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C12: THE MARKETING MIX : PRODUCT - Coggle Diagram
C12: THE MARKETING MIX : PRODUCT
DEVELOPING A NEW PRODUCT
ADVANTAGES
DEVELOP PRODUCT BEFORE COMPETITORS (USP) → CHARGE HIGH PRICE → 'PRICE SKIMMING'
ACHIEVE GROWTH & EOS
SPREAD RISK
DISADVANTAGES
LACK OF SALES IF TARGET MARKET IS WRONG
LOSS OF COMPANY IMAGE IF PRODUCT FAILS TO MEET CUSTOMER NEEDS
MARKET RESEARCH CAN BE COSTLY
IMPACT OF BRAND IMAGE
ON SALES
PRICED HIGHER THAN UNKNOWN BRANDS
ON CUSTOMER LOYALTY
EASILY RECOGNISABLE
EASIER TO LAUNCH PRODUCTS ; CUSTOMER ALREADY KNOW & TRUST BRAND
(BRAND LOYALTY)
ROLE OF PACKAGING
PROVIDE INFO ABOUT PRODUCT
PROMOTE BRAND IMAGE
PROTECT PRODUCT
EXTENSION STRATEGIES
IMPROVE PRODUCT (NEW VARIATIONS) / ADOPT PACKAGING
INCREASED ADVERTISING & OTHER PROMOTIONAL ACTIVITIES
SELL INTO NEW MARKET
PRODUCT LIFE CYCLE
CYCLE
INTRODUCTION
GROWTH
MATURITY
DECLINE
PRICE
PENETRATION PRICING
COMPETITIVE PRICING
COMPETITIVE PRICING
REDUCED PRICE
(SELL OF REMAINING BEFORE WITHDRAWING)
PLACE
SOLD IN SPECIALLY SELECTED OUTLETS (TEST MARKETS)
WIDELY AVAILABLE
WIDELY AVAILABLE
ONLY AVAILABLE IN PROFITABLE OUTLETS
PROMOTION
HIGH (RAISE CUSTOMER AWARENESS)
HIGH (PERSUADE EXISTING CONSUMER TO BUY AGAIN & ATTRACT NEW CONSUMER)
REMIND CUSTOMER THAT PRODUCT STILL ON MARKET
/ INCREASE IN PROMOTIONAL ACTIVITY
ADVERTISE LOWER PRICE
DRAW & INTERPRET