10 Ps of Marketing

1. Product – Discuss and review needs and opportunities pertaining to design, technology,

usefulness, convenