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BXY207 Reading 6: The Marketing Mix - product - Coggle Diagram
BXY207 Reading 6: The Marketing Mix - product
Reading 5: Checks and chavs
The value achieved is in the desirability of the brand and in the competitve advantage it provides
(Aaker) Brand equity comprises 4 dimensions: awareness of the brand, percieved quality, loyalty of the customer base and brand association
A brand is made up of a name, term, design, symbol and other features that distinguish one seller's goods from those of others
(4P's) Product, place, promotion (distribution) and price
Often used for product offerings
(7P's) Process, physical evidence and people
Also used for services
Marketers use and vary elements of the marketing mix to satisfy their customers
These are expensive and difficult to change quickly (Dibb et al., 2016)
Careful research, analysis and planning to ensure the optimal mix is used
Product
Often covers services and ideas as well as physical goods
Product development considerations:
Development requirements
Packaging design
Branding
After-care service and support
4 Main times of product:
Convenience
Frequently purchased, low investment
Shopping
Less frequent, selected on price, quality and style
Speciality
Special purchase
Unsought
Little knowledge or interest (insurance)
New Product development
5 Step Basis
(Crawford, 1991; Crawford and Di Benedetto, 2014, p.19)
Phase 1: Opportunity identification and selection
Phase 2: Concept generation
Phase 3: Concept/project evaluation
Phase 4: Development (marketing)
Phase 5: Launch
8 Step Basis
Kotler and Armstrong (2016) and Dibb et al. (2016) Crawford (1991)
3: Idea Screening
Matching ideas to resources and objectives
Selecting most promising ideas
4: Concept testing
Testing on samples of potential buyers
Test in more detail with target consumers in mind
5: Market/business analysis
Evaluating potential sales, costs and profits
Developing a 3 part marketing strategy (target market, value proposition, sales, market share and profit goals)
6: Product Development
Working out logistics
Translating the product into a prototype
7: Test Marketing
Gaging reactions in a sample
Testing the full marketing mix with a target subset
8: Commercialisation
Planning and completing full scale production and launch
The costliest stage
2: Idea Generation
Research labs, periodic reviews, open calls, collaboration
1: New Product planning
Reviewing performance, opportunities and threats
Micro and macro environment, SWOT
Success and failure
Kotler and Armstrong, 2016 Reasons new products sometimes fail:
Overestimation of market size
Disregarding market research
Unexpected development costs
Poor product design
Incorrect positioning
Unsuitable launch timing
Inappropriate pricing
Poor promotion
Aggressive competition from competitors