marketing mix decisions – part 1
TRANSCRIPT
8/9/2019 Marketing Mix Decisions – Part 1
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By
DSK
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Product (Customersolution)
Price (Customer cost) Place (Customer
convenience) Promotion (Customer
communication)
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Which means
Anything that can be offered to
create an exchange It is looking at satisfying a
customer problem
Hence we say that a product is a
customer solution
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At the heart of a great brand is a greatproduct.
Product is a key element in the marketoffering
Market leaders generally offer products andservices of superior quality that provideunsurpassed customer value
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At the time of deciding your marketing planyou will have to take a number of product
decisions such as What will constitute the product
How many variants of it should be there on offer
How it should be different from competingproducts
How it should be packaged
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We take an example of a Hotel
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At the first level In a hotel (which is a product)the core benefit is
Rest and sleep (A hotel guest is basically buyingrest and sleep in a hotel)
it is the basic benefit
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In case of hotel the basic product willconstitute
Hotel room (including a bed, bathroom, towels,desk, TV etc)
At this second level marketers must turn the basic
benefit into a basic product.
Match basic benefit with a basic product
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At the third level, the marketer prepares onexpected product
A set of attributes and conditions buyersnormally expect when they purchase thisproduct.
Hotel guests expect a clean bed, fresh towels,
working lamps, and a relative degree of quite
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At the fourth level, the marketer prepares anaugmented product that exceeds customerexpectations
In developed countries brand positioning and competitiontake place at this level.
In Developed countries, brand positioning andcompetition take place at this level.
However in developing countries like India and Brazilcompetition takes place mostly at the expected productlevel.
In a hotel augmented may be a PC in the room or thewelcome drink to improve the position of the product inthe eyes of the customer
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It includes all the possible augmentations andtransformations the product or offering
might undergo in the future. Here is where companies search for new ways
to satisfy customers and distinguish theirofferings
Like a Hotelier might look forward to add Gym or
swimming pool in future
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Differentiation arises and competitionincreasingly occurs on the basis of product
augmentation, which also leads the marketerto look at the users total consumptionsystem: The way the user performs the taskof getting and using products and relatedservices.
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Each augmentation adds cost, and
Augmented benefits soon become expected
benefits and necessary points of parity Todays Hotel guests expect cable or satellite
TV with a remote control and high speedinternet access or two phone lines.
This means competitors must search for stillother features and benefits
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As some companies raise the price of theiraugmented product, others offer a stripped
down version at a much lower price
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It has four set of properties
Super Delux hotels (ITC Hotels)
Five star hotels (Welcome Hotels)
Budget hotels (Fortune Hotels)
Palaces, Forts and Havelis (Welcome heritage)
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Basis
Durability and tangibility
Consumer goods classification
Industrial goods classification
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Nondurable (Soft Drink and soaps)
Durable (Refrigerators, TV etc)
Services (Intangible)
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Convenience (Soft Drink, Soap) Staples (Purchase on regular basis) toothpaste
Impulse (without any planning or search effort) Chocolate, Candy etc
Emergency Goods (Urgent need ) - Umbrella
Shopping (Furniture, Clothing) Homogeneous (Similar in quality may be different in
price) Lux and Rexona Heterogeneous (Differ in product features and
services which happens to be more significant thanprice) Lux and Dove
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Specialty goods (a Mercedes)
Unsought (Life insurance)
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Materials and parts
Raw Materials
Farm products Natural products
Manufactured materials and parts
Component materials (pig iron, yarn to be further
processed) Component parts (finished products, small motor, light)
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Capital items
Installations (Buildings and heavy equipments)
Equipments (Portable factory equipments andtools) hand tools, lift trucks etc
Supplies and business services
Maintenance and repair (Paints, nails)
Operating supplies (Lubes, coal, writing paper)
Together they come under the category MRO
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Business services include
Maintenance and repair services
Business advisory services
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