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Moataz Ashraf
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10 views

Summary

Uploaded by

Moataz Ashraf
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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• The Product Anything that can be offered to a market for attention, acquisition, use or consumption that

might satisfy a want or need.

• The service Services are activities, benefits or satisfactions that are offered for sale, that is essentially
intangible and does not result in the ownership of anything such as haircuts, tax preparation and home
repairs.

• The four service characteristics:

• Intangibility: Service can not be seen, tasted, felt, heard or smelled before purchase.

• Perishability: Service can not be stored for late sale or use.

• Inseparability: Service can not be separated from their provider.

• Variability: Quality of service depends on who provides them and when and how (opposite to
standardization of the product)

• The best business portfolio is the one that best fits the company’s strength and weakness to opportunities
in the environment

• A company with a product portfolio requires different strategies to compete effectively and efficiently
according to their cash usage and generation.

• Cash Cows:
These products are said to have high profitability, and require low investment for the fact that they are
market leaders in a low-growth market.

• Stars:

• They tend to/should generate large amounts of cash but also use a lot of cash because of growth market
conditions.

• Question Marks
Question Marks have not achieved a dominant market position, and hence do not generate much cash. They
tend to use a lot of cash because of growth market conditions.

• Dogs
Dogs often have little future and are big cash drainers on the company as they generate very little cash by
virtue of their low market share in a highly low growth market.

 surplus cash from cash cow products should be channelled into Stars and Questions in order to create the
future Cash Cows

 Companies need to continuously examine alternative product and marketing development strategies.

A brand is a name, term, sign, symbol, design or a combination of these, which is used to identify the goods or
services of one seller or group of sellers and to differentiate them from those of competitors.
Product Life Cycle (PLC)
• The course of a product's sales and profits over its lifetime. It involves five distinct
stages:
1. Product development
2. Introduction
3. Growth
4. Maturity
5. Decline.
1. Produce development begins when the company finds and develops a new-product
idea. During product development, sales are zero and the company's investment costs
mount.
2. Introduction is a period of slow sales growth as the product is being introduced in the
market, Profits are non-existent in this stage because of the heavy expenses of
product introduction.
3. Growth is a period of rapid market acceptance and increasing profits.
4. Maturity is a period of slowdown in sales growth because the product has achieved
acceptance by most potential buyers. Profits level off or decline because of increased
marketing outlays to defend the product against competition.
5. Decline is the period when sales fall off and profits drop.
Price The amount of money charged for a product or service, or the sum of the values that consumers exchange for the
benefits of having or using the product or service.

Price is the only element in the marketing mix that produces revenue; all other elements represent costs.

Price is also one of the most flexibly elements of the marketing mix.

Unlike product features and channel commitments, price can be changed quickly.

price competition is the no. 1 problem facing many marketing executives.

Cost-based Pricing: Setting prices based on the costs of producing, distributing, and selling the product plus a fair rate of
return for efforts and risk

BP= # units needed to cover the costs

BP= fixed cost/ price- Variable cost

Value based pricing: setting the price based on buyers perception of value rather than the seller’s cost.
Advertising: Any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor.

Sales promotion: Short-term incentives to encourage the purchase or sale of a product or service.

Personal selling: Oral presentation in a conversation with one or more prospective purchasers for the purpose of making sales and building
customer relationships.

Public relations: Building good relations with the company's various publics by obtaining favorable publicity, building up a good corporate
image, and handling or heading off unfavorable rumors, stories and events.

Direct marketing: is the use of consumer direct channels to reach and deliver goods and services to consumers without using marketing
middlemen. Direct marketing helps the companies to opening dialogue directly between themselves and the end consumers of their products.
Pushing strategy: promotional effort by a seller to members of the marketing channel intended to stimulate personal selling of the good or
service, thereby pushing it through the marketing channel.

Pulling strategy: promotional effort by a seller to stimulate demand among final users, who will then exert pressure on the distribution channel
to carry the good or service, pulling it though the marketing channel.

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