MANAGING

THE
MARKETING
 LEARNING
OUTCOME
At the end of this lecture should
beGet
able
anto
overview of marketing

Mix
Understand product

development process


Introduction
Documents
What is marketing
mix?
 Kotler:1984, defined marketing mix
as the set of controllable
variables that the firm uses to
influence buyer’s responses.
 Etzel et al: 1997, defined marketing
mix as a combination of
elements/variables used to satisfy
needs of the organization’s target
market and at the same time achieve
its marketing objectives.
 Marketing mix
 The variables are often known as 4P
’s in traditional sense. They involves

Traditional marketing mix

Product Price Promotion Place

 Expanded Marketing mix


expanded marketing mix

People process Physical

evidence
 People. Because of the simultaneity
of production and consumption in
service, the firm personnel occupy
key position in influencing service
quality.
 Emphasis is put on training service
providers to ensure service quality

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 Physical evidence. Refers to the
tangible elements that customers
interact with when experiencing a
service. Eg hotel industry

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 Process refers to the series of
activities and workflows that a
business uses to deliver its service to
customers. So in service industry,
especially, the process can
significantly impact customer
satisfaction and perceptions of
quality.

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 THE
DocumentsPRODUCT
ELEMENT
Introduction
What is a
product?
 A product as anything that can

be offered to a market for

attention, sale, acquisition, use
A
 product may be a good or service
or consumption.
 Product
Documents element
A product can be defined as
anything that one receives in
an exchange including
tangible and intangible

A benefits may be a good or service

 product
Product element

Product

Goods services
(tangible) (Intangible)
 Product element
 A good is a real physical item
/thing that we can touch and
see and explain its
characteristics e.g. clothes,
books, cars, etc
 Services are intangible
activities, benefits or
satisfactions offered by an
organization to consumers for
exchange. E.g; ATM services,
health services, beauty services,
 Product element
 a service can be defined as
activities, which are offered for
sale or are provided in
connection with the sale of
 the following characteristics of
goods.
services below provide distinction
from goods
 The Characteristics of
Services
Services that cannot be touched,
seen, tasted, heard, or felt in the
Intangibility same manner as goods.
(hospital(cant physical touch the
service but /experience
A characteristic of services that
Inseparability allows them to be produced and
consumed simultaneously.
Means the service varies
depending on the service
Heterogeneity provider (depend on the
provider).(teaching service?
A characteristics of services that
Perishability prevents them from being stored,
warehoused, or inventoried.
The Characteristics of Services

Service ownership can not be

transferred. That is a service
Ownership cannot be turned over from
the service provider to the
service consumer.
Do Levels of a
product
A product is complex entity and
there are five levels of product that
can be distinguished or described.
Core level (benefit)of a product
Basic/tangible or generic level
(benefit) of a product
Do Levels of a
product
 Expected level (benefit) of a
product
 Augmented level (benefit) of a
product
 Potential level of a product
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Do Levels of a
1. Core /benefit
product
level
This is the heart of the
product. It refers to the
fundamental value the buyer
is really buying e.g. core benefit
for a car is mobility, for a bank
service is security, for a hotel is
19
Do Levels of a
2. Basic /tangible /generic
product
level
These are the necessary
properties or characteristics
of a product that are important
to address the core level/benefit
of a product. E.g. packaging,
design/style, etc 20
Do Levels of a
3. Expected level(it is wat
product
consumers except
This consists of a set of
characteristics or attributes
that buyers normally expect
in a product and which
persuade buyers to buy e.g. in
phones- calling, receiving calls, 21
Do Levels of a
4. Augmented
product
benefit/product
This refers to the deliberate added
features or benefits offered in a
product in order to meet or exceed
customers expectations. E.g. after
sale services(delivery, installation,
guarantee,) payment options
22
Do Levels of a
5. Potential level of a
product
product
This level refers to all the
possible augmentation and
changes that a product can
undergo

23
 Marketing mix

Extended/additional marketing mix

Are there any…

Physical
People Process Evidence/
environment

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Product
Do Classification
Products are classified into two major classes
depending on the uses of the products. These are;

1. Consumer products

2. Industrial/business products

?Customer is a person who buys/pays for the

product

Consumer is a person who use or consume a

product.

Sometimes a person can be both consumer and

25
 Product
Classification
1. Consumer
product
Consumer products - are
products that are purchased by
ultimate consumers or end
users mostly for personal or
domestic consumption.
26
 Product
Classification
Consumer products can be
classified on the basis of
consumer shopping habits and
the following sub-classes of
consumer products exist

27
 Product
i. Classification
Convenience products -
These are purchased
frequently, immediately and
with a minimum of
comparison and buying
efforts. Three types of
convenience goods exist: 28
 Product
 Classification
Impulses – products that are
purchased without any planning or
search effort e.g. magazines
 Staples – products that are
purchased on regular basis e.g.
toothpaste, soaps
 Emergency goods – products
that are purchased when a need is 29
 Product
Classification
ii. Shopping products – These
are less frequently purchased
products and when buying are
carefully compared on
characteristics such as
suitability, quality, price etc
e.g. Most clothing products 30
 Product
iii. Classification
Specialty products – Products
with unique characteristics or
brand identification for which a
significant group of buyers are
habitually willing to make a
special purchasing effort e.g.
Expensive automobile, Medicine
31
 CLASSIFYING GOODS AND
SERVICES
Convenience
Convenience AA relatively
relatively inexpensive
inexpensive item
item that
that merits
merits
Product little
little shopping
shopping effort.
effort.
Product

Shopping AA product
product that
that requires
requires comparison
comparison
Shopping shopping,
Product shopping, because
because itit is
is usually
usually more
more
Product expensive
expensive and
and found
found inin fewer
fewer stores.
stores.

