MARKETING MIX-

PRODUCT

•Ms Nancy Prabhu

•Dr Dipti Parekh
 • To identify and explain the costs and benefits of
developing new products
• To explain the concept of brand image and its
Learning impact on sales and customer loyalty.
Outcome • To identify and explain the role of packaging.
• To draw and interpret a product life cycle diagram.
• Able to identify and explain the main stages of the
product life cycle, including extension strategies;
and explain how stages of the product life cycle
can influence marketing decisions.
⮚ Producing the right product at the right price
⮚ Marketing mix refers to the combination of
different elements that make up the marketing
strategy of a business designed to meet or
create a consumer want for its product; and it is
the role of the marketing department in that
business to plan and implement the marketing
mix across the whole organization
⮚ A good marketing mix will create sales and
customer loyalty BUT each element must be
right for it to be successful
⮚ Product needs to be ‘FIT FOR PURPOSE’
Effective, Efficient
and Attractive
Packaging
Functions of
packaging
 Developing a new or improved product can be a source of
competitive advantage and boost sales

▪ Market research helps in planning and development of new

or improved product
▪ It should address the market gap and be able to compete
with rival products on cost, price and quality
▪ Analyzing the competing products and its features – Benchmarking is not an immediate solution to
product benchmarking, a technique of strategic a problem, but a step by step treatment of
the problem area.
management used by successful companies
▪ American Productivity & Quality Center (APQC) gives the
best definition of benchmarking- a process of identifying,
understanding, and adapting outstanding practices and
processes from organizations anywhere in the world to help
one organization to improve its performance.
▪ Reverse engineering – taking apart of competing products
to discover their strengths and weakness and how they are
made

Extra reading: http://www.tfzr.uns.ac.rs/emc/emc2011/Files/G%2002.pdf

Product development benefits:
• Reduce risks of producing a product not preferred by
consumers
• Competitive advantage over rivals , with product that
addresses the gap in the market
• Increase in the market share
• Increase in product range of the business

Product development flowchart:

• Long and expensive process
• Poor trials leads to wastage of resources
• Sales and reputation is lost if final product fails to
meet customers requirements
Different types of products aimed at different groups of consumers

SERVICES

Consumer services business services

Semi-finished goods
– materials and
component parts
used to produce
other goods
Brand image and its impact on sales and customer loyalty
Brand- a name used to identify and distinguish a specific good , services or business from others

Branding is a process of creating distinctive and durable perceptions of a product in the minds of
consumers
 Brand name
needs to be
remembered by
the consumers

Brand loyalty

BRAND
persuading the
consumers to Brand awareness
continue their ability to recall and
purchases recognize the brand

Brand image
to create impression
with particular
qualities or
characteristics
making it special
The product life cycle

Knowledge of product’s life cycle

can help businesses plan their
marketing strategies to enhance
sales and profitability

https://www.youtube.com/watch?
v=ob5KWs3I3aY

https://
www.superheuristics.com/
product-life-cycle-iphone/
Resources: Complete Business Studies Textbook IGCSE
 Marketing objectives and strategies over a product life cycle

Resources: Complete Business Studies Textbook IGCSE

 Extension strategies
▪ A line extension is within the same category, while a brand extension
moves beyond
▪ line extensions and brand extensions with respect to the product
category. If the category is the same as old products for the brand,
then it is merely a line extension. If the product category is new for
the brand, then it is considered a brand extension.
▪ Tooth paste company – flavours of tooth paste for children
▪ Ferrari is known for its exotic cars and later in 2010 theme parks-
opening the Ferrari World in Abu Dhabi
▪ Extensions strategies might fail- for not taking into account consumer
preferences
 Extension strategies can prolong the profitable life of a product
⮚ Changes in marketing mix is required as the product progresses through its life cycle
⮚ Product features, pricing and promotions can be modified to extend sales and profitable life of the
product
⮚ Extension strategies are designed to boost sales and profitable life of a product.
⮚ Possible strategies are:
▪ Introducing product line extensions Ex: variety of colours or flavours
▪ Using a new advertising campaign
▪ Selling the product into new markets
▪ Introducing a new , improved version of the product
▪ Selling the product through additional retail outlets and online
▪ Adding services such as longer warranty periods and free delivery
⮚ Business can manage their product portfolio to ensure that new product developments replace mature
and declining products
⮚ Diversification into other products and / or markets –
reduces risks of business failure
⮚ Product Portfolio –
compilation of products and services offered by the company
to the target market.
•Resources:
• https://www.forbes.com/sites/timnewcomb/2020/03/18/nike-usin
g-olympics-to-showcase-sustainable-future-initiatives--product/
?sh=39f801b65fc5
• https://news.samsung.com/global/video-how-samsungs-
product-innovation-team-brings-the-wow-to-product-design
• https://theinvestorsbook.com/benchmarking.html
• https://brandmarketingblog.com/articles/good-branding/brand-e
xtension-examples/
• https://www.youtube.com/watch?v=aB9_iR0ntVU