Lesson Plans

• Part 1: Product Life Cycle and Product Differentiation

• Part 2: Marketing Concept and Market Segmentation
• Part 3: Marketing Mix

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 Part 1: Product Life Cycle & Product
Differentiation

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Product Life Cycle

the amount of time a product goes from being introduced

into the market until it's taken off the shelves.

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Product Life Cycle
“One of the greatest values of the life cycle concept is for managers about to
launch a new product. The first step for them is to try and foresee the profile of
the proposed product’s cycle …Time spent in attempting this kind of foresight
not only helps assure that a more rational approach is brought to product
planning … it can create valuable lead time for important strategic and tactical
moves after the product is brought to market” (Levitt, 1965)

7 Years

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Product Life Cycle & Marketing Strategy

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PLC Assumption and Criticism

• Progress is organisation-driven rather than customer-led; It assumes

the rational behaviour of the firm where creation of utility for the
customer brings economic reward. Essentially, demand is created.

• Products are dynamic and their characteristics change over time.

• Not every product goes through all the four stages of the PLC (e.g.
never decline or sales volume collapses suddenly after growth)

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PLC Trends
• Re-purposing products to extend life span (demarketing and reduced
consumption movements)

• Time-pacing: scheduling change at predictable time intervals

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 Part 2: Marketing Concept & Market
Segmentation

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Marketing Management Philosophies

Production Concept Consumer favour products that are

available and highly affordable
Product Concept Consumer favour products that offer the
best quality, performance, and features.
Selling Concept Consumers will buy products only if the
company promotes / ‘hard sell’ these
products
Marketing Concept Satisfying the needs/wants of target
markets and delivering satisfaction
better than competitors
Societal Marketing Concept Satisfying the market's needs in a way
that preserves or improves consumers'
and society's well-being

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Marketing Management Philosophies

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The Marketing Concept
Three central aspects of the marketing concept (Kohli and Jaworski 1990):

• A general ’consumer orientation’ focusing on consumer needs and

satisfaction;

• An emphasis on ’integrated marketing’, committing the entire

organization to the principle of consumer satisfaction

• A focus on ’profitability’ (vs. sales volume)

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Segmentation, Targeting, Positioning

Grouping together customers with

similar product preferences and buying
behaviour aids organisations in dealing
with market heterogeneity, thereby
focusing resources on relatively
homogeneous customer segments and
thus ensuring an efficient allocation of
resources

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Segmentation and Marketing Strategy

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Theoretical considerations for
Market Segmentation
• Arts vs Science
• Firms’ best resources vs customers’ actual preferences
• The blurring of geographical and demographics boundaries
• Supplier-driven vs Market-driven (i.e., Feral Segmentation)
• E.g., metrosexuals, fatshionista, soccer moms

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Feral Segmentation (Diaz-Ruiz & Kjelberg, 2020)

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 Part 3: Marketing Mix

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Marketing Mix

The set of actions, or tactics, that a

company uses to promote its brand or
product in the market

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The Evolution of Marketing Mix

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Criticism of Marketing Mix –
Consumer Marketing Literature
• Marketplaces today are customer oriented. The 4Ps have less relevance
today because customers control the market. A new Marketing mix must be
based on the Marketing Triad:
Marketer - Employee - Customer

• Customers are disposed to buy products from the opposite direction to that
suggested by the Marketing Mix. Five Vs are the criteria of customer
disposition:
Value - Viability - Variety - Volume - Virtue

• External and uncontrollable environmental factors are very important

elements of the marketing strategy Programs. The marketing mix should
thus include:
Political power - Public opinion formulation

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Public Opinion and Marketing

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Criticism of Marketing Mix –
Relationship Marketing Literature
• Marketing Mix is product-oriented. Four Cs should replace the 4Ps,
indicating the customer orientation:
Customer needs - Convenience - Cost - Communication

• The trend towards personalisation has resulted in an increasing

contribution of services to the marketing of products. Personalisation must
become the basis of the marketing management trajectory:
Personalisation - Personnel - Physical Assets - Procedures

• The traditional Marketing Mix is function-oriented and output oriented.

Firms must shift the emphasis in managing valued customer relationships
in order to retain and increase their customer base. Four information-
intensive strategies form the “new Cs” of Marketing:
Communication - Customisation - Collaboration - Clairvoyance

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Personalisation

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Criticism of Marketing Mix –
Services Marketing Literature
• The traditional Marketing has never been an effective tool for health
services marketing. A new framework emerges, emphasising the 4 Rs:
Relevance - Response - Relationships - Results

• The traditional Marketing Mix does not adequately capture the customer
experience that is essential when marketing a service product. Four
strategic theatrical elements constitute the Services Experience:
Actors - Audience - Setting - Performance

• Marketing services in a changing world requires focusing on increasing the

customer satisfaction and rejecting old product paradigms and marketing
fallacies. The four keys of modern services marketing
Price - Brand - Packaging - Relationships

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Actors – Audience – Setting - Performance

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Criticism of Marketing Mix –
Digital Marketing Literature

• Some major flaws of the 4Ps mix as

basis of online marketing activities:
Lack of interactivity, lack of strategic
elements in a constantly developing
environment, the 4Ps are not the
critical elements of online marketing.

• Succeeding in the 21st century

Kalyanam & Mcintyre (2002)
interactive marketplace means that
marketing has to move from an
internal orientation illustrated by the
4 Ps to a view of the network or
system

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The E-Marketing Mix

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