Unit 2 - Marketing (1)
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- Created on: 29-04-15 17:56
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- Unit 2: Marketing
- The Product Life Cycle
- Development: Research and market research used to develop an idea
- Introduction: The product is launched and put on sale. Lots of advertising and sales promotion.
- Growth: Sales and profits increase, until the product becomes established.
- Maturity: Sales at peak. Promotion less important. Make product more widely available.
- Decline: Sales fall as rival products take over.
- Product Portfolios
- Range of different products firm sells.
- Large business have different products at different stages giving them a balance.
- Expanding: Adding products to existing range or new products that are different from current ones.
- Diversification designing and producing more products. Reduce risk decline in sales.
- Extension Stratery
- Changes to design/ offering discounts
- If works more profit.
- Bad publicity for one product ruin whole company image.
- Promotion
- Sales Promotion
- Discounts
- Product Trials
- Free Gifts
- Competition
- Buy one get one free.
- Direct Marketing
- Creates junk mail and spam email.
- Business contacts potential customer directly.
- Sponsor organisations and events.
- Sports
- Television
- Sponsorship can create high profile.
- Could lead to bad publicity if event goes wrong.
- Factors affecting promotion
- Cost
- Competitors promotions
- Nature of product and market
- Sales Promotion
- The Product Life Cycle
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