Product (Marketing Mix)

Topic 1 - Product Management (summer exam)

Name the “Traditional Marketing Mix”

The 4’Ps

• Product

• Price

• Place

• Promotion

Traditional Marketing Mix definition

The elements an organisation can be use to satisfy or communicate with customers

What are the core decision variables in any marketing plan

Traditional marketing mix

What are the key requirements on performing marketing successfully

The 3’Cs

• Customers

• Competitors

• Company

Define a product

Anything which can be offered to satisfy needs / wants of a market

What is the first step of “Marketing Mix Planning”

Create something that offers customer satisfaction

(5) Products can be … (atleast 3)

• Services

• Ideas

• Objects

• Places

• Organisations

Difference between Products / Branding

• Branding - How a brand presents itself and wants to be perceived by the customers - distinguishing itself from competitors

• Products - Anything that can be offered to the market for customer satisfaction

Branding example

• Keogh’s

  • Use of earthy tones (browns, greens, cream, rose gold) to communicate quality produce

  • Packaging illustration - showing quirky humour

  • Spud Nav - authenticity (trace potatoes origin…)

  • Language & tone

    - “Grown with love” (Irish heritage)

    - “Hand cooked” (sustainable)

What is the key focus for branding

Perception

Define “Product Mix” (with example)

• The total variety of products a company offers

  Eg:

  • All Samsung Products - (TV, Smartphones, Fridges, …etc)

Difference between “Product Line” and “Product Extension” with example for each

PRODUCT LINE
- A group of related products under the same brand that share similar function or target the same market.

• Eg: REM Beauty - (offering lip markers, Lipsticks, Lip oils)

PRODUCT EXTENSION

- Different versions of existing product line

• Eg: Coca-Cola - (offering Coke zero, Diet Coke, Cherry Coke)

Define “Product Divesification” with example

Is when a company offers entirely new products for a new target audience

eg:

Apple

• Offers streaming services (Apple TV)

• Offers mobile devices (iPhone)

(4) What is The Product Mix made up of

• Width

• Length

• Depth

• Consistency

“Width” refers

• The number of different product lines offered

  Eg:

  • Apple - Desktops, notebooks, tablets etc

“Depth” refers to

• The number of options available within each product line

  Eg:

  • REM Beauty offering 60 shades of their concealers

“Length” refers to

• The total number of products across all product lines

“Consistency” refers to

• The degree of similarity between the product lines in terms of production, distribution, or end use

(4) Importance of Product Mix

• Customer Satisfaction - due to multiple options

• Market Coverage - due to inclusivity

• Risk Mitigation - If people stop liking certain product, there’s other versions

• Competitive Advantage - companies with unique product mix stand out

Product Bundling

When companies offer deals where customers can buy 2 things at lower price

Product Diversification

When companies create new products from what they normally sell

Product Line Extension

When companies add new versions of existing products to attract more customers

Augmented Product

A product that offers additional after sale service & additional brand values.

• Eg:

  Fast food restaurants offering delivery services

(4) How can businesses increase sales with Product Mix decisions

• Depth, length, width, & consistency

• Product Bundling

• Partnering with other brands - offer limited edition (Keough’s x Guinness)

• Innovation and differentiation - Eg: QR Code (Keough’s Spud Nav)

Core Product

• Problem solving services or benefits that customers seek when they buy a product. 

• The real core of benefits or service

  Eg: transportation , communication, entertainment, hunger

(4) Marketers should pursue “Differentiation” by focusing on

(its fonts)

• Product

• Price

• Place

• Promotion

Eg: Nespresso differentiates itself by maintaining a luxury perception through its

- Product (packaging design, colour scheme)

- Price (luxury pricing)

- Place (Espresso boutiques, Top dep. store - brown thomas etc)

- Promotion (celebrity endorsements - George Clooney)

What adds value to the product

Packaging

(5) Functions of Packaging

• Protection

• Convenience

• Economy

• Promotion &

• Information