Transcript Principles of Marketing-Lecture Slides 4

Principles of Marketing
Fall 2013
Lecture Slides 4
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Instructor : RAZA ILLAHE
Lahore Leads University
The MARKETINX MIX
.
Marketing mix—“The set of controllable tactical marketing tools –
product,price, place and promotion – that the firm blends to
produce the response it wants in the target market.”
The marketing mix consists of everything the firm can do to
influence the demand for its product. The marketing mix
revolves around ‘four Ps’: product, price, place and promotion
Marketing Mix and 4 P's
Product ,Price,Promotion and Place are discussed in detail in
later lectures.
PRODUCT
“Anything that can be offered to a market for attention, acquisition
or consumption that might satisfy a want or need.”
It can include physical objects, services, persons, places, organisations
and ideas.
4 P's
PRICE
“The amount of money charged for a product or service, or the
values that consumers exchange for the benefits of using the
product or service.”
PROMOTION
“Activities that communicate the product or service and its merits
to target customers and persuade them to buy.”
PLACE
All the company activities that make the product or service available
to target customers.
Marketing Mix and its 4P's
PRODUCT - in detail
PRODUCT
Anything that can be offered to a market for attention,
acquisition, or consumption that might satisfy a want or need. It
includes physical objects, services, persons,
places,organisations and ideas.
Products bought to satisfy personal and family needs are
consumer products.
Products bought for the purposes of resale or to be used to make
other products are industrial products.
CLASSIFICATION of CONSUMER PRODUCTS
Consumer Products can be classified into following :
Convenience products :Cheap, frequently purchased items that do not
require much thought or planning.
The consumer typically buys the same brand or goes to the same
shop. Examples are newspapers, basic groceries and soft drinks.
Shopping products : The products consumers shop around for.
Usually infrequently purchased items such as computers, cars, DVD
player or household appliances.
From the manufacturer’s viewpoint, such products require few retail
outlets, but will require much more personal selling on the part of the
retailer
Speciality products :Consumers plan the purchase of these products
with great care, know exactly what they want, and will accept no
substitutes.
Such products are usually expensive and different from others.The
consumer's efforts go into finding an outlet that can supply exactly
the item needed. Examples include designer clothes ,Wedding
Dresses,Diamonds,Antiques,Luxury Cars.
Unsought products : These products are not bought; they are sold.
Examples are life insurance, fitted
kitchens and phone directories. While most people would recognise the
need for these items, it is rare for consumers to go out looking for
them. These products are usually sold through aggressive sales
efforts.
Levels of Product
Product planners need to think about the product on three levels. Each
level adds more customer value. The most basic level is the core
product, which provides core benefit to the consumer and addresses
the question: What is the buyer really buying?
Core Product :The problem solving services or core benefits that
consumers are really buying when they obtain a product. For example,
the core benefit of buying a car is transportation of the
owner,passengers and luggage.
Actual product—A product’s parts, quality level, features, design, brand
name, packaging and other attributes that combine to deliver core
product benefits For example ,The actual product bought will differ
from other cars in terms of its features, design, performance etc.
Augmented product—Additional consumer services and benefits built
around the core and actual products.For example,considerations of
after-sales service, delivery etc which need to be taken into account.