business studies marketing mix

Topics: Marketing, Product life cycle management, Pricing Pages: 4 (845 words) Published: October 10, 2013
Chapter 19: The marketing mix: product and packaging

The role of product in the marketing mix

The product itself is the most important element in the marketing mix. Without it, the other three would not exist. Most companies today are market oriented, and will identify a suitable product for the market before moving on to determine the other 3 elements. Large companies have R&D departments which spends all its time developing new product and analysing the pros and cons of competitors' products.

Types of products:

Consumer goods:  Goods that are used up by consumers. (e.g. food, cake)

Consumer services: Services that are produced for people. (e.g. education) Producer goods: Goods produced for businesses. (e.g. machinery) Producer services: Services for businesses. (e.g. accounting, insurance) Each type of product determines the price, promotion and place to sell the product. Here are what make products successful.

Products need to satisfy consumer wants/needs to be successful.

The product must be at the right quality so that customers are willing to pay for it. Costs should be low enough to make a profit.
Design of a product is important. This means that its quality anddurability should meet expectations and match the price of the product. The design should also enhance the products brand image. Products are novelties (newly introduced to the market).

Products can stimulate new wants.

 
Product development

Most businesses use a general process to develop any product:

1. Generate ideas: Ideas can be generated by:

1. Employees.

2. Customers.
3. Competitor's products.
4. R&D department.
5. Sales department.
2. Further research: The best ideas are selected and further research is done to see their pros and cons. 3. Will there be enough sales?: To see whether there will be enough sales of the product to break-even (development costs included).  4. Develop a prototype: To see how a product could be manufactured and identify...
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