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Reading 6: The Marketing Mix - Product - Coggle Diagram
Reading 6: The Marketing Mix - Product
THE MARKETING MIX
4Ps
product
place
promotion (distribution)
price
7Ps
process
physical evidence
people (considered the 5th P)
changing these elements can take time and be expensive
careful research and planing ensure optimal mix is chosen
PRODUCT
three levels of product benefits
actual product
packaging
features
styling
quality
brand name
augmented product
installation
after-sale service
warranty
delivery and credit
core benefit of service
four main types of product
convenience
shopping
speciality
unsought
innovation are risky and expensive
tend to occur at actual product level
NEW PRODUCT DEVELOPMENT
consumer needs and market environment changes
performance is monitored and adjustments made
Crawford (p. 50) five-step basic new products process:
phase 2: concept generalisation
phase 3: concept/project evaluation
phase 1: opportunity identification and selection
phase 4: development
phase 5: launch
extended list of steps for developing new products
idea screening
concept testing
idea generation
market/business analysis
new product planinng
product development
test marketing
commercialisation
not all companies do all stages or go through them systematically
PRODUCT PLANNING IN DETAIL
step 4 - concept testing
test with target consumers to gauge their reactions
focus groups
online forums/brand communities
step 5 - market/business analysis
target market
planned value proposition
sales, market share, profit goals for first few years
step 3 - ideas screening
select most promising ideas for further development
use a set of criteria to do so
step 6 - product development
create an actual prototype product
step 2 - ideas generalisation
research laboratories
periodic reviews
open calls for product suggestions internally or externally
serendipitous suggestions
competitors or other organisations
collaboration
step 7 - test marketing
tested in laboratory, virtual store, on a panel of consumers or limited real settings
elements of marketing mix can be adjusted if needed
step 1 - new product planning
analysis of micro and macro environment
analysis of competitive position company and competitors
analysis of marketing information
analysis of differential advantage
use of SWOT
use of Ansoff's matrix
step 8 - commercialisation
full scale launch of new product
costliest stage
timing must be considered
FAILURE OR SUCCESS?
overestimation of market size
disregarding marketing research
higher than expected product development costs
poor product design
incorrect positioning
unsuitable launch timing
inappropriate pricing
poor promotiona
aggressive competition
lack of preparation
unique superior product
building in voice of customer
doing the homework
getting early product/project definition
spiral development
the world product
well-conceived, properly executed launch
speed counts!