Name: Section 3 – Marketing: Chapter 12 - The Marketing Mix - Product 1

Chapter 12 - Product
Learning Objectives
LO1 – To identify different types of products
LO2 – To analyse the costs and benefits of new product development
LO3 – To examine the importance of brand image
LO4 – To outline the importance of packaging
LO5 – To evaluate the use of the product life cycle
LO6 – To devise ways of extending the product life cycle
LO1 – To identify different types of products
Starter
Can you list 5 products made by…
• Apple …………………………………………….……………………………………………...……………………………………………..
• Nike …………………………………………….…………………………………………….……………………………………………....
• Samsung …………………………………………….…………………………………………….……………………………………………..

The marketing mix

• This is a term used to describe all the activities that go into marketing a product or service.
• The marketing mix is also called ……………...

• ………………. – The design, quality, and packaging of a product.

• ………………. – The price a product/service is sold for.
• ………………. – Where the product/service is sold and how it is distributed.
• ………………. – How the product/service is advertised and promoted.
Name: Section 3 – Marketing: Chapter 12 - The Marketing Mix - Product 2

Types of products
• ………………. ………………. – These are goods that are used by people. Some last a very long time and
some only last a short time.
• ………………. ………………. – These are services produced for people.
• ………………. ………………. – These are goods that made for businesses to use.
• ………………. ………………. – These are services that are created to help other businesses.

LO2 – To analyse the costs and benefits of new product development

Choosing the right product
• Each business has to think very carefully about making a product.
• They must think about:
– the ………………. of the materials they will use
– the ………………. they will sell the product at
– The ………………. to make the product
– The ………………. of the product
Name: Section 3 – Marketing: Chapter 12 - The Marketing Mix - Product 3

What makes a
product successful?

New Product Development

• There are seven steps a business will usually follow when making a new product.

1.

2.

3.

4.

5.

6.

7.

ACTIVITY 12.3 P.160

Name: Section 3 – Marketing: Chapter 12 - The Marketing Mix - Product 4
…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
Space to draw your idea:

Benefits of developing a new product Costs of developing a new product

LO3 – To examine the importance of brand image

What is a brand name?
…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
What is brand loyalty?
…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
What is a brand image?
…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
Name: Section 3 – Marketing: Chapter 12 - The Marketing Mix - Product 5

…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
LO4 – To outline the importance of packaging
Why is packaging important?
…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
What is packaging?
…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
What is it used for?
…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................

Good packaging
should…
Name: Section 3 – Marketing: Chapter 12 - The Marketing Mix - Product 6
LO5 – To evaluate the use of the product life cycle
Products do not last forever – a typical cycle for a product is as follows…

1. Development
• Product is ……………….
• Market ………………. is carried out
• No ………………. at this point
2. Introduction
• Product is ……………….
• Sales will grow slowly as most consumers are ………………. of the product
• Price skimming may be used if there are no competitors
3. Growth
• Sales start to grow ……………….
• Prices may be reduced if ………………. enter the market
• Profits may start to be made after covering ………………. costs
4. Maturity
• Sales increase ……………….
• Competition is ……………….
• Competitive or promotional pricing is used
• Profits are at their ……………….
5. Saturation
• ………………. are at their highest
• Competitive pricing is used
• Profits may start to ……………….
• Prices may have to be ……………….
6. Decline
• Sales are declining ……………….
• Product is usually ………………. from the market
• ………………. is reduced and then stopped

Is there a fixed length of time for a product life cycle?

…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
Name: Section 3 – Marketing: Chapter 12 - The Marketing Mix - Product 7
Product life cycle and marketing decisions
Product Price Promotion Place
Introduction Newly launched Price skimming or Advertise to inform Limited range of
product penetration customers of new exclusive shops if
product price skimming is
used
Growth Raise price if Establish brand Increase range of
penetration was image outlets
used initially
Maturity / Saturation Start development Lower price to Sales promotions to Full range of
of new product remain competitive encourage repeat distribution
purchases channels
Decline Adapt product to Lower price Relaunch the Sell at low cost
extend life cycle product as part of outlets
extension strategy
***Businesses will usually sell a range of products (product portfolio) at different stages of the product life cycle***

LO6 – To devise ways of extending the product life cycle

Extension strategy: a way of keeping the product at the maturity stage of the product life cycle and
increasing the sales of the product. Businesses want to avoid products entering the decline stage of the
product life cycle.
• Can you think how they could do this?
• …………………………………………...............................
• …………………………………………...............................
• …………………………………………...............................
• …………………………………………...............................
• …………………………………………...............................
• …………………………………………...............................
Name: Section 3 – Marketing: Chapter 12 - The Marketing Mix - Product 8

…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................

…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
Name: Section 3 – Marketing: Chapter 12 - The Marketing Mix - Product 9
…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
…………………………………………….…………………………………………….……………………………………………...............................
Name: Section 3 – Marketing: Chapter 12 - The Marketing Mix - Product 10
Name: Section 3 – Marketing: Chapter 12 - The Marketing Mix - Product 11