Presentation on theme: "Examining The Marketing Mix"— Presentation transcript:
1 Examining The Marketing Mix LECTURE WEEK 3Examining The Marketing Mix
2 Chapter questionsWhat marketing strategies are appropriate at each stage of the product life cycle?What are the implications of market evolution for marketing strategies?What are the characteristics of market products and how do marketers classify products?
3 Chapter questions (continued) How can companies differentiate products and manage its product mix and product lines?How can companies use packaging, labelling, warranties, and guarantees as marketing tools?
4 Lessons from product life cycles Products (market offerings) have a limited life.Sales pass through distinct stages, each posing different challenges, opportunities and problems to the seller.Profits rise and fall at different stages of the product life cycle.Products require different marketing, financial, manufacturing, purchasing and human resource strategies at each stage.View this video clip about the product life cycle:
5 Long-range product life cycle Figure Long range product market expansion strategy (P1 product 1; M1 market 1)
6 Growth-slump-maturity pattern Figure Common product life-cycle patterns
7 Cycle-recycle pattern Figure Common product life-cycle patterns (continued)
8 Scalloped patternFigure Common product life-cycle patterns (continued)
9 Style-shaped PLCFigure (a) Style, (b) fashion and (c) fad life cycles
10 Fashion-shaped PLCFigure (a) Style, (b) fashion and (c) fad life cycles (continued)
11 Fad-shaped PLCFigure (a) Style, (b) fashion and (c) fad life cycles (continued)
12 Why be first in a market? Industrial age environment Natural monopoliesBias toward winnersIn this video: Coca-Cola’s European Market Director argues his company’s case for fast new product development.
14 Strategies to sustain rapid market growth Improve product quality and add new product features and improved styling.Add new models, accessory items and personalising options.Enter new market segments.Increases its distribution coverage and enters new distribution channels.Shifts from product-awareness advertising to product-preference advertising.Lowers prices to attract the next layer of price- sensitive buyers.
15 Phase in the maturity stage of the PLC Growth maturityStable maturityDecaying maturity
16 Ways to increase sales volume Table Alternative ways to increase sales volume
17 Product modifications possible QualityFeatureStyle
19 Design options for emerging markets Design the new product to meet the preferences of one of the corners of the market – a single niche strategy.Launch two or more products simultaneously to capture two or more parts of the market – a multiple-niche strategy.Design the new product for the middle of the market – a mass-market strategy.
20 Market fragmentationFigure Market fragmentation and market consolidation strategies
21 Market consolidationFigure Market fragmentation and market consolidation strategies (continued)
22 What is a product?A product is anything that can be offered to a market to satisfy a want or need, including physical goods, services, experiences, events, persons, places, properties, organisations, information and ideas.
37 Line stretchingDown-market stretchUp-market stretchTwo-way stretch
38 PruningPruning weak brands can strengthen the remaining brands in the linePruning slow-selling brands from product lines often benefits the brands that are left, such as Unilever’s global bestsellers including Lipton worldwide or Persil in the United Kingdom Source: Martin Meissner/AP Wide World Photos
40 What is the 5th P?Packaging, sometimes called the 5th P, is all the activities of designing and producing the container for a product.Packaging must protect goods effectively be attractive to consumers and look good. View this fun video clip to appreciate the important role of packaging:
41 Factors contributing to the emphasis on packaging Self-serviceConsumer affluenceCompany/brand imageInnovation opportunity
42 Packaging objectives Identify the brand Convey descriptive and persuasive informationFacilitate product transportation and protectionAssist at-home storageAid product consumption
43 McDonald’s environmentally friendly packaging McDonald’s burger and fries cardboard packaging is environmentally friendly. Source: mediablitzimages UK Ltd/Alamy
44 Functions of labelsIdentifiesGradesDescribesPromotes
45 Recap: can you explain?What marketing strategies are appropriate at each stage of the product life cycle?What are the implications of market evolution for marketing strategies?What are the characteristics of market products and how do marketers classify products?
46 Recap: can you explain? (continued) How can companies differentiate products and manage its product mix and product lines?How can companies use packaging, labelling, warranties, and guarantees as marketing tools?