Marketing

• Extension Strategies


  Strategies to prolong the life of the product by changing the marketing mix
• Extension Strategies


  • Product development
  • Market development
  • Change distribution
  • Change pricing
  • Change promotion
• Product development


  • Businesses improve, reformulate or redesign a product
  • Change packaging to make it look more up to date
  • Make special editions of the product
  • Give a new focus to existing marketing campaigns
• Market development


  • Businesses find new markets or new uses for existing products
  • Aim at a new market segment
• Change distribution


  • Sell through the internet
  • Sell through supermarkets or convenience stores
  • Market in a different country
• Change pricing


  • Use special offers or competitions
• Change promotion


  • Run a new ad campaign
• Decline isn't inevitable, it is usually caused by products becoming obsolete, changing consumer tastes or poor marketing
• Quality products with excellent original design (e.g. Cadbury Dairy Milk) can carry on selling for decades
• Product Life Cycle


  Valuable when changing the Marketing Mix
• Using the Product Life Cycle

  1. Businesses need to know what stage of the product life cycle a product is at in order to adapt the marketing mix correctly

  2. In development, focus on product and price

  3. In introduction, focus on place and promotion

  4. In growth, focus on people, physical environment and process

  5. In maturity, focus on price and promotion again
• When sales of the product begin to decline, marketing will decrease the amount of money they spend on each of the 7Ps, promotion may stop altogether, discounted prices will be offered, the product may be pulled out of some stores
• No product can live for ever, except maybe the wheel...