EXTENSION STRATEGIES:
PRODUCT LIFE CYCLE: Prolong product life by changing
Shows sales of a product over time MM
Valuable for planning marketing strategies and the marketing mix Product development - improve,
Decisions based on where a product is in the cycle reformulate or redesign, special TYPES OF CONSUMER PRODUCTS
editions or new packaging Convenience products
Market development - find new
markets and new uses for existing
Shopping products
products Speciality products
Distribution - change of location
or move to internet or move to
supermarkets
Product mix = combination of all product lines a business
Price - special offers or produces
RESEARCH & DEVELOPMENT:
competitions - aim for a variety at different stages of life cycle
Promotion - e.g. new ad campaign
Market research and Decline isn’t inevitable - usually caused
Boston Matrix = a model of portfolio analysis
development by poor marketing, products becoming
High costs obsolete and changing consumer tastes.
Quality well designed can sell for
Compares market growth with market share
High failure rate due to low decades e.g. cadbury Circles represent a product and size represents sales rev
demand and high cost of Good way of showing products position in market
making Can make decisions based off this
Focus on product and price before However, cannot predict exactly what will happen
promotion and place
NEW PRODUCTS Gov
New products = new customers Pred
PRODUCT = competitive advantage Trad
= maintain balanced product portfolio Adv
WHY NEW PRODUCTS COME ABOUT … med
Tech developments - can now offer something new or a replacement
Launch of imitative products from competitors
MEDIA: A gap in the market has been identified - innovative, high risk but high
reward
Ads promote image as well as goods and services USP
Choice of media depends on no. of target customers and Tangible benefits - can be measured e.g. low-calorie pizza INTERNAL IN
how many see the ad Intangible benefits - cannot be measured, based on concepts like
reputation and brand image e.g. feel good and reliability
Corporate obj
Cost must be worth it in extra sales Important but also consider; customer service, moneyback guarantees and
Finance, budg
Human resou
DIGITAL - target intended audiences, mobile ads only spare parts
charge for clicks, no wastes money,
Viral marketing - interesting ads that people share
themselves for free Sales vo
Impact of ads is very important BRANDING STAR time but
Need to follow legal constraints Differentiates a product High growth and share QUESTION MARKS ? better to
Specialist media used for niche products e.g. fishing rods in from competition Most potential All new products
Sales Gr
growth
fishing mag Can be single products or Future cash cows Small share high growth Market
a range Competitors try to take Not profitable yet, need heavy them ho
If superior brand, can advantage so must spend a lot marketing
Market
PROMOTION Changes over product life cycle - charge premium price on promoting to keep market
Brand building, harvesting or
or grow
Qualitat
informative heavy when launched, persuasive and Loyalty comes with share
divestment
USP when growth and then advertise the PROMOTION confidence in brand Might need to increase FACTORS INFLUENCING
improvements if extension strategy Packaging to distinguish capacity for demand INCLUDE…
the product Market research
DOGS INFLUENCE OF RESOURCES … Competitors - price,
If popular enough, deters CASH COW Low share, low growth
Marketing and corporate objectives influence MM INTEGRATED MARKETING MIX: promotion & people
competitors so price Compromise due to finances - choose most All 7 Ps work together, complement each other - if one is off Target market segment
High share low growth Lost cause effective affordable promotion it can decrease revenue Product positioning
OTHER FORMS OF PROMOTION: becomes inelastic In maturity phase May be able to harvest short Supplier prices and process Location - process
Sales promotions - BOGOF special offers term profit Can be sold off Software to help with marketing Type of product
Merchandising - displaying effectively Knowledge and skills of employees eg. can justify
high prices
Goods or services?
