The product is one component of the marketing mix and is usually the core part, so the product is developed first. However, there are occasions when the product is designed to fit some other component of the mix. For example, the product may be developed to fit a price range, an image slot or a channel. But you must not forget that the various elements of a marketing mix are conceptually interconnected to meet some want and so there must be a procedural interconnection in designing the various components.
In drawing up a tentative marketing mix as part of any new product development programme, first let us take the element of promotion. It is a key consideration when the want is likely to be latent or passive for the majority of the members of the target market. In general terms, the motivation to buy is based preferably on some core advantage and the benefits that might be stressed in the advertising copy or sales appeal.
In the case of pricing, price can be important not just in terms of cost to the consumer, but as contributing to the image of the product. Pricing needs to be considered in relation to both the buying inducement and the rest of the offering or mix.
Finally, the role of a distribution strategy in new product development should not be underestimated. It should, however, be noted that if distribution i.e. availability in the target market cannot be assured, all other things will fail. Hence, the role which distribution channels are expected to play must be investigated at the earliest stage possible.
You must not, however, forget the overall important fact emphasised earlier that all elements of the marketing mix, i.e. promotion, pricing, place and distribution strategies need to be brought together and coordinated in the overall marketing mix.
SELF-ASSESSMENT EXERCISE 2
Nowadays, a number of well-established companies are trying to diversify into both existing as well as new areas. New companies are being started. For example, Guinness and Coca-cola have diversified some of their products.
Find out three or four cases of diversification or entry into existing fields and study the advertisements issued by these companies and identify the critical advantage or the core benefit stressed in the advertising copy.
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