2.
2 MARKETING MIX-PRODUCT
PRODUCT: Anything offered for sale, it can be a good or a service.
2.2.1 DESCRIBE TYPES OF PRODUCTS
TYPES OF PRODUCTS
Consumer goods: goods consumed by households or individuals, it can either be non durable
e.g. food or durable goods e.g. car
Consumer services: services produced for people and are directly consumed by customers.
E.g. Haircuts
Insurance
Car wash
Producer goods: goods produced for other businesses to use, they help in the production
process. They are used to add value to other goods.
E.g. machinery
Raw materials
Producer services: services that are produced to help other businesses, they are rendered to
enhance further production e.g. advertising
Accounting
Banking
2.2.2. DIFFERENCIATE BETWEEN GOODS AND SERVICES
GOOD SERVICE
Tangible items that can be touched, seen, and owned Intangible activities that cannot be touched, seen, or
owned They are experiences or actions performed for
the benefit of the consumer
Have a physical presence; you can store them, Lack physical substance; they cannot be stored or
inventory them, and take possession of them. owned.
Are produced in a manufacturing process and usually Are often produced and consumed simultaneously
go through several stages before reaching the
consumer
Can be consumed over time, and the consumption can Are typically consumed at the point of delivery and
be separate from the production process. For instance, cannot be owned long-term. Once a service is
you can buy a loaf of bread and eat it days later. performed (like a massage), it is consumed
immediately.
Can often be returned if unsatisfactory, damaged, or Cannot be “returned” once they have been provided,
not as described although some businesses offer refunds in certain
cases
Examples: clothing, electronics, and food Examples: legal advice, haircuts, and education.
1
2.1.3 EXPLAIN THE FACTORS WHICH MAKE A PRODUCT SUCCESFULL
Benefits of the product (1) it should be able to meet the needs of customers for them to buy
it (1)
Price of the product (1) the price should be reasonable and most customers should afford it
(1).
Value addition (1) adding value to the product helps to attract more customers, which can
boost revenue (1).
Promotion (1) the way the product is promoted should be appealing to customers/ reach
many customers (1).
Reliability (1) the product should perform as expected over a period of time (1).
Uniqueness (1) should have special features different from other products (1).
Compliance to standards (1) product should align with set standards/ ensure product meet
necessary criteria i.e safety, legality and quality (1).
2.2.4 EXPLAIN THE IMPORTANCE OF BRANDING AND PACKAGING TO THE
PRODUCER AND THE COSUMER
BRANDING
BRANDING: it means giving a product a unique name or trademark that makes it unique or
different from competitors’ products. E.g. Coca-Cola
Brand name: a unique name of a product that distinguish it from other brands.
Brand loyalty: it means when consumers keep on buying the same brand of a product and not
try other similar products. It happens because consumers perceive that brand to be yielding
the highest level of satisfaction to them.
Brand image: this refers to the perception that customers have on a given product
e.g. Coca-Cola has the image of being a superior quality soft drink for both young and old.
IMPORTANCE OF BRANDING TO THE CONSUMER AND THE
PRODUCER/RETAILER
Gives the product identity (1) so it can be easily seen by customers (1)
Enables the selling of the product by self-service method (1) which is labour saving
leading to reduced wage bill (1)
It makes it easy to advertise the product by describing it (1) so as to attract customers to
buy(1)
It makes products to be perceived as good quality (1) making them more appealing to
customers(1)
Help create brand loyalty (1) which help to retain customers who buy the product (1).
2
2. PACKAGING: means putting goods in distinctive packets of standard sizes by manufacturers
before selling them for protection and easy handling.
IMPORTANCE OF PACKAGING TO THE CONSUMER AND THE
PRODUCER/RETAILER
Brand Identity [1] well-designed packaging for products serves as a tool for branding,
helping the business to create a unique identity/ reinforces brand recognition and loyalty
among consumers.[1]
Product protection [1] protects products from damage during transportation and storage./
against damage from environmental factors such as moisture, light, and contaminants /
ensuring that customers receive them in good condition.[1]
Marketing and promote tool [1] attractive and colouful packaging of products catch the eye
of potential customers attracting them to buy.[1]
Product differentiation [1] Distinctive packaging such as unique shapes, colors, and designs
can help the product stand out from the competition attracting attention of customers[1]
Shelf life extension [1] Innovative packaging technologies, such as vacuum sealing can
extend the shelf life of the product improving profitability.[1]
Serve as an educational tool [1] providing instructions on usage tips, or other valuable
information that can enhance the consumer's experience and understanding of the product. [1]
2.2.5 EXPLAIN THE IMPORTANCE OF INTELLECTUAL PROPERTY RIGHTS (IPR) IN
BRANDING
IPR play a crucial role in branding as they help protect the creative works and innovations that are
central to a brand's identity and value.
