MARKETING MIX

According to Philip Kotler, it is a set of marketing tools that the firm uses to Pursue its marketing objectives in the target market. In other words, Marketing mix refers to the ingredients or the tools or the variable, Which the marketer mixes in order to interact with a particular market. McCarthy classified the marketing mix into 4 types or commonly known as the 4Ps of marketing. They are Product Price Place Promotion

These are the seller or marketers tools, which are combined to create an offer.

MARKETING MIX
1. PRODUCT Product Mix New Product Decisions Packaging Labeling Product Quality Branding 2. PRICING Pricing Methods Pricing Strategies Price Policy Price Changes

3. PLACE Channel Strategy Intermediaries Vertical Marketing System Channel Conflict Channel Selection Physical Distribution

4. PROMOTION Promotion Mix Advertising Sales Promotion Personal Selling Publicity Public Relations

1. PRODUCT
PRODUCT MIX
The total number of products and items that a particular marketer offers to the market is called PRODUCT MIX. Eg. Product mix of Hindustan Liver Soaps Shampoo Toothpaste Pears Sun silk Close-up Lifebuoy Clinic Pepsodent Lux All Clear Rexona Breeze Detergent Skin Preparation Dove Surf Fair & Lovely Cream Hamam Rin Liril Talc Wheel Blue Pears Face Wash

1. PRODUCT
PRODUCT MIX
NATURE AND CHARACTER OF THE PRODUCTS Product Line: This refers to a group of products within a product class, which are closely related because of their similarity in terms of functions performed or buyer group Eg. Detergent line or toothpaste line Mix Width: This refers to the total number of product lines the company operates or markets Eg. Maruti has only one line ie Car P&G has detergent line, toilet soaps, Daiper line etc. Line Length: This refers to the number of product items that are carried in a line. Eg. HLL has a no. of items in soap line Lux, Rexona, Lifebuoy, Hamam, Dove Etc. Depth: This refers to the number of variants that are offered of each product in the line. Eg. Lux soap comes in different perfume variants or colour variants and size.

1. PRODUCT
BRANDING
DEFINITION Branding can be defined as the process of using a name, term, symbol, or design individually or in combination to identify a product. Eg. Nike, Adidas, Bajaj, Nokia Etc.

BRAND NAME STRATEGIES Individual Branding: The firm uses a separate brand name for each product. The brand name of one product is not used for promoting any other product. Eg. Reckitt Benckisers brand portfolio includes Robin for blues, Cherry Blossom for shoe polish, Lizol for Floor cleaners, Colin for glass cleaners etc. Blanket Family Branding: The firm uses one brand name for all its products. Eg. Philips TV, DVD, Home Theatre Etc.

1. PRODUCT
BRANDING
BRAND NAME STRATEGIES Separate Family Brand Names: Some companies tend to follow different brand names for each class of their product.

Company Name Combined with Individual Name: Eg. Britannia Good day, Britannia Tiger, Britannia Marie, Britannia Dream Treat Britannia Fifty-Fifty Etc.

1. PRODUCT
BRANDING
QUALITIES OF A GOOD BRAND NAME: Short and simple. Eg. Lux, Dettol, Surf Easily Pronounceable Eg. Bajaj, Titan Suggestive brand names are better as they can convey product benefits. Eg. Ujjala suggests Brightness, Sunsilk Suggest shine like sun & softness of silk Etc. Brand name should be distinctive. It should not loose its identity in crowded market places . Eg. Ariel, Tide, Cinthol Etc. Brand name should be selected after considering its meaning in other language Eg. Nova in spanish means Does not go

1. PRODUCT
PACKAGING
DEFINITION: It is defined as a set of tasks or activities, which is concerned with the design and production of an appropriate container for the product.

FUNCTIONS OF PACKAGING: Protection : It protects from damages, sun, rains, moisture, insects etc. It maintains the freshness of the product.
Identification : Packaging helps in identifying a product. Packaging tell what the product is and who is its manufacturer. Convenience : It is convenient to store and transport. Eg. Tetra pack packages for drinks like real, frooti, Tropicana enhance drinking

1. PRODUCT
PACKAGING
Promotion : Package can grab attention, describe product contents and induce customers to make a purchase.

Innovation : By developing innovative packages the marketer can capture new customer segments. Eg. Shampoo now available in small packets

1. PRODUCT
LABELLING
DEFINITION: Labels are attached on to the product package to help identification and provide some information to the customer.

FUNCTIONS oLabel identifies the product or brand Eg. The name Lux imprinted on toilet soap helps us know which soap out of many is Lux.
oLabel colour are used to indicate different grades of the product. Eg. HL Sells different types of tea under Yellow, Red and Green labels. oIt is a carrier of information, which is to be provided to the customers oIt describes the product, the manufacturer, date of manufacture, time of manufacture And its content. oIt helps in attracting customers and in promoting the product.

2. PRICE
DEFINITION: In a marketing exchange, price is the value which a buyer passes on to the seller in lieu of the product or service provided. Price is a crucial determinant of the fact whether the exchange between the buyer and Seller would materialize. The main objective of pricing is Profit Maximization. The price must be able to recover the Total Cost ( ie Fixed and Variable) Pricing can not be approached in isolation without considering the prices of the other product. When the demand of the product is inelastic, the marketer can charge higher price. When the demand is elastic, a slight change in price can alter the demand by a big magnitude.

2. PRICE
PRICE SKIMMING It means using a high introductory price to skim the cream of the demand. When a marketeer introduces a new innovative product, it prices it higher to market It to a limited top end of the customer pyramid. It enables them to recoup their R&D expenditure within a short period of time. CONDITIONS The product should be highly distinctive. The marketeer should be able to hold on to its uniqueness for some time. There should be a market segment which values high price.

PENETRATION PRICING It means using lower initial price to capture as large a market as possible.

CONDITIONS Price elasticity of demand is high. Firm has substantial capacity of production When there is only a small segment of customers who buy irrespective of price It is appropriate when marketeer expects strong competition soon after launching of a new product.

3. PLACE
CHANNELS OF DISTRIBUTION
Firms use intermediaries because Distribution is a costly function. Some firms cannot afford to sell by themselves due to lack of finance. Sometimes direct selling without use of intermediaries is not feasible. Eg. ITC FUNCTIONS OF CHANNEL They gather information about the customers, competitors, and other trends in the Marketing environment. They persuade customers and promote sales of the product. They place orders with the manufacturers for the product in demand. They assume the risk connected with the carrying out distribution function. They help in storage and movement of goods on their way to their customers They play an instrumental role in execution of agreement and ownership transfer Of good of one entity to the other.

3. PLACE
CHANNELS LEVELS
Zero Level Channels: Here no intermediary is involved. Here direct selling takes place. Eg.Bata Shoes One Level Channel: One intermediary is there between the producer and the customer. This is done usually for speciality goods like expensive watches, where producer sells its wares through retailers. Two Level Channel: Here the services of wholesaler are taken along with that of the retailer. Eg. Soaps, Tea Three Level Channel: In this arrangement, one tier is added by way of some middlemen like agent to the two level channel. This is usually done when the manufacturer cannot directly approach the wholesalers.