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Chapter 30: Using the Marketing Mix

Chapter 30: Using the Marketing Mix. Product. Elements of a successful product – Product Design. Reliability Safety Convenience of use Fashion Aesthetic qualities Durability Legal requirements Its financial viability Its effect on the organisation’s reputation

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Chapter 30: Using the Marketing Mix

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  1. Chapter 30: Using the Marketing Mix Product

  2. Elements of a successful product – Product Design • Reliability • Safety • Convenience of use • Fashion • Aesthetic qualities • Durability • Legal requirements • Its financial viability • Its effect on the organisation’s reputation • Whether the company can produce it without difficulty

  3. Elements of a successful product – New Product Development • The stages of new product development are: • Generation of ideas • Analysis of ideas • Product development • Test marketing (a small-scale release of the product, usually in a limited area) • Launch

  4. Influences on the development of new goods and services • Technology • Competitors’ actions • Entrepreneurial skills of managers and owners • Market research • Ideas from other countries • Personal experience • Personal need and inventiveness • Environmental awareness

  5. Product Portfolio Analysis • Product Portfolio - the range of products or brands provided by a business • Product Portfolio Analysis – the study of the range of products with a view to deciding whether new products should be added to the portfolio and whether any existing products should no longer be provided • 2 ways in which product portfolio analysis can be viewed: • The Boston Matrix • ‘Focus on Core’ vs ‘Product Proliferation’

  6. Boston Matrix • Classifies products according to the market share of the product and the rate of growth of the market in which the product is sold • Stars – products that have a high percentage market share in a high-growth market • Cash Cows – products that have a high percentage market share in a low-growth market • Problem Children – products with a low percentage market share in a high-growth market • Dogs – products with a low percentage market share in a low-growth market

  7. ‘Focus on Core’ vs ‘Product Proliferation’ • Focus on core products or services – providing a relatively narrow range of products (ie: Coca-Cola and McDonald’s) • Product proliferation – developing a diverse range of goods and services (ie: Virgin and Unilever)

  8. Product Life Cycle • Development (ideas, research, developing, testing, launching product) • Introduction • Growth • Maturity (sales stabilising) • Decline • Extension strategies (trying to stay in the maturity stage for as long as possible)

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