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The Marketing Mix: Block 1 - Reading 6 - Coggle Diagram
The Marketing Mix: Block 1 - Reading 6
The Marketing Mix
Traditional 4Ps: Product, Place, Promotion, Practice
5th P: People
7Ps for Services: Process, Physical Evidence
Integration: All elements constitute the offer to customers and must fit consumer needs, changing elements can be slow and expensive, requiring careful planning.
Product and Product Levels
Definition: used broadly to cover physical goods, services and ideas (offerings) includes development requirements, packaging, branding and after-care.
4 Product Types: Convenience, Shopping, Speciality and Unsought.
3 Levels of Product Benefits
Actual Product - features, design/styling, quality, brand name and packaging
Augmented Product - Installation, delivery and credit, warranty and after-sale service
Core Product - the core benefit or service
New Product Development (NPD) Process
8 Stages (Crawford, Kotler, Dibb et al.):
Idea Generation - sourcing ideas from R&D, portfolio reviews, open competitions (e.g. Lego, Dyson), collaborations or feedback.
Idea Screening - filtering ideas using tools like Day's "Real Win, Worth It" (R-W-W) screen.
New Product Planning - reviewing performance and identifying opportunities (e.g. using SWOT or Ansoff's matrix).
Concept testing - testing the concept with target consumers via focus groups or online communities.
Market/business analysis - developing marketing strategy, cost/profit estimates and break-even analysis.
Product Development - translating the concept into an actual physical prototype.
Test marketing - testing the prototype and full marketing mix in lab, controlled or standard setting.
Commercialisation - full-scale market launch and production rollout.
Product Success and Failure
Common Causes of Failure - Overestimating market size, ignoring research, high development costs, poor design, wrong positioning, poor timing or bad pricing/promotion.
Critical Success Drivers (Cooper, 2011) - Unique superior product, voice of the customer, front-end homework, sharp product definition, spiral development (build-test-revise), global/glocal reach, solid launch execution and speed.
Failure Rates - research shows actual failure rates are round
40%