EKLAVYA NET PAPER 2 MARKETING Part 2.pdf

MARKETING

1. EKLAVYA ACADEMY
COMMERCE &MANAGEMENT
MARKETINGMANAGEMEN
By,
Mrs.Abhilasha.N
Mcom, MPhil, NET-JRF,SET, (Ph.D. in commerce),
Contact No: 9620925899

2. MARKETING MIX
“Setofmarketingvariables”
Meaning:Themarketing mixrefers to the set of actions, or tactics,
that a company uses to promote its brand or product in the market.
VARIABLESORELEMENTSORCOMPONENTS OFMARKETING MIX:
1)ProductMix(productdesign,branding,labeling,packaging,quality,productline,etc.)
2)PriceMix(pricingpolicies,termsofcredit,profitmargin,etc.)
3)PromotionMix(personalselling,advertising,salespromotion,publicrelations, etc.)
4)PlaceMix(transportationmode,inventorylevel,distributionchannel,
physical distribution,etc.)
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3. Therearetwo approachesindecidingmarketingmix:
1)Shotgunapproach(onemarketingmixfor entiremarket,targetmarketis
treatedas asinglemarket)
2)Rifleapproach(different marketingmixfordifferent targetmarkets)
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EXPANDEDMARKETING MIXINCASEOFSERVICESECTOR:
5)People(attitude,behavior,responsibilityofemployees)
6)PhysicalEvidence(howtheserviceisoffered,adequatefacilities)
7)Process(processofdelivery,timerequired)
•*4P’screatedorgivenbyE.J.McCarthy
•*3P’screatedorgivenbyBoomsandBitner

4. PRODUCT
“Aproductisdefinedasbundlesofutilityconsistingofvariousfeaturesandaccompanying
servicesis called aproduct”
Thetermproductdoesnot meanonlythephysicalproductbutthetotalproduct including
brand,package,labels,statusofmanufactures&servicesofferedtothecustomers.
LEVELS OFPRODUCTSAREAS FOLLOWS-
1)Coreproducts–Itmeansthefundamentalbenefitsorservicewhichthecustomersisbuying.
Egrestandsleepisthecorebenefitincaseofhotel.
2)Basicproducts-Itmeansthephysicaldimensionofaproduct.Incaseofahotelroombed,
bathroom,towels,desk,dresser&closetconstitutethebasicproduct.
3)Expectedproduct-Itmeansasetofattributes&conditionsthatbuyernormallyexpectwhen
theybuytheproduct.Fore.g.ahotelcustomerexpectsacleanbed,freshtowels,workinglamp
&aquietroom.
4)Augmentedproduct-Itmeanssomethingbeyondthecustomerexpectations.Aremotecontrol
Tv,freshflowers,finedining&roomservicearepartsofaugmentedproductincaseofhotel
room.
5)Potentialproduct-Thelastleveloftheproductsisthepotentialparti.e.alltheunexpected
changeinthetechnology,attributes,features,styles,color,grade,qualityetc.thatmight
changethestructure&characterofindustry.(Unexpectedchangesbothintangible&
intangible EKLAVYA-9620925899

