PRINCIPLES OF MARKETING - DEVELOPING MARKETING MIX.pptx -...

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CHAPTER 4:DEVELOPINGMARKETINGMIX
Value PropositionIs the combining product and price, two productsof 4P’s of marketingIt offers how your product or service can benefitthe target market (brand relevance) as well asdefine its uniqueness (brand differentiation)3 TYPES OF PRODUCTDurable – product which have a long intervalbetween repeat purchases because of their long-lasting natureNon-Durable – products which have strongerrepeat purchases because they are consumableServices – products which are essentiallyintangible because there are no physical itemsinvolved
Two Methods of Satisfying Customer’s Needsand WantsProblem-solving Method – identifies and satisfiesan actual or existing need and want of customer.Creating Dissatisfaction Method – introduces newways of doing things to the customers byconverting customer’s existing satisfaction levelto a dissatisfaction level.New Product DevelopmentInternal Needs – looks at the company’sobjective and resourcesExternal Needs – looks at the customer’sneeds and wants
Factors to Consider in New Product DevelopmentInternalCompany’s – Objectives and ResourcesExternalCustomer’s – Needs and WantsNew Product Development Program1.To effectively respond to changing customer’sneeds and wants2.To effectively respond to the company’s expansionplan3.To effectively respond or preempt competitors andother threats fast
Product CriteriaIdea GenerationIdea ScreeningBusiness AnalysisPrototypeDevelopmentMarket TestFullCommercializationNew Product Development Process
Pricethe twin component of product quality, which, when combines,make up what is called product value or value proposition. It is theamount of money asked or given for “ something”Factors to Consider in PricingProduct CostCompany’s Market DemandCompetitionObjectivesObjectivesInternal FactorsExternal Factors

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