Brand Protection [1] provides legal protection for trademarks, copyrights, patents preventing
unauthorized use or imitation of brand/ helps businesses safeguard their unique identity [1]
Consumer trust and loyalty [1] Strong intellectual property rights contribute to brand
reputation and credibility/when consumers know that a brand is legally protected, they are
more likely to trust the quality and authenticity of the product produced by a business.[1]
Competitive Advantage [1] exclusive ownership of the brand or product design prevents
competitors from easily replicating it, allowing the business to establish a unique position
within the market.[1]
Increased value of the brand[1] strong intellectual property rights can become valuable
assets that can be sold, or leveraged in business transactions. [1]
Licensing opportunities [1] the company can generate additional revenue by licensing their
intellectual property rights to other businesses which can create new income streams [1]
Investment attraction [1] Investors will view the business brand as a lower risk, making
them more likely to invest capital into the business. [1]
3
2.2.6 RELATE BRANDING AND PACKAGING TO ADVERTISING
2.2.7 ILLUSTRATE PRODUCT LIFE CYCLE IN AGIVEN SITUATION
PRODUCT LIFE CYCLE: the stages a product pass through from its introduction through its growth
until it matures and then finally its decline.
4
DEVELOP INTRODU GROW MATU SATURA DECLIN
MENT CTION TH RITY TION E
SALES The product The product Sales Sales Sales are Sales
is be is launched start to now saturated decline as
developed on to the grow increase and stable new
and market rapidly slowly products
prototype Sales grow Product come
tested slowly starts in/Product
Market because losing its goes out
research is most appeal on of
carried out customers the fashion.
There are are not market when
no sales aware of the sales
product become
low
COMPETITION/ There are no Prices Compet Competiti The
PRICING competitors are ition is on is high product
STRATEGY Price reduce intense but there has lost
skimming d a Promoti are no its appeal
may be used little onal new Competit
if the bit as pricing competito ors stop
product is a new strategy rs making
new compet is used Competiti the
developmen itors to win ve pricing product.
t enter the is used Prices are
. the market Prices are reduced to
market share reduced to encourage
be sales
competiti
ve
PROMOTION/ No Informative Persuas Lot of High and Adver
ADVERTISING promotion advertising ive advertis stable tising
done is used to adverti ing is level of is
inform the ng is done to advertisin reduc
customers used to maintai g done ed
about the encour n sales may be to and
product age growth promote then
brand new stopp
loyalty improved ed
versions
of the
product
PROFITS No profits There are no Profits Profits Profits Profits
made as profits are start to are at starts to fall as
there is made as be their fall as sales fall
nothing to developmen made highest sales are
sell t costs have as the static
not yet been product
covered is
better
known
5
2.2.8 SUGGEST STRATEGIES ADOPTED TO EXTEND A PRODUCT’S LIFE CYCLE
When a product reaches a maturity or saturation stage the sales start falling, so businesses may stop
sales from falling by adopting extension strategies---- the ways that sales may be given a boost
Introducing new variations [1] of the original product in order to make the product look
new or different and therefore generate an additional demand for it.[1]
Selling into new markets [1] exporting to other countries to enlarge the target market size
thereby increasing sales and demand. [1]
Making changes to the product [1] in terms of color, shape, packaging, this will help
generate interest and desire from consumers.[1]
Selling through additional retail outlets [1] to increase market share through increased
reach to the consumers, this will increase sales hence extend product life.[1]
Using a new advertising campaign [1]in order to increase demand and sales.[1]
restyling the product to include additional features [1] so as to appeal to consumer’s
[1]e.g. mobile phones have been restyled to include additional features such as in-built
camera, internet service.
