TOPIC:
Topic 4: Marketing
LESSON TITLE: The Marketing Mix (Product)
LEARNING INTENTION: To understand the process involved in the product
component of the marketing mix.
COMPETENCY FOCUS:
Creativity: learners will develop skills in creativity and design by firstly looking at how
promotion is used in business to help them to reach their goals and secondly, to design their
own promotional campaign responding to a creative brief from the client.
Reasoning: Learners will develop skills in reasoning as after providing advantages and
disadvantages for the use of the promotional mix, you will be required to make a reasoned
judgment.
[IB Learner Profile Development: Innovator]
Success Criteria
By the end of the lesson, I can…
1) Identify 3 tools used to create a product mix
2) Explain each of the 4 tools/models used to create a successful product.
3) Apply each of the models/tools to a real product.
SMSC: You will assess the
organisational culture of businesses in
terms of fundamental structure,
purpose and strategy development.
CRITICAL THINKING KEY:
Knowledge
Application
Analysis
Evaluation
The Marketing Mix
 Also known as the 4P’s (product)/7P’s (service)
 Businesses must consider its marketing mix in order
to market its products successfully
 To meet customer’s wants/needs, marketers must
create the right product, at the right time, at the
right price, make it available at the right place and let
customers know about it through promotion.
The Marketing Mix
[www.bbc.co.uk]
PRODUCT
• What is the product?
• Who are the potential customers?
• What are the features/benefits? Has the
product got a ‘unique selling point’ (USP)?
• What makes the product appealing to
customers?
• How is the product better than the
competition?
PRODUCT
Anatomy of a product
The physical
(tangible) item you
are selling. What
does your product
offer compared to
competitors? This
is where your
branding, added
features come in to
play.
Can you apply this
principle to the Apple
Ipad?
Augmented Product
Additional
value/add-ons
i.e. warranty, free
delivery etc
Actual Product
CORE
The main reason
for its existence
Product Life Cycle
Product Life Cycle (PLC)
1) What might the PLC look like for a new
games console? Say the Playstation 3?
2) How might the organisation be affected at
each stage of the cycle?
PLC: Extension Strategies
Types of strategy
include:
How might putting an
extension strategy in affect
an organisation?
CASE STUDY TASK
Kommunic8, a mobile phone company developed
a new phone that was smaller, lighter and
contained many more applications than its
nearest rival. The phones sold well, but are now
passing from the growth stage into the maturity
stage. Competitors have already entered the
market.
Give two extension strategies that Kommunic8 can
use to hold on to sales.
Marketing Techniques
Growth
Strategies
Ansoff’s
Matrix
BCG
Product
Portfolio
Ansoff’s Matrix
 Igor Ansoff (1957)
 Looked at strategies for growing a business
MARKET
PRODUCT
CURRENT
NEW
Market Penetration
Product
Development
Market
Development
Diversification
CURRENT
NEW
Ansoff’s Matrix
Market Penetration:
Achieving growth with existing product in
existing market. For example: encouraging
consumers to use the product more
regularly/buy more of it!
Market Development:
Marketing existing products in new markets,
E.g. marketing product abroad or
opening more branches nationwide.
LO1) Ansoff’s Matrix
Diversification:
New products in new markets (spreads risk)
Product development:
Marketing new/modified products in existing
markets.
E.g. Ford Focus replaced Escort
or Nestle KitKat Chunky Caramel.
Ansoff’s Matrix
Example:
MARKET
CURRENT
NEW
PRODUCT
CURRENT
NEW
Market Penetration
Product Development
Market Development
Diversification
TASK
You are the Marketing Director and Marketing
Executive at Alton Towers.
In pairs, you MUST construct an Ansoff’s
Matrix grid to present to your Managing
Director (MW) to show what activities they
are currently operating in and what might you
suggest for future growth strategies and why!
Task Extension
The R&D Director has decided that the
company should utilise the knowledge they
have built up in engineering and branch out
into formula 1 racing cars. Apply this to your
matrix and explain the benefits of this strategy
to the company.
BCG Product Portfolio
MARKET SHARE
HIGH
LOW
STAR
QUESTION MARK
CASH COW
DOG
LOW
MARKET GROWTH
HIGH
TASK
Working in pairs, you will be given a company
and you will have to apply this company and
its products to the BCG Portfolio.
(20mins)
Part B
You should have now done your introduction
to your presentation.
For each of your companies, you have to
explain the growth strategies that they have in
place for ONE product. You should apply these
to Ansoff’s & BCG Audit (i.e. Draw them!!!)
Add these to your presentation!
WRITING FRAME
1) Start by generally explaining what Ansoff’s
matrix is and BCG Product Portfolio. HINT: draw
them!
2) For each of your companies:
3) Apply ONE product to Ansoff’s matrix and
explain why you think the company chose this
strategy.
4) Apply products to BCG Product Portfolio and
explain your thinking behind it.
5) Research the companies and apply real
products/services to the theory!
EXAM TECHNIQUE
Complete practice exam questions on pg. 278279.