Developing the Marketing Mix

Market Life Cycle: 4P Choices

MARKETINTRODUCTION

MARKETGROWTH

MARKETMATURITY

MARKETDECLINE

+

-

MARKETSATURATION

0

$Pr

oduc

tPl

ace

Prom

otion

Pric

e

One or Few Various - lookfor best productBuild brandfamiliarity

Little differentiationBattle of theBrands

Some dropout

Build Value ChainsMaybe selective distribution

Eliminate costs, find betterlow cost channels

Pioneering, InformingAwareness, Build brand

Informing & PersuadingBuild selective demandDifferentiate brand

Persuade &Remind

Skimming orPenetration

Add value orMeet competition

Price dealing and price cutting

No productdifferentiationOther ways todifferentiate?

Consolidate channels

Value or Penetration

TIME

PERFORMANCECUSTOMER

SERVICE PRICE

PROCESSES

PEOPLEPLACE

PRODUCT PROMOTION

Relationship Marketing Mix – Marketing Drivers

Product• expand the line• change performance, quality or features• consolidate the line• standardize design• positioning• change the mix• branding

Price• change the price, terms or conditions• skimming policies• penetration policies

Summary of Typical Marketing Strategies

Summary of Typical Marketing Strategies

Promotion• change advertising or promotion• change selling

Place• change distribution• change service• change channels• change the degree of forward integration

Summary of Typical Marketing Strategies

People• conduct skills analysis and retrain/recruit as appropriate• change Account Management structure to Account Relationship Managers

Processes• change service development process• change service delivery process

Customer Service• change service levels by segment• review and improve communications with customers

Buy-Stage

Effectiveness of Marketing Communication Tool

Low Medium High

1. Anticipation or recognition of a problem and general solution.

Personal Selling Advertising

2. Determination of characteristics and quantity of needed item.

3. Description of characteristics and quantity of needed item.

4. Search for and qualification of potential sources.

5. Acquisition and analysis of proposals.

6. Evaluation of proposals and selection of supplier(s).

7. Selection of an order routine.

8. Performance feedback and evaluation.

= Web SiteFigure 1: Buying and Selling Processes and the Web site as part of the Marketing Communication Mix

Illustrative Product Strategy at Each PLC Stage

Marketing strategy Types of brand strategies considerations

Type

Objectives

Product strategy

Advertising objectives

Distribution

Price

Brand development

Establish market position

Assure high quality

Build brand awareness

Build distribution network

Skimming or penetration strategy

Brand reinforcement

Expand target market

Identity weakness

Provide information

Solidify distribution relationships

Meet competition

Brand repositioning

Seek new market segments

Adjust size, color, package

Use imagery to differentiate from competitors

Maintain distribution

Use price deals

Brand modification

Prepare for re-entry

Modify features

Educate on changes

Re-establish and deliver new version

Maintain price

Phase in life cycle Introduction Growth Maturity Decline

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