Module – 6 Elements of the Extended Marketing Mixbms.lk/download/GDM_Tutorials/batch-38/MM/week 4/Marketing Mix.pdf · Resource Person MATHISHA HEWAVITHARANA MBA (Col),BBA Sp.Mktng

Module – 6

Elements of theExtended Marketing Mix

ResourcePerson

MATHISHA HEWAVITHARANA

MBA (Col),BBA Sp.Mktng (Col), PPG DIP.In Mktng (UK), MCIM (UK), Chartered

Marketer (UK), Practicing Marketer (SL),ACMA, CGMA CIMA (UK), DBF (IBSL),

AIB (IBSL), MSLIM(SL),

Head of Marketing - Siyapatha FinancePLC

Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation fromthe United States edition of Marketing Management, 14e.

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Chapter Contents

Introduction to Marketing Mix Product Price Place Promotion People Process Physical Evidence Integration of the Marketing Mix


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Chapter Contents



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“ The Set of Controllable Variables and their levelsthat the firm uses to influence the Target Market ”

- Kotler & Keller

“ Collection of Tools Used By the Marketer InAchieving Predetermined Marketing Objectives /Strategies ”

Marketing Mix


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Elements of Marketing Mix . . . . (7P’s)

Product Price Place Promotion

People Process Physical Evidence

ExtendedElements

ForMarketing

Goods

For ServicesMarketing

Stakeholder Marketing – Assignment Option o1Marketing Mix


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Chapter Contents



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WHAT IS A PRODUCT ?

A product can be defines as ……


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“ Core Benefits / Attributes Sought by the Customer ”Can be Defined As a Product

Products

Tangible(Goods)

Intangible(Services)

There are Some Characteristics Which DifferentiatesProducts From Services


PRODUCT


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Goods / Service Differentiation

Goods Services

Tangibility Intangibility

Separability Inseparability

Standard Variable

Can be Measured Can not be Measured

Perish ability is less Perish ability is high

Ownership No Ownership



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PRODUCT

Different Types of Products

o Consumer Products

o Organizational Products

Refer : Page 293 – 294 ( Marketing Management 14th edition)


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PRODUCT

Product Line / Mix of the Company

A group of productswhich are closelyrelated and are soldto a similar marketsegment.

Collection of all productlines in the business.

Product Line Product Mix


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Five Product Levels

Refer : Page 292 ( Marketing Management 14th edition)


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PRODUCT

o Research & Development

o Introduction

o Growth

o Maturity

o Decline

This is the graphical presentation of different stagesa particular product will move through during it’seconomically valid life time.

Product Life Cycle (PLC)


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PRODUCT

Product Life Cycle (PLC)

Time

Performance

2

3

4

5

1

Sales

Profit


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NEW PRODUCT DEVELOPMENT

o Innovative Products

o Replacement Products

o Imitative Products

New Product Development is the systematicprocess of introducing new product conceptsto the market under following three categories;


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NEW PRODUCT DEVELOPMENT

Adoption of Innovation / Diffusion of Innovation


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PRODUCT

Need for Packaging

1. Self Service Environments2. Consumer Influence (Convenience / Appearance / Prestige)3. Company Brand Image & Differentiation4. Technology & Innovation5. Legal Requirements

Packaging



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Chapter Contents



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What is Price ?

Price is the exchange value / economic value /transaction value of a particular product or service.

The amount a customer pays for the product.

The quantity of one thing that is exchanged ordemanded in barter or sale for another.

The amount of money given or set asconsideration for the sale of a specified thing.


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Organizations are Pricing their offer with the purpose of

achieving following primary objectives;

- Profit-Maximizing Objective

- Market Penetration Objective

Determining Prices

Pricing to Meet Business Objectives


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Steps in Setting Price

Select the price objective

Determine demand

Estimate costs

Analyze competitor price mix

Select pricing method

Select final price

Refer : Page 352 - 364 ( Marketing Management 14th edition)


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Pricing Strategies

Market Penetration Pricing

Market Skimming Pricing

Loss Leader Pricing

V 01/02


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Pricing Strategies

Competitor Based Pricing

Cost Orientated Pricing

Psychological Pricing

V 03 / V 04


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Chapter Contents



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What Is a Marketing Channel?

A marketing channel system is theparticular set of interdependent

organizations involved in the process ofmaking a product or service available for

use or consumption.


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Marketing Channel Levels

Zero-level channel (direct marketing channel)

One-level channel

Two-level channel

Three-level channel



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Intermediaries tend

to play a very

significant role in

the process of

distribution but will

result in pushing

up the price of the

product at the point

of reaching the end

consumer.Refer : Page 381 ( Marketing Management 14th edition)


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Intermediaries tend

to play a very

significant role in

the process of

distribution but will

result in pushing

up the price of the

product at the point

of reaching the end

consumer.Refer : Page 381 ( Marketing Management 14th edition)


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Number of Intermediaries

Exclusive

Selective

Intensive



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E-Commerce in Managing ChannelStrategy

Virtual Marketing Strategy


V 09


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M-Commerce in Managing ChannelStrategy

Mobile Based Marketing Strategy


V 11


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Chapter Contents



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What is Promotion


Techniques of communicating information about the

organization / products / services to stakeholders through a

Communication Mix.- Advertising- Personal Selling- Direct Marketing- Sales Promotions- Public Relations- Sponsorships

Refer : Page 429 ( MarketingManagement 14th edition)


1-35Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation fromthe United States edition of Marketing Management, 14e.

Communications Process

Refer : Page 431( Marketing Management 14th edition)


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Steps in Developing EffectiveCommunications

Identify target audience

Determine objectives

Design communications

Select channels

Establish budget

Decide on media mix

Measure results/manage IMC



Communication Mix

o Advertising

o Personal Selling

V 05 / V 06



Communication Mix

o Direct Marketing

o Sales Promotions



Communication Mix

o Public Relations

o Sponsorships

V 07 / 08



Push & Pull Communication

In push communicationstrategy organizationmotivates the intermediaryparties to sell morenumber of units to the enduser.

In pull strategy organizationpersuades the end user /customer to pull the productsfrom intermediaries by usingpromotional tools such asadvertising and directmarketing



Integrated Communication Strategy

Entire

communication

strategy of the

organization must

focus on a single

coherent corporate

strategy / direction

by maintaining the

consistency of the

message.


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Chapter Contents




People

People factor refers to

…….

V 13


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Chapter Contents




Process

Process refers to …….

V 10 / 12


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Chapter Contents




Physical Evidence

Physical Evidence

refers to …….


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Chapter Contents




Integration of the Marketing Mix

All the elements of the

marketing mix must integrate

with each other element and

must focus on a single

coherent corporate strategy /

direction by maintaining the

consistency of the approach

without confusing the

stakeholders of the business.


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Chapter Contents


Thank You !

0773 – 29 20 [email protected]

Documents

Module – 6 Elements of the Extended Marketing Mixbms.lk/download/GDM_Tutorials/batch-38/MM/week 4/Marketing Mix.pdf · Resource Person MATHISHA HEWAVITHARANA MBA (Col),BBA Sp.Mktng