In a product marketing mix, only 4 ps are applicable which are product, price, place and promotion, but in the case of service marketing, 3 more ps are added to the conventional marketing mix, which are people, process and physical existence. The organization can succeed only if consumers see a need that its product can solve, become aware of. Design of the product refers to how the product looks, functions and is put together. Pricing depends on various factors like manufacturing cost, raw material. Marketing mix of 4ps for competitive advantage meera singh1 1 computer department h. The effectiveness of integrated marketing communication for. Understanding the customers buying process is essential for marketing and sales. July 2012 these lecture notes cover a number of topics related to strategic pricing. The marketing mix comprises of four decisions which should be considered before launching a product. The product package and labeling are also important elements in the product decision mix, as they both carry brand equity through appearance and affect product performance with functionality. The concept also identifies the marketing variables product, price, promotion and distribution that combine to provide customer satisfaction.
Product decisions marketing mix describes how a business uses and manipulates the 4ps to market their product. Expanding the product line is the second one of the product line decisions. Product design has become more prominent in recent years primarily due to the success of apple with their design of their smart phones in particular. Both of these product line decisions involve adding items to the line. Product decisions tutorial marketing starts with the product since it is what an organization has to offer its target market. Decisions regarding the product, price, promotion and distribution channels are decisions on the elements of the marketing mix. The effects of emotional marketing on consumer product. The discussion needs to be closely linked to the chosen product services marketing mix elements. Obviously, some theories and concepts in chapters 17 will be more relevant to this assignment. If individual product decisions are made carefully in accordance with consumer needs and wants, the product can become a success. The development and introduction of a new product is an inherently risky venture.
At the strategic level, there are three broad approaches to. Product line decisions building a strong product line. Product characteristics and marketing strategy 19 the term marketing mix suggests a relationship between interacting, elements. Pricing decision analysis the setting of a price for a product is one of the most important decisions and certainly one of the more complex. Promotion decision 188 it is of primary importance that the organization specifies precisely the use of public relations in respect of both the promotional and marketing mix and pit objectives must be expressed in terms. Consumer decision making marketing assignment sample. Jan 20, 2018 knowing the difference between product marketing and service marketing will help you understand the scope of marketing. Product decisions free download as powerpoint presentation. Price will influence customer decisionmaking for choosing travel agents. We will focus on the important decisions in the development and marketing of individual products and services. A price set too low may result in a deficiency in revenues and the demise of the business. These variables are also known as the 4 ps of marketing or the product marketing mix. As we stress throughout the principles of marketing tutorials, organizations attempt to provide solutions to a target market s problems. The range of products offered by a firm is a critical strategic decision that will determine how the firm and their brands compete in the marketplace and the overall positioning of the brand.
Final element in the product attribute decision is the overall product design. This product was developed by the fdic office of minority and women inclusion omwi. Introduction consumer behaviour from a marketing perspective was discussed in chapter 2. Although more is becoming known about the relationships among elements of the marketing mix. The real solution to the icos direct marketing code since the introduction of gdpr, many firms have begun to fear the knockon effects of tighter privacy controls on customer read more. Marketing management pricing decision pricing is a process to determine what manufactures receive in exchange of the product. Decisions about distribution need to be taken in line with a companys overall strategic vision and mission. These four variables help the firm in making strategic decisions necessary for the smooth running of any product organization. Dec 07, 2019 the marketing mix is a set of four decisions which needs to be taken before launching any new product. Different models of human behaviour were briefly discussed, explaining the relevance thereof in consumer behavioural studies. The buying decision process of consumer intervenes between the marketing strategy and the outcomes. Individual product decisions decisions in the development and marketing of individual products. We also take a close look at the key decisions marketers face as they formulate their product offerings.
