This post has all you need to know about the Marketing Mix. This post covers PRODUCT.
The Marketing mix can be best described through one quote:
The Marketing Mix contains for main categories that all begin with the letter ‘P’:
Let’s start with Product (or service)
The product is at the heart of the marketing mix as the product needs to exist in order for the other elements of the mix to happen. Now with any one element of the mix you must ask yourself questions to help identify it’s importance.
Parts of the Product
- Specifications and Materials How big is it? What is it made out of?
- Design and styling Does it appeal to the customers?
- Functions and benefits Has the product got a use to the customer?
- Packaging What size is it? Is it eco-friendly?
- Range (options and accessories) What other products or accessories are there?
Product Range – Is There A Product Range?
This is a collection of similar products offered by the same business. e.g. the iPod Touch, iPod Nano, iPhone are Apple’s Product Range
The product range helps spread risk – a decline in one product may be offset by sales of another product in the product range.
Different products in the range can be sold to different segments of the market e.g. Apple’s iPhone to businessmen while the iPod Nano to music lovers.
Selling a single product may not generate enough returns for a business (e.g. market segment for one product may be too small to earn a living therefore needs multiple products in multiple segments).
Product differentiation is a way of differentiation your product from other products in the same market or segment. Products that are the same tend to have the same price. Differentiating your product by giving it a USP (unique selling point) can generate extra profit for your business.
How is the product differentiated to competitors in the same market or segment?
Challenges for a business
With business, the aim to to make their product different from competitors. A good example of this are cars. Makers such as Lamborghini want cars to be different to competitors such as Ferrari and Aston Martin.
However, most importantly, the business wants the customers to recognise that the product is different!
Ways of differentiating a Product
- Distinctive Design Will customers be attracted to the product?
- Branding e.g. Nike, Apple How is it branded?
- Performance e.g. Bugatti, Lamborghini, Aston Martin
I will go into more detail Differentiation of a Product and Brand Extension in other posts.