marketing mix and products

VERTU phone

MARKETING MIX

MARKETING MIX

PRODUCT PRICE

PROMOTION PLACEPP

PP

MarketingMix

Product Price Promotion

AppearanceFunction

Cost

Cost basedCompetitor basedConsumer based

AdvertisingSales promotionPersonal selling

Place

RetailersWholesalersDistribution

Product

• Brand loyalty – what makes customers stick to a particular brand?

• Product differentiation created by:– Unique design– Unique product function e.g. iphone– Unique taste e.g. Dr Pepper– Superior performance e.g. Dyson

Product Life Cycle

Shows the different stages in the life of a product and sales that can be expected at each stage.

Sales

TimeIntroduction Growth Maturity DeclineDevelopmen

tSaturation

• Similar products enter the market

•Price lowered

•Some businessesmy be forcedout of the market

• Sales falling• Profits continue to fall

•Sales reach its highest point

•Rate of growth Slows

•Competitors enterthe market

• Sales increasingrapidly

• Profits will reach their highest at the end of this stage

• Sales are low

• Profits will be negative

• Product may be unknown

• Product is being designed

Use of the PLC

• Illustrate the broad trends in sales revenue

• Identify points at which the business may need to consider launching new products as older ones are in decline

• Help business identify when and where spending is required e.g. advertising

Different life cycles

• Products with long life cycle?

• Products with short life cycle?

Extending the life cycle

Introduction Growth Maturity Decline

Sales

TimeSaturation

Extension Strategies

• Find new uses for the products

• Finding new markets for existing products

• Develop a wider product range

• Aiming the product towards specific target markets

• Changing appearance or packaging

Product Mix/Portfolio

Boston Matrix