Developing a marketing mix for a new product or service Essay

In this assignment I lead be noteing at how increase and operate are foodstuffed and look at how a merchandise ruffle is genuine using the four Ps Product, Price, Place, and Promotion. The Marketing Mix issues an excellent framework for developing marting plan. They are generally accepted as being made up of four parts which are ProductPrice forwarding regularizeThese are ideas to consider when merchandising a harvest-tide and shall be draw in more detail below- The Four PsProductA increase is anything that faecal matter be offered to the market to gratify a customer needs and desires. Product include physical goods, work experiences, events, someone, place and etc. It is therefore the combination of goods and service that are offered to the charge consumer. A art will constantly change and update its product range and cockle to constantly please their customers and be above competitors. A product push aside be viewed in three diametrical levels take in 1 The core Product (rather than the physical product) is the benefit of the production that makes it precious to you. Level 2 The actual product is the physical item. At this level branding and added features and benefits are important as this what will differentiate the product from competitors. Level 3 The augmented product is additional value beyond the physical product it usually consist of after- gross sales service, warranties, de die hardry and so on.The boundary of the mix is anformer(a) significant issue. If a business doesnt ache many products, there is a chance that bingle will go out of date as smarter type of products are in the market and this can seriously damage the business scale. It is recomm residueed to never dupe one product in one market as if the product isnt successful and fails this could mean a complete failure of the business. Some businesses will adapt and anticipate change, whileothers reacts to the need to change. An example of this is that IPhone makes changes to their products such as their mobile peals, they add more features to their products giving their customers a range of features to look for in a product. Once a business has place their commit group of customers it has to know what products or services it needs to do and provide in order to appeal and attract to them.The in motleyation they provide their customers should deck the features of the product or service so that the customers know what to expect and it reaches their expectations and the business will make a scratch. However its important to take into consideration that the benefits to a customer are not always for a practical sense there are psychological benefits such as status for example. An example of this is if everyone has a specific phone and a person went and got the same phone they may get it more for a status reason. The product support cycle concept reflects the theory that product, like people, live a life. They go through 4 stages. The main s tages of the product life cycle areIntroduction- researching, developing and then launching the productGrowth-when sales are increasing at their fastest rateMaturity-sales are abutting their highest, but the rate of growth is slowing down, e.g. new competitors in market or saturationDecline-final stage of the cycle, when sales begin to fall So understanding what part of the cycle your product is in will strain your marketing mix. PricePrice is the one element of the marketing mix that revenue the others produce apostrophizes. A business must set a price for a product and in deciding the products price marketing must follow a six-step-process. 1.Select the price objective-This could be to survive or to maximize market share. 2.Determine demand-the higher the price, the lower the demand. 3.Estimate cost-charge a price that covers the cost of producing, distributing and swaping the product. 4.Analyze competitors costs, prices and offers-take into account its competitors cost and pr ices stage setting its price. 5.Select a set strategy-there a number of determine, which is listed below. 6.Select the final place-this is decided after testing on a range of set points. Premium pricingThis is where the business will honor the price of a product or service high in order to encourage customer to associate it will high quality. perspicacity pricingThis is when a product is sold into a market at a low initial price in order to take back sales before the price is increased. Economy pricingEconomy pricing is the deliberate setting of low price in order to get up sales. Skim pricingwhen launching a new product there will be less competition in the marketplace. Skimming involves setting as reasonably high initial returns from those consumers willing to buy the new product. Psychological pricingThis based on customer pricing method. It relies on consumers emotive responses, subjective views and feeling towards specific purchases. Captive product pricingThis is a str ategy that can apply to products with consumable supplies. This is where the pricing at high prestige levels, otherwise they will not remove customers equate higher quality with higher prices. Product line pricingThis is the pricing of different products within the same product range at different price points. PlacePlace in marketing mix refers to where the product is purchased from and how its distributed. For example, most consumer of confectionery will buy products form retail stores. Businesses need to adapt their marketing mix depending on the end customers- that is whether they are a consumer or reseller- as each seek different benefits from the same product. DistributionA business may use twain types of statistical distribution method indirect or direct. Indirect distribution is when a business sells its products via an intermediary such as wholesaler, who then sells to retailers. Direct distribution is where the business sells and distributes direct to the customers. Choos ing indirect distribution may mean that a business loses some of the control over the pricing of their products, as they have offer discounts to wholesalers and retailers, who may choose to pass on saving to their customers. OnlineThe growth of online shopping have given businesses a new place to sell their products to customers. This offers businesses an advantage as they can sell directly to the customers. This mean they can avoid the wholesaler and therefore increasing the profit margin on their products. The promotional mix involves the blending of number of variables to satisfy the needs of a businesss target market and achieve its organizational objectives. With the promotional mix, a business attempts to achieve the best blend of promotional elements to check their promotional objectives. The components of the promotional mix areAdvertisingSales promotionPersonal sellingPublic relationsAdvertisingThis may be defined as paid promotions through various media by businesses, non profit organizations and individuals that are in some way identified in the advertising message and hope to inform or gestate members of particular audience. Advertisers have many tricked up their selves such as inspirationPersonality powerPut-down Business put down their competitions jumping on the bandwagon Advertisements encourage the audience to join the crowd.Personal sellingThis is where a seller presents a product direct to a consumer often typesetters case to face but can be done over the phone and through video conferencing. Public relationsThis covers a firms communications and relationships with its public. This includes customers, suppliers, stockholders, employees, the government, the general public and the society in which the organization operates. This can be formal or informal. Publicity is important part of stiff public relations efforts. It can be defined as the non-personal input signal ofdemand for a good, service, person or cause. Sales promotionThis is l ink up to marketing activities that fall outside of the categories such as coupons, trade shows, displays, samples and other promotional efforts that occur on an irregular basis. Some of these promotions are victimize term and opportunistic. In this assignment I have examine how products and services are marketed and look at how a marketing mix is developed using the four ps Product, Price, Place and Promotion.