Marketing Mix

The product Value of a product: Value of a product means the relationship between the consumer's expectations of product quality, to the actual amount paid for it.Value of a product: Value of a product means the relationship between the consumer's expectations of product quality, to the actual amount paid for it.product relationshipconsumerqualityproduct relationshipconsumerquality Value = Benefits / Price Or alternatively: Value = Quality received / Expectations. Value = Quality received / Expectations. There are parallels between cultural expectations and consumer expectations; the value in the marketplace varies from place to place as well as from market to market. There are parallels between cultural expectations and consumer expectations; the value in the marketplace varies from place to place as well as from market to market.cultural expectationsmarketplaceplacemarketcultural expectationsmarketplaceplacemarket

The product For a firm to deliver value to its customers, they must consider what is known as the "total market offering." This includes the reputation of the organization, staff representation, product benefits, and technological characteristics as compared to competitors' market offerings and prices.For a firm to deliver value to its customers, they must consider what is known as the "total market offering." This includes the reputation of the organization, staff representation, product benefits, and technological characteristics as compared to competitors' market offerings and prices. The key to deliver high perceived value -- making consumers believe that what you are offering is beyond expectation -- helping them to solve a problem, offering a solution, giving results, and making them happy.The key to deliver high perceived value -- making consumers believe that what you are offering is beyond expectation -- helping them to solve a problem, offering a solution, giving results, and making them happy.

Components of the market offering through product planning its market offering, the marketer needs to address five product levels:planning its market offering, the marketer needs to address five product levels: 1.The fundamental level is the core benefit: the service or benefit the customer is really buying. 2.At the second level, the marketer must turn the core benefit into a basic product. 3.At the third level, the marketer prepares an expected product, a set of attributes and conditions buyers normally expect when they purchase this product. 4.At the fourth level, the marketer prepares an augmented product that exceeds customer expectations. 5.At the fifth level companies search for new ways to satisfy customers and distinguish their offering.

Requirements of a good advertisement The AIDA principle. Attention, Interest, Desire and Action: Attract attention (awareness).Attract attention (awareness). Stimulate interest.Stimulate interest. Create a desire.Create a desire. Bring about action (to buy the product).Bring about action (to buy the product).

Planning for advertising Any advertising plan addresses the following stages: Who is the potential target audience? Who is the potential target audience? What does the company wish to communicate to this target audience? What does the company wish to communicate to this target audience? Why is this message so important to them? Why is this message so important to them? What is the best medium for this message to take? What is the best medium for this message to take? What would be the most appropriate timing? What would be the most appropriate timing? What resources will the advertising campaign need? What resources will the advertising campaign need? How does the company control its advertising and monitor success? How does the company control its advertising and monitor success?

Personal sales Oral presentation given by a salesperson that approaches individuals or a group of potential customers: Live, interactive relationship.Live, interactive relationship. Personal interest.Personal interest. Attention and response.Attention and response. Interesting presentation.Interesting presentation. Clear and thorough.Clear and thorough.

Sales promotions are Short-term incentives to encourage buying of products and to get the following advantages: Instant appeal. Instant appeal. Anxiety to sell. Anxiety to sell. People are given an incentive to buy, but this does not build customer loyalty or encourage future repeat buys. People are given an incentive to buy, but this does not build customer loyalty or encourage future repeat buys. Marketing Public Relations (MPR) Stimulation of demand through press release giving a favorable report to a product Stimulation of demand through press release giving a favorable report to a product Higher degree of credibility Higher degree of credibility Effectively news Effectively news Boosts enterprise's image. Boosts enterprise's image.

Pricing is the process of determining what a company will receive in exchange for its products. Pricing factors are manufacturing cost, market place, competition, market condition, Quality of product. is the process of determining what a company will receive in exchange for its products. Pricing factors are manufacturing cost, market place, competition, market condition, Quality of product. What a price should do? A well chosen price should do three things: Achieve the financial goals of the company (e.g., profitability).Achieve the financial goals of the company (e.g., profitability). Fit the realities of the marketplace (Will customers buy at that price?).Fit the realities of the marketplace (Will customers buy at that price?). Support a product's positioning.Support a product's positioning.positioning

An efficient price is a price that is very close to the maximum that customers are prepared to pay. An efficient price is a price that is very close to the maximum that customers are prepared to pay. Promotional pricing: refers to an instance where pricing is the key element of the marketing mix. Promotional pricing: refers to an instance where pricing is the key element of the marketing mix.marketing mixmarketing mix Reference prices Research has shown that although consumers may have fairly good knowledge of the range of prices involved. Reference prices when customers examining products, consumers often employ reference prices, comparing an observed price to an internal reference price they remember or to an external frame of reference. Reference prices Research has shown that although consumers may have fairly good knowledge of the range of prices involved. Reference prices when customers examining products, consumers often employ reference prices, comparing an observed price to an internal reference price they remember or to an external frame of reference. The price/quality relationship refers to the perception by most consumers that a relatively high price is a sign of good quality. The belief in this relationship is most important with complex products that are hard to test, and experiential products that cannot be tested until used (such as most services). The price/quality relationship refers to the perception by most consumers that a relatively high price is a sign of good quality. The belief in this relationship is most important with complex products that are hard to test, and experiential products that cannot be tested until used (such as most services).

Distribution (or place) is one of the four elements of marketing mix. Distribution (or place) is one of the four elements of marketing mix.marketing mixmarketing mix An organization or set of organizations (go- betweens) involved in the process of making a product or service available for use or consumption by a consumer or business user, we can name it as the distribution channel, or distribution chain. An organization or set of organizations (go- betweens) involved in the process of making a product or service available for use or consumption by a consumer or business user, we can name it as the distribution channel, or distribution chain. The distribution channelThe distribution channel Frequently there may be a chain of intermediaries; each passing the product down the chain to the next organization, before it finally reaches the consumer or end-user

A number of alternate 'channels' of distribution may be available: Selling direct, such as with an outbound salesforce or via mail order, Internet and telephone sales. Selling direct, such as with an outbound salesforce or via mail order, Internet and telephone sales. Agent, who typically sells direct on behalf of the producer. Agent, who typically sells direct on behalf of the producer. Distributor (also called wholesaler), who sells to retailers. Distributor (also called wholesaler), who sells to retailers. Retailer (also called dealer or reseller), who sells to end customers. Retailer (also called dealer or reseller), who sells to end customers.dealerresellerdealerreseller Advertisement typically used for consumption goods. Advertisement typically used for consumption goods.

Channel decisions The channel decision is very important. : the cost of using intermediaries to achieve wider distribution is supposedly lower. Many suppliers seem to assume that once their product has been sold into the channel, into the beginning of the distribution chain, their job is finished. but, if they have any aspirations to be market- oriented, their job should really be extended to managing all the processes involved in that chain, until the product or service arrives with the end-user. This may involve a number of decisions on the part of the supplier: Channel membership. Channel membership. Channel motivation. Channel motivation. Monitoring and managing channels. Monitoring and managing channels.