Product life cycle.
A product life cycle enables organisations to formulate short and long-term strategic objectives. It allows an organisation to evaluate the current position of its products and services. The product life cycle enables companies to maximise sales and produce the optimum output. After a period of development a product it is introduced or launched into the market. The product grows as it gains more customers. Eventually the market stabilises and the product goes into maturity, then after a period of time the product is overtaken by development and the introduction of superior competitors. It then goes into decline and is eventually withdrawn from the market. Most products fail in the introduction phase. Others have very cyclical maturity phases where declines see the product promoted to regain customers. This is known as an extension strategy. I shall now explain in more detail each stage of the product life cycle. Development * Heavy expenditure on market research and product development * Company incur loses at this point * An example of a product in the development stage is Blue Tooth mobile phones Introduction * The need for immediate profit is not a pressure, promotion expenditure exceeds slow sales * The product is promoted to create awareness * An example of a product in the introduction stage is duel record and play DVD players * If the product has no or few
Product life cycle.
Product life cycle The business main aim is to achieve the objectives. To do this I must be aware of my product life cycle. A product life cycle will pass through, and the different sakes which can be expected at each stage my product will pass through six stages: ) Development: This is when my product is going to be first designed. I must test the product, e.g. suitable ideas about it. If an idea is confident and is worth perusing than a prototype might is going to be produced. A decision will be made whether to launch the product or not. During this stag it is likely that a business will spend large amount of money to develop it. 2) Introduction: When a product is new in the market, sales are frequently slow some times. It is important for the business to build new production line and do promotion and distribution cost. Still light yet, it can be likely that the product is not profitable. This is because it takes time for the consumers to actually get attracted to it. When a product is launched it price is set high. In other hand the product can be hitting very rapid sales growth. 3) Growth: After the product has been introduced to the market, Consumers are going to well aware of it through promotions on TV, internet or leaflets. The sales begin to become more profitable. If competitors launch the new version of product, it can slow down the market sales. 4)
Marketing Mix. There are four Ps to the marketing mix. They are product, price, place and promotion.
Marketing Mix Kotlers definition of marketing mix - The set of marketing tools that the firm uses to pursue it's marketing objectives in the target audience. There are four P's to the marketing mix. They are product, price, place and promotion. The Product is something that has features on it that suits your customer to his or hers needs and wants. The price is decided on the quality of the product. The place is where the product is sold and distributed. The promotion is the advertisement for where and what a product is. Products There are four different levels of a product. They are core product, actual product and the augmented product. The core product is all the benefits that a product could bring to a customer and if they will want it. The actual product is the item itself. It's if it is branded by a good business or if it has features that other products similar to it don't have. The augmented product is any additional things that you can get from a product such as free delivery and warranty. Some businesses will sell only one product and not make any others. But most businesses sell a wide range of different kinds of products. If a business sells for example cars then they will make different kinds of cars suited to there customers. Such as a family car or a work car. The product life cycle is development, introduction, growth, maturity, saturation and decline.
Product life cycle - maturity stage.
Product life cycle - maturity stage Elken is in maturity stage of product life cycle analysis. This is because Elken having a wide spread of outlets, which more than 300,000 enthusiastic independent distributors in 7 countries that is Malaysia, Singapore, Indonesia, Thailand, Brunei, Hong Kong and India. Significantly, the amazing ELKEN marketing plan enables a distributor to accrue wealth and health faster than any other. Elken create a global community that fostering unity in work and life regardless of status, race and belief in order to bring about immense development, growth and prosperity in the most harmonious manner. Moreover, Elken's network of distributors and stockist is rapidly expanding throughout the Asia Pacific region, forming a strong and efficient web enveloping the entire region. Elken is constantly upgrading and expanding its range of products with the aim of continually improving the lives of consumers. Besides that, Elken's product quality that is took a bold step in 1998 to establish Narisia Sdn. Bhd. to manufacture its own Reverse Osmosis technology water treatment system to assure the desired standard of quality. As to maintain the maturity stage of the company, Elken aim to share the same values and objectives with their members, to proven efficacy and safety of health food and dietary supplements are of the highest priority through the commitment
Recommend the most appropriate marketing mix for a new snack product.
