P1 M1 D1 unit 3
Definition/ Explanation
Product development
Where a company bases a product to make a different product. For example Mars have made milkshakes based on the Mars bar.
Brand extension
Where a company uses their brand name on different products to increase the profit margin. For example Hugo Boss could put their logo/name on a watch and customers would still pay more money for their product.
Diversification
Is where they take a product into a new market. It is a slight risk as the company may not have experience in this market. An example of this is when Apple decided to enter the market for MP3 as to their original market of computers.
Brand building
Making your product stand out by using your logo which has been used on previous popular products. As long as it is still successful it will succeed. An example of this is PepsiCo using their logo on their lesser brands.
Market Penetration
Involves increasing sales in existing products within an existing market. There is a usually a low risk element as the business is usually experienced. An example of this is a Fredo chocolate bar increase their prices.
Brand positioning
This is how a product is viewed by the consumer in relation to their rivals in the market. An example of this is food in Tesco might be seen differently to the food in Lidl.
Market development
This involves releasing an existing product into a new market, for example a IPhone that has been selling well in the UK will be sold across Europe.
Relationship Marketing
This focuses on building a good relationship with customers in the long term basis. They try to build an everlasting one to one relationship with their customers in order to guarantee themselves customers for a long time.
How does Apple use it?
Product development
Apple would use a product that they use and would expand it in to a different model. For example Apple started with computers and moved to MP3 players and phones.
Brand extension
They would put their logo on different products.
Product development
Where a company bases a product to make a different product. For example Mars have made milkshakes based on the Mars bar.
Brand extension
Where a company uses their brand name on different products to increase the profit margin. For example Hugo Boss could put their logo/name on a watch and customers would still pay more money for their product.
Diversification
Is where they take a product into a new market. It is a slight risk as the company may not have experience in this market. An example of this is when Apple decided to enter the market for MP3 as to their original market of computers.
Brand building
Making your product stand out by using your logo which has been used on previous popular products. As long as it is still successful it will succeed. An example of this is PepsiCo using their logo on their lesser brands.
Market Penetration
Involves increasing sales in existing products within an existing market. There is a usually a low risk element as the business is usually experienced. An example of this is a Fredo chocolate bar increase their prices.
Brand positioning
This is how a product is viewed by the consumer in relation to their rivals in the market. An example of this is food in Tesco might be seen differently to the food in Lidl.
Market development
This involves releasing an existing product into a new market, for example a IPhone that has been selling well in the UK will be sold across Europe.
Relationship Marketing
This focuses on building a good relationship with customers in the long term basis. They try to build an everlasting one to one relationship with their customers in order to guarantee themselves customers for a long time.
How does Apple use it?
Product development
Apple would use a product that they use and would expand it in to a different model. For example Apple started with computers and moved to MP3 players and phones.
Brand extension
They would put their logo on different products.