Marketing Mix - Concept, Product and Price Mix

Marketing mix is the set of marketing tools used by a firm to pursue its marketing objectives in the target market. The marketing mix consists of four P’s : Product, Price, Place and Promotion.
•    Product refers to goods or services or anything of value which is offered to the market for exchange.
•    Price is the amount of money that customers have to pay to obtain the product.  
•    Place or physical distribution includes activities that make firm’s products available to the target customers.
•    Promotion refers to the activities communicating availability, features, merits, etc of the products and services to the target customers and persuading them to buy.
Under product mix, product is classified into consumer and industrial products. Consumer products are classified on the basis of durability and buying behaviour.  Industrial products are classified into materials and parts, capital items and supplies and business services.  
Branding refers to creating a corporate brand identity for consumer and getting that brand identity imprinted on the minds of consumer. Brand refers a name, term, sign, symbol, design or some combination of them used to identify the products-goods or services of a seller or group of sellers and to differentiate them from those competitors. Features of brand are: name should be short, easy to pronounce, etc. Brand name strategies are classified into individual branding, blanket family, company cum individual name and separate family brand name. Advantages of branding are helps in product identification, gives quality assurance, acts as status symbol, etc.
Packaging refers to the act of designing and producing the container or wrapper of a product. Levels of packaging are classified into primary, secondary and transportation package. Good packaging helps in proper identification, protecting the product, product promotion and facilitating use of product.
Labelling refers to the process of designing a label to be put on the package to provide information regarding the product’s quality, price, etc. It helps in describing the product and its contents, identifying a particular brand or product, grading of the products, promotion of products and providing information required by law. Important factors affecting price determination are product cost, utility and demand, extent of competition in the market, government and legal relations and pricing objectives.

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  • Q1

    What is meant by ‘promotion mix’ ?

    Marks:3
    Answer:

    Promotion deals with informing and persuading the customers regarding the firm's product. Promotion mix refers to the activities relating to persuading and motivating customers to buy the product. Promotion mix involves decision with respect to :
    (i) Advertising
    (ii) Personal selling
    (iii) Publicity
    (iv) Sales promotion

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  • Q2

    What is the purpose of a brand name ?

    Marks:3
    Answer:

    The purpose of a brand name is to distinguish the product from the rival products so that consumers may identify it easily. Brand gives a name or a symbol to the product by which it is known by the consumers. In this way, brand name attracts the customers to the product. For example, famous brand names like Nike, Levi's etc.

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  • Q3

    What is branding? Also enumerate its qualities.

    Marks:3
    Answer:

    Branding can be defined as the process of using a name, term, symbol, or design individually or in some combination, for identification of a product. Branding creates a distinct identity of the product, helps in advertising of the product and also eases the introduction of new products.

    The qualities of brand name are:

    i. Brand name should be short and simple so that it can be remembered.

    ii. Brand name should be distinctive, to differentiate from rival products.

    iii. Brand name should suggest the product’s utility, quality, etc.

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  • Q4

    Explain the importance of packaging.

    Marks:3
    Answer:

    The importance of packaging is:

    i. Raising standards of health and sanitation: Packaging is essential as it has reduced the chances of contamination an adulteration of products. People prefer packed products over loose products.

    ii. Product differentiation: Packaging helps the customers to differentiate the products on the basis of quality, colour, size etc. It makes a difference in the way consumers perceive a product.

    iii. Self service outlets: The self service outlets are becoming popular. Packaging is playing an important role in determining the customer attitude towards the product.

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  • Q5

    Mohanlal Sons is a wholesaler of consumer goods. What functions do they perform in the marketing of the goods?

    Marks:3
    Answer:

    Mohanlal Sons, being a wholesaler, forms a part of channel of distribution of the consumer goods.

    The functions of distribution channels are:

    i. Sorting: Middlemen procure supplies of goods from variety of sources and then repack the product according to quality, or price.

    ii. Accumulation: Middlemen maintain a large stock of goods so that there is smooth supply of goods without any delay.

    iii. Negotiation: Middlemen negotiate with manufacturer as well as with customers on price and quality, so that transfer of ownership takes place properly.

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