1) Market research- identity and understance customers
2) Developing and testing product and services
3) Communicating product and services to customers
A market segmentation is a group of people who have a simular charateristices and needs.
Benefits of market segmentation
- Producing products for different needs
-Adapt advertise to different needs
-Helps carry out market research
When consumer buy a product for the first time to assess whether or not they want to buy again. If this is sucessful, it could lead to repeat purchases and customer loyality. Where customers will buy a product more than once and keep coming back.
Product life cycle
1) Devolopment- Company has no more money coming in and spending a lot of money on raw materials
2) Introduction(Lanch)- Sales will be low but increasing. It will be starting to make profits and spending money on advertising.
3) Growth- The product is more know in the market, the sales have increase. They are not spending as much money on advertising and profits are growing.
4) Maturity- Product is well know in market, the profit and sales aer at highest level(sacturation level), you could try and extend sales.
5) Decline-It becoming unpopular, there are better products. You could either updae product or end production.
What is a Brand?
A named product which customer see as being different from other product
When a business uses a brand name on a new product that has some brand characteristics.
Where brands is used for a diverse range of products not neccesserly connected
It is making your product or service stand out from others
It is all the stages a product goes through from production unlit it reaches the customers
Marketing mix 4 P's
Sell it at the right product
at the right price
in the right place
with the right promotions
Cost plus pricing
Adding a perecentage to the actually cost
Set prices simular to competitors
Starting with low prices to attract customers
Selling a product at high price, becasue it unique product
Special prices for limted time
Invention and Innovention
Building a brand new product
Devolping a new idea
research stage R&D
Find out want customers want from the product. Employe idea (how to improve product)
Use technology to improve design of product
Development stage and design mix
Buying in bulk and test marketing
Design mix- Aethictics/function/ Economic