1. Marketing Management Part 1

2. Marketing Mix Review Four P’s of marketing –Product –Place –Price –Promotion The fifth P is People –Your target market Marketing management is how you make decisions about how to use the marketing mix variables

3. Product Product is the focal point of the decisions in the marketing mix. Price, place, and promotion are product specific in that each is tailored to a particular product category, item, line, or market. Marketers strive to differentiate their products from their competitors. What does differentiate mean?

4. Product differentiation Using the marketing mix variables to make a unique product offer that stands out from the competition Tools include branding, quality, location, image, product features, packaging, promotion, innovation, and different service levels

5. Product Classification Goods and services Range along a continuum from pure goods(chair) to mixed goods/services(McDonald’s hamburger) to pure services(hair cut) US economy is dominated by services. Most fully industrialized nations are service economies. Goods –durable goods-long-lasting, replace infrequently(TV) –nondurable-replaced frequently(toilet paper)

6. Consumer products Types of consumer products –convenience-familiar, low price, substituions staples:bread, milk, toilet paper Impulse: candy bars, chewing gum, tabloids Emergency: candles in stormy weather, umbrellas –shopping goods-seek to compare style & prices, less frequently purchased (name brand clothing) –specialty goods-special effort to shop in a particular store, substitutions not accepted, prices high –unsought goods-consumer doesn’t know about product or does know & ignores them (casket)

7. Industrial products Types of industrial products –materials/parts-raw materials (wheat) and manufactured parts and components (steel) –capital items-installations, plants, assembly lines, & accessory equipment such as trucks and tractors –Supplies/services-maintenance equipment supplies, repairs, office supplies, and business services like tax accounting, temporary placement services

8. Total product Sum of three parts –core-basic product, nothing more than the bare minimum; the physical good or the performance of a service –augmented-added value the customer expects: brand name, design elements, quality, packaging, labeling, repairs, warranties, delivery, etc. –potential-everything that could be added to increase the value of the product

9. Total Product Example Core: Skateboard Augmented: –Alien Brand Name –$76.99 –Available to order on- line –In-stock Potential –Hoverboard –Reinforced suspension

10. Perspective of product government:something to regulate, to test for safety, to encourage competition marketer: to bring company success, reach goals, generate revenue, advance career distribution system members:to be moved from producer to consumer to generate profits consumers: satisfy wants and needs, solve problems, deliver psychological benefits competition: to attack, to copy, to beat in the market