Recap Marketing Model Marketing Diagram = objectives Marketing is about Review thinking making Gather Data decisions and taking action… Test The marketing model options Form is a process to help Hypothesis with this. Marketing Model stages… Co objectives – marketing objectives Gather data (Market research) Form Hypothesis on the 4P’s and or 3 C’s Test Options – more market research Review success REPEAT PROCESS….. Homework return – Levi Case Study Q 5 – need to use the marketing model and state HOW WELL Levi used each stage. Q6 – need to decide whether Market Research is an insurance or not! 1st – what does an insurance policy do? 2nd – how well does MR follow this? The Marketing Mix What is this? The Marketing Mix This has 4 key areas: Product Price Place Promotion…. What is a Product? There are 4 general categories of „products‟: Good Can you think of Service an example for each category? Place Person Tangible & Intangible! What is the difference between TANGIBLE & INTANGIBLE? Tangible & Intangible Products Tangible Intangible Is more quantitative… Is more qualitative… Can be measured specifically & see the Cannot be actual results scientifically measured. E.g. Car speed, safety Focuses on how people standards, efficiency feel or the image or (mpg) pleasure gained… Today & next lesson focuses on PRODUCT… More info Product Life Cycle…. in textbook unit 5. Read through handout Copy typical „Product Life Cycle Diagram‟ Typical products at different life stages. R & D Introduction Growth Maturity Saturation Decline For each product decide what life stage it belongs to! R & D - Tesla Tesla – sponsored by Founder of Paypal – an electric sports car capable of 250 miles on 1 charge, 3 hour recharge, 0-60 in 4 sec & top speed 130mph & only £50,000 Roll up TV Screen A pioneering Teesside research facility aiming to make a paper-thin roll-up TV screen become a reality, has received backing from a major international player. The then make-believe subject of flexible roll-up computer and TV screens featured in the Tom Cruise film Minority Report in 2002. But thanks to Teesside expertise that fiction could soon become a reality. Apple Mac future plans world's first computerized "smart shoe." But consumers will decide whether the bionic running shoe's $250 price tag - four times the average shoe purchase price at stores such as Foot Locker - is a smart idea. Adidas claims its new shoe delivers on its promise to automatically and continually adjust itself to a runner's size, pace, terrain and even fatigue level. Identify the implications of each life cycle stage…. R&D INTRODUCTION GROWTH MATURITY DECLINE none Low Sales Very High Falling Very Low Cost per unit Very Few Lots Competitors remove weaker Prototype items Product raise media target new curiosity… segments Promotion focus None Limited Distribution Penetration Increase to exploit not for sale! Skimming or penteration or push up Competitive price loyal customers? Or Price price Discount Identify the implications of each life cycle stage…. ANSWERS R&D INTRODUCTION GROWTH MATURITY DECLINE none Low speeding up At highest Falling Sales Very High Falling Falling At lowesr Low Cost per unit Very Few few growing Lots Falling Competitors Product modification New models, remove weaker Prototype One basic model & diversified items Product improvements raise media target new Stress differences Lower budget to Build awareness curiosity… segments with competitors keep costs down Promotion focus Growing no of High levels of Reduce unprofitable None Limited outlets distribution channels Distribution Penetration Increase to exploit not for sale! Skimming or penteration or push up Competitive price loyal customers? Or Price price Discount Back to handout…. Apply Life cycle Draw the Product life cycles for the products on your handout….. You will be called out to Be prepared draw your interpretation…. to explain Note your the gradient of the cycle interpretatio is IMPORTANT…. n! Extension Strategies These are ways to re-invigorate sales of a product after sales have hit maturity! Can you think New uses for product of any recent products that Enter new markets have used any of these Develop product range extension strategies? Change packaging Encourage more frequent usage! Homework Textbook p 35 Case study B3 – Girl Power – answer all Q‟s Hint: Q 1 plot years on bottom axis & sales on vertical axis Q 2 “what” means explain use at least 4 factors ….the Q is worth 10 marks!
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