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Marketing Mix (Product (Product life cycle stages (2) introduction (Sales…

- - - - Sales are low, but costs are still high due to product promotion through advertising
    - - Sales are at 0 as the product hasn't been introduced to the market yet, costs will be at their peak, and profits will be negative
    - - After launch, there will be a high demand so the product can be sold with premium pricing- additionally, this is the most lucrative phase of the product life cycle, and profits will be negative
    - - Product reaches its peak of popularity and sales are at their peak- soon after a saturation phase begins.
    - - Extension strategies may be used to keep sales high as they have began to plateau; furthermore, profits are falling and products have to be discounted
        
        Differentiation- when a business makes its products or services different to its competitors
        
        ways of differentiating: USP, extend product range, decrease pricing, increase quality, location, customer service, branding, product mix
    - - Sales are falling, profits are negative again- to distribute risk, diversify the product portfolio
  - - - How expensive is the production process and raw materials
    - - How does the product look? An ugly product tends to be harder to generate revenue from- on top of this, the design of th product can be theme linked
    - - How well is the product designed to do what it is intended for? For example, a small parachute may be more aesthetically pleasing and cost efficient, but it may not function properly and the user could die if its functionality isn't checked
  - - - Products need to be tailored to where they're being sold- also , place can be virtual(e.g amazon or ebay)
    - - New digital marketing methods means that products need to be adapted for online promotions
    - - If raw material pricing increases, the product's design needs to change to save money