Marketing

Question 1

Explain the ‘P’s of marketing within the Product Development Process. There are five (5) of them.

Answer 1

• People (who are the target market), • Product (what is it and how does it provide for or satisfy the target market), • Price (what the market will pay, quality/value), • Place (where/how it is sold), • Promotion (how to make it known: advertising, sponsorship, social media etc.)

Question 2

Describe a strategy that a company would use to enhance market penetration.

Answer 2

A strategy a company may consider to enhance market penetration is product promotion. Product promotion engages in propagating information about a product, product line, brand, or company.

Information gathering and research is exceedingly essential in product promotion because a company must know how to appropriately promote its product or service to a specific desired market.

Product promotion is commonly divided into two parts:

The following is just for interests sake:

• Above the line promotion: Promotion by use of media sources such as television, radio, newspapers, Internet and mobile phones. The advertiser pays an advertising agency to place the ad onto these media broadcasting devices.
• Below the line promotion: This type of promotion relates to all other ways possible for a company to promote its product or service. Generally, below the line promotion is deliberately planned to be cleverly understated so the customer would be unconscious that promotion is taking place. Examples of this type of promotion include sponsorship, product placement, endorsements, sales promotion, merchandising, direct mail, personal selling, public relations, and trade shows.

Question 3

Define market development.

Answer 3

Finding new applications for existing products, thereby opening up new markets.

Question 4

Describe how a company would undertake market development.

Answer 4

The identification of new markets for products, for example, nylon was originally developed for parachutes.

Market development targets customers in a market segment who are not buying the companies products, for example Apple iPhone targeting Blackberry customers in the smartphone market segment.

Market development targets customers in other market segments such as Apple ipod customers being targeted by the iPhone.