1 - Product - Developing The Marketing Mix

Developing
the
Marketing
Mix
Product Price
The
Marketing
mix
Promotion place
PRODUCT
First element in the
marketing mix
After identifying a need
in the market, a company
may already have a
product that is capable of
satisfying the need.
 The following questions
should be asked:
1. What is the product’s
function, appearance,
quality, design,
features, packaging,
and brand?
2. What need does it
satisfy?
3. What value does it offer
to its customers?
4. What makes it unique?
5. What is its unique
selling proposition (USP)?
Note: Any changes in any of the
product’s features may necessitate
a consequent change in one or all
of the other elements of the
marketing mix.
PACKAGING
serves to contain and
protect, and,
sometimes, identify and
promote the product.
Product’s packaging is
different from its label
 Product packaging
several purposes:
 It protects the product
and route to the
customer
 It makes product
storage and display
more practical and
 Product packaging
several purposes:
 It preserves the product
for further customer
use.
When deciding on product
packaging, the following must
be considered:
 How much quantity of
the product should be
contained in the
package?
- can be based on the usage
and consumption habits of
 What physical attributes
should the packaging
have to facilitate
customer use?
- Marketers must determine
how a product is used after
purchase
- Considering product handling,
storage, the nature of the
 What legal requirements
the package comply
with?
- Under the law, all
product packaging must be
secure, leak-proof, and
safe for customers.
- Legal requirements are
particularly strict for
 What is the most
appropriate shape of the
product packaging?
- Most products that come
in rigid packaging are
square or rectangular in
shape
- This makes product
handling, shipping, and
Labelling
Display of information
about a product on its
container, packaging,
or on the product itself
Factors to be considered in
deciding on the labeling of
a product.
 Establish the image or
personality of the
product based on the
tastes and preferences of
the target market.
 Determine the most
important features of the
product to the target
market.
 Determine where the
product will be sold and
the applicable regulatory
requirements if any.
 Determine the placement
of the product in relation
to other products,
particularly competitors.
 Product labels play vital
role in the product’s
marketing because
products are sold through
retailers, they are
displayed in supermarkets
or convenience store
shelves.
 Labels are, therefore, a
product’s “silent salesman”
 Legal requirements must
also be considered in a
product’s labeling for foods
and beverages.
 All food products must
contain the name of the
manufacturer, country of
origin, net content, and its
nutritional value table.
 It must also include
the product
expiration date and
applicable product
handling and
preservation
requirements.
New Product
Development
One of the most
effective ways that
companies can get
ahead of competition
Rationale Behind New
Product Development
 To defend its market
shares
 To position a head of
competition in a market
segment
Rationale Behind New
Product Development
 To establish a foothold
in a future market
 To take advantage of
strengths in product
distribution
The New Product
Development
Process
Step 1: Idea generation
initial stage of the new
product development
process where any or all
of several idea generation
techniques are used to
generate as many new
product ideas as possible
Step 2: Idea screening
stage where the ideas
generated in the initial
step are screened using
predetermined criteria to
reduce them to a
managerial few
Step 3: Concept
development and testing
Where new product ideas
are converted to customer-
centered product concepts
and tested by a
representative sample of
customers for acceptability,
believability, and potential
intent.
Step 4: Business analysis
pencil- pushing stage
where, based on concept
development and testing
results, probable sales of
the new product are
calculated together with
its costs and potential
profitability
Step 5: Product
Development
the new development
stage where the products
concept is converted into
a tangible working
prototype
Step 6: Market testing
Stage where the new
product is marketed in a
limited geographical area to
determine whether fine
tuning of attributes,
positioning, pricing,
advertising, and promotions
program are necessary
Step 7: Product
commercialization
Final stage of the
process where a new
product is launched
The New Product
Development Process
Idea Idea
generation screening
Concept
Business development
analysis and testing
Product Market
development testing
Product
commercializatio
n
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