MARKETING MIX: PRODUCT

WHAT IS MARKETING? The department which links the

companywith customer tastes, wants and needs.

It develops the Marketing Mix

Promotion

Place

THE MARKETING MIXConsists of the 4 Ps of marketing.......

Product

The Marketing Mix

Price

PRODUCT

QUESTION!What is the difference between the

product ofsmall and large companies?

ANSWER Small businesses – one product Large businesses – a range of products

This range is called a Product Portfolio/Mix

They will have different target markets They may diversify

PRODUCT LIFE CYCLE - EXAMPLE

Sales

TimeIntroducti

onGrowth Maturity Decline

TASK - DRAW A PRODUCT LIFECYCLELabel the diagramDescribe each stage (P113)

EXTENSION STRATEGYA step taken to extend the product lifecycle

Examples Updated designs New advertising campaign Targeting new markets with an existing

product New brand image

TASK 2Explain how these products extended theirproduct lifecycle?

What could be the problems of doing this?

iPhone Cadbury Dairy Milk Nintendo Wii Crunchy Nut Cornflakes Lucozade

VIRGIN’S LATEST EXTENSION STRATEGY

Virgin Money!

TASK 3Read through the worksheet ‘Product

Life Cycle’.

Complete the table on Page 2.

Answer question 1

TASK 4 http

://news.bbc.co.uk/1/hi/uk/7814502.stm

Questions Why are customers prepared to pay a

higher price for energy efficient light bulbs

Explain why the 100 watt light bulb is being phased out by retailers

TASK 5

Questions Why do customers still buy the iPod? Why is the iPod starting to decline?