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 4Ps make up a typical marketing mix - Price, Product, Promotion and Place. However, nowadays, the marketing mix increasingly includes several other Ps like Packaging, Positioning, People and even Politics as vital mix elements.

1. MARKETING MIX
M A N I S H K U M A R

2. IN THIS UNIT YOU WILL READ ABOUT
•Product : Product Mix, New Product development,
levels of product, types of product, Product life
cycle, Branding and packaging.
•Distribution : Concept, importance, different
types of distribution channels etc.

3. THE MARKETING “MIX”

4. PRODUCT
• A product is a set of tangible and intangible attributes
including packaging, colour, price, quality and brand
plus the service and reputation of the seller. A product
may be a tangible good, service, place, person or idea.
W.J. Stanton
• Everything the purchaser gets in exchange for his money
C.P. Stephenson

5. A PRODUCT IS MORE THAN JUST A
PRODUCT
Product
Color
Product
warranty
Packaging
Brand
Price
Product
quality

6. COMPONENTS OF PRODUCT
Core
Product
Augmented
Product
Symbolic
Product

7. PRODUCT MIX
• A company’s product mix (also called product assortment) is defined as the set of all
product lines and items that a particular seller offer for sale to buyers.
• A company’s product mix can be described as having a certain width, length, depth,
and consistency.
• Avon’s product-mix consists of three major product lines: cosmetics, jewelry, and
household items. Each product line consists of several sublines
• Example: cosmetics break down into lipstick, powder, and so on.
• All together Avon’s product mix includes 1,300 items. A large supermarket handles as
many as 10,000 items, General Electric manufactures as many as 25,000 items.

8. PRODUCT MIX WIDTH AND PRODUCT
LINE LENGTH SHOWN FOR P&G

9. • width - how many different product lines the company carries
• length - the total number of items in its product mix.
• depth - how many variants are offered of each product in the line.
• consistency - how closely relate the various product lines are in end use, production
requirements, distribution channels or some other way.
• The four dimensions of the product mix provide the handles for defining the company’s
product strategy .
• Product-mix planning is largely the responsibility of the company’s strategic planners.
They must asses, with information supplied by the company marketer’s, which product
lines to grow, maintain, harvest and divest.

10. TYPES OF PRODUCT
Based on nature
Based on consumer
intentions
Based on social
benefit

11. BASED ON THE NATURE
• Goods
• Services
• Ideas
• Experiences
• Events
• Persons
• Places
• Properties
• Organisations
• informations

12. BASED ON CONSUMER INTENTIONS
Consumer
Product Industrial or
Business Product

13. CONSUMER PRODUCTS
• Convenience Products: The consumer goods which a customer usually purchases frequently and wants
immediately and with minimum of efforts are called convenience goods.
• Shopping Goods: These goods are bought by the customer only after comparing quality, price
suitability and style.
• Speciality Goods: They are consumable products which can only be purchased from specialist retailers
and which consumer select deliberately.
• Unsought Products: Unsought products are those products about which potential buyers do not know
that they exist or do not want to purchase.
• Regularly Unsought Products: There are existing products that consumers do not want now, although
they may eventually purchase them.
• New Unsought products: Products that are totally new and unfamiliar to consumers are new unsought
products.

14. INDUSTRIAL GOODS
• A product bought for use in the production of other or in an organisational operation
is an industrial product.
• Raw material
• Capital equipment
• Accessory equipment
• Component parts
• Supplies
• Industrial services

15. BASED ON SOCIAL BENEFITS
• Pleasing Products: These give high imeediate satisfaction, but do harm to consumers in
long run
• Deficient Products: These have neither immediate appeal nor long run benefits
• Salutary products: They have long run advantages but have no immediate appeal to
consumers. Hence, firms are not primarily interested in such products.
• Desirable Products: They have a happy combination of high immediate satisfaction and
high long run consumer welfare.

16. FACTORS INFLUENCING CHANGE IN
PRODUCT MIX
• Change in market demand
• Cost of production
• Quantity of production
• Advertising and distribution factors
• Use of residuals
• Change in company desire
• Competitors actions and reactions
• Change in purchasing power

17. PRODUCT MIX STRATEGIES
• Product line expansion/contractions
• Product modification
• Product elimination

18. NEW PRODUCT
DEVELOPMENT

19. NEW PRODUCT DEVELOPMENT
•Product development encompasses the
technical activities of product research,
engineering and design

20. NEW PRODUCT DEVELOPMENT
• A product may be new to company but not new to the customers or the product may be new to customers
but not to the company.
• Booz, Allen and Hamilton identified six categories of new product in terms of their newness to the company
and to the marketplace.
• New to the world: New products that create an entirely new market
• New product lines: New prodyct that allows a company to enter an established market for the first time
• Additions to the existing market: new products that supplement a company’s established product line.
• Improvements or revision to existing product: new products that provide improved performance or greater
perceived value and replace existing products
• Repositioning: existing products that are targeted to new markets or market segment
• Cost Reductions: New products that provide similar performance at lower cost.

