Marketing Mix Decisions � Part 2

Marketing Mix Decisions – Part 2 : 

By DSK Marketing Mix Decisions – Part 2 4/18/2010 1 Marketing by akash

Differentiation : 

Differentiation To be branded, products must be differentiated. There can be various ways and means of differentiation 4/18/2010 2 Marketing by akash

Methods of product differentiation : 

Methods of product differentiation Form Differentiation The size, shape, or physical structure of a product Features differentiation Calculate customer value and company cost Avoid feature fatigue Trim levels (variants) Customization Mass customization 4/18/2010 3 Marketing by akash

Contd.. : 

Contd.. Performance quality Mercedes - Benz Conformance quality Conform to basic features of the product class Durability Reliability Reparability (after sales support) Style 4/18/2010 4 Marketing by akash

Design differentiation : 

Design differentiation When the offering has got a unique design Design is a totality of features that affect how a product looks, feels, and functions in terms of customer requirement 4/18/2010 5 Marketing by akash

Services differentiation : 

Services differentiation Ordering ease (Domino’s Pizza) Delivery Installation (How to get the product fucntional) Customer training (Maruti Driving school) Customer consulting Maintainance and repair (Chevrolet Spark) Returns (Mobile store) 4/18/2010 6 Marketing by akash

Product and Brand relationships : 

Product and Brand relationships 4/18/2010 7 Marketing by akash

The product Hirarchy : 

The product Hirarchy Need Family (Security) Product Family (Savings and Income) Product Class (Financial Instruments) Product line (a group of products within a product class that are closely related because they perform a similar function – Life Insurance) Product Type (Money back policy) Item or stockkeeping unit or product variant (LIC Jeevan Anand) 4/18/2010 8 Marketing by akash

Product Line : 

Product Line A product line may consist different brands or a single brand family or individual brand 4/18/2010 9 Marketing by akash

Product mix : 

Product mix Product mix (also Called product assortment) Consists of various product lines 4/18/2010 10 Marketing by akash

Product mix : 

Product mix 4/18/2010 11 Marketing by akash

Product mix : 

Product mix A company’s product mix has certain Width (How many different product lines) Length (Total number of items in the mix) Depth (How many variants are offered of each product in the line) Consistency (How closely related product lines are) 4/18/2010 12 Marketing by akash

Unilever : 

Unilever 4/18/2010 13 Marketing by akash

Product line analysis : 

Product line analysis BCG Matrix can tell you what to do with different products Even advance tools can be utilized for that Product Mapping (similar to perceptual mapping) 4/18/2010 14 Marketing by akash

Product Line length : 

Product Line length Company objectives influence product line length Up selling (Maruti 800 to Maruti Alto) Cross selling (HP printers and computers both) 4/18/2010 15 Marketing by akash

How company lengthens its line : 

How company lengthens its line Line stretching Line filling 4/18/2010 16 Marketing by akash

Line stretching : 

Line stretching It can be Down market stretch (lower priced versions to be introduced) Up market stretch (High price versions to be introduced) Two way stretch (High and low price versions both) 4/18/2010 17 Marketing by akash

Line filling : 

Line filling Line filling is over done if it results in self cannibalization and customer confusion The needs to differentiate well to make it noticeable Relative and absolute difference 4/18/2010 18 Marketing by akash

Line Modernization : 

Line Modernization Intel keeps coming with newer variants of microprocessors 4/18/2010 19 Marketing by akash

Line featuring : 

Line featuring When a feature in a specific product item is showcased to attract the customers Like the lowest priced version of car or bike is advertised to bring you to the showroom 4/18/2010 20 Marketing by akash

Line prunning : 

Line prunning Unilever eliminated three quarters of its 1600 distinct brands by 2003. More than 90% of the profits come from just 400 brands Multi brand companies always like to correct their product portfolio 4/18/2010 21 Marketing by akash

Slide 22: 

Any questions 4/18/2010 22 Marketing by akash