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Transcript
3.3 MARKETING MIX PRODUCT P PRICE P PROMOTION P PLACE P Marketing Mix Product Price Appearance Function Cost Cost based Competitor based Consumer based Promotion Advertising Sales promotion Personal selling Place Retailers Wholesalers Distribution 3.3.1 Product Central Question What factors are crucial in developing a successful product? Learning Outcomes • To be aware of the costs and benefits of developing new products • To understand the concept of Brand Image and how this can impact sales and customer loyalty • To be able to appreciate the role of packaging in the success or failure of a product • To understand the stages of the Product Life Cycle and possible extension strategies • To understand how marketing strategies and decisions can differ at each stage of the product life cycle Successes Failures Video – Why did these products fail? Can you think of any Business which sells only ONE product? Costs & Benefits of Developing New Products COSTS BENEFITS R&D can be expensive and takes time. Research data could be misleading. Spread risks by developing product portfolio Risk – no guarantee of success if completely new e.g. 3D TV’s Additional Revenue streams which potentially could increase profits If not well received – could affect Company image e.g. Google Glass Could enhance Company and Brand image if successful How to compete with similar products – on price, quality, branding? Could increase customer loyalty Economies of Scale, more competitive and more consumer choice. Brand Image • Look at these products. Write down any words that you associate with them. • Have we all used similar words? • Do you think these words are what the Business wants you to think of? • How does this relate to Brand Image? Watch the Video and Consider… So what is Brand Image? Is it important? Are you influenced by brands – which ones, why? Can you place a Value on a brand image e.g. on a Balance sheet? • Can Brand image be positively or negatively affected by external factors? • What Brand Image do you want to present for YOU personally? • • • • So How Can Brand Image… • Impact on sales Positively? Negatively? So How Can Brand Image… • Impact on customer loyalty Positively? Negatively? Brand Image • Giving the product, a product range or the business, an identity or personality. • Develop name and personality of brand through promotion • Customers FEEL attached or connected in some way to that company. Packaging Environment Protection Choice of Packaging Depends on: Cost Effective Convenience Design Information What packaging factors should be considered for these products? • • • • • • Chocolate bar Ice Cream Computer Crystal glassware Fruit & Veg Perfume Product Life Cycle Shows the different stages in the life of a product and sales that can be expected at each stage. The Product Life Cycle Diagram Sales • Sales • Sales are low • Product is being designed • Profits will be negative • Product may be unknown Development Introduction increasing rapidly •Sales reach its highest point • Similar products enter the market • Sales falling • Profits continue •Price lowered to fall •Rate of growth • Profits will Slows reach their highest at the end of this stage •Competitors enter•Some the market businesses my be forced out of the market Growth Maturity Saturation Decline Time 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 • Assists financial planning – cashflows, Profits or Losses Different life cycles • Products with long life cycle? • Products with short life cycle? Extending the life cycle – How & Why? Discuss Extension Strategies • Adapt the marketing mix e.g. price, packaging • Finding new markets for existing products • Develop a wider product range • Aiming the product towards specific target markets • Changing appearance or packaging Reflection Time – Have we met our objectives? • To be aware of the costs and benefits of developing new products • To understand the concept of Brand Image and how this can impact sales and customer loyalty • To be able to appreciate the role of packaging in the success or failure of a product • To understand the stages of the Product Life Cycle and possible extension strategies • To understand how marketing strategies and decisions can differ at each stage of the product life cycle
