Marketing: 4 Ps Marketing Mix Product Price Promotion Place of distribution Productis defined as everything that one receives in an exchange,

nge, including all tangible and intangible attributes, and expected benefits, it may be a good, service, or idea. It is anything that is capable of satisfying a want. The Product Life Cycle (PLC) 1. Market introductionsales are low as a new idea is first introduced to a market. 2. Market growthindustry sales grow fast, but industry profits rise and then start falling. 3. Market maturityoccurs when industry sales level off and competition gets faster. 4. Sales declinenew products replace the old price competition from dying products becomes more vigorous, but firms that successfully differentiated their products may make profits until the end. Extending Product Life Cycle Promoting more frequent use of the product by current customers. Finding new target markets for the product Pricing the product below the market Developing new distribution channels Adding new ingredients or deleting old ingredients Making a dramatic new guarantee Brandis a name, term, symbol, design or combination thereof that identifies a sellers products and differentiates them from competitors product. Brand nameis the part of the brand that can be spoken including letters, words and number. Brand markscannot be spoken. Purposes of branding 1. identification 2. repeat sales 3. new product sales Characteristics of a Good Brand Name 1. Suggest something about the product, particularly its benefits and use. 2. Easy to pronounce, spell and remember. 3. Be distinctive. Be adaptable to additions to the product line. 5. Be capable of registration and legal protection. Trademarksa legal term indicating the owners exclusive right to use a brand or part of a brand. Generic Product Nameidentifies a product by class or type and cannot be trademarked.

Corporate BrandingAVON *family, individual, private/house branding. Packagingcontainer used for protecting and promoting a product. Important functions of packaging: 1. To contain and protect products 2. To promote products

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Facilitate product convenience

storage,

use,

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Awarenessadvertisers must first achieve awareness with the target market. Knowledgenext step to inform the target market about the products characteristics. Likingthe advertiser must generate a favorable attitude. Preferencemarketer should create brand preference by explaining why the product has a differential advantage over the competition.

Facilitate recycling and reducing environmental damage Labelingan integral part of any package. 2 forms of label: 1. Persuasive labelingpromotional theme or logo rather than consumer information. 2. Informational labelingto help consumers make a proper product selection and lower their cognitive dissonance after the purchase. The New Product Development Process New product strategylinks the new product development process with the objectives of the marketing department, the business unit, and the corporation. Idea Generationnew product ideas come from many sources

Screeningproduct development process that eliminates ideas inconsistent with the organizations new product strategy or inappropriate for some other reason. Business Analysiswhere demand, cost, sales, and profitability estimates are made. Developmentthe research and develop-ment or engineering department may develop a prototype of the product.

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Testing or Test Marketinga product is introduced in a limited way to determine the reactions of potential customers in a market situation. Commercializationfinal stage in the new product development process. Unworkable ideasthe funnel shaped illustration shows how each stage acts as a screen. Adopterconsumer who was happy enough with his or her trial experience with a product to use it again. Model in the Adoption Process Attention Interest Desire Action 6 Stages

Convictionthe marketer should offer additional reasons to buy the new product. 6. Purchasebuy new product but have yet to make the purchase. Innovationproduct perceived as new by a potential adopter. Diffusionthe adoption of an innovation spreads. Diffusion processthe spread of a new idea from its source of invention or creation to its ultimate users as adopters. 5 Adopters in diffusion Process: 1. Innovatorsthey are eager to try new ideas and products, almost as an obsession. 2. Early adoptersthey adopt early in the products life cycle. 3. Early majoritygroup of consumers to adopt a new idea or product, characterized by ideas deliberation 4. Late majoritythey adopt a new product or product, characterized by their reliance on group norms. 5. Laggardsgroup of consumers to adopt a new idea or product, characterized by ties and tradition. Brand managerresponsible for a single brand. Product managerhas responsibility for several brands within a product line or product group. Category managerhas responsibility for multiple product lines within a product category. Categories of New Product 1. new-to-the-world products 2. new product lines 3. additions to existing product lines 4. improvements or revisions of existing products 5. repositioned products 6. lower-cost products 7. replacement 8. innovating/ innovative 9. imitative

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