Mastering Marketing Mix: Product Strategies for Success
The Marketing Mix
The integrated marketing mix involves decisions on product attributes, pricing, distribution channels, and communication to reach and engage the market. The marketing mix consists of the 4Ps:
- Product: Key features to attract customers, including design, quality, branding, and packaging. Decisions on modifying existing products or introducing new ones are also included.
- Price: Analyzing product costs, consumer price sensitivity, and competitor pricing.
- Place (Distribution): Strategies to bring products to consumers, deciding between direct or intermediary distribution, supermarkets, or specialty stores.
- Promotion (Communication): Raising product awareness and motivating consumers through advertising, public relations, etc.
Product Policy
A product is any good or service offered to meet a market need. It has three dimensions:
- Basic Product: Tangible attributes like quality and materials.
- Extended Product: Basic product plus added values like warranty and after-sales service.
- Symbolic Product: Psychological satisfaction from brand prestige and design.
Example: A digital camera’s basic product is its features and design. The extended product includes the manufacturer’s warranty. The symbolic product is the brand’s prestige.
Branding
Product demand depends on how consumers perceive its attributes.
Differentiate Your Product
Companies offer products with unique attributes to create a favorable brand image.
Product Range (Gamma)
The product range is the assortment of products a company sells. Similar products form a product line.
Example: An appliance manufacturer offers refrigerators, washing machines, dishwashers, and ceramic hobs.
- Breadth of Product Range: Number of different lines (e.g., four).
- Depth of Product Line: Number of versions within each line (e.g., three refrigerator models in two sizes equals a depth of six).
- Length of Product Range: Total number of products across all lines.
Product Life Cycle
The product life cycle model describes four stages: introduction, growth, maturity, and decline.
- Introduction: Initial losses due to high costs and low sales revenue.
- Growth: Revenue exceeds costs, and profits begin. Competitors emerge.
- Maturity: Sales and profits stabilize, then decline. Strong competition leads to product differentiation efforts.
- Decline: Sales and profits fall. The company decides to discontinue or renew the product.