marketng m ix
DESCRIPTION
marketing mixTRANSCRIPT
Prepared by-Prepared by-Sheik Mohammed Sheik Mohammed
NowheedNowheedIInd Sem MBAIInd Sem MBASIT MangaloreSIT Mangalore
Marketing ConceptsMarketing ConceptsMarketing is the process of planning
and executing the conception, pricing, promotion, and distribution of idea, goods, and service to create exchanges that satisfy individual and organizational objective
Marketing Mix is the combination of products, price, promotion, and distribution (place)used to satisfy the needs of the target market
ProductVarietyQualityDesignFeaturesBrand NamePackagingServices
ProductVarietyQualityDesignFeaturesBrand NamePackagingServices
Price
List priceDiscountsAllowancesCredit Terms
Price
List priceDiscountsAllowancesCredit Terms
Promotion
AdvertisingPersonal SellingSales PromotionPublic Relations
Promotion
AdvertisingPersonal SellingSales PromotionPublic Relations
PlaceChannelsCoverageAssortmentsLocationsInventoryTransportationLogistics
PlaceChannelsCoverageAssortmentsLocationsInventoryTransportationLogistics
Target Costumers
IntendedPositioning
Target Costumers
IntendedPositioning
Marketing Mix Variables
Marketing ActivitiesMarketing Activities
Product:Develop new
productsModify existing
productsTest-market
productsSelect brand
namePackage product
Pricing:Establish price
objectivesConduct cost
analysisAnalyze
competitor’s price
Set actual prices
Marketing ActivitiesMarketing Activities
Promotion:Determine types
of promotionDesign the
advertising massage
Selecting advertising media
Schedule the advertisements
Distribution:Select wholesalers
and retailersEstablish
procedures for handling and moving products
Find the best locations for plants, warehouses and retail outlets
MarketMarket
Market is people with the authority, financial ability, and willingness to purchase a product
Types of Market:Consumer market - for personal
useIndustrial market - to use in the
production or resell
Target MarketingTarget MarketingTarget market - a group of
people that has similar wants and needs which a firm directs its marketing activities
Market SegmentationMarket SegmentationMarket segment – division of
heterogeneous market into homogeneous market based on different characteristics
Segmentation Based:Geographic bases - city, regionDemographic bases - sex, race, maritalPsychographic - a person’s attitude,
lifestyleBehaviour - brand loyalty, occasions
PRODUCTPRODUCT
PRODUCTPRODUCT Product - a good, service or idea,
including all attributes provided in an exchange between buyer and seller
Product Classification:Consumer goods – products
purchased by consumers for personal use
Industrial goods – product purchased by companies to produce other products
Brand - a name, sign, symbol, design, or combination a company’s product to distinguish it product from others
Packaging - the development of a container and graphic design for a product
Labeling - the display of important information on a product package
PRICINGPRICING
PRICINGPRICINGPrice - the value that buyer
exchange for a product in the marketing transaction
Pricing Objective:◦Market share◦Profit◦Return on Investment◦Maintain price leadership◦Improving Cash Flow
Pricing Decision and Pricing Decision and MethodsMethodsFactors in Pricing Decisions:
◦Demand◦Consumer perception of price◦Cost of product◦Competition
Pricing Pricing Methods/StrategiesMethods/Strategies
Pioneer pricing – leadership pricing in the market
Price skimming – setting an initial high price to cover new product cost and generate a profit
Cost Pricing- based on cost
Demand pricing- based on market demand
Penetration pricing – setting an initial low price to establish a new product in the market
Psychological Pricing – setting an price like 399,449 etc…
Price Discounting – Price reduction offered as an incentive to purchase
Competiton pricing
Value pricing
PROMOTION MIXPROMOTION MIX
The Promotion MixThe Promotion Mix
Promotion Mix - the combination of advertising, personal selling, sales promotion, publicity used to promote a specific product
Promotional Objectives:Promotional Objectives:
Informing about productIncreasing salesStabilizing salesPositioning the productBuilding a public image
Components of Promotion Components of Promotion mixmixAdvertisingSales promotionPersonal selling
AdvertisingAdvertisingNon-personal communication to a
target audience through a mass medium, such as TV, Radio, newspapers, or magazines, and outdoor display
Types of Advertising:◦ Primary-Demand Advertising: for all
products◦ Selective Brand Advertising: for specific
products
Advertising PromotionAdvertising PromotionAdvertising Media – variety of
communication devices for carrying message to potential customers
Direct Mail – delivery message directly to customer places
Internet Advertising – put the message into website or mailed directly to customer email
Personal SellingPersonal SellingPerson-to-person communication with
one or more prospective customers in order to make sale
Telemarketing – using telephone to perform the personal selling process
Sales PromotionSales PromotionAn activity that offers customers or
marketing intermediaries direct incentives for purchasing a product
Type of Sales Promotion:◦ Coupon: reduces the price of a product by
stated amount at the time of purchase◦ Rebate: an extra discount◦ Free Sample◦ Contest: consumer compete for prizes◦ Trade show
Promotional Strategy:Promotional Strategy:Push Strategy: promotion of a
product to wholesaler or retailers in the marketing channel, who in turn promote the product to consumers
Pull Strategy: promotion of a product direct to consumers to stimulate strong consumer demands
PLACEPLACE
Place stands for physical distribution activities through which the product moves from factory to the customer
WholesalingWholesalingThe marketing activities of intermediates who
sell to retailer, industrial users for resale or business use.
Types of Wholesalers:Merchant Wholesaler: takes ownership of
goods and the risks associated with ownershipSales Branch: a manufacture-owned
wholesaler that take title to products, risks, and provides service
Agent: a wholesaler hired by a buyer or seller on a permanent basis and paid commissions
RetailingRetailingThe marketing activities involved in
selling products to final consumers for personal or household use
Department Store: a large retailer organized into separate departments and offering a full line of services and wide product mix
Supermarket: a large self-service retailer that stock a wide variety of groceries and a limited assortment of nonfood products
Physical DistributionPhysical DistributionThose activities that involve the
movement of products through marketing channels from manufacturer to customer, including:
Transportation: shipping goods to customers by rail, air, truck, water, and pipeline
Warehousing: the receiving, storing, and shipping activities involved in the physical distribution of goods
Order Processing: the receipt and preparation of an order for shipment
Material Handling: the physical handling of products during transportation and warehousing
Basic Channels of DistributionBasic Channels of Distribution
Manufacturers/products
Agents/brokers
Wholesalers/distributors
RetailersRetailers
Consumers and organizational end users
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