Marketing Mix or 4P
After a product is introduced into the market it runs through several phases so called product life cycle. An idealized product life cycle can look as given in the next plot.
In reality the product life cycle can be very different. It depends on various factors.
Only as short overview the different phases can be separated by following indicators:
For the different phases the marketing mix must be adjusted to react on the different situation.
The beginning is the product innovation. A new product is introduced. After the product innovation the product can be developed further leading to a product differentiation. By introducing different variants the product can be adjusted to the needs of the market.
The price depends if the product is a technology leading product or if it is a standardized or low quality product. A high price is possible for technology/quality leading product. A low price is needed for a product which has no really USPs compared to other products. Also an issue is to use a low price to penetrate the market or to select very high prices as long no/few competitors are there. Also for some must-have-products a premium price can be selected.
The standard techniques of promotion are
- fair trade
- internet presentation
Here two ways to the customer are possible
- Direct: The product is delivered directly to the customer (e.g. online shop)
- Indirect: Between the customer and you a distributor is in between (e.g. shops in the city).
Both ways can be also used in parallel and depends also on the kind of product and customer. For example a product which is very special it is better to has the direct contact to the customer. For products like food distributors are a good way.