1. 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!

2. MARKETING MIX

3. MARKETING MIX
PRODUCT P
PRICE P
PLACE P
PROMOTION P

5. 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

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

7. 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

8. 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

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

10. Extending the life cycle
Sales
Time
Introduction
Growth
Maturity
Saturation
Decline

11. 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

12. Product Mix/Portfolio

13. Boston Matrix