Module – 6 Elements of the Extended Marketing Mixbms.lk/download/GDM_Tutorials/batch-37/Marketing...
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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
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
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation fromthe United States edition of Marketing Management, 14e.
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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
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
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation fromthe United States edition of Marketing Management, 14e.
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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
Stakeholder Marketing – Assignment Option o1Marketing Mix
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
Stakeholder Marketing – Assignment Option o1Marketing Mix
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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
Refer : Page 313 ( Marketing Management 14th edition)
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
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation fromthe United States edition of Marketing Management, 14e.
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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
Introduction to Marketing Mix Product Price Place Promotion People Process Physical Evidence Integration of the Marketing Mix
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation fromthe United States edition of Marketing Management, 14e.
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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
Refer : Page 380 ( Marketing Management 14th edition)
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Marketing Channel Levels
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)
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation fromthe United States edition of Marketing Management, 14e.
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Marketing Channel Levels
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
Refer : Page 383 ( Marketing Management 14th edition)
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E-Commerce in Managing ChannelStrategy
Virtual Marketing Strategy
Refer : Page 395 ( Marketing Management 14th edition)
V 09
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M-Commerce in Managing ChannelStrategy
Mobile Based Marketing Strategy
Refer : Page 398 ( Marketing Management 14th edition)
V 11
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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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What is Promotion
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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)
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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
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Communication Mix
o Advertising
o Personal Selling
V 05 / V 06
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Communication Mix
o Direct Marketing
o Sales Promotions
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Communication Mix
o Public Relations
o Sponsorships
V 07 / 08
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1-40Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation fromthe United States edition of Marketing Management, 14e.
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
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation fromthe United States edition of Marketing Management, 14e.
1-41Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation fromthe United States edition of Marketing Management, 14e.
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
Introduction to Marketing Mix Product Price Place Promotion People Process Physical Evidence Integration of the Marketing Mix
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation fromthe United States edition of Marketing Management, 14e.
1-43Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation fromthe United States edition of Marketing Management, 14e.
People
People factor refers to
…….
V 13
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Chapter Contents
Introduction to Marketing Mix Product Price Place Promotion People Process Physical Evidence Integration of the Marketing Mix
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation fromthe United States edition of Marketing Management, 14e.
1-45Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation fromthe United States edition of Marketing Management, 14e.
Process
Process refers to …….
V 10 / 12
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Chapter Contents
Introduction to Marketing Mix Product Price Place Promotion People Process Physical Evidence Integration of the Marketing Mix
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation fromthe United States edition of Marketing Management, 14e.
1-47Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation fromthe United States edition of Marketing Management, 14e.
Physical Evidence
Physical Evidence
refers to …….
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Chapter Contents
Introduction to Marketing Mix Product Price Place Promotion People Process Physical Evidence Integration of the Marketing Mix
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation fromthe United States edition of Marketing Management, 14e.
1-49Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation fromthe United States edition of Marketing Management, 14e.
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
Introduction to Marketing Mix Product Price Place Promotion People Process Physical Evidence Integration of the Marketing Mix
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