1. Click to add text Principles of Marketing Fall 2013 Lecture Slides 4 Instructor : RAZA ILLAHE Lahore Leads University

2. The MARKETINX MIX. Marketing mix—“The set of controllable tactical marketing tools – product,price, place and promotion – that the firm blends to produce the response it wants in the target market.” The marketing mix consists of everything the firm can do to influence the demand for its product. The marketing mix revolves around ‘four Ps’: product, price, place and promotion

3. Marketing Mix and 4 P's Product,Price,Promotion and Place are discussed in detail in later lectures. PRODUCT “Anything that can be offered to a market for attention, acquisition or consumption that might satisfy a want or need.” It can include physical objects, services, persons, places, organisations and ideas.

4. 4 P's PRICE “The amount of money charged for a product or service, or the values that consumers exchange for the benefits of using the product or service.” PROMOTION “Activities that communicate the product or service and its merits to target customers and persuade them to buy.” PLACE All the company activities that make the product or service available to target customers.

5. Marketing Mix and its 4P's

6. PRODUCT - in detail PRODUCT Anything that can be offered to a market for attention, acquisition, or consumption that might satisfy a want or need. It includes physical objects, services, persons, places,organisations and ideas.

7. Products bought to satisfy personal and family needs are consumer products. Products bought for the purposes of resale or to be used to make other products are industrial products.

8. CLASSIFICATION of CONSUMER PRODUCTS Consumer Products can be classified into following : Convenience products : Cheap, frequently purchased items that do not require much thought or planning. The consumer typically buys the same brand or goes to the same shop. Examples are newspapers, basic groceries and soft drinks. Shopping products : The products consumers shop around for. Usually infrequently purchased items such as computers, cars, DVD player or household appliances. From the manufacturer’s viewpoint, such products require few retail outlets, but will require much more personal selling on the part of the retailer

9. Speciality products : Consumers plan the purchase of these products with great care, know exactly what they want, and will accept no substitutes. Such products are usually expensive and different from others.The consumer's efforts go into finding an outlet that can supply exactly the item needed. Examples include designer clothes,Wedding Dresses,Diamonds,Antiques,Luxury Cars. Unsought products : These products are not bought; they are sold. Examples are life insurance, fitted kitchens and phone directories. While most people would recognise the need for these items, it is rare for consumers to go out looking for them. These products are usually sold through aggressive sales efforts.

10. Levels of Product Product planners need to think about the product on three levels. Each level adds more customer value. The most basic level is the core product, which provides core benefit to the consumer and addresses the question: What is the buyer really buying? Core Product :The problem solving services or core benefits that consumers are really buying when they obtain a product. For example, the core benefit of buying a car is transportation of the owner,passengers and luggage. Actual product — A product’s parts, quality level, features, design, brand name, packaging and other attributes that combine to deliver core product benefits For example,The actual product bought will differ from other cars in terms of its features, design, performance etc. Augmented product — Additional consumer services and benefits built around the core and actual products.For example,considerations of after-sales service, delivery etc which need to be taken into account.