Marketing 4.

5: 7 P's
Product
Product
A product is any good or services that exists
to satisfy the needs or wants of customers.
This can be tangible (physical) or intangible
(a service).
 The importance of the Product

• Many argue that the most important aspect of the 7 P's is the product.
With no product you can't promote.....or can you?
• Can you think of any examples where a lot of promotion/hype was created with
little to no product?

• Can you think of a product you would buy with NO promotion?

• Can you think of a product that has promotion that may want you NOT
to buy it?
 Consumer vs Producer Goods

• Consumer Goods
• Good bought for personal consumption
• Examples include food, furniture etc.

• Producer Goods
• Good bought for business/commercial use
• Examples include tools, machinery etc.
Product Life Cycle
 Product Life Cycle - Stages

• The product life cycle was created in 1966 and shows the stages that most products go through during
their life.

• The Key stages are:

• Research & Development – Investigating (market research), designing and developing the
product.
• Launch – Product is introduced to the market. Early adopters will buy the product but it will not
be main stream yet (advertising and promotion needed).
• Growth – Sales revenue as the product becomes more well know and the business gains market
share.
• Maturity – Sales revenue peaks, growth slows and rival products will become competitors.
• Decline – Sales revenue is in continual decline, leading to withdrawal of product. Often due to
changes in technology, fashions, habits or trends.
Stanley Cups
• Links to 4.3
Sales
Forecasting, 4.4
Market
Research, etc
Extra Reading/Watching
 Research & Development

• R&D involves designing and testing the product.

• Prototypes usually are produced and combined with heavy market research
such as Focus Groups.

• Test Marketing (introducing product to a small market segment) will occur to

gain valuable customer feedback.

• Some prototypes will never move forwards, others will have multiple revisions
before being released and some may even be commerically released as is.
Note: There is a high % failure rate at this stage.
Activity: Read This – Ben & Jerrys
• Answer these questions:
• What surprises you about this article?
• Do you think the % chance of success of a new idea is common to other businesses or unique
to Ben & Jerrys?
• How much does it cost to become a franchisee of a Ben & Jerrys
shop? How much capital do you need to have in total?
• What is a potential DOG product you can find?
• What flavor would you create?

• Use Ben & Jerrys Website (https://www.benjerry.com)

for research.
 Introduction/Launch

• Launch is when the product is introduced to the market. Early adopters

will purchase, but marketing is needed for growth.

• A business that is first to the market gains First Mover Advantage. EG:
Pfizer (COVID Vaccine)

• Costs are high in this stage and sales are usually low. Moving to the
next stage quickly is the goal.
 Growth

• Growth is when the product becomes more well known and sales
revenue increases.

• Higher sales, lower costs (due to EOS) and a higher brand awareness
are all likely.

• Competitors may start to enter the market at this stage, especially if

the product is a success.
 Maturity

• Maturity is when sales revenue peaks. This is where many businesses

focus on Extension strategies.

• Marketing strategies may remind customers of the product rather than

convince them of its strengths.

• Sales should still be high at this stage (at its peak), but there is likely
to be many competitors.
 Decline

• Decline is when sales revenue continues to decline. Often the product

is then withdrawn from the market, this could be down to tastes,
fashions or technological advancements.

• Little to no marketing is done at this stage. Often the price of the

product is reduced in an effort to get final sales.
Research
Task: The
Segway
Read this article –
BBC - Segway and answer
the below questions
 Extension Strategies

• Extension Strategies are marketing approaches that try to lengthen the

product life cycle. These may include:
• Reducing the price
• Promotional strategies (marketing, special offers etc)
• Product enhancements/modifications (limited editions, repackaging etc.)
• Expanding into new markets
• Product differentiation strategies, to show how superior or unique the product
is in comparison with competitors.
Branding

Branding is a marketing technique used to

give a product or business a unique name
or identity. A mixture of tangible and
intangible attributes symbolized in a
trademark.
 Branding

• Branding helps:
• To create an original identity for a good, service or organization
• To differentiate a business and/or its products from those of rivals in the industry
• To build brand awareness (knowledge and recognition of a particular brand)
• To build brand loyalty (customer devotion to a particular brand)
• To create a particular or desired corporate image.

• It has been proven that good branding can impact customers purchasing
habits and can be more important, to customers, than price
Patagonia vs North Face
 Brand Awareness

• Brand Awareness is the extent to which people recognize and

remember a particular brand.

• In general the higher level of brand awareness the higher sales revenue
will be. Largely due to the fact that the business will be the first
associated with a certain type of product, such as Apple and Samsung
with Smartphones.
 Brand Development

• Brand Development is the ongoing improvement of the brand name in

order to boost sales revenue and market share.

• Brand development may include conducting market research,

developing and marketing a USP and creating a focused marketing mix.

• Good Brand Development can help prolong a products lifespan.

 Brand Loyalty

• Brand Loyalty is when customers become repeat customers. A high degree

of brand loyalty will ensure that customers continue to support and promote
your brand.

• High Brand loyalty can help a business maintain or improve market share,
charge premium prices and prolong the products life cycle.

• Low brand loyalty may result in brand switching which will lower your
market share and could reduce the products life cycle.
 Brand Value

• Brand Value is the premium that customers are willing to pay for a
brand name over and above the value of the product itself.
• BAPE/Supreme - White T Shirts
Most Valuable Brands
 The importance of Branding

• Branding creates a unique and original identity for a business and its goods and services. Such product
differentiation enables customers to recognize and distinguish the brand from competing products.

• Branding helps to foster customer loyalty. Repeat customers are important for the continued revenue streams
and longevity of a business.

• Brands can help to build trust in an organization and its products.

• The purchase, ownership and consumption of certain brands can add an emotional value for customers, giving
them a sense of wellbeing (the ‘feel good factor’).

• Businesses can charge premium prices for products with a good brand. Being able to charge higher prices helps
to improve the organization’s profit margins.
 • Each table is a team.

• Each Team needs to come up with one way to create an intangible

aspect or an association with a Good or Service.
• No devices, no Googling
Marketing
Expert • Existing Examples include:

Activity • LEGO doesn’t sell plastic building bricks; it sells the ability to
create and tell your own stories.
• Honda doesn’t sell cars; it sells ‘the power of dreams’.
Can you create more than a • See’s Candies doesn’t sell chocolates; they sell a way to say ‘I love
you’.
brand? • Disney doesn't sell tickets to its theme parks, it sells 'Where Dreams
Come True' or 'A Magical Experience'