unit 12

• what is marketing mix


  a term to describe all activities which goes into marketing a product/service, often summarising the 4Ps (product, price, place and promotion)
• the 4Ps are:

  1. product
  2. price
  3. place
  4. promotion
• what is USP

  also known as unique selling point, it’s a special feature that sets the product apart from competitor’s products
• what is brand name

  a name given to a product to distinguish it from other products
• what is brand loyalty


  when existing customers choose to buy from the same brand again instead of buying from competitors
• brand image


  an identity given to a product to give it personality to distinguish it from competitor’s products
• what is packaging

  the physical container / wrapping for the product, which is also used for promotion and selling appeal
• what is product life cycle

  it defines the stages of a product’s appearance, growth, maturity and eventual decline
• what is extension strategy

  extending a product’s life cycle when it’s still in the maturity stage
• four types of products

  1. consumer goods (items bought for personal use, eg: car)
  2. consumer services (services provided for personal use, eg: hair treatment)
  3. producer goods (items used for other businesses, eg: machines)
  4. producer services (services provided for other businesses, eg: insurance)
• what makes a product successful?

  • it satisfies consumer’s needs and wants
  • not too expensive to make (relative to selling price)
  • the design and quality reflects the product’s brand image
  • capable of stimulating new wants in potential consumers
  • got special point
  • first business to develop something new/add on new things to an existing product
• new product development process:

  1. make general ideas
  2. choose the best idea for further reseach
  3. decide if company can sell enough to make the product successful
  4. produce a prototype
  5. launch in one area to test the market
  6. launch product
• benefits of a business developing new products

  • usp - business will be the first entering the market with a new product
  • diversification for business - gives broader range of products to sell, which reduces risk of failure
  • allows business to expand into the market
  • allows business to expand into existing market
• limitations of developing a new product

  • cost of carrying out market research and analysing the financials may be expensive, which increases cost
  • lack of sales if target wrong market, leads to loss of money
  • cost of producing trial products (including the wasted materials used)
  • lost of brand image if new product fails to meet the needs of customers, leaves bad reputation
• importance of packaging

  • to attract customers
  • allows products to be easily used
  • doesn’t allow product to get spoilt
  • suitable for transportation
  • used for promotion
  • labels on products carry vital info
  • promotes brand image
• Product life cycle stages


  1. Development

  2. Introduction

  3. Growth

  4. Maturity

  5. Saturation

  6. Decline
• Development


  Product is developed and is tested in a market before launch, no sales yet
• Introduction


  Product is introduced into the market, sales slowly increases, use informative advertising to promote
• Growth


  Starts growing rapidly, ads change to persuasive advertising, price reduced cuz of competitors
• Maturity


  Sales increase slowly, high competition, lots of ads done, profits are at its highest
• Saturation


  Stable profit, no new competitor, competitive pricing used, prices are reduced, sales reduce (profit then falls)
• Decline


  Product removed form the market due to new product introduced, ads from the product has stopped
• methods of extending the market

  • introduce new variations into origina product (eg: children version)
  • introduce new and improved version of the original product
  • sell to new market
  • make small changes to product’s design
  • sell through additional retail outlets
  • use new advertising campaigns
• brands needs:

  • unique name
  • higher priced than unbranded products
  • advertising to reinforce brand's qualities
  • to create better brand image
  • to encourage customers To keep buying
  • unique packaging
  • to have higher quality than unbranded products
  • always have same standard of quality (assured quality)