Target market (Marketing mix- to be continued)

Elements in product/service

1. The USP

-The differentiating feature making the product stand out.

2. Branding

-Differentiates a company from competitors by giving it a name, design or logo.

3. Product Design

-The branding, sustainability/ethics and features all play a part in the product.

How target market can influence product

1. The USP

-USP must match the target market’s values.

1. Branding

-Branding should look like and reflect the target market’s taste.

3. Product design

-Design must suit target market’s needs in price, style and usability.

Product life cycle stages

1. Introduction

-Product is just launched into market.

-Sales are low, costs are high.

2. Growth

-Product is gaining more popularity.

-Sales begin increasing, cost per unit falls.

3. Maturity

-Product is established in market and profits culminate.

-Sales peak but growth slows down.

4. Saturation

-Market becomes crowded with similar products. New strategies needed to avoid decline.

-Sales slowly begin dipping.

5. Decline

-Business could decide to end production and reduce prices to eliminate stock.

-Product loses demand and sales fall sharply.

Ways to extend product life cycle

1. Product (New variant or limited edition).

2. Price (Special offers or bundle deals).

3. Place (Expand availability).

4. Promotion (influencer campaigns or nostalgia marketing).

Factors for setting a price

1. Target market

2. Cost of production

3. Competitor prices

4. Economic conditions

Types of pricing

1. Price skimming

-Price high on release to target early buyers then drop price later (iPhone).

2. Premium pricing

-Higher price to signal superior quality or luxury status (Balenciaga)

3. Cost-plus pricing

-Price=total cost+markup for profit. (Restaurants do this up to 70% on average).

4. Tiered pricing

-Different features for different price; higher quality, more expensive. (Netflix)

5. Dynamic pricing

-Pricing that changes according to consumer demand, time or profile. (Tickets).

How target market influences price

1. Disposable income

2. Perceived value and expectations

3. Price sensitivity

Types of advertising

1. Informative advertising

2. Persuasive advertising

3. Generic advertising

4. Competitive advertising

Types of PR strategies

1. Press releases

2. Sponsorships

3. Community initiatives

4. Crisis response

Types of sales promotion techniques

1. Discounts

2. Buy one get one free

3. Loyalty cards

4. Competitions