Marketing Mix.

Amay Kothari

Market Segmentation Definitions

‹ Market - people or organizations with

(1) needs to satisfy, (2) money to
spend and (3) willingness to spend it.
‹ Market segments - groups of buyers
with different needs, buying preferences
or product
product--use behavior.
behavior
‹ Target market - the market segment
that the marketer aims its marketing
efforts.
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 Marketing Mix Components
‹ Marketing mix consists of 4 P’s
– Product
– Price
– Place
– Promotion

Marketing Mix Components

‹ marketing mix consists of 4 P’s
– Product
– Price
– Place
– Promotion
‹ Marketing calls for personal touch, public
relations,
relations pace of action,
action profitability and
people are to be seriously considered to
survive.
‹ Trade barriers, costs on logistics and legal
formations are to be given extra priority.
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 Product
‹ Marketing defines (preferably in customer
terms) the functions and features etc. of
the
th products
d t and d services
i which
hi h will
ill meett
customer needs – in the defined segments
and market areas which the organisation
strategy wishes to address.
‹ ‘Marketing’ may also be responsible for
managing products and the company
portfolio
‹ The ‘product’ may include elements of
support (service wrap) features that lie
outside direct functionality. 5

Place
‹ Marketeers identify the ‘best’ (in
t
terms off customer
t preference
f
mitigated by cost) channels to
market for defined customer
segments and defined product
groups.
g
‹ It is normally a sales function to
manage these channels.

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 Price
‹ Marketing determines the price
which
hi h reflects
fl t ththe customers
t ability
bilit
to pay and which allows the company
to operate profitably.
‹ Pricing (which may well be covered
by regulatory rules) is a complex art
and requires great care.

Promotion
‹ Marketing defines, and then delivers,
the appropriate messages to the
customer about the product, the
company, the brand, through a
variety of media and communications
tools. Advertising, but not just
advertising

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 Marketing Mix Components
‹ Products
– Product development
– Product life cycle
– Branding decision
– Packaging decision
‹ Price
– Pricing decision
– Pricing policies
– Factors affecting international pricing
– Price quotations
– Dumping
– Counter trade
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Marketing Mix Components

‹ Place
– Direct selling
– Indirect selling / marketing
– Intermediates
‹ Promotions
– Advertising
– Personal selling
– Sales p
promotion
– Public relations
‹ Export – import procedures
– Export procedure
– Import procedure
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 Product
‹ Product development
‹ Product life cycle

‹ Branding decision

‹ Packaging decision

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Product
‹ Product development
– Idea generation
– Screening of ideas
– Business analysis
– Product development in laboratory
– Test marketing
– Commercial production
– Internationalization

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 Product
‹ Product life cycle
– Introduction stage
‹ Inthis stage, the product is initially introduced in the
market. The product normally has low sales; other
features of this stage include high cost of sales, low
competition and low profits or losses.
– Growth stage
‹ During
g this stage,
g , the product
p gains
g awareness and
acceptance by the customers. The features of this
stage include: fast growth in sales, profits and
competition. The company can generate revenue
during this stage.

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Product
‹ Product life cycle
– Maturity
‹ Product acceptance, sales and profits are at the peak
stage and are stabilized at this stage. The
competition is intensified at this stage. Profits start
declining due to severe competition. One has to put
all the efforts to lengthen period of maturity.
– Extension stages
‹ Theprogressive
p g companies
p at this stage
g introduce
new models, new size, designs etc. in order to extend
the maturity stage and/ or to get another growth
stage. The extension stages are characterized by
slow growth of sales and profits. Repositioning,
repacking and relaunching are few techniques the
company adapts at this stage.
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 Product
‹ Product life cycle
– Decline stage
‹ Development of new products, change in
the existing product design, improving the
quality etc. by the competitors makes the
customers to shift from this product. In
addition, the new technology brings
substitute products with more values

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Or the 4 Cs?
‹ Forget Product, think of Consumer
wants
t
‹ Forget Place, think of Convenience to
buy
‹ Forget Promotion, think
Communications –
‹ Forget Price – understand Cost to
consumer of satisfying needs

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