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THE MARKETING MIX - PLACE (Product (4 Main Product Types (Convenience …
THE MARKETING MIX - PLACE
Product
Services, ideas or physical goods - "offering"
Considers:
specifying products development requirements
packaging and design
branding
after-care service and support
3 Levels of product benefits
Core benefit of service
Actual product
packaging, brand name, features, quality, styling
Augmented product
Installation, delivery and credit, after-sale service, warranty
4 Main Product Types
Convenience
frequent purchases, low investment and involvement (groceries)
Shopping
less frequently purchased, selected on price, quality and style (furniture)
Speciality
special purchases, expensive, strong brand preferences (luxury items)
Unsought
little knowledge or interest (insurance)
New Product Development
Focuses on 8 steps
Step 1: New product planning
Analysis of micro/macro environment
Competitive positions of org and competitors
Differential adv. and marketing info
SWOT/Ansoff's Matrix
Step 2: Idea generation
Generating ideas in line with org objectives
Ideas come from: research labs, periodic reviews, open calls for product suggestion, "random" suggestions, competitors, other orgs, collaboration
Step 3: Idea Screening
Assessing how well ideas match objectives and resources
Selects promising ideas and screens out less promising ideas
Criteria for screening include the "real? win? worth it?" screen and using members from different functions
Step 4: Concept testing
test new concept on small sample of potential buyers. assess reactions
Can use photos, images, videos, words or physical representations
Step 5: Market/Business Analysis
develop marketing strategy using 3 parts:
target market
planned value proposition (prices, distribution, budget)
sales, market share and profit goals
Step 6: Product development
Translating concept into actual prototype
Step 7: Test marketing
Testing prototype with target consumers and full marketing mix
Time consuming + expensive
Cheaper than full scale roll-out across whole market
Step 8: Commercialisation
Full scale launch of new product
Post-evaluation and incorporates amendments from step 7
Costliest stage
Failure or Success?
Causes of failure
Overestimation of market size
Disregarding market research
Higher than expected product development costs
Poor productdesign
Incorrect positioning
Unsuitable launch timing
Innappropriate pricing
Poor promotion
Aggressive competition from competitors
Success Drivers
Unique superior product
Building in the voice of the customer (customer focus)
Do the homework!
Getting sharp and early product and project definition
Spiral developemnt
World product
Well conceived, properly executed launch