VERTU phone Nokia – aiming at a particular segment of the market, phones range from £2,000 to £150,000. very high profit margin Hand built phones, adding value – titanium , diamond encrusted. Targetings WAGs and pop stars. Keep exlcusive Cost £2K - £100K!

MARKETING MIX

MARKETING MIX PRODUCT P PRICE P PLACE P PROMOTION P

Product Brand loyalty – what makes customers stick to a particular brand? Product differentiation created by: Unique design Unique product function e.g. iphone Unique taste e.g. Dr Pepper Superior performance e.g. Dyson

Product Life Cycle Shows the different stages in the life of a product and sales that can be expected at each stage.

Sales Sales are low Product is being designed Profits will be negative Product may be unknown Sales increasing rapidly Profits will reach their highest at the end of this stage Sales reach its highest point Rate of growth Slows Competitors enter the market Similar products enter the market Price lowered Some businesses my be forced out of the market Sales falling Profits continue to fall Time Introduction Growth Maturity Decline Development Saturation

Use of the PLC Illustrate the broad trends in sales revenue Identify points at which the business may need to consider launching new products as older ones are in decline Help business identify when and where spending is required e.g. advertising

Different life cycles Products with long life cycle? Products with short life cycle?

Extending the life cycle Sales Time Introduction Growth Maturity Saturation Decline

Extension Strategies Find new uses for the products Finding new markets for existing products Develop a wider product range Aiming the product towards specific target markets Changing appearance or packaging

Product Mix/Portfolio

Boston Matrix