1. 3.3 MARKETING MIX PRODUCTPRICE PROMOTION PLACE P P PP

2. Marketing Mix ProductPricePromotion Appearance Function Cost Cost based Competitor based Consumer based Advertising Sales promotion Personal selling Place Retailers Wholesalers Distribution

3. 3.3.1 Product

4. Central Question What factors are crucial in developing a successful product?

5. Learning Outcomes To be aware of the costs and benefits of developing new products To understand the concept of Brand Image and how this can impact sales and customer loyalty To be able to appreciate the role of packaging in the success or failure of a product To understand the stages of the Product Life Cycle and possible extension strategies To understand how marketing strategies and decisions can differ at each stage of the product life cycle

6. Successes

7. Failures

8. Video – Why did these products fail?

9. Can you think of any Business which sells only ONE product?

10. Costs & Benefits of Developing New Products COSTSBENEFITS R&D can be expensive and takes time. Research data could be misleading. Spread risks by developing product portfolio Risk – no guarantee of success if completely new e.g. 3D TV’s Additional Revenue streams which potentially could increase profits If not well received – could affect Company image e.g. Google Glass Could enhance Company and Brand image if successful How to compete with similar products – on price, quality, branding? Could increase customer loyalty Economies of Scale, more competitive and more consumer choice.

12. Brand Image Look at these products. Write down any words that you associate with them. Have we all used similar words? Do you think these words are what the Business wants you to think of? How does this relate to Brand Image?

18. Watch the Video and Consider… So what is Brand Image? Is it important? Are you influenced by brands – which ones, why? Can you place a Value on a brand image e.g. on a Balance sheet? Can Brand image be positively or negatively affected by external factors? What Brand Image do you want to present for YOU personally?

19. So How Can Brand Image… Impact on sales Positively?Negatively?

20. So How Can Brand Image… Impact on customer loyalty Positively?Negatively?

21. Brand Image Giving the product, a product range or the business, an identity or personality. Develop name and personality of brand through promotion Customers FEEL attached or connected in some way to that company.

22. Packaging Choice of Packaging Depends on: Protection Environment Cost Effective Information Design Convenience

23. What packaging factors should be considered for these products? Chocolate bar Ice Cream Computer Crystal glassware Fruit & Veg Perfume

24. Product Life Cycle Shows the different stages in the life of a product and sales that can be expected at each stage.

25. Sales Time IntroductionGrowthMaturity Decline DevelopmentSaturation Similar products enter the market Price lowered Some businesses my be forced out of the market Sales falling Profits continue to fall Sales reach its highest point Rate of growth Slows Competitors enter the market Sales increasing rapidly Profits will reach their highest at the end of this stage Sales are low Profits will be negative Product may be unknown Product is being designed The Product Life Cycle Diagram

26. Use of the PLC Illustrate the broad trends in sales revenue Identify points at which the business may need to consider launching new products as older ones are in decline Help business identify when and where spending is required e.g. advertising Assists financial planning – cashflows, Profits or Losses

27. Different life cycles Products with long life cycle? Products with short life cycle?

28. Extending the life cycle – How & Why? Discuss

29. Extension Strategies Adapt the marketing mix e.g. price, packaging Finding new markets for existing products Develop a wider product range Aiming the product towards specific target markets Changing appearance or packaging

30. Reflection Time – Have we met our objectives? To be aware of the costs and benefits of developing new products To understand the concept of Brand Image and how this can impact sales and customer loyalty To be able to appreciate the role of packaging in the success or failure of a product To understand the stages of the Product Life Cycle and possible extension strategies To understand how marketing strategies and decisions can differ at each stage of the product life cycle