Marketing Mix Strategies,

New Product Development and

Product Life Cycle
 What is Marketing Mix?
 Marketing mix refers to those four elements (product,
price, promotion, and place) of a firm’s marketing
strategy which are designed to meet the needs of
customers. These are often known as the four “Ps”.
Simply, to meet consumers’ needs, businesses must
produce the right product, at the right price, make it
available at the right place, and let consumers know
about it through right promotion.
 Product Strategy
Aspects Brief explanations or examples

The appearance  Color, size, shape, etc. must meet the consumer
needs.
 Able to be used
The function  Convenient for use
 Meeting special needs of customers
 Production costs must be low enough to earn some
The cost profit.
 High cost, higher price.
 Too high price, customers unlikely to buy.
Price Strategy
 Promotion Strategy
 Advertising
Advertising is a paid form of communication designed to persuade potential
customers to choose your product or service over that of a competitor.
Selling
Put simply, selling is the exchange of goods or services for an agreed sum of
money.
• Sales Promotion
Sales promotion relates to short term incentives or activities that encourage
the purchase or sale of a product or service.

Public Relations
The deliberate, planned and sustained effort to establish and maintain
mutual understanding between an organization (or individual) and its (or
their) publics”.
Placement Strategy
 New Product Development
Idea Generation and Screening
Concept Development and Testing
Marketing Strategy
Business Analysis
Product Development
Test Marketing
Commercialization
 Causes of New Product Failures
Overestimation of Market Size
Product Design Problems
Product Incorrectly Positioned, Priced or Advertised
Costs of Product Development
Competitive Actions

To create successful new products, the company

must:
 understand it’s customers, markets and competitors
 develop products that deliver superior value to customers.
 Product Life Cycle
 Definition:
Products pass through several stages of
development in its life from introduction to decline:

Stages of product life cycle usually include:

1. Development
2. Introduction
3. growth
4. Maturity
5. Saturation
6. Decline
Product Life Cycle
 Stages Brief explanations

Development PLC
The product is being designed.
Suitable ideas are tested.
Decision is to be made whether or not to produce the product.
If OK, the business begins to produce.

The product is new in the market.

Sales are still low and increasing.
Introduction Promotion is needed to increase the sales and make it aware widely.
Performance < Expectation = Dissatisfied 
Product is still not profitable.

The product is established in the market.

Sales begin to grow rapidly.
Performance
Growth
= Expectation = Satisfied
The product becomes very profitable.
The business needs to seek new opportunities and enlarge the market.

The product has a stable market share.

The growth levels off in the sales.
Performance
Maturity
Sales have reached the top.
> Expectation = Delighted
Competitors have entered the market. 
The business needs to consider new product development or innovate the product.

 Too many competitors have entered the market.

Some businesses are forced out of their business.
Businesses have to develop some extension strategies to extend their product life cycle. For
Saturation
example, find new uses of the product; finding new markets for the product; changing components
of the products, etc.

Sales decline.
Consumers have changed their taste or styles.
New products have to be produced by competitors
Decline
Businesses have to develop new products or improve the old product with new technology or
simply give up the product.