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6. TYPESOFCONSUMER PRODUCTS:
1.Conveniencegoods-Easy&quicklytobuy.These
includesitemswhichtheconsumersbuysfrequently
minimumshoppingeffortse.g.grocery,toiletries.
2.Shoppinggoods-Comparisonsincludescustomer
involvementfurniture,Jewellery.Theseincludesitems
whichtheconsumersselects&buyaftermaking
comparisonsofsubstitutesonsuchcriteriaasquality
pricestyle&suitability.
3.Specialtygoods–Theconsumerhavetomakea
specialpurchasingefforttopurchasethisspecialty
goods.Itemslikewhichpossessuniquefeaturesor
haveanumberofbrandnamesorboth.(e.g.coin
collection)(personalinterest)
3.Unsoughtgoods-Theyaretheproductswhichdo
notfallinanyoftheabovecategorybutareimportant
forthecustomeregsolarcooker,solarbuses,
insurance.(sellingconcept)
TYPESOFPRODUCTS
•Non-durablegoods-Thesegoodsare
tangiblegoodsthatareconsumedwith
oneorfewusese.g.sweets(onetime
use)
•Durablegoods-Theseproductsare
tangiblewhichremaininusemonths
aftermonths,years&years.E.g.fridge,
washingmachine.
•Services–Theseareactivitiesorbenefits
thatprovidesatisfactiontothe
consumer’s
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7. PRODUCTMIX
“Productmixorproductportfolioisthecombinationofallproductsofferedforsalebya
company.”
1.ProductLine/Length(Totalno.ofproductsitems)-Itreferstoagroupofproducts
thatarecloselyrelatedbecausetheysatisfyaclassofneedsareusedtogether,aresoldto
thesamecustomergroupsaremarketedthroughthesametypeofoutletsorfallwithin
givenpricerange.
2.ProductWidth/breadth(No.ofproductline)-Thewidthofaproductmixofafirm
isdeterminedbythenumberofdifferentproductslineofferedbyafirm.
3.ProductDepth(averageNo.ofproductineachline)-Thedepthofaproductline
dependsuponthenumberofproductitemsofferedinaline.
4.ProductConsistency(howcloselyrelated)–Theconsiderationsindevelopinga
marketingstrategiesarewide&varyconsistentlyrefertohowcloselyrelatedthe
productlinesareinthereendus,productonrequirement&distributionchannel.
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8. 5.ProductItem-Itreferstoa specificmodel,brand orsizeofaproductthat
acompanysells.E.g.Videoconrefrigerator.
6.ProductModification-Itistheprocessbywhichtheexistingproductsare
modified to suit the changing demand on account of fashion change.
(Maturitystage)
7.ProductElimination-Thereare some productswhich cannotbeimproved
or modified to suit the market needs. The profitable alternative would be to
withdraw the product. The process of withdraw is technically known as
producteliminationorsimplification.
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9. Productmix:
Groupofproductsmanufacturedordistributedbya businessfirm.
Firmtakesproductiondecisionsatthreelevels:
1)ProductItem (specificproductofcertainspecifications,eachitem)
2)ProductLine(groupofproductitems,closelyrelatedtoeachother)
3)ProductMix(fulllistof allproductsofferedbyacompany)
Dimensionsof productmix:
1)Length(totalno.ofproductitems)
2)Depth(averageno.ofproductineachline)
3)Widthorbreadth(no.ofproductlines)
4)Consistency(howcloselyrelated)
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10. ➢Productlinecontraction-Thisisalsoknownascontractionofproductmix.Itisamethod
bywhichafat&longproductlineisthinnedout.Itisalsotermedassimplification
➢ProductLineExpansion-Itreferredtoexpandbreadth&depthofitsproductline.The
expansionisundertakenbyincreasingthelinesoritemsofproducts.Itisalsoreferredtoas
diversification.
➢Diversifications-Itisaproductwhichmaybeentirelydistinct&differentfromtheexisting
products.Egwholesellerdealinginengineeringgoodsstartssellingsimultaneously
confectionaryitems.Changestylesandmodelsofexistingproducts
➢Qualityvariations-producedifferentqualitiesofaparticularproduct.
➢Tradingup-Theprocessofintroducingahigherqualityproductsbyamanufacturerwhose
lowqualityproductsarefamous&higherqualityproductswithahigherpricetoo.
➢Tradingdown-Ithappenswhenamanufacturerofhighqualityproductsstartssellingalow
quality products witha lowprice.
PRODUCTLINEMODIFICATION/ ALTERATION
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11. PRODUCTDEVELOPMENT
“Productdevelopmentincludes anumberofdecisionsnamelywhattomanufacture orbuyorhowto
haveitspackaging,howtofixitsprice&howtosellit.”
Newproductdevelopmentconsist ofcreationofnewideas,withevaluationintermsofsalespotential
andprofitability,productionfacilities,resourcesavailable,designing&productiontesting&
marketingoftheproduct
STAGESINNEWPRODUCTDEVELOPMENT INCLUDES:
1)GenerationofIdeas(internalandexternalsources)
2)Screeningofideas (evaluation)
3)ConceptDevelopmentandTesting(ideaintoproductconcept andtestwiththehelpof
customers)
4)MarketingStrategyDevelopment(forlaunchingtheproduct,targetmarket)
5)BusinessAnalysis(estimatethecost,profits,manpower&financialrequirement,
6)ProductDevelopment(convertideaintoproduct)
7)TestMarketing(testtheproductinalimitedareaofmarket)
8)Commercialization(launchtheproductinentiremarket)
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12. PRODUCTLIFECYCLE
“It was developed by Prof. Theodore Levitt. It includes four stages and passing of product
throughthesestagesiscalledPLC”
FOUR STAGESOFPLC:
1)Introduction:Lowsalesandprofits,highproductprice,heavypromotionalexpenses,lackofknowledgeto
customers
2)Growth: Fastincreaseinsalesandprofits,increasecompetition,reductioninprice, productimprovement
3)Maturity:Salesincreaseatdecreasingrate,highestprofits,lowerprice,productmodification, normal
promotionalexpenses
4)Decline:Decreaseinsales,profits&prices,nopromotionalexpenses,suspensionofproductioninsome
cases.
•Somescholarsdividestheintroductionandmaturitystageintotwoparts
1)Idea/developmentstagethenintroductionstage
2)Maturitystagethensaturationstages
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14. 1.The producers who concentrates on one particular big area rather than
severalsegments
a)Undifferentiatedmarket
b)Concentratedmarket
c)Differentiatedmarket
d)Concentratedmarket
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15. 5.Inwhichstage,product modification willbe initiatedbythemanufacturerof
goods
a)Introduction
b)Maturity
c)Decline
d)Growth
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16. 2.Whenseller gives somethingbeyondthecustomerexpectations
a)Coreproduct
b)Augmentedproduct
c)Basicproduct
d)Expectedproduct
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17. 3.Insuranceisanexampleof goods.
a)Specialitygoods
b)Unsoughtgoods
c)Shoppinggoods
d)Basicgoods
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18. 4.Whenmanufacturerofhighqualityproductsstarts sellingalowquality
productswithalowpriceiscalled
a)Tradingdown
b)Diversification
c)Tradingup
d)Noneoftheabove
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