Selling B2B or B2C
Direct mail - targeted or untargeted THE PROMOTIONAL MIX MARKETING MIX
Personal selling / direct selling - salesperson and Promo depends on product, Describes the factors that firms consider when marketing a product.
customer communication competition, life cycle and the budget PENETRATION PRICING - Added 3 Ps due to service industries becoming the biggest sector of the
Relationship marketing - long-term relationships with Convenience products = advertising Launching new products at a low price to attract customers and CHANGING MM TO BE COMPETITIVE
UK economy, also apply to physical goods
THE 7 Ps:
customers, offer them things others don’t get. Loyalty Expensive and complex = personal gain market share. Effective in price sensitive markets. Markets are dynamic - new competitors entering 1. PEOPLE - v important to service business, customers more likely to buy if
cards selling Works best for companies that can benefit from economies of and leaving, businesses must be able to adapt
Remaining profitable - keep reviewing MM and
people providing are well-trained, knowledgeable, reliable, friendly and
scale. efficient
Event sponsorship - good for image too Promotional mix reflects the economy altering marketing decisions taking new info into 2. PROCESS - includes things like waiting time, ordering and payment
Direct response TV marketing - shopping channels Issue of annoying customers when raise price and decreasing account systems, after-sales service e.g. people might prefer paypal
PR - liaising with media and press, writing brochures loyalty Ways of improving competitiveness …
Changing any one of 7Ps
3. PHYSICAL ENVIRONMENT - the presentation of where a service is
provided e.g. clean stylish hair salon
about the company and dealing with special events like Can be an extension strategy, used to target budget conscious Tech advances 4. PRICE
markets
3 - Mar
product launches and conferences Social factors e.g. increased no. of pensioners 5. PLACE
might prompt product change 6. PRODUCT
New Laws can effect MM 7. PROMOTION
OTHER PRICING
STRATEGIES…
Predatory pricing
Competitive PRICE PRICE SKIMMING -
Psychological new products at high prices when first in the
Loss leaders market, has scarcity value, high price boosts appeal.
Price discrimination E.g. Tech MARKETING DECISIONS - STP
aims to focus on marketing efforts INT
Dynamic pricing Usually drop considerably after a year or so due to where they will be most effective
competition and decreased interest. Can possibly put
FACTORS AFFECTING PRICE DECISIONS… off potential customers and frustrated those who
INDUSTRIAL MARKETING; Affected by all 7Ps bought at high price PRI
Cost-plus pricing - Set to cover cost and SEGMETING
B2B requires ongoing good make profit, % added on cost + markup dividing the market into different
groups of needs or characteristics
= How much the p
Is always ne
PEOPLE relationships, may be worth Must be acceptable / affordable CHANNEL OF DISTRIBUTION negative cha
Within service industry, the customer experience is sacrificing some immediate profit PEOD - availability of subs, type of Channel of distribution is the journey a product takes
minus sign
highly dependent on the people they are dealing with = repeat purchases get you extra
Friendly and knowledgeable more likely to get free
profit. Place differs, promotion product, age, loyalty from producer to consumer TARGETING PEOD is greater t
word of mouth promotion and customer loyalty, Stage of life cycle deciding which segment and then =% change in dem
internet and online reviews reinforce this more info less persuasion and Usually passes through intermediaries adapting the product and marketing mix PEOD is less than
Might need initial advice or after-sales help price depends on competitiveness Company’s objectives Retailers are usually the final destination accordingly =% change in dem
Online advice - prompt return emails and calls
Forms good relationships
Competing prices Wholesalers buy products cheaply in bulk and sell
Need people able to explain the technical parts of a them on to retailers - making life easier for retailers
product PLACING WITHIN AN OUTLET: and manufacturers POSITIONING
Breaking bulk - wholesalers mean manufacturers position the product in the target PRICE E
PHYSICAL ENVIRONMENT Lots of varieties for more shelf space all customers mind so they prefer it over % cha
Can include … from one brand don’t have to wait for cash the competition
Decor & cleanliness
Appearance of website Everyday essentials at back of the shop so Wholesalers can store more than a retailer
Appearance of staff - gives impression you have to walk around the entire thing
Layout - should be easy E-commerce using key words and customer
Practicality & Safety SEGMENTATION - GROUPS
PEOPLE, PROCESS AND PHYSICAL ratings to get their product at the top of the INFLUENCES ON POSITIONING:
