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The Marketing Mix.docx


Department
Management and Organizational Studies
Course Code
MOS 1021A/B
Professor
Meaghan Ross

Page:
of 9
The Marketing Mix: Product, Price, Place, Promotion
Products
Product: a good, service, or idea consisting of a bundle of tangible and intangible attributes
Tangible – physical characteristics (colour, sweetness, etc.)
Intangible – aspect of a product that cannot be touched (how it makes you feel, services,
etc.)
Offline products that are not on the internet (search engines, antivirus, downloadable)
but still have an online presence on social media
Online – downloadable, internet products
Types of goods
Non-Durable goods items that don’t last, consumed for a limited number of times (food
products, fuel)
Durable goods – items that last over an extended number of uses (appliances, vehicles)
Service intangible activities, benefits, or satisfactions (i.e. taking a vacation, doctors, online
courses)
Primary service – what the company sets out to do (bank – providing accounts, banking)
Supplementary services allow products to differentiate from other services, anything
that is an added value to the primary service (parking at the bank, ABM)
Virtual services services that exist only online and have no person-to-person
interaction
Service Continuum a range from tangible goods to intangible services provided by a
firm
The Uniqueness of Services The Four Is of Service
Intangibility – services generally cannot be held, touched, or seen before a purchase
Important for marketers to demonstrate benefits of using service since people cannot
see it (i.e. going to a Leafs game)
People cannot experience beforehand because services are more performance oriented
Inconsistency – quality of a service is dependent on the people who provide it
Leafs aren’t exactly very consistent
Companies try to overcome inconsistency by training employees on how to deliver
consistent quality experiences
Inseparability in most cases, the consumer cannot separate the deliverer of service from the
service itself
Inventory services cannot necessarily be stored for access when in demand (perishability
concert tickets)
Idle Production Capacity when the supply of a service exceeds its demand (part time
work at grocery store – more cashiers working at peak hours)
The Total Product Concept
Core Product – benefits derived from using the product
Bicycle provides transport, massage provides relaxation
Actual Product – physical good/service, including branding, design, features
Bicycle itself, massage
Augmented Product – additional features such as warrant, installations
Packaging and Labelling
Integral part of product and design
Provide many functional benefits (protection, facilitating proper usage)
Communicate brand imagery, logos, product information
Product Lines and Product Mixes
Product Mix - combination of product lines offered by a company
One of Blackberry’s product mixes is smartphones, and the product line might be
QWERTY phones
Product Line a group of similar products with the same product and brand name that is
directed as the same general target market and is marketed together
Campbell’s – Simple Meals product line soups, tomato sauces, other product lines too
(Chunky)
Product Width the number of different categories offered by the company (how many product
lines)
i.e. Blackberry – smartphones, tablets, apps, software
Product Depth the variety of product lines and products sold within a company’s product
categories, groups, and lines
Blackberry Smartphone line is deep – bold, Z10, Q10, Q5, Classic, but tablet – shallow
Classification of Products
Consumer Products purchased for their personal use by a consumer (moisturizers, etc.)
(Printers can be both used for personal printing or business)
Convenience products items purchased frequently that are inexpensive and require
minimum risk and shopping effort (newspapers, candy, milk)
Shopping Product items that require comparison between different brands and an
investment of shopping time
ojeans, TV, differentiable products that aren’t widely distributed
Specialty Products items for special occasions that require a specific product or brand
and require considerable time and effort to purchase
oOften expensive, unique, only available at certain locations (Rolex, cruises)
Unsought Productsunknown items or those of no interest to the purchaser (diapers for
people without kids
Business Products purchased either to run a business or to be used as a component in
another product or service
Production Goods and Services items used in the manufacturing process (raw
materials, component parts)
Support Goods and Services items used to assists in producing other goods and
services
oInstallations – buildings and fixed equipment (purchased through bids)
oAccessory Equipment – tools and office equipment (small-order sizes)
oSupplies – business convenience goods (continuously used products like pens)
oServices – intangible activities needed to assist a business in its operations
Branding
Brand a name or phrase uniquely given by a company to a product to distinguish it from the
competition
Often created in tandem with associated logos designed to visually represent brand
Brand Equity the value of a brand that results from the favourable exposure, interactions,
associations, and experiences that consumers have with a brand over time
i.e. BlackBerry has a big name/ equity in Canada – markets as ‘BlackBerry Playbook’
Brand Extension when new goods or services are introduced under an existing flagship brand
name
Individual Brand – when a company uses a brand name solely for a specific product category
Yop by Yoplait – separate brand
Family Brand when a company uses a brand name to cover a number of different product
categories