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