Download Marketing Mngmt I

Marketing Management
Part 1
Marketing Mix Review
• Four P’s of marketing
–
–
–
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Product
Place
Price
Promotion
• The fifth P is People
– Your target market
• Marketing management is how
you make decisions about how
to use the marketing mix
variables
Product
• Product is the focal point of the decisions in
the marketing mix.
• Price, place, and promotion are product
specific in that each is tailored to a
particular product category, item, line, or
market.
• Marketers strive to differentiate their
products from their competitors. What does
differentiate mean?
Product differentiation
• Using the marketing mix
variables to make a unique
product offer that stands out
from the competition
• Tools include branding,
quality, location, image,
product features, packaging,
promotion, innovation, and
different service levels
Product Classification
• Goods and services
• Range along a continuum from pure goods(chair)
to mixed goods/services(McDonald’s hamburger)
to pure services(hair cut)
• US economy is dominated by services. Most fully
industrialized nations are service economies.
• Goods
– durable goods-long-lasting, replace infrequently(TV)
– nondurable-replaced frequently(toilet paper)
Consumer products
• Types of consumer products
– convenience-familiar, low price, substituions
• staples:bread, milk, toilet paper
• Impulse: candy bars, chewing gum, tabloids
• Emergency: candles in stormy weather, umbrellas
– shopping goods-seek to compare style & prices, less
frequently purchased (name brand clothing)
– specialty goods-special effort to shop in a particular
store, substitutions not accepted, prices high
– unsought goods-consumer doesn’t know about product or
does know & ignores them (casket)
Industrial products
• Types of industrial products
– materials/parts-raw materials (wheat) and
manufactured parts and components (steel)
– capital items-installations, plants, assembly
lines, & accessory equipment such as trucks
and tractors
– Supplies/services-maintenance equipment
supplies, repairs, office supplies, and business
services like tax accounting, temporary
placement services
Total product
• Sum of three parts
– core-basic product, nothing more than the bare
minimum; the physical good or the performance of a
service
– augmented-added value the customer expects: brand
name, design elements, quality, packaging, labeling,
repairs, warranties, delivery, etc.
– potential-everything that could be added to increase
the value of the product
Total Product Example
• Core: Skateboard
• Augmented:
– Alien Brand Name
– $76.99
– Available to order online
– In-stock
• Potential
– Hoverboard
– Reinforced suspension
Perspective of product
• government:something to regulate, to test for safety,
to encourage competition
• marketer: to bring company success, reach goals,
generate revenue, advance career
• distribution system members:to be moved from
producer to consumer to generate profits
• consumers: satisfy wants and needs, solve problems,
deliver psychological benefits
• competition: to attack, to copy , to beat in the market