 Product  Price Place  Promotion  The Marketing Mix

Product Development Product Design 1. Form – What the product looks like Eg. Honda Civic vs. Ford Windstar Minivan Eg. Honda Civic vs. Ford Windstar Minivan 2. Function – What is the product designed to do? Eg. High top running shoes to support your ankles while playing basketball Eg. High top running shoes to support your ankles while playing basketball

Product Development Packaging Protects the product from the elements and damage Protects the product from the elements and damage Provides easy use for the consumer Provides easy use for the consumer Labels provide essential information Labels provide essential information Eg. Nutritional information, ingredients,

Product Development Branding The name, design, or symbol that identifies the good or service. The name, design, or symbol that identifies the good or service.

Pricing Strategies What price are consumers willing to pay? What price are consumers willing to pay? How will the price reflect the quality (value) of the product? How will the price reflect the quality (value) of the product? $199 vs. $200 $199 vs. $200

Product Placement Channels of Distribution The paths of ownership that the goods follow as they pass from the producer to the consumer. The paths of ownership that the goods follow as they pass from the producer to the consumer. The product does not change as it moves through the channels The product does not change as it moves through the channels Intermediaries take possession of the goods before the final consumer does and adds an additional cost to the product in order to make a profit Intermediaries take possession of the goods before the final consumer does and adds an additional cost to the product in order to make a profit

Product Placement Direct Channels The product is sold directly to the consumer by the producer The product is sold directly to the consumer by the producer Eg. Roadside Fruit Stand

Product Placement Indirect Channels Products travel through one or more intermediary before reaching the final consumer Products travel through one or more intermediary before reaching the final consumer Eg. Retail Store

Product Placement Specialty Channels Any direct or indirect channel that does not involve a retail store Any direct or indirect channel that does not involve a retail store

Promoting the product Advertising The paid-for promotion of a business’s goods and services over a variety of mass media to target a market of consumers. The paid-for promotion of a business’s goods and services over a variety of mass media to target a market of consumers. Ads give the consumer information about the product Ads give the consumer information about the product Eg. What, Where, Why, How Ads vary depending on the stage in the Product Life Cycle Ads vary depending on the stage in the Product Life Cycle

Promoting the product Sales promotions Used to encourage the consumer to buy the product Used to encourage the consumer to buy the product Eg. coupons, contests, premiums, samples, and special events