marketing mix: product

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  • Product
    • Needs to be; Aesthetically pleasing, affordable, good quality, function properly and value analysis
    • Product life cycle:
      • 1. Devlopment stage
        • ·         Ideas must be investigated, developed and tested ·         Prototype or model may be produced ·         Business spends to develop product ·         No sales- initially making a loss
      • 2. Introduction
        • ·         New on the market and sales are slow ·         Costs incurred when a product is launched ·         Length of stage varies according to product
      • 3. Growth
        • ·         Product established, consumer aware, sales grow ·         Product becomes profitable ·         New product, rapid growth, competitors launch ·         Slowdown 
      • 4. Maturity
        • ·         Growth in sales will level off ·         Product established, stable market share ·         Sales peaked, competitors entered to take profits 
      • 5. Saturation
        • ·         Firms enter the market, it will become saturated ·         Some are forced out of the market – too many firms competing 
      • 6. Decline
        • ·         Sales eventually decline ·         Due to the changing consumer tastes, new technology or introduction of new products 
      • Uses of the product lifecycle
        • ·         Illustrate broad trends in revenue the product might earn
        • ·         Identify business who may need to launch a new product- if others are in decline
        • ·         Identify where and when spending is required
        • ·         Identify when businesses should sell a product/ no longer sell a product
        • ·         Help manage product portfolio
        • ·         Identify points at which revenue from products should be growing and points where may be declining- help manage cash flow 
    • Market Segmentation
      • Geographical= split into areas people live in
      • Lifestyle= grouped on basis of peoples interests and hobbies
      • Gender= produced specifically for a particular sex
      • Residence= considers potential customers based on type of housing
      • Behaviour= based on peoples spending patterns
      • Untitled
    • Managing the Product Mix
      • Planning the product mix is difficult in practice for a firm to tell what stage of the lifecycle a product is at.
      • It must allow something which allows a firm to analyse their products  
      • The boston Matric
        • Starts= high market share and high market growths
        • problem  chuild= low market share but high market growth. Future potential
        • Cash Cows= high market share but low market growth.Able to generate funds possibly to support other products
        • Dogs= low market share and low market growth. may be in decline

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