Topic Summaries

Marketing involves understanding customer needs and creating a strategic mix of product, price, promotion, and place (the 4Ps) to deliver value, build brand, and support competitive advantage.

• The design mix refers to balancing function, aesthetics, and cost when designing a product.
  • Function: the product must work as intended (e.g.a smartphone that connects reliably).
  • Aesthetics: appeal and style matter (e.g.Apple iPhones are sleek and visually attractive).
  • Cost: production costs must be kept low to maintain profitability.

The product life cycle describes the stages a product goes through:

1. Introduction: product launch with low sales and high costs.
2. Growth: sales rise rapidly, profits start increasing.
3. Maturity: sales peak; intense competition; prices may fall.
4. Decline: sales drop as consumers move on

• Extension strategies can prolong the maturity stage and delay decline:
  • Updating the product (e.g. new iPhone features).
  • Reducing price to attract price-sensitive buyers.
  • Finding new market segments (e.g. subscriptions, accessories).
• Differentiation is important because it helps a business stand out from competitors. For example, Dyson vacuums differentiate through advanced technology and design. Differentiation may be based on quality, service, branding, or unique features.