Recommend the most appropriate marketing mix for a new snack product. In this coursework I aim to present a perfect 'marketing mix' for a snack product. The marketing mix is a strategy that a business would use in order to market their product. In order for a business to sell it's products and services as successfully as possible, they need to look at what products they will be selling in detail to ensure they will be attractive and needed; the price, to ensure it is not too cheap or too expensive; where they are best distributing their product; and finally, how they can create interests and awareness for their products. All these elements need to be targeted at the right people at the right time. The mix consists of the 'four p's' I have previously mentioned: Product Price Place Promotion By examining each and carefully adapting them to my product I aim to present a successful marketing mix for my snack product. A marketing mix will tell a business what their target market is, what the product needs to be a success and how much they could sell it for. Without a marketing mix a product would be useless. In my coursework, I have chose to market a chocolate bar instead of any other snack product because the UK confectionery market is worth £5.5 billion a year. The Thornton's marketing report says that, 'The
Marketing Mix
Marketing Mix A Marketing Mix is the combination of product offerings used to reach a target market for the organization. The marketing mix comprises the Product (what the actual offering comprises), Price (the value exchanged for that offering), Promotion (the means of communicating that offering to the target audience, promotional mix) and distribution (also known as Place, the means of having the product offering available to the target audience). The marketing mix is also known as the four Ps. The combination of the 4Ps that creates an integrated and consistent offering to potential customers that satisfies their needs and wants. The marketing mix approach is one model of crafting and implementing marketing strategies. It recognizes that marketers have essentially four variables to use when crafting a marketing strategy and writing a marketing plan. They are price, promotion, product and distribution (also called placement). The Marketing Mix Explained In order for your business to sell its products and services as successfully as possible, you need to look at what products you are selling in detail to ensure they will be attractive and needed; the price to ensure it is not too cheap or too expensive; where you are best distributing your product; and finally, how you can create interest and awareness for your products. All these elements need to be targeted at the
Marketing Mix.
Marketing Mix is the combined elements of the product put together which will determine the success of the product. For example if the product has a very good marketing mix then that product is more likely to succeed it will do this by increasing potential customers and then converting them to actual customers. If the marketing mix is not carried out with long thought then the product may fail eg by not making many any sales and profit and this is why having the correct marketing mix is a vital component when producing and selling a product There are four main aspects when it comes to Marking mix these can be collectively known as the four P's: * Product: this can be further broken down into 3 levels which are the core layer: benefits of the product, tangible layer: the features of that product ie what it does, the augmented layer: any other services or benefits that are obtained when buying the product. * Price: One main factor of the price for the product will depend mainly on competition prices and after the product has made a successful impact on the market then the price will be more influenced by supply and demand. * Place: This is the location of where the product is presented and will then increase or decrease potential buyers. * Promotion: This gets your product noticed and if presented well it will increase the amount of potential buyers for your product.
Marketing Mix
Marketing Mix Marketing Mix: Marketing mix is simply a technique used to promote a product or a service, which can consist of many factors such as advertising, pricing, packaging, labelling, branding and boosting the product/service provided. Marketing mix is applied to most, if not all products and services provided by any company in the private sector, with the aim of increasing sales or demands for a specific product/service. Companies use marketing mix techniques to increase sales on certain products. E.g. they may use "Premium Pricing" on certain products and services. This means that the product or service will have a very high price, however, it will be worth it as the product or service may be unique, luxurious or may have a special designing and etc. Premium pricing is always aimed at higher class people who would be able to afford such products services, and any high street stores would also be located in a posh area. Marks & Spencer is a typical example of a company which uses premium pricing, as their products are considerably higher than other average or unpopular brands. However the quality of their products is also higher, and although the prices more expensive the company still manages to make profits. "Penetration Pricing" is also another technique which helps companies increase sales. This is when a product or service is new or is not very popular,
Extending the product life cycle.
Extending the product life cycle The product life cycle is exactly what it says; it is the life of a product. It consists of three different categories which are growth, maturity, and also decline. This is a sort of a guide line to how the product will end up and what will happen to it. Growth- this is where the product has just been launched and where they have to advertise the product to be able to get a good name and also manage to achieve a good reputation which is certainly needed if the businesses product wants to become successful. Maturity- this is where the product has now been established and lots of people know about it, the company has gained a reputation and now not as much advertising is needed to be done to try and sell the product. Along with this the company has now achieved its maximum sales and will then start to go into decline Decline- this is where the companies product has now been around a while and a newer and more up to date product has been brought out and now people are going to buy this instead, now the companies sales start to drop and then the company has to do something to try and customers to try and buy there product again. They may reduce the price of this product or may start an extension strategy which is where they try to make the live cycle of the product longer, they may also bring out other types of this product by making smaller,
Marketing Strategy - the marketing mix - promotion - product - price - place
My Marketing Strategy As previously mentioned in this report, there are several aspects, that play a big part in a products successes or downfall. These are classified as the marketing mix, and are again shown below, Pricing Pricing is one of the key features of the marketing mix. The producer sets the price of a product with great caution, as incorrect pricing can result in product failure, and sometimes even market failure. If the price of a product is too high, then consumers will simply not be willing to pay for it, and yet if a product is priced too low, people will view the product as cheap, and so it will loose its exclusivity, and demand from consumers. There are many different pricing methods used by companies today including, Cost-plus pricing This involves setting a price by calculating the average cost of producing a product, and then adding a "mark-up" (profit margin) on to that price. If it costs £35.00 to produce a small television, firms usually add up to 100% profit margin on top, and so the consumer would have to pay £75.00 for the television. Cost plus pricing has a number of disadvantages though such as it doesn't take into account the needs, wants and opinions of the consumers. Market orientated pricing These methods are those which are based upon a careful analysis of the market at which products are aimed, and so are much more effective
