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The marketing mix - product - Coggle Diagram
The marketing mix - product
The marketing mix
5Ps commonly considered for product offering
Product, place, promotion, price and people
7Ps for services
5Ps, process and physical evidence
Research, analysis and planning to ensure optimal mix
Close monitoring of environment to ensure changes anticipated ASAP
Product
Covers services, ideas and physical goods (could be combo)
Includes product-related considerations
Specifying product's development requirements
Packaging design
Branding
After-care service/support
3 levels of product benefits
Augmented product
Installation, after-sale service, etc
Actual product
Packaging, features, brand name, etc
Core product
Core benefit of service
4 main types of product
Convenience - milk, tissues, etc
Shopping - furniture, computers, etc
Specialty - luxury items
Unsought - insurance
Innovations involve expense and risk so tend to be incremental - at level of 'actual product'
New product development
Performance monitored and adjustments made due to customer needs and marketing environment changing
Minority of new products are new inventions
Just under half are replacement products
The rest are complimentary products or moves into new market
New products process
New product planning
Idea generation
Idea screening
Concept testing
Market/business analysis
Product development
Test marketing
Commercialisation
Successful innovation included customer participation throughout new product development
Product planning in detail
New product planning
Useful tools include SWOT analysis and Ansoff's matrix
Analysis of macro/micro environment, competitive positions, differential advantage and marketing info
Ideas generation
Research laboratories
Periodic reviews
Open calls for product suggestions internally/externally
Invite users to share suggestions
Serendipitous suggestions
Competitors/other organisations
Collaboration
Idea screening
Select most promising ideas for further development/screening
Use set of criteria
Concept testing
Test more detailed idea with target consumers to see reactions
Target consumers' feedback through questions
Focus groups traditionally used - other means of data collection can be used e.g., online forums
Market/business analysis
Develop marketing strategy with 3 parts
The target market
Planned value proposition
Sales, market share and profit goals
Evaluate the sales, costs and profit estimations against objectives
Product development
Actual prototype of product
Test marketing
Test prototype with sub-set of target consumers and full marketing mix
Time-consuming and expensive
Allows marketing mix to be adjusted based on feedback
Commercialisation
Full-scale launch of new product
Costliest stage
Timing must be considered carefully
With regard to impact on other products, anticipated competing launches and whether further improvements needed
Failure or success?
Products can be dropped at any of the 8 stages
Most dropped at idea generation stage
Product failure rates actually around 40%
New products may feel due to:
Overestimation of market size
Disregarding market research
Higher than expected development costs
Poor product design
Incorrect positioning
Unsuitable launch timing
Inappropriate pricing
Poor promotion
Aggressive competition
Most products fail due to lack of preparation
A way around these risks it to buy other businesses to acquire newly developed products
Become vertically integrated
Why new products succeed
Unique superior product
Building in customer voice
Doing homework/front-end loading project
Getting sharp and early product and project definition
Spiral development
The world product
Well-conceived, properly executed launch
Speed
Adapt marketing research to local conditions