4P: Product
intro:
can be goods or services
producer services - factory insurance, advertising agency
consumer services - taxi, schools, car repair
producer goods: used by producers or manufactures to produce further goods and services e.g. bottling plant, machinery
consumer goods - consumed by people e.g chocolate
features of a successful product
distinctive from other "me too" products
stimulates interest of consumers
provides value for money to consumers
satisfies needs and wants of customers
product life-cycle
Induction
Growth
Maturity
Saturation
Decline
product launched into market
sales grow slowly
informative advertising
price skimming - if new product + no competitors
firm might not earn profit at this stage
competitive pricing - if lots of competitors
persuasive advertising
price may reduce by stiff competition
sales grow rapidly
firm starts earning profit
promotional pricing
highest level of profit + enjoy economies of scale
repetitive advertising - reminds customer
maximum level competition - many "me too" product
sales increase slowly+ reach highest sales figures
stagnant sales
crowded market with same type products - max competition
promotional + competitive pricing
highest advert efforts
profit come down
market research: whether decline is permanent or temporary
sales decline
advertising reduced
permanent: stop production of product
temp: extension strategies
Extension
new advertising campaign
more retail outlets - boost sales
small changes in color, design and packaging
sell in different markets
introduce new variations of product
Packaging
to protect product while transportation or storage - important for fragile products
promote product, distinguish it from others + attract more customers (vibrant)
inform customers of it's content, ingredient, weight, size - mandatory
Branding
a name, term, sign, symbol or design, or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of other sellers.
Why a brand?
To suceed branding
confirms credibility
connect targets propects emotionallty
delivers message clearly
motivates buyer
concrete user loyalty
you must understand the needs and wants of your customers and prospects.
You do this by integrating your brand strategies through your company at every point of public contact.