Marketing Mix: Product (Copy)
Cheat Sheet: 3.3.1 Product
Developing New Products
| Aspect | Benefits | Limitations |
|---|---|---|
| New Products | Attract new customers, increase sales, spread risk, competitive advantage | Expensive R&D, high failure risk, time-consuming |
Example: Apple launching a new iPhone = attracts loyal customers but costs billions in development.
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Brand Image
| Aspect | Impact |
|---|---|
| Definition | Reputation/perception of a product in customer’s mind |
| Impact on Sales | Strong brands = easier to launch new products, charge premium prices |
| Impact on Loyalty | Builds trust, repeat purchases |
Example: Nike’s strong brand → customers stay loyal even with higher prices.
Role of Packaging
| Role | Explanation | Example |
|---|---|---|
| Protection | Prevents damage/spoilage | Glass bottles for drinks |
| Information | Shows ingredients, expiry date | Food labels |
| Attraction | Eye-catching design attracts buyers | Bright cereal boxes |
| Branding | Reinforces brand identity | Apple minimalist packaging |
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Business Studies Full Scale Course
Product Life Cycle (PLC)
| Stage | Features | Marketing Focus |
|---|---|---|
| Development | R&D, costs high, no sales | Market research, product testing |
| Introduction | Low sales, heavy promotion, high costs | Advertising, penetration/skimming pricing |
| Growth | Sales rising fast, profit increases | Aggressive promotion, competitive pricing |
| Maturity | Sales peak, competition strong | Price cuts, brand loyalty, promotions |
| Decline | Sales fall, product outdated | Reduce promotion, discontinue or update |
Extension Strategies: Product updates, rebranding, price cuts, new markets, special offers.
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Business Studies Full Scale Course
How PLC Stages Influence Marketing Decisions
| Stage | Promotion | Pricing |
|---|---|---|
| Introduction | Heavy advertising | Penetration (low) or Skimming (high) |
| Growth | Widen promotion, differentiate | Competitive pricing |
| Maturity | Maintain loyalty, sales promotions | Discounts/price reductions |
| Decline | Minimal promotion | Lower prices to clear stock |
Quick Revision Bullets
- New products = growth but costly & risky
- Brand image = loyalty + higher sales
- Packaging = protection, info, attraction, branding
- PLC stages = Development → Intro → Growth → Maturity → Decline
- Extension = rebranding, redesign, discounts, new markets
- Marketing decisions adapt at each stage (promotion & pricing focus)
Written and Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE Business Studies Full Scale Course