Industrial marketing business marketing is to market the products and services to business. When developing a new product for a company, a series of steps need to be completed as often discussed in marketing principles textbooks in the product mix chapter, under the heading of the individual product decisions. Anything that can be offered to a market for attention, acquisition use or consumption that might satisfy a need or want. Marketing management is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges. Although many of these factors cannot be directly controlled by marketers, understanding of their impact is essential as marketing mix strategies can be developed to appeal to the preferences of the target market. Individual product decisions the marketing study guide. The main steps that are usually discussed in marketing textbooks include. The relationship between marketing mix and customer decision. Oct 19, 2015 for example, if a lawn mower product is purchased for use around the house, then this lawn mower is categorized in the consumer product. We will explore which are the most important decisions a company has to make regarding the products and services in markets. Product decision making in global marketing management. Marketers refer to products as having three levels. Individual product decisionprinciples of marketing read.
Many companies start as a single product item or product line business. The level of product support services provided can also have a major effect on the appeal of the product to a potential buyer. An examination of factors that affect pricing decisions. However, these five individual product decisions built the base for the product development and marketing. Basic concept a product can be defined as a collection of physical, service and symbolic attributes which yield satisfaction or benefits to a user or buyer. In the development and marketing of individual products and services, 5 individual product decisions need to be made. So, for considering these two factors, other factors in marketing decision of. Prepare to plug those holes in the marketing and sales processes 5. The information about the product is communicated with an objective to produce positive customer response.
Today we will discuss product and service decisions. In addition to these demand interactions, cost interactions may be felt. The following table identifies five eras in the history of marketing. Create a seamless experience that supports the buyer. Developing a coherent distribution plan is a central component of strategic planning. But if the same lawn mower is purchased for use in landscaping business, then this is categorized as an industrial product. Consumer decision making marketing assignment sample assignment. The product definition, often called the product description, is the key starting point of a marketing plan. Integrated marketing communication imc is a continuous effort to plan, execute and evaluate techniques for selling or advertising a product by using traditional and.
As a result, the researcher recommends the consumer to focus on this significant communication tools as integrated while they decide to purchase high involvement product. The development of the term constituted a step forward in the classification of interrelated marketing efforts. Marketing decisions include promotion decisions which are important content of the marketing mix in which different aspects of marketing communication occurs. It can be argued that product decisions are probably the most crucial as the product is the very epitome of marketing planning. The committee on definitions of the american marketing association has defined productmix as the composite of products offered for sale by a. Domain, definition, fundamental issues and foundational premises article pdf available in journal of the academy of marketing science 382. In the development and marketing of individual products and services, individual product decisions need to be made. Marketing research tony proctor, ma, mphil, phd, dipm, has had ten years experience in the industry and is visiting professor in marketing at the chester business school. A decision guide for management article pdf available in journal of marketing management 33. Product classification consumer product a product bought to satisfy personal and family needs. Besides these individual product decisions, many other choices need to be made. Mar 01, 2016 you must apply the concepts and theories you have learned from your reading of the text to the selected product service and consumer decision making process and not just list or describe them.
Understanding the buying process applied product marketing. Businesses employ different strategies when marketing products compared to services. Based on its understanding of customers, a company develops its marketing mix of product, price, place, and promotion. For international markets, pricing is one of the most important elements of marketing product mix. In decisions on producing or providing products and services in the international market it is essential that the production of the product or service is well planned and coordinated, both within and with other functional area of the firm, particularly marketing. In order to maximise his sales revenue and profits, a business firm must continuously adjust and adapt its products and services to the changing requirements of customers. One of the first decisions is to decide which products to sell and how did company is going to organize them. An examination of factors that affect pricing decisions for export markets. The other three elements of the marketing mix are product, pricing, and promotion. In some respects, price setting is the most important decision made by a business. Bosch indego how to build b2b and b2c relationships in a new global product market. In addition, it assumes that the organization begins by identifying and.
But the rate of customer participation and also the time are important in service delivery. Although marketing has always been a part of business, its importance has varied greatly over the years. Marketing mngmt promotion decisions tutorialspoint. Ideally, marketing should result in a customer who is ready to buy. Following are some of the three product classification of industrial products. Omwi has responsibility for oversight of the small business resource effort.
