Lect 3 - Market Mix

Market Mix
Market Mix
 Market Mix means that the project should put
the right product, in a right place, at the right
time, and at the right price.
 7 Ps:
 Product • People
 Price
• Process
 Place
 Promotion • Physical evidence
Market Mix
1. Product
 A product is an item that is produced to satisfy
the needs of a certain group of people.
 The product can be tangible or intangible as it
can be in the form of services or goods.
 The right type of product that is in demand for
your market should pass through design,
research and development.
A product life cycle includes the introduction,
growth phase, the maturity phase, and the
decline phase.
Product Life Cycle Stages
A product life cycle
is the length of
time from a
product first being
introduced to
consumers until it
is removed from
the market.
Product Life Cycle
 Introduction: It is introducing a feasible and potentially
profitable product to the market
 Growth: The product faces a rise in demand and
popularity
 Maturity: The product has a drop in marketing and
production costs.
 Decline: Product demand decreases and the product
may be replaced by another innovative product or a
new alternative in the market, or keep reinventing and
innovating with an existing product.
Strategies through product life cycle
 Introduction: Develop a marketing (Ad) Strategy to
avoid failures. Many companies prefer to follow an
innovative pioneer, improving an existing product
rather than releasing their own product.
 Growth: Branding becomes important to maintain the
product position & overcome competitors.
 Maturity: Branding, price and product differentiation,
to maintain a market share, reaching market
saturation (low or no gained profits).
 Decline: Moving into different ventures or survive by
continuing production on a smaller scale low prices
and low profit margins or re-developing the product.
Exercise
 Determine the stage of life cycle of the
following products and state why:
 Typewriters
 Video Cassette Recorders (VCRs)
 Electric Vehicles
 Robots
 Cars
2. Price
 The price is the amount that a customer pays for the
product to consume or use or enjoy it.
 Prices help shape consumers’ perception of the
product, marketing strategy, sales and demand of the
product.
 Options for setting the price:
 Low price may means an inferior good while too high
Prices will mean higher costs for the consumer.
 Price skimming: Initial price is set at high level and then
lowered in order to ‘skim’ or attract consumer groups as the
market grows.
 Price penetration: setting the price low to reach as much of
the market as quickly as possible before increasing the price
once the product is established in the market.
3. Place or Distribution
 The place: it is the position and distribution
channels of the product that is accessible to
potential buyers.
 Distribution Strategy:
A strategy or a
plan to make a
product or a
service available to
the target
customers through
its supply chain.
Distribution strategies
 Intensive distribution: Placing the product in every
available distribution channel. The company tries to
position the product into as many places as possible from
a small vendor to a big store. The company will have to
produce a large quantity of products, a large number of
outlets, will have to deal with many different wholesales,
retailers, direct-to-consumer sales.
 Ex: Juice, Cola, Soap, ……
 Exclusive distribution: The company allows only one
wholesaler, retailer or distributor in a specific geographical
area to sell products and brands that seek a high
prestigious image.
 Ex: Cars, Classy clothes, home appliances, furniture
Distribution strategies
 Selective distribution: The company selects only limited
number of outlets in a geographical area to sell products.
It can choose the most appropriate or best-performing
outlets. Consumers should have a preference for a
particular brand or price to search for it in the outlets.
 A medium level of product availability that balance
product availability with inventory and storage costs.
 Franchising: A franchisor the company lends out provides
legal authorization for its brand name and image to be used
by a third party known as the franchisee. The franchisee
usually pays royalties and/or percentage of annual profits in
return for using the brand and have rights for proprietary
knowledge, processes, and trademarks of the franchisor.
4. Promotion
 Promotion activities includes advertising, Public Relations
(PR) activities, direct marketing and sales Promotion, and
in-store promotional activities, that help marketing your
product to new demographics and geographical areas in
order to grow revenue stream
 Digital promotion includes online events, chats, social
media groups, and livestreams.
 Advertising covers communication methods like television
Ads., radio commercials, print media, and internet Ads.
 Packaging The wrapping material around a product that
serves to contain, identify, describe, protect, display,
promote and make it marketable and keep it clean.
5. People
 Customer service to increase sales, and
increase your customer base by referrals who
love your brand and can also support your
sales process .
 Company representatives: Employees or
People who represent your brand or deals with
customers should be fully trained as sales
professionals with an intimate knowledge of
your product and how it will improve the lives
or solve the problems of your customers.
6. Process
 Process of delivering products to the
consumer should be designed for
maximum efficiency and reliability, but
may also include features that are in line
with your brand, such as
being environmentally or sustainably
focused.
 Partnerships for online shopping, digital
and logistics have become an essential
part of the processes.
7. Physical Evidence
 Physical evidence incorporates aspects that proves your
brand exists and that a purchase took place.
 Proofs of brand exist includes: physical store or office
for, an online website and printed business cards.
 Proofs of purchases include physical or digital receipts,
invoices, or follow-up email newsletters send to
customers.
 It takes into consideration all the things your customer
sees, hears, smells in relation to your product or service,
how products are displayed in stores, where they are
placed, and the context in which they sit, as well as
digital placement, including on your website and social
media.

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Market Mix

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