7Ps of Marketing & Its Application In Different Context
Sheik Shami Ullah Chowdhury (ID-2012121015)
Raju Kumar Saha (ID-2012121012)
Shaida Yesmin (ID-2012121008)
Najeb Islam (ID-2011421006)
HND Business Intake 1, 2012
Mr. Irfan Jahangir
School of Business
Marketing & Market:
According to the definition approved by AMA:
Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. And Market simply means a set of actual & potential buyers.
Successful marketing depends on a number of key issues.
These include: what a company is going to produce; how much it is going to charge; how it is going to deliver its product or services to its customer; and how it is going to inform its customer about the product or service. Traditionally these considerations were known as the 4Ps – Product, Price, Place and Promotion. As marketing became a more sophisticated discipline People, Process and Physical Evidence were added. These considerations are now known as the 7Ps of marketing also referred to as the marketing mix.
(Lo 3.1) New product development strategy to sustain competitive advantage: New products are the lifeblood of a company. As old products mature and fade away, companies must develop new ones to take their place. A firm can obtain new products in two ways.
One is through acquisition – by buying a whole company, a patent, or a license to produce someone else’s product. The other is through the firm’s own new-product development efforts.
However, there are several reasons for which new products could fail. * The company may overestimate market size.
* The actual product may be poorly designed.
* It might be incorrectly positioned.
* Launched at the wrong time.
* Priced too high.
* Poorly advertised.
* Or the cost of product development is higher than expected.
To create successful new products, we must:
1st. Understand its customers, markets and competitors thoroughly. 2nd. Develop products that deliver superior value to customers.
To meet these purposes we must develop a systematic new-product development process.
Step 1. Idea generation (Systematic Search for New Product Ideas) – Major sources of new-product idea include internal sources and external sources such customers, competitors, distributors, and suppliers, and others.
Step 2. Idea screening –
Idea screening helps spot good ideas and drop poor ones as possible because company wants to go ahead only with the product ideas that will turn into profitable products. Decisive factors for screening are:
* Market size.
* Product price.
* Development time & costs.
* Manufacturing costs.
* Rate of return.
Step 3. Concept development and testing –
Product concept is a detailed version of the new-product idea stated in meaningful consumer terms, and concept testing includes testing new-product concepts with a group of target consumers to find out if the concepts have strong consumer appeal.
Step 4. Marketing strategy development –
It’s all about designing an initial marketing strategy for a new product based on the product concept.
The marketing strategy statement consists of three parts.
The first part describes the target market; the planned value proposition; and the sales, market share, and the profit goals for the first few years.
The second part of the marketing strategy statement outlines the product’s planned price, distribution, and marketing budget for the first year.
The third stage of the marketing strategy statement describes the planned long-run sales, profit goals, and marketing mix strategy.
Step 5. Business analysis –
It is a review of the sales, costs, and profit projections for a new product to find out whether these factors...
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