04-10-2019

MM-2 Module – 1a
Managing Marketing Mix
Stories, Activities & Learnings

Representation of Marketing Process

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PRAVAT SURYA

Marketing: Essence
Four Ps (product, price, place, and promotion), Five Cs (customers, company,
competitors, Collaborators & context), Service Orientation and
Exchange.

Three implementation principles, i.e. Customer Value

(maximization), Selectivity and Concentration (for productivity
maximization), Differential Advantage (over competition or cost).

Three defining features of marketing Market research, Monitoring

and Influencing Environmental Forces, and an integrated approach
(The Holistic Marketing).

PRAVAT SURYA

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The Modern 4Ps

• Marketing is as good as the employees (people inside) and understanding of
consumers (people outside) for whom the firm exists. – People (? Value
Sensing)

• All the creativity, discipline, and structure brought to marketing

management. – Process (? Value Creation)

• All consumer-directed activities of the firm. It encompasses the old four Ps

and others. – Programs (? Value Delivery)

• All the financial or other measures like - profitability, brand & customer equity,
also legal, ethical, and community etc. related implications. – Performance (?
Value Capturing)
PRAVAT SURYA

Review
Marketing Schemata Vs. Plan,
Selling vs. Marketing; Customer or
Marketing orientation; Marketing 1.0
Vs. 2.0 Vs 3.0 Vs 4.0
Market / Marketing Problem? &
Elements of a Research Report’s
5 Stages of Buying Decision Process &
5 Sets of brands in buying Decision

Value? Value Chain & Value Network? What is STP? Why Care?
Market, Meta Market & Market Space

Potential, Available, Target and Tag Line, Brand Mantra, Elevator Pitch,
Penetrated Market; Share of Market, Value Proposition, Positioning
Share of Mind & Share of Heart Statements

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Overview
Intro Overview, Selective Recap & Marketing Mix 1
Module-1 Product & Service Policy (How we create value?) 5
Module-2 Pricing (How value is exchanged) 4
Module-3 IMC (how the value is communicate) 4
Module-4 Place (How is it delivered – Channel / Distribution) 4
Project Hands on practice - Presentation and conclusion 2

• List elements of Marketing Mix, explain role of each in creating value.

• Describe product, service strategy and new product development.
• Describe the nature of branding, evaluate brand extensions.
• Compare different Pricing Models
• Evaluate different Channels of Distribution of existing businesses
• Overview of the domain of marketing promotion
• Critique Advertising execution, create a persuasive Advertising piece
• Develop a Marketing Plan proposal
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Evaluation Scheme & Rules

Assignment/ Case / Participation 30%
Mid Term Exam 20%
End-term Project 20%
End Term Exam 30%

CR? We shall use GG Groups!

By next session let me know your project preference.

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Presentation schedule
Session-1 Intro – Marketing Mix, Spotify Case
Session-2 Product levels & Classifications, Brand Mix VI John Case
Session-3 Product Mix analysis, (& project review)
Session-4 Services Intro (Quiz-1)
Session-5 Service Rest & NPD intro. IKEA Case - 2 / 3
Session-6 NPD Rest (commuter cleaners). Product Review (articles)
Session-7 Price Intro (Quiz-2)
Session-8 Pricing Game
Session- 9 Soren Chemical
Session-10 Value Creation Review (Selected articles)
Mid term Management of Product and Price

Marketing (Mix) plan – Strategy Report

• Product / Brand and Business
Introduction
• Challenges - Motivation of the
study
• Situation Analysis (SWOT,
PESTEL, 5F etc.)
• Value & STP
• Marketing Objectives &
assumptions
• Marketing Mix and Details
• Optional Consumer Research
• Forecasts & Budgets
• Alternative Plans
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MM-II: Marketing Mix –> Module-1a

Course Marketing schematic Classifications of

Intro Value Co-Creation Marketing Mix

MM-II: Product & Brand (Module-1a )

Customers’
Product Levels Perspective Select
& Hierarchy
Firms’ Perspective
items of
Product Consumer & Industrial the Quiz
Product Classification Goods
Policy Product and Analysis of Product
Brand Mix and Brand Map
Brand Persona &
Differentiation
attitude

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Spotify!
1. Context & the business of
Spotify?

2. How it create value? Service

Ecosystem!

3. Which of the Marketing Mix

elements can you identify?

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Service
Ecosystem
Marketing Mix
(Spotify)

❖ Product
❖ Place
❖ Price
❖ Promotion
❖ People
❖ Process
❖ Physical Evidence

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Commuter Cleaners & the 4Ps

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Additional Ps for Services

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Classifications of Marketing Mix Elements

Core Idea and the Marketing Mix Story
➢ Acceptability, Accessibility, Awareness, Affordability (4 As)

➢ Customer, Communication, convenience, Cost – (4Cs) caring, co-ordinated,

& confirmation (7Cs)

➢ Solution, Information, Value, Access (SIVA)

➢ People, Process, Program, Performance (New 4 Ps of Kotler)

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Product Policy
INTRODUCTION

➢ Why we need to comprehend “hierarchy level” of products’?

➢ How companies design winning products and brands?
➢ How marketers classify products or Market offerings?

Commuter Cleaners (CC) – Same day service!

Same core benefit in
improved form
How can Commuter
Cleaners Exceed customer
differentiate? expectation via same
price -same day service

How companies Deliver high Quality

Service
design winning
products and Laundry Services
brands?
Get cloths cleaned

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List the same for Spotify

https://www.youtube.com/watch?v=LS2vWgnIR4s 19

The case of Vi John -

What new product can and should the brand launch?

