-Is a process that involves the

Developing the conceptualization and creation of new

Marketing Mix product.

Stages of product development

Marketing Mix
Is the set of strategies that marketers use  Idea Generation - searches for and
to effectively determine the needs of their surveys new ideas.
target markets, and to sell products that  Idea Screening - weighing possible
will respond to these needs pros and cons
 Concept Development and
The Elements Of Marketing Mix Screening - transitioning from idea to
Products – are the tangible objects that a concept
company sells to customers  Market and Business Planning -
Price – set amount customers have to pay planning on how to market
Place – channel of distribution  Product Development - the creation
Promotion – communication to increase of the prototype
the target customer’s knowledge of the  Product Prototype - the output
created
product
 Test Marketing - product testing to a
group of customers (sample size) in
PRODUCTS terms of marketability with a specific
-are the tangible objects that a location
 Commercialization - product
company sells to customers
launching
 Soft Launch - product testing
Levels of Product to a group of customers
Core Product (sample size) in terms of
-is the reason or the benefit that a customer useability
can get out of that product  Full-Scale Launch - official
Actual Product launching that includes the
-The tangible properties of the product; the 4Ps of Marketing.
features and packaging
Augmented Product Product Line
-Add-ons aside from what is being offered. -Is a group of similar products offered by the
same company
Classification of Products Example: Hair Care, Skin Care, Toilet
Consumer Goods and Bath,
-Products/goods purchased by consumers for Product Life Cycle
their own use.
Example: food, haircut and clothes
Introduction - The product is
Industrial Goods
launched in the market
-Products/goods that are purchased to be
used in the creation of new product. Growth-gains acceptance in the
Example: Metals, mineral market
Maturity - been a market player
New Product Development and competition has also increased.
 Decline - profits and sales continue -Selling price is set based on the competitors
to decrease. price
 Sunset - Until supply lasts
Setting the Price for a Product
 Harvest - discounts or
markdowns
 Marketing Objectives-pricing
 Concentrated - tie up or
depends on the goals of the company.
focus to one segment
 Research and development costs -
pricing depends on the expenses
Marketing Strategies for Service incurred in research and development
Firms of new product.
 Market structure - pricing depends on
 Selecting and Training Employees the structure of the market.
 Monopoly- prices are set
 Associating effective customer
primarily by the manufacturer
service with employee motivation
 Oligopoly-one seller may set
 Delivering high-quality service the price and all others will follow
 Elasticity of Demand - relationship
 Building a strong and loyal customer between consumer demand and the
base changes in the price of goods
 Elastic demand-consumers
Price respond to a change in price.
 Inelastic demand-consumers do
-set amount customers have to
not respond to a change in price.
pay
 Perfectly elastic demand -
Pricing Approaches find favorable substitute to a product
In cost pricing  Laws-setting of price based on
 Selling price- is computed using the regulations.
fixed and variable cost Pricing Schemes
 Fixed costs - expenses which firms
cannot do away regardless of
production In product bundle pricing
 Variable costs - direct expenses on - individual products are put together to
materials and labors create one whole bundle.
 Mark up- added amount that will
Main or Captive product
determine the profit.
 Sales Forecast - estimation of pricing
quantity of goods that can be sold - main product is charge at lower price
 Demand Forecast - estimation of but additional charge go with it.
the market demand of a good in the Product line pricing
future - price varies on the variations of
 Break-even -point when revenue goods.
equals the expenses
Perceived value pricing Market penetration pricing –
-Selling price is set based on the customer's - initially setting a low price to attract
perceived value customers.
Competitive Pricing
Market skimming  Limited line wholesalers - provide
- starts with higher price then an assortment of goods that are
gradually decreasing limited to a few specific product lines
but offer a broad selection
 Specialty line wholesalers - single
product line but offer extensive
Place service
-The channel of distribution with o Rack jobber- maintains the
displays and stock of goods
the use of marketing
 Brokers and agents- third party
intermediaries business transactions
o Brokers - facilitate the
Channel of distribution- is purchase of goods between
classified according to distribution intensity buyers and sellers
o Agents-act in behalf of the
 Intensive-needs many seller.

intermediaries
Retailing - selling of products directly to
 Selective-needs few the final consumer
intermediaries
 Exclusive-only one
Retailers- individuals engaged in
retailing
intermediaries
Types of Retailing
Marketing intermediaries
o Sari-Sari Stores
- an entity that links producers and
-small retail shops found in the
consumers
neighborhood

Manufacturers - makers of the product o Supermarkets

-there's high efficiency in providing
the product
Distributorship - selected by
manufacturers to buy goods for resale o Drugstores
-composed of pharmacies found in
Wholesaling-selling of products for malls or stand alone in convenient
business use location
Merchant wholesalers - buy o Department Stores
goods in bulk and resell them with a mark - large stores which offer a variety of
up products that are organized into
Full service wholesalers - departments.
provide wide range of services to their o Convenience Stores
customers such as recruitment, inventory - stores that carry a limited number of
and delivery of goods goods

 General merchandise wholesalers

o Hypermarkets
- offer wide variety of goods - a huge superstores that are bigger
and more spacious than supermarkets.
 o Non store retailing Consumer Schemes
-selling of goods in mediums outside -sales promotions intended for consumers
a physical store like e-commerce Example: Discounts, coupons, cash
rewards, gift certificates

PROMOTION Trade promotions

-sales promotions intended for wholesalers
Advertising -non personal form of and retailers.
communication and the most expressive of
promotion types. Public Relations
-communicating with the media and the
• Examples public for positive image
Television - most widely used
medium
Direct Marketing
Billboards-placed along highways
-communicates with consumers directly
Elements without the help of middlemen
Reach-percentage of exposed target
market Call to action
Frequency-number of times it reached to - gives marketers an effective way to
the target market evaluate the effectiveness
Impact-value of exposure
Example: Door to door, emails,
telemarketing, direct response tv, e-
Objectives commerce
 To inform
 To persuade
 To compare
 To remind
Execution
Lifestyle - the way you live
Slice of Life - day to day activities
Fantasy - exaggeration
Mood - a spur of the moment emotion
Musical - through music
Technical/Scientific Evidence - to
assert a product's superiority
Testimonial-feedbacking
Personal Selling
-face to face technique using the art of
persuasion through the sales person's
knowledge and skills

Sales Promotion
-activities which help increase sales for a
product or service