Unit 8: The Marketing Mix as a

Business Strategy
Lesson 1: Product
The Marketing Mix

• A marketing mix is a special tool used in

the implementation of any business,
which is made up of seven distinct but
interconnected variables. These seven
essential components help in
determining an effective marketing
strategy to introduce a product or
service to the market.
 The original components of the marketing mix
were four different yet interrelated variables. Such
The
a framework was used for marketing decision-
making of any form of business. The essential
Traditional pillars of the traditional 4Ps are product, price,
place, and promotion, which were all used in
4Ps and gauging the businesses’ ability to exist in a
New 7Ps competitive marketing landscape. Each of the 4Ps
is governed by several internal and external factors
that help in assessing any potential roadblocks that
would lead to the falling of any form of business.
The Extended
7Ps
• In addressing the
continuing concerns in the
marketing industry, three
other variables were
added towards the
creation of the current
7Ps: people, packaging,
and positioning. The
present marketing mix
enables businesses to
easily meet the needs and
expectations of the
customers, most especially
their target market.
Product

• product refers to any item that is produced to satisfy the needs

and demands of a certain group of people. It has a life cycle that
revolves around its growth, maturity, and after-sales
performance
 • To avoid experiencing a sales decline in
any product being offered, it is vital to
incorporate a marketing strategy that will
stimulate the demand of the consumers
towards the product itself. In some cases,
Essential It may be a wiser decision to broaden the
Questions current product mix by expanding the
existing product line. In developing the
right type of product for the target
market, the following questions must be
addressed:
 • common denominator that is used in weighing
several products is called the unique selling
proposition. This statement helps in improving the
market position of a business within the industry and
allows it to stand out in the competitive market. A lot
Unique of products these days have no clear competitive
advantage in the market. With this kind of situation,
differentiation is a vital aspect that must be
Selling established by any business. This is where a unique
selling proposition plays an important role. It provides
Proposition the ultimate advantage that a product has to offer,
the means of delivering on that advantage, and the
commitment to provide such an advantage to the
consumers. It aims to answer the ultimate question -
“What makes the business different from its other
competitors?”
Product Classifications

• Product classification organizes products

into four categories based mostly on consumer buying behavior
,similarity to competing brands and price range. Classifying
products helps marketers develop strategies that target
consumers' specific needs.
Products can be classified into three different
categories:
• Tangibles
Tangible products are those items that have actual physical
presence. The benefits of these products can be evaluated based
on visual comparisons. One of the primary keys in marketing
tangible products is providing the consumers with the benefits
they are looking for. These people are not primarily concerned
with the features of a product because they are always after the
benefits it provides. If a school supplies store is selling a ballpen
with an equipped eraser, such a feature will only become a
benefit if a student is prone to making corrections whenever he
uses a ballpen.
 • Intangible products are those items that
have no physical presence and can only be
felt indirectly. Under this classification are
the virtual intangibles, which can be
digitally found and accessed by using a
Intangibles computer. Selling an intangible product
would be harder than selling a tangible
one. The real challenge behind this is to
be able to relate to the emotions of the
consumers since intangible selling is
emotional selling.
Example The following table presents various
examples of tangible and intangible products:

TANGIBLES INTANGIBLES
CASH COPYRIGHT
BUILDINGS TRADEMARK
EQUIPMENT AND MACHINERY PATENT
COMPUTERS AND GADGETS LOGO
FURNITURE FRANCHISES
VEHICLES INSURANCE
Stages in the Development of a Product

• New product development

tends to happen in various
phases or cycles. But here are
the seven steps illustrative of
developing a new product:
 • Businesses often decide on effective
strategies prior to the creation of a new
product. Those who already have
investors would want to minimize the
Strategy risks involved to avoid huge losses. On the
other hand, there are those businesses
Development that must innovate or produce new
products frequently to prevent being
surpassed by their competitors.
 • The ideas or concepts in developing a new
product may come from various sources
and not only from the upper management
Generation itself. Start-up ventures tend to lean on
the information gathered from market
of Ideas research that is generally focused on the
demands of the consumers.
 • All ideas generated must go through
proper evaluation wherein their feasibility
Screening is being determined. There are also ideas
that do not resonate well with the core
and objectives of the business.
Evaluation
 • During this phase, the ideas thrown in
become subject to a more rigorous
analysis. Other factors, such as profit
projections, risks involved, and consumer
Business feedback, are likewise taken into
consideration. In this stage, the
Analysis entrepreneur finds out whether the
proposed product is commercially
profitable or not.
 • It is during this stage that the product is
introduced to the market. The production
department will be tasked to produce and
deliver the product to various
Product intermediaries, and the marketing
department will be tasked to take care of
Development the branding of the product. In every
industry, however, it is required that the
new product must adhere to the quality
standards set by the law.
 • Businesses adopt different approaches to
testing the new product. In most
situations, test marketing involves the
introduction of the new product to a
small market. If such launching were
Market successful, then it would be introduced to
Testing larger market size. However, if the
approach conducted turned out to be a
failure, then the business concerned will
make new changes or improvements in
the product.
 • If the outcome of the previous test
marketing were successful, the business
would introduce the product to a larger
market, either locally or internationally.
This is the phase where advertising or
Commercializ marketing tactics would play an essential
ation role. Mass media advertising may be
implemented, and digital marketing may
likewise be performed as another
advertorial resort.