MARKETING MIX:

Marketing was broadly classified into 4 P's, which are as follows:

1) Product –  The first thing you need, if you want to start a business, is a product. Therefore Product is also the first variable in the marketing mix. Product decisions are the first decisions you need to take before making any marketing plan. 

• What product are you selling?
• What would be the quality of your product?
• Which features are different from the market?
• What is the USP of the product?
• Whether the product will be branded as sub brand or completely new?
• What are the secondary products which can be sold along with primary (Warranty, services)

Based on these questions, several product decisions have to be made. These product decisions       will in turn affect the other variables of the marketing mix. For example – For lakme sunscreen, understanding about the quality, its features, its unique selling proposition and the design. However, if the product features are not fitting in the marketing mix, you can alter the product such that it finds a place for itself in the marketing mix.

2) Pricing – Pricing of a product depends on a lot of different variables and hence it is constantly updated. Major consideration in pricing is the costing of the product, the advertising and marketing expenses, any price fluctuations in the market, distribution costs etc. The pricing has to be such that it can bear the brunt of changes for a certain period of time.

Along with the above factors, there are also other things which have to be taken in consideration when deciding on a pricing strategy. Competition can be the best example.  If the competitor (VLCC OR LOTUS) changes the price means, company have to analyze the market situation and then change the price accordingly. Pricing affects the targeting and positioning of a Lakme sunscreen by maintaining a reasonable price and noticing what its rival partners are up to!.  

3) Place –  Place refers to the distribution channel of a product. If a product is a consumer product, it needs to be available as far and wide as possible. On the other hand, if the product is a Premium consumer product, it will be available only in selected stores.

Distribution places are : Hyper markets, Super markets, Departmental stores. Other distribution places are : Food stores Cosmetic discounters, ware house clubs. Beauty salons Lakme distribution merged with HUL.  HUL is having 3000 distributors around the country and lakme have 1000 distributors.   

      

4) Promotions – Promotions are dependent a lot on the product and pricing decision. What is the budget for marketing and advertising? What stage is the product in? etc. For example lakme sunscreen used facebook(social media) as the medium for the promotional activity.Company offers rebates and discounts on specific products which products are in low sales. Brand ambassadors- Lakme have bollywood Actress as a brand ambassadors like Katrina Kaif and Kareena Kapoor 

Promotions also decide the segmentation targeting and positioning of the product. The right          kind  of promotions affect all the other three variables – the product, price and place.

Thus as we see from the above explanations, all the four variables of marketing mix are inter related and affect each other. By increasing the pricing of the product, demand of the product might lessen, and lesser distribution points might be needed for the product. 

The above four P’s of marketing give you an overall look at the product marketing mix. 

                                                                                                                                                      PRODUCT

The ´P´ is called the ‘product mix’. This applies to both physical products and services. Sometimes the product is split up into:

Physical product; the basic product. It is purely about the functional and aesthetic-AL characteristics such as dimensions, function and life.
Extensive product; the physical product with added qualities such as packaging, brand name, service and guarantee. 
Total product; the extensive product plus emotional, instrumental and expressive qualities and/or values that the consumers attach to this.