Developing a marketing mix for a new product or service.
In this assignment I will be looking at how product and services are marketed and look at how a marketing mix is developed using the four P's: Product, Price, Place, and Promotion. The Marketing Mix provides an excellent framework for developing marketing plan. They are generally accepted as being made up of four parts which are: •
These are ideas to consider when marketing a product and shall be described in more detail below:- The Four 'P's
A product is anything that can be offered to the market to satisfy a customer needs and desires. Product include physical goods, services experiences, events, person, place and etc. It is therefore the combination of goods and service that are offered to the target consumer. A business will constantly change and update its product range and mix to constantly please their customers and be above competitors. A product can be viewed in three different levels:
Level 1: The core Product (rather than the physical product) is the benefit of the production that makes it valuable to you. Level 2: The actual product is the physical item. At this level branding and added features and benefits are important as this what will differentiate the product from competitors. Level 3: The augmented product is additional value beyond the physical product: it usually consist of after-sales service, warranties, delivery and so on.
The extent of the mix is another significant issue. If a business doesn’t have many products, there is a chance that one will go out of date as newer type of products are in the market and this can seriously damage the business scale. It is recommended to never have one product in one market as if the product isn’t successful and fails this could mean a complete failure of the business. Some businesses will adapt and anticipate change, while others reacts to the need to change. An example of this is that IPhone makes changes to their products such as their mobile phones, they add more features to their products giving their customers a range of features to look for in a product. Once a business has identified their target group of customers it has to know what products or services it needs to do and provide in order to appeal and attract to them. The information they provide their customers should illustrate the features of the product or service so that the customers know what to expect and it reaches their expectations and the business will make a profit. However it’s important to take into consideration that the benefits to a customer are not always for a practical sense there are psychological benefits such as status for example. An example of this is if everyone has a specific phone and a person went and got the same phone they may get it more for a status reason. The product life cycle concept reflects the theory that product, like people, live a life. They go through 4 stages. The main stages of the product life cycle are:
Introduction- researching, developing and then launching the product •
Growth-when sales are increasing at their fastest rate
Maturity-sales are near their highest, but the rate of growth is slowing down, e.g. new competitors in market or saturation •
Decline-final stage of the cycle, when sales begin to fall So understanding what part of the cycle your product is in will shape your marketing mix. Price
Price is the one element of the marketing mix that revenue; the others produce costs. A business must set a price for a product and in deciding the products price; marketing must follow a six-step-process. 1.
Select the price objective-This could be to survive or to maximize market share. 2.
Determine demand-the higher the price, the lower the demand. 3.
Estimate cost-charge a price that covers the cost of producing, distributing and selling the product. 4.
Analyze competitors' costs, prices and offers-take into account its competitors...
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