Specialty AA particular
particular item
item that
that consumers
consumers
Specialty search
search extensively
extensively for
for and
and are
are reluctant
reluctant
Product
Product to
to accept
accept substitutes.
substitutes.

Unsought AA product
product unknown
unknown to
to the
the potential
potential
Unsought buyer
buyer or
or aa known
known product
product that
that the
the buyer
buyer
Product
Product does
does not
not actively
actively seek.
seek.
 Marketing mix

Extended/additional marketing mix

Are there any…

Physical
People Process Evidence/
environment

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 Product
Classification
2. Industrial/business
products
These are products which are
purchased for the sake of
using them to produce other
goods e.g. raw materials and
components parts. 34
 Product
Classification
 Industrial products can be
classified further into three
classes in light of how they
enter the production process.
These classes include:

35
 Product
i.
Classification
Material and parts: are goods that enter
the manufacturer’s product completely e.g.
production input.

ii. Capital items: Products that aid in the

production and operations of a firm e.g.
office equipments, facilities etc

iii. Supplies :Items that aid in the firm’s

operation but do not become part of a
finished product. They can be maintainance
or repair items like paints, writing papers 36
 Product
 Classification
According to durability and
tangibility products can be
classified into:
i. Durable and non-durable
products
Durable – Products that survives
many uses e.g. machines,
equipments etc
Non-durable – Products that are
consumed in one or few uses
e.g. soap, fuel etc 37
 Product
Classification
ii. Tangible and
Intangible products
Tangible – Products with
physical presence, can
be touched and
described physically
(goods)
Intangible – Products with 38
 PRODUCT MIX,
PRODUCT LINE AND
PRODUCT ITEM
 Product Mix
What is product
mix?
 Product mix is the set of all
products offered for sale by a
company
 Product mix is the full list of all
products offered for a sale by a
company
 All products that an
organization sells 40
 Product Mix
A product mix has two
dimensions:

Breadth (Width) - Different lines

 Depth - Assortment within

a line
Example of product mix (IPP
Media)
IPP media engages in newspaper
printing, radio and TV broadcasting,
etc
 Product Mix

IPP MEDIA- product mix

Newspapers Radio
TV broadcasting
Production broadcasting
 Product Mix
Product mix Breadth (Width)
This is all about different lines the
company carries. For example IPP
– newspaper production is one
line, radio broadcasting is another
line, and TV broadcasting is
another line
 Product Mix
Product Mix Depth
This refers to the number of
versions offered of each product
line – e.g. in IPP media radio
broadcasting line we have Radio
One, East Africa radio and capital
radio.
Kitila, S.D.
 Product line
What is product
line?
 A product line is a broad
group of products, intended
for essentially similar uses
and possessing reasonably
similar physical
characteristics
 Product line
A product line is a group of
products that are closely
related because they function in
similar manner, are sold to the
same customer group, are
marketed through the same type
of outlets and fall within given
 Product line
Refers to how closely related the
various product lines are in end use,
production, production requirement,
and distribution channels
Product line and
items
IPP PRODUCT LINES AND ITEMS
PRINT MEDIA RADIO TV
BROADCASTING BROADCASTING
Nipashe Radio One ITV
The guardian East Africa Radio East Africa TV
Alasiri Capital Radio Capital TV
Lete Raha
This Day
Komesha
Kasheshi
Sunday observer
Financial Times

Width of the product mix

 New Product
Development
What is new product?
 Itis a product which has never
been in the market before or
which has undergone modification
or changes
What is new product

development?
It is a complete process of bring a
new product to the market till its
consumption and feedback from
the end users of the product.
 New Product
Development
Why new product?
 It is the way of getting new
customer and keeping old
customers of the organization
 It is an effective way of obtaining
competitive advantage
 Source of company expansion
and growth
 New Product
Development
Categories of new
product
 Original product – has never been
in the market - hence involves
completely new innovation and
 technology
Improved product
 Modification of existing
 product
New brand development
 New Product
Development
Strategies of obtaining new
product
New product
development
This refers to development of
original product - starting
from the scratch to complete
product of a company
Acquisition
This calls for buying of a whole
company, a patent , or license to
produce some else’s product
Stages in the New Development Process
New product adoption process

 Awareness
 Interest
 Trial
 Adoption

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 Innovators
 Early adopters
 Early majority
 Late majority
 laggards

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Product life cycle

 Introduction
 Growth stage
 Maturity
 Decline stage

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 LOGO

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