The first product decision to be made is the market segment decision because all other decisions product mix decision, product specifications, and positioning and. He also contributes to several postgraduate masters and doctoral level. Marketing mix or 4 ps of marketing product marketingmix. Product decisions at the productmix level tend to determine the width of a companys productmix. Uncover holes in the buying process that are not addressed by the marketing and sales processes 4. As a physical product, marketers need to consider packaging, labelling and branding involved in marketing the overall product. Tupperware the global direct distribution model is still working.
The proposed product may change the unit production and marketing costs of other products. The consistency of a product mix refers to how closely related are the companys product lines in terms of characteristics, production process, distribution channels to name just a few. These decisions may involve what features to include in a product, how a product s identity is established through branding, important issues in packaging design, and what to consider when labeling products. These decisions apply to any kind of product and service and set the base for all other decisions. Product decisions or policy and strategy are concerned with the management of the products product portfolio and brand management. Product decision all chapter brand product business. When purchasing any product, a consumer goes through a decision process. Marketing assignment solution on consumer decision making executive summary. If price is lowered, for example, then sales is most likely to increase. Marketing management pricing decision tutorialspoint. Promotion decision is used to find the appropriate and effective method to promote a particular product to increase the sales.
Individual product decisions 5 stages marketinginsider. The buyer decision process will enable to set a marketing plan that convinces them to purchase the product or service for fulfilling the buyers or consumers problem. The theory of plc was first introduced in the 1950s to explain the expected life cycle of a typical product from design to obsolescence. Important product decisions in international marketing. Promotion in conceptual terms, promotion is the element in an organizations marketing mix that serves to inform, persuade and remind the market andor the organization of a product, in the hope of influencing the recipients feelings, beliefs or behavior 15. From timeto time, it may have to design and develop new products. A product is a physical good, service, idea, person or place that is capable of offering tangible and intangible attributes that individuals or organisations regard as so necessary, worthwhile. A product is a combination of physical attributes say, size and shape. The concept of product life cycle plc is very important and playing a key role in determining the stages of the organizations products in every marketing organizations. A product can be defined as a collection of physical, service and symbolic attributes which yield satisfaction or benefits to a user or buyer. The main purpose however is to conduct a marketing plan for a new product that is being launched later this year by utilizing the most uptodate know. Difference between product marketing and service marketing. The marketing mix is a particular combination of the product, its price, the methods to promote it, and the ways to make the product available to the customer. The marketing mix, in its general form, includes decisions and activities of business firms in the areas of product policy, channel policy, promotional policy, and pricing policy.
What are the key marketing decisions marketing delivers a product that satisfies the needs of a target market at a price that reflects its value. A change in price not only directly affects revenue but has major consequences on other decisions. In addition to decisions related to the product, marketing has to decide on elements of the delivery and how to inform the target market of the buying opportunity. Quantitative approach was the major method used and a selfadministered questionnaire survey was conducted with sample size of 197 consumers who used the products of omo washing powder, neptune oil, kotex tampon, and red bear noodle. Zamzam cola marketing of a muslim cola to the european market. Line filling means adding more items within the present range of the line. Product attribute decisions the marketing study guide. Product definition a product service is the most important component of the marketing mix being the centre of focus as the offer to the market. Most products have a marketing plan that was formulated back in the early stages of product development, a plan that is refined often along with the product itself as the market evolves or is better understood. Important product decisions in international marketing management. Although making the pricing decision is usually a marketing decision, making it correctly requires an understanding ofboth the customerand societys view ofprice as well. After getting a taste of success and with an availability of more resources, companies decide to expand their product line andor introduce newer product lines in consonance with market opportunities or in response to competitors moves. The role of service marketing mix and its impact on. In an effort to reduce the risks associated with new products, the forecasting of yearone sales has become an established practice within the marketing.
357 882 977 1641 322 1542 1244 1302 807 783 416 461 786 1246 1369 138 452 392 258 1228 687 1369 1119 811 1399 1431 680 1129 520 467 1397 669 607 216 772 1095 533 581 37 700