Page 126 - DMGT408DMGT203_Marketing Management

Unit 5: Designing a Customer-driven Strategy .......

For example, if the pricing of a product or service is higher, instead of changing the price, you Notes
can add new features to the product or change the service. You can also make the product or
service available more conveniently to the customers.
Each elements of marketing mix strategy affects the other and the proper combination of these
four elements is the key to the success of any marketing process.

1. Product Mix Strategy: Product Mix Strategy is about determining features of your product
or service. Product mix strategy deals with:

The product life cycle
Brand name
Packaging
Design

Quality
Safety
After sales service
2. Pricing Strategy: The price of a product can be fixed in many ways. Marketing mix pricing
is a tool that helps in settling on a pricing strategy, considering the followings:
Retail price
Wholesale price

Special offers
Penetration pricing
Price skimming
Optional product pricing

Geographical pricing
3. Place (distribution) Strategy: Place marketing mix is nothing but distributing product to
the customer. Few instances for this:

Warehousing
Distribution centers
Reverse Logistics
Transportation

Inventory Management
4. Promotion Mix Strategy: Promotion mix strategy deals with the available tools for
marketing communications. This element helps in deciding on the location, where the
customers will get the product or service. Promotion mix strategy also deals with:
Sales promotion
Distribution channels

Advertising
Sponsorship
Trade Fairs and Events

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