Can you:

❖ Work out a product mix analysis for McNore Chemicals

❖ Work out a product mix analysis for Vi John Group.
❖ Work out a product mix analysis for Vini Cosmetics

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Vi John’s: The Customer-Value Hierarchy

Work out Product Levels for
Vi John shaving cream

Why classify the benefits or

value elements of any product?

Vi-John Case In our last session we Reviewed

(link in Sway) • Marketing Schemata & domain of MM2,
• Pre-class Quiz,
• Course structure and process overview.

• What is it’s flagship Discussed with help of Commuter Cleaners

product? • Product’s Customer Value Levels,
• How big is the brand? • Classifications of Marketing Mix elements and
Why? • Product Mix Analysis
• Why it shifted from B2B
to B2C? Big Idea was to appreciate the following
• Marketing Mix is a subset of Marketing Schemata
• Utility of Product’s Value Level Analysis
• Role of Differentiation / USP in product Management

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Product Systems or Mixes or assortment

◦Width Number of different product lines the company carries

◦Length Total number of items in the mix.

◦Depth Number of variants offered in each product line

◦Consistency how closely related, various product lines are in end use,
production requirements, distribution channels, etc.

Why managers need to master Product Mix Analysis?

Product Mix

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Can you identify what

is wrong with this
product mix
illustration!

Product Hierarchy
6. Item (SKU)

5. Product type

4. Product line

3. Product class

2. Product family

1. Need family

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Product hierarchy – Firms Perspective

6. Item (SKU or product variant) Distinct unit within a brand or
6. Item (SKU) product line distinguishable by size, price, appearance, or
some attribute. - Prudential renewable term life insurance.

5. Product type 5. Items within a product line that share one of several
possible forms of the product. - term life insurance.
4. group of products within a product class that are closely
4. Product line related because they perform a similar function, It may consist
of different brands, a single family brand, or an individual
brand - line extended. life insurance.
3. Product class /
3. Product class / category Grp of products recognized as
Category having a certain functional coherence - Financial instruments.
2. Product family 2. Product classes that can satisfy a core need with some
effectiveness. - savings & income.
1. Need family 1. Need for the existence of a product family. - Security.

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Product Hierarchy

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Product Differentiation – Pizza Turn Around

• Form • Form: the size, shape, or physical structure of a product.
• Features: products features, supplement to basic function.
• Features • Performance quality: product’s primary characteristics operational
levels: low, average, high, or superior.
• Performance
• Conformance Quality: Buyers expect a high conformance quality, the
• Conformance degree to which all produced units are identical and meet promised
specifications.
• Durability • Durability: measure of the product’s expected operating life under
natural or stressful conditions.
• Reliability • Reliability: measure of the probability that a product will not
malfunction or fail within a specified time period.
• Reparability • Repairability: measures the ease of fixing a product when it
malfunctions or fails.
• Style • Style: describes the product’s look and feel to the buyer and creates
distinctiveness that is hard to copy.
• Customization • Customization: understanding what a person wants—and doesn’t
want—and delivering on that.

www.youtube.com/watch?v=VQ9nhDUXTsk

Services Differentiation

✓ Ordering ease
✓ Delivery
✓ Installation
✓ Customer training
✓ Customer consulting
✓ Maintenance and repair
✓ Returns

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Product Classifications
Durability and Tangibility
Durability Nondurable goods

Tangibility Durable goods

Use Services

Consumer-Goods Classification

Convenience

Shopping

Specialty

Unsought

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Industrial-Goods Classification

Materials and parts

Capital items

Supplies and business

services

Product Line Analysis

Sales and profits

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Product Line Analysis

Market profile and image

Line MIX Strategy

Line stretching Line filling
◦ Down-market stretch Line modernization
◦ Up-market stretch
Line featuring
◦ Two-way stretch
Line pruning

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Utility - Product Mix Analysis

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What is a Product – Commodity – Brand ?

Product – meaning Bahubali Returns !
www.youtube.com/watch?v=Ff
Product + Meaning OkvwLvfSs

Price Maker Vs. Price taker

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Something happened in 1986!!

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Brand Mix & Branding Strategy

Brand - Branding - Brand Equity
Brand Elements - Brand Architecture
National Brand - Private Brand - Branded Variants
Brand extension - Line Extension - Category Extension
Brand line - Product Line
Brand Mix - Product Mix
Variants/SKU -Sub-brand - Parent brand
House of brands / A branded house
Licensed product

How companies devise Branding Strategy?

Brand Architecture

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Co-Branding
Two or more well-known brands are combined into a joint product or marketed
together in some fashion
✓ Same-company
✓ Joint-venture
✓ Multiple-sponsor
✓ Retail

Ingredient Branding
Co-branding that creates brand equity for parts that are necessarily contained
within other branded products

The role of brands

Brands’ role for consumers Brands’ role for firms

✓ Set and fulfill expectations ✓ Simplify product handling

✓ Reduce risk ✓ Organize inventory & accounting
✓ Simplify decision making ✓ Offer legal protection
✓ Take on personal meaning ✓ Create brand loyalty
✓ Become part of identity ✓ Secure competitive advantage

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Brand Promises And Delivers
“Products are made in the factory. Brands are made in the mind.”
Brand is a product that is elevated above
commodity level because of its added
value in the mind of a shopper
/consumer.
Commodity resonates with consumer at
the functional level; brand goes beyond,
resonating at the emotional level.
Brand is a Commodity with a
personality!
A commodity is a product, a THING,
tangible. A brand is a[n] idea, a thought,
a feeling and is intangible……
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A brand provides an ‘experience’, a
commodity does not.
Brand improves life of its loyal
consumer because it constantly
brings a new and better feature or
experience - it innovates.
Brands create and satisfy consumers’
wants, commodities meet
consumers’ needs.
Brands live in the penthouse of
Maslow Hierarchy of Needs;
commodities live in its basement.
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