Marketing mix and products

The marketing mix is the set of tools a firm uses to reach its target market: the four Ps: product, price, place and promotion.

A product is a bundle of utilities: it gives functional benefits (a car carries you), psychological benefits (it makes you feel successful), and social benefits (others admire it).

Consumer products, by the effort spent buying them:

• Convenience products: bought often, quickly, with little effort, from nearby shops (toothpaste, soap, bread).
• Shopping products: bought after comparing quality, price and style at several stores (furniture, clothes).
• Speciality products: with special features, for which buyers make a special effort (a rare antique, a luxury watch). Their demand is relatively inelastic: price matters less.

By durability: non-durable products (used up in one or a few uses), durable products (used for a long time), and services (activities like repairs or haircuts, which cannot be stored).

Industrial products are bought for use in making other products or running a business:

• materials and parts (raw materials, components);
• capital items (buildings, machines);
• supplies and business services (stationery, maintenance, consulting).