Studied by 12 peoplethe marketing mix
product, place, price, promotion
what does a good marketing strategy do
meet customer needs
what must a business do to have a good marketing strategy
design and product high quality products
charge an acceptable price
promote products to consumers
make products available in the right place
stages of product development
generating ideas
analysis
development
test marketing
commercialisation and launch
generating ideas
ideas for new products come from business stakeholders and market research
sometimes businesses try to improve features of a rival's product
analysis
product ideas are analysed and evaluated as marketable, possible and suitably fit legally
development
involves carrying out tests for change and modifications in products
test marketing
this involves testing the product in a sample of the market which represents the whole market
it's used to gather information about consumer opinion
commercialisation and launch
businesses add the final touches to the product
problems are resolved and changes are made
marketing strategy is designed
press conferences are launched
a risk of the development stage
a number of product ideas are likely to be rejected but tend to fall at each stage
products
goods and services sold by a business
two types of goods
consumer goods
producer goods
why is packaging important
customers link quality of products with the packaging
factors influencing choice of packaging
protection
environment
cost-effectiveness
information
design
convenience
product life cycle
shows level of sales at different stages of the product
stages of the product life cycle
development
introduction
growth
maturity and saturation
decline
development
zero sales
product research, design and testing
high costs and can damage cash flow as most products don't make it past this stage
introduction
introduced through an official launch
promotion strategies
high costs and spending
some businesses start with skimming and some with penetration pricing
growth
sales grow if a product is successful
increased revenue
recovery of cost
falling cost
profit
end of stage: products grow less quickly as competitors launch their own versions of the product
maturity and saturation
improving cash flow
profit
saturated market
falling price
change in promotion methods
decline
sales decline and products are taken off the market
change in consumer taste and new product emergence
businesses replace declining products with new ones
different products have different life cycles
fads
short life cycle
long established products
long life cycle
extension strategies
lengthen the life of a product before it starts to decline
help businesses generate more cash
3 examples of extension strategies
finding new markets
finding new uses
changing the appearance
benefits of extension strategies
sales levels and revenues can recover and grow
competitors will find it difficult to enter the market
consumers will be loyal
product portfolio
range of products that a business currently has available on the market
boston matrix
used to help analyse products marketed by a business
benefits of a product portfolio
products decline and are replaced
products are modified and extendes
significance of a boston matrix
helps businesses enable a product into appropriate categories according to market share and position in the life cycle
positions in the boston matrix
question mark, dog, star, cash cow
question mark
low market share
growing market
potential
dog
end of life cycle
low market share
replaced
star
valuable products
high market share
potential for growth
profitable
cash cow
mature
high market share
not likely to grow
steady flow of income
Note
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