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The marketing mix: Products (brand names (unique name, higher price than…
The marketing mix: Products
4 P's
price
price at which product is sold
product
applies to product itself - design & quality
place
the channels of distribution selected
promotion
how product is advertised and promoted
types of products
consumer goods
goods consumed by people
consumer services
services produced for people
producer goods
goods produced for other businesses to use
producer services
services that are produced to help other businesses
why produce right products?
to satisfy consumer wants and needs
products needs to be the right quality
not too expensive to produce, and has to gain reasonable profit
design of product is important
product development
generate ideas
select best ideas for further research
decide if company is able to sell enough for the product to become successful
develop a prototype
launch the product in one part of the country to test the market
go to a full launch of the product to whole market
developing new products
benefits
USP(unique selling product) means business will be first into the market with a new product
diversification for business, giving broader range of products to sell
allows business to expand to new markets
allow business to expand in existing market
costs
cost of carrying out market research and analysing findings
costs of producing trial products including the cost of wasted materials
lack of sales if target market is wrong
loss of company image if the new product fails to meet consumer needs
brand names
unique name
higher price than unbranded products
creates a brand image
encourages customers to keep buying it
unique packaging
always of the same standard
higher quality than unbranded products
needs advertising to reinforce the brand's qualities
product life cycle
product will be developed
introducing/launching of product
sales will grow rapidly
sales start to increase slowly
sales have reached saturation point and stabilise at their highest point
sales of the product will decline as new products come along or has lost its appeal
extending the product life cycle
introduce new variations of the original product
sell into new markets
make small changes to the product's design, colour and packaging
use a new advertising campaign
introduce a new, improved version of the old product
sell through additional, different retail outlets