The Marketing Mix: Product (DP IB Business Management)
Revision Note
Written by: Lisa Eades
Reviewed by: Steve Vorster
An Introduction to the Marketing Mix
The marketing mix refers to the seven elements that contribute to the successful marketing of a product
Diagram: The Seven P's of the Marketing Mix
The extended marketing mix includes 7 P's
An Explanation of the Seven P's of the Extended Marketing Mix
Element | Explanation |
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Product |
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Price |
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Place |
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Promotion |
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People |
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Process |
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Physical Evidence |
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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 in the product life cycle: development, introduction, growth, maturity, and decline
Diagram: a typical product life cycle
The implications for cash flow and marketing vary at each stage of the product life cycle
Companies should tailor their marketing strategies and manage their cash flow to ensure long-term profitability and success
The Product Life Cycle, Cash Flow and Marketing Strategy
Stage | Explanation | Implications & Strategies |
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Development |
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Introduction |
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Growth |
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Maturity |
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Decline |
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Examiner Tip
You should be aware that product life cycles rarely follow this model precisely
In some cases the product life cycle is very short, lasting just a few months weeks
Memorabilia produced and sold for King Charles' coronation in 2023 enjoyed short product life cycles in general, available for sale for just a few months prior to and after the event
In other cases product life cycles are incredibly long, lasting many decades
The Milka brand of chocolate was introduced in 1901 - more than a century later it remains one of the most popular global brands in its market segment with net sales of almost £2 billion in 2018
Extension Strategies
Extension strategies refer to the techniques used by businesses to extend the life of a product beyond its natural life cycle
These strategies are designed to boost sales and maintain profitability for a product that has reached the decline stage of its life cycle
There are two types of extension strategies:
Product-related extension strategies
Promotion-related extension strategies
Product-related extension strategies
These extension strategies involve changing or modifying the product to make it more appealing to customers and extend its life cycle and can be achieved in one of three ways:
Product improvements e.g. Samsung releases new versions of its Galaxy Smartphone every year with upgraded features and improvements to the previous model
Line extensions e.g. Coca-Cola introduced Diet Coke and Coke Zero as line extensions of its original Coca-Cola
Repositioning e.g. when IBM's personal computer division started losing market share to other brands, it repositioned its products as high-end business machines and focused on the enterprise market
Promotion-related extension strategies
These extension strategies involve changing the promotional aspects to extend a product's life cycle and could include one or more of the following changes:
Changes to advertising e.g Kellogg's continues to recreate advertisements for its Corn Flakes cereal, which has been around since 1906
Price promotions e.g. Cyber Monday occur on the first Monday after Thanksgiving in the USA and electronic firms discount prices significantly to boost sales of their products
Sales promotions e.g. many coffee shops offer a loyalty program where customers can earn a free drink for every six drinks consumed
Examiner Tip
Businesses sometimes make the choice to remove a product from the market when it reaches the decline stage of the product life cycle, rather than continue to invest in expensive and time-consuming extension strategies.
If you are asked to weigh up options to extend the life cycle of a product, a useful evaluative point could be the possibility of adopting none of the options - and considering the benefits of removing the product from sale.
These benefits may include reduced promotional and R&D spending as well as providing the opportunity for a business to focus on remaining products in its portfolio.
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