Marketing Mix
| Author | Allen Truell |
| Pages | 498-502 |
Page 498
The term marketing mix refers to the four major areas of decision making in the marketing process that are blended to obtain the results desired by the organization: product, price, promotion, and place. The four elements of the marketing mix are sometimes referred to as the four Ps of marketing. The marketing mix shapes the role of marketing within all types of organizations, both profit and non-profit. Each element of the four Ps consists of numerous subelements. Marketing managers make numerous decisions based on the various subelements of the marketing mix, all in an attempt to satisfy the needs and wants of consumers.
The first element in the marketing mix is the product. A product is any combination of goods and services offered to satisfy the needs and wants of consumers. Thus, a product is anything tangible or intangible that can be offered for purchase or use by consumers. A tangible product is one that consumers can actually touch, such as an automobile, a computer, a newspaper, or a window. An intangible product is a service that cannot be touched, such as an automobile repair, a doctor's office visit, or income tax preparation.
Other examples of products include places and ideas. For example, the New Hampshire Division of Travel and Tourism Development might promote New Hampshire as a great place to visit and by doing so stimulate the economy. Cities also promote themselves as great places to live and work. For example, the slogan touted by the Chamber of Commerce in San Bernardino, California, is "It's a great day in San Bernardino." The idea of wearing seat belts has been promoted as a way of saving lives, as has the idea of recycling to help reduce the amount of garbage placed in landfills.
Typically, a product is divided into three basic levels. The first level is often called the core product, what the consumer actually buys in terms of benefits. For example, consumers do not just buy 4×4 pickup trucks. Rather, consumers buy the benefit that 4×4 pickup trucks offer, such as being able to get around in deep snow and ice in the winter. Next is the second level, or actual product, that is built around the core product. The actual product consists of the brand name, features, packaging, parts, and styling. These components provided the benefits to consumers that they seek at the first level.
The final, or third, level of the product is the augmented component. The augmented component includes additional services and benefits that surround the first two levels of the product. Examples of augmented product components are technical assistance in operating the product and service agreements. Buyers of technical products such as computers and video cameras are frequently provided with operating assistance as well as optional service agreement plans.
Page 499
Products are classified by how long they can be used—durability—and their tangibility. Products that can be used repeatedly over a long period are called durable goods. Examples of durable goods include automobiles, furniture, and houses. By contrast, goods that are normally used or consumed quickly are called nondurable goods. Some examples of non-durable goods are food, soap, and soft drinks. In addition, services are activities and benefits that are also involved in the exchange process but are intangible because they cannot be held or touched. Examples of intangible services included eye exams and automobile repair.
Another way to categorize products is by their users. Products are classified as either consumer or business goods.
Consumer goods. Consumer goods are purchased by final consumers, sometimes called end users, for their personal consumption. The shopping patterns of consumers are also used to classify products. Products sold to the final consumer are arranged as follows: convenience, shopping, specialty, and unsought goods. Convenience goods are products and services that consumers buy frequently and with little effort. Most convenience goods are easily obtainable and low-priced, items such as bread, candy, milk, and shampoo.
Convenience goods can be further divided into staple, impulse, and emergency goods. Staple goods are products—such as bread and milk, coffee, and tooth-paste—that consumers buy on a consistent basis. Impulse goods such as magazines and candy are products that require little planning or search effort because they are normally available in many places. As impulse goods, candy and magazines are frequently located near checkout counters in grocery stores. Emergency goods are bought when consumers have a pressing need for a product, such as during a natural disaster. An example of an emergency good would be the purchase of a generator when the electricity is expected to be out for a considerable time, such as after a severe ice storm.
Shopping goods are those products that consumers compare during the selection and purchase process. Typically, factors such as price, quality, style, and suitability are used as bases of comparison. With shopping goods...
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