What is Marketing? The department which links the company with customer tastes, wants and needs. It develops the Marketing Mix
The Marketing Mix Consists of the 4 Ps of marketing....... The Marketing Mix Place Product Price Promotion
Question! What is the difference between the product of small and large companies?
ANSWER • Small businesses – one product • Large businesses – a range of products This range is called a Product Portfolio/Mix • They will have different target markets • They may diversify
Sales Introduction Growth Maturity Decline Time Product Life Cycle - Example
Task - Draw A Product Lifecycle Label the diagram Describe each stage (P113)
Extension strategy A step taken to extend the product lifecycle Examples • Updated designs • New advertising campaign • Targeting new markets with an existing product • New brand image
Task 2 Explain how these products extended their product lifecycle? What could be the problems of doing this? • iPhone • Cadbury Dairy Milk • Nintendo Wii • Crunchy Nut Cornflakes • Lucozade
Virgin’s latest extension strategy Virgin Money!
TASK 3 Read through the worksheet ‘Product Life Cycle’. Complete the table on Page 2. Answer question 1
Task 4 • http://news.bbc.co.uk/1/hi/uk/7814502.stm Questions • Why are customers prepared to pay a higher price for energy efficient light bulbs • Explain why the 100 watt light bulb is being phased out by retailers
Task 5 Questions • Why do customers still buy the iPod? • Why is the iPod starting to decline?