**What is the marketing mix?
The marketing mix (4Ps of marketing) provides a framework for businesses to create and implement successful marketing strategies. The 4Ps represent the key elements of a marketing strategy: product
**What is the product design mix?
The product design mix refers to the combination of elements that make up a product’s design. These elements include function
**Give examples of how manufacturers balance elements of the product design mix.
Some manufacturers aim to balance all three elements
**What does the function of a product refer to?
The function of a product refers to its intended purpose and the specific tasks it is designed to perform. A product’s function is the most important aspect of its design because it determines how well the product will meet the needs of its intended users. E.g.
**What are aesthetics in product design?
Aesthetics refer to the product’s visual and sensory appeal
**Why is cost important in product design?
The cost of production must be considered when designing a product
**What is the product life cycle?
The product life cycle describes the different stages a product goes through from its conception to its eventual decline in sales. There are typically five stages: development
**Explain the development stage of the product life cycle.
The focus is on designing and developing the product. The business usually incurs high costs for research and development
**Explain the introduction stage of the product life cycle.
The stage begins when the product is launched
**Explain the growth stage of the product life cycle.
The product enters this stage when sales begin to increase rapidly. The business focuses on building market share and increasing production to meet growing demand. Cash flow usually turns positive as sales revenue increases and costs are spread over higher production. Marketing strategy focuses on differentiating the product from competitors and building brand loyalty.**
**Explain the maturity stage of the product life cycle.
Characterized by slowing sales growth as the product reaches its peak in market penetration. Cash flow is usually positive as sales revenue continues and costs are reduced through economies of scale and efficient production. Marketing strategy aims to maintain market share and increase profitability by cutting costs and finding new markets.**
**Explain the decline stage of the product life cycle.
Sales begin to decline as the product becomes obsolete or is replaced by newer products. The business focuses on managing the product’s decline and reducing costs. Cash flow usually turns negative as sales revenue declines and associated costs increase. Marketing may involve discontinuing the product
**What are extension strategies in the product life cycle?
Extension strategies are techniques used to extend the life of a product beyond its natural life cycle to boost sales and maintain profitability. There are two types: product-related and promotion-related extension strategies.**
**Explain product-related extension strategies.
Involves changing or modifying the product to make it more appealing
**Explain promotion-related extension strategies.
Involves changing the marketing and promotion of the product to extend its life cycle
**What is product differentiation?
Product differentiation is an attempt by a business to distinguish its products from competitors by creating features or functions that make it stand out. It helps develop competitive advantage and may create a unique selling point (USP) used in marketing. It can be tangible or perceived and can increase demand
**Give examples of successful product differentiation.
Hyundai Cars in Singapore introduced a three-year warranty when the standard was one year. Green & Black use Fairtrade cocoa and sugar in their chocolate.**
**What are the main types of pricing strategies?
Businesses focus on either high profit margin with low volume (price skimming
**What factors influence the choice of pricing strategy?
Factors include number of USPs/differentiation
**Give examples of pricing decisions based on differentiation and technology.
Dyson vacuum cleaners have unique features allowing premium pricing. Candy Crush Saga uses freemium strategy — free initial game
**Why is promotion important in the marketing mix?
Promotion generates awareness
**What are the main types of promotion?
Advertising
**How can technology be used in promotion?
Businesses adapt to viral marketing
**What is place in the marketing mix?
Place refers to where customers purchase products/services. Distribution channels are intermediaries moving goods from business to customer. Types include three-stage (producer → retailer → customer) and two-stage (manufacturer → customer/e-tailer).**
