Download - 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