In the News looking at the figures in the news for 2007/2008 here which section of te market would you suggest a mobile phone company could target? Suggest a mobile phone campaign that might attract this sector or age group.
STARTER - Each member of your table should suggest two or three companies and suggest ways by which the life cycle could be extended. Decide which you think would be the most successful and rank the others in order
Growth, changes in demand and how getting bigger helps
The PRODUCT is often said to be the most important part of the MARKETING MIX. Without the product there is no need for promotion, no price to set and no location or distribution needed. Businesses grow by increasing the sales of a product or by expanding in to new products. Monstermob has in the past grown through first providing ring tones and then by targeting markets where demand is set to grow or competitors are not yet strong.
Product life cycle - draw a typical one and label it
Changing marketing mixes at different stages At each stage of teh life cycle, the business can use different marketing mixes to support sales. At the launch or growth stage promotional prices may be used with heavy spending on advertising. Once the product reaches maturity and competitors enter the market there may be additions to the product or variations on it. Prices may also have fallen in response to competition.
Extending the life cycle this may include:
- cosmetic change or look
- real change inc new versions
- technological change - making more advanced versions of the product
- finding new uses for a product
- extra promotional activities
- adding to the product range
Web-based activity Read the article here How do you think that this news will affect Monstermob in the long term? What strategy would you suggest the company adopts in order to recover?
Quick Quiz 9 The Marketing Mix - Product
- What is meant by 'product'?
- What is a 'product life cycle'?
- Give three factors that cause changes in the demand for products.
- What is 'diversification'?
- What is meant by 'product portfolio'
- What are the stages of the 'product life cycle'
- What is a 'narrow' product range? What problems might this cause for the business?
- What is the difference between a tangible and intangible benefit from a product?
- Suggest two reasons why a strong brand may be important for a product
- Suggest three ways to extend a product life cycle.
product life cycle
Nine mark question