in the product lines.
Generally, the firms introduce a new product item into the
existing product line as it is easy to gain the customer support
for the new product due to the customer’s familiarity with the
existing product line.
Product Mix Variables
Product component of the marketing mix involves planning, developing and
producing the right type of products and services. This decision involves around:
• Quality of product
• Size and weight of product
• Volume of production
• Brand name
• Packaging
• Product line and range
• Warranties and after sales services etc.
PRICE MIX
PRICE MIX
• Price is the value of a product expressed in terms of money.
• It is the price of a product that ensures a decent return in investment;
guarantees stable economic structure, creates, maintains and extends market
share.
• Price is equal to consumer expectations and expectations imply product,
installation, credit, after sale services and the like.
Price Mix Variables
Pricing Policies & Strategies
• Guidelines and the frames within which management administers
prices so as to match them to the market needs.
• These policies can be identified as : price variations, geographical
price policies involving price differentials, price policies involving
leadership imitation.
Price Mix Variables
• Terms of Credit
Deferred payment or instalment ; credits to wholesalers , retailers .
Policies regarding credit depends o nature of product, its marketability, types of consumers,
competitors terms and conditions, credit facilities by banks etc.
• Margin
Refers to the difference between the final price paid by the consumer and the total cost incurred .
This includes margin of retailer, wholesaler, producer . Much depends upon the nature of products.
Articles like consumer durables need lower margins due to mass consumption. Industrial products
requiring high maintenance and after sales have high margins to the intermediaries.
Price Mix Variables
• Resale Price Maintenance
Resale price maintenance or, occasionally, retail price maintenance is the practice whereby
a manufacturer and its distributors agree that the distributors will sell the manufacturer's
product at certain prices, at or above a price floor or at or below a price ceiling.
It is an agreement between a manufacturer and a wholesaler or retailer not to sell a
product below a specified price.
• Terms of Delivery
Delivery of goods to the dealers, middlemen and customers as regards to quantity, time, place of
delivery also affects pricing policy.
PLACE MIX
PLACE MIX
• In the marketing mix, the process of moving products from the
producer to the intended user is called place.
• Place or Physical distribution include activities those make a
firm's products available to the target customers.
• In other words, it is how your product is bought and where it is
bought.
• This movement could be through a combination of intermediaries such
as distributors, wholesalers and retailers.
Place Mix Variables
• Place is the element of the marketing mix that ensures that the
product is distributed and made conveniently available for the
consumer - at the right location at the right time.
• Transportation
• Warehousing
• Inventory Levels
• Channels of Distribution
• Intermediaries
PROMOTION MIX
PROMOTION MIX
• The Promotion Mix is the integration of Advertising, Personal
Selling, Sales Promotion, Public Relations and
Direct Marketing.
• The marketers need to have a balanced blend of
these promotional tools.
Factors determining Marketing Mix
• Nature of Product
Consumer good requires different marketing mix as compared to
industrial goods.
• Degree of Competition
Extent of competition affects the pricing and promotion strategies .
Factors determining Marketing Mix
• Availability of funds
Quality and innovative features, advertising and promotion depends on
availability of funds.
• Stage of product life cycle
Introduction stage requires heavy promotion to attract consumers as
compared to Maturity and decline stage.
Factors determining Marketing Mix
• Channels of Distribution
Direct selling or personal selling requires large investment. With other
distribution channels , the firm can reduce expenses on advertising .
Importance of Marketing Mix
Marketing Mix
PEOPLE
• People are a defining factor in a service delivery
process, since a service is inseparable from the person
providing it.
• A restaurant is known as much for its food as for the
service provided by its staff. The same is true of banks
and department stores.
• Consequently, customer service training for staff has
become a top priority for many organizations today.
PROCESS
• The process of service delivery is crucial since it ensures that the same
standard of service is repeatedly delivered to the customers.
• Most companies have a service blue print which provides the details of
the service delivery process, often going down to even defining the
service script and the greeting phrases to be used by the service staff.
PHYSICAL EVIDENCE
• Since services are intangible in nature, most service providers strive to
incorporate certain tangible elements into their offering to enhance
customer experience.
• Many hair salons have well designed waiting areas, often with
magazines and plush sofas for patrons to read and relax while they
await their turn.
• Similarly, restaurants invest heavily in their interior design and
decorations to offer a tangible and unique experience to their guests.