EEBA AFSAR BBM 3rd SEM 097512
Marketing as defined by many marketers as they start out in the industry is “Putting the right product in the right place, at the right price, at the right time.” Therefore in simple terms you need to create a product that a particular group or groups of customers want, price it at a level which matches the value of the product as perceived by them, deliver it in a manner in which it reaches out to your customer and do all that at a time they want to buy. But this process is very critical and requires a lot of hard work and a single mistake can lead to a big disaster, for example selling a fuel-economic car in a country where fuel is cheap. The marketing mix is a good place to start when you are thinking through your plans for a product or service, and it helps you avoid these kinds of mistake. The marketing mix helps you define the marketing elements for successfully positioning your market offer. The term "marketing mix" was first used in 1953 when Neil Borden, in his American Marketing Association presidential address, took the recipe idea one step further and coined the term "marketing-mix". A prominent marketer, E. Jerome McCarthy, proposed a 4 P classification in 1960, which has seen wide use. Definition of marketing mix by the American Marketing Association: “The mix of controllable marketing variables that the firm uses to pursue the desired level of sales in the target market.” Thus marketing mix consists of the major controllable variables that the firm blends to produce the desired market response. Mix coherency refers to how well the components of the mix blend together. For e.g. a strategy of selling expensive luxury product in discount stores has poor coherency between distribution & product offering. As mentioned earlier, these controllable variables can be classified as the 4 P’s of marketing which are: • Product
In case of service marketing now a days three more Ps have been added to the marketing mix namely People, Process and Physical Evidence. This marketing mix is known as Extended Marketing Mix. A marketing mix is a combination of these four P’s in a way that will meet or exceed the marketing objectives. In order to gain competitive advantage and position their product/service above their competitor’s product/service in the minds of customers a company should provide greater value than their competitors, either by providing value at lesser prices than their competitors or by providing more value if they decide to keep higher prices. A company can gain competitive advantage by differentiating their value proposition on the basis of product, services, channel, people or image but they need to know which differences they should promote in order to gain competitive advantage. Choosing the appropriate marketing mix can help the company to gain competitive advantage by helping to know the appropriate value proposition which the company should offer.
A product may be defined as the combination of goods and services which the organization offers to the target market. It is defined broadly enough to include services, programs, and attitudes and includes whatever is offered to the target market in an effort to meet their needs. It involves all tangible and intangible aspects of the good or service which are a part of the offer. These are things which have value and are balanced against the value the organization expects to receive from the target consumer. Therefore if a television is considered as a product then a tourist destination and the services offered by a beautician are as much a product as the television.
Three levels of product -
• Core Product- It does not include the...