21. FACTORS CONTRIBUTING TO NEW
PRODUCT DEVELOPMENT
• Changing customer preferences.
• Technological Changes.
• Government Policy.
• Product life cycle.

22. NEW PRODUCT DEVELOPMENT
PROCESS

23. BENEFITS OF NEW PRODUCT
DEVELOPMENT
• Products introduced on time
• Higher Productivity
• Lower project costs
• Greater revenue from new products

24. CHALLENGES IN NEW PRODUCT
DEVELOPMENT
• Innovative imperative
• New product success
• New product failure
• Weakness in distribution
• Inadequate salesforce
• Insufficient marketing efforts
• Competition
• Poor timings
• Higher costs
• Product defect

25. PRODUCT LIFE
CYCLE

26. PRODUCT LIFE CYCLE
•The product life cycle is an attempt to recognise
distinct stage in the sales history of the product.
Philip Kotler
•The life cycle of a product has many points of
similarity with the human life cycle; the product is
born, grows lustily, attains dynamic maturity then
enters its decliningg year. ARCH Patton

27. PHASES OF PRODUCT LIFE CYCLE
Introduction
Growth
Maturity
Decline

28. PRODUCT LIFE CYCLE STRATEGIES
• Introduction phase: This phase of characters arising out of inefficient production level
by high operational costs.
Rapid Skimming
Strategy
Slow Skimming
Strategy
Rapid
PenetrationStrateg
y
Slow Penetration
Strategy

29. GROWTH PHASE
• Improves product quality
• Add new product features and improved styling
• Enter into new market segment
• Reduce the prices to attract customer
• Increase promotional activities

30. MATURITY
• Improve quality
• Give proper attention to increase the usage among the current customer
• Try to convert non-users into user of the product
• Try to discover new uses of the product

31. DECLINE
• Improve product in functional sense
• Make sure that the marketing and production programme are as efficient as possible
• Streamline product assortment

32. FACTORS AFFECTING PLC
• Rate of technical change
• Rate of man at acceptance
• Ease of competitive entry
• Risk bearing capacity

33. UTILITY OF PRODUCT LIFE CYCLE
• As a forecasting tool.
• As a planning tool.
• As a control tool.
• Development of new products.

34. BRANDING

35. BRANDING
•The term ‘branding’ refers to the entire process
in creating a unique name and image for a
product (good or service) in the consumers’
mind, through advertising campaigns with
consistent theme.

36. CHARACTERISTICS OF SUCCESSFUL
BRANDS
• Superior product quality
• Additional services
• Differentiation from competition
• Pioneers in a way

37. FUNCTION OF BRAND
To Consumers
To Manufacturers

38. TO CONSUMERS
• Identification of source of product.
• Assignment of responsibility to product maker.
• Risk reducer.
• Search cost reducer.
• Promise, bond or deal with maker of product.
• Symbolic devise.
• Signal of quality.

39. TO MANUFACTURERS
• Means of identification to simplify handling or tracing
• Means of legally protecting unique features
• Signal of quality level to satisfied customers
• Means of endowing products with unique associations
• Source of competitive advantage
• Source of financial returns.

40. BRAND LEVELS
Attribute Brands
Emotional Brands
Benefit Brands
Value Brands

41. FACTOR TO BE CONSIDERED IN
BRANDING
• Quality
• Repositioning
• Positioning
• Communications
• First Mover advantage
• Long term perspective internal marketing

42. SIGNIFICANCE OF BRANDING
• Easy to advertise.
• Easy to identify the products.
• Creation of separate market.
• To get more price.
• Easy to expand the product mix.
• Personal contact with consumers.

43. SIGNIFICANCE TO MIDDLEMEN
• Easy to understand the needs and wants of consumers
• Less risk
• No need of advertsiment and sales promotion
• Increase in sales
• Increase in profits
• Increase in goodwill

44. SIGNIFICANCE TO CONSUMER
• Easy to recognise
• Availability of quality products
• Minimum fluctuations in price
• Improved packaging
• Mental satisfaction

45. PACKAGING

46. PACKAGING
• Packing means wrapping of goods before they are transported or stored or delivered
to a consumer.
• Packaging has been defined as an activity which is concerned with protection,
economy, convenience and promotional considerations.
• Packaging may be defined as the general group of activities in product planning which
involves designing and producing the container or wrapper for a product.

47. PURPOSE OF PACKAGING
• Product protection
• Product attractiveness
• Product convenience
• Segmentation
• New product planning
• Self service and supermarket
• Reusable recyclable
• Product constraint
• Product identification
• Effective sales tool
• Retail marketing trends
• Increase marketing

48. FUNCTIONS OF PACKAGING
Utilitarian
function
Profit Function
Communication
function
Purchase and
marketing
function

49. UTILITARIAN FUNCTION
• It helps in easy brand identification
• It enhances product use convenience by keeping it clean and undisturbed
• Package protects products from deterioration, spilling, spoilage and evaporation
during its transit from manufacturer to consumer
• It makes product handling easier and safe on the retail store shelves.

50. PROFIT FUNCTION
• Effective package cuts costs of handling and transportation and protects product from
damage, thereby, saving a company from cuts in profits
• Consumers assigning relatively higher value to package are usually prepared to pay
higher price for this product attribute. As a result, higher contribution to profit flows
from package.

51. COMMUNICATION FUNCTION
Identification
and
differentiation
Communicate
and Product
message
Promote
Products
Attractiveness
of product

52. PURCHASE AND MARKETING
FUNCTION
1. At the other end of the chain packaging is a part of marketing and must be
considered at the start of any marketing plan.
2. It will be seen that the packaging function is involved with many other functions
within the company.
3. Efficient communication are important because of the diverse disciplines represented
in the packaging operation.

53. TYPES OF PACKAGING
Types of
packaging
Consumer
Package
Family
Package
Re-Use
Package
Multiple
Package
Transit
Package

54. FACTORS INFLUENCING PACKAGING
DECISION
Miscellaneous
Factors
ConvenienceEconomy
Physical
Characteristics

55. DISTRIBUTION
CHANNEL

56. DISTRIBUTION CHANNEL
• Channel of distribution is a path traced in the direct or indirect transfer of the title to a
product as it moves from a producer to ultimate consumers or industrial consumers
• A channel of distribution or marketing channel is a structure of intra-company
organisation, units and intra company agents and dealers, wholesalers and retailers
through which a commodity product or service is marketed.

57. CHARACTERISTICS OF CHANNEL OF
DISTRIBUTION
• Route or pathway
• Flow
• Composition
• Remuneration
• Time utility
• Convenience value
• Possession value
• Marketing tools
• Supply demand linkage

58. OBJECTIVES OF DISTRIBUTION
CHANNELS
• To make the product readily available to the market consumers at which it is aimed.
• To enhance the prospect of sales being made.
• To achieve cooperation with regard to any relevant distribution.
• To achieve a given level of service.
• To minimise logistics and total costs.
• To receive fast and accurate feedback of information.

59. FUNCTIONS OF DISTRIBUTION
CHANNEL
• Information provider
• Time and place utility
• Financing
• Help in production function
• Pricing
• Provide salesmanship
• Promotion
• Matching demand ans upply

60. IMPORTANCE OF DISTRIBUTION
CHANNEL
• Time and place utility
• Assortment of products
• Relieve from marketing problems
• Information to the producer
• Stability in prices
• Promotional activities
• Storage of finished goods
• Break the bulk

61. MEMBER OF DISTRIBUTION CHANNEL
Sole-Selling
Agent/marketer
C & F Agents
Wholesalers
Semi
Wholesalers
Retailers
Value Added
Resellers
Merchants

62. DIFFERENT TYPES OF DISTRIBUTION
CHANNEL
Direct
• Selling at manufacturer’s Plant
• Door-to Door
• Mail Order
• Multiple Shops
Indirect
• Wholesaler
• Retailer Multi Channel or hybrid

63. CHANNEL INTENSITY: PATTERN OF
DISTRIBUTION
Intensive distribution
Selective distribution
Exclusive distribution

64. FACTORS AFFECTING CHANNEL
Product
Characteristics
Company
characteristics
Consumer
characteristics
Middleman
consideration
Environmental
characteristics

65. FACTORS RELATING TO PRODUCT
CHARACTERISTICS
• Industrial /consumer product
• Perishability
• Unit value
• Weight and technicality
• Standardised products
• Purchase frequency
• seasonally

66. FACTORS RELATING TO COMPANY
CHARACTERISTICS
• Financial strength
• Marketing policy
• Size of the company
• Past channel experience
• Product mix
• reputation

67. FACTORS RELATING TO MARKET OR
CONSUMER CHARACTERTICS
• Consumer buying habits
• Location of market
• Number of customers
• Size of orders

68. FACTORS RELATING TO MIDDLEMAN
CONSIDERATION
• Sales volume potential
• Availability of middlemen
• Middlemen’s attitude
• Services provided by middlemen
• Cost of channel

69. FACTORS RELATING TO
ENVIRONMENTAL CHARACTERISES
• Economic conditions
• legal restrictions
• Competitors channel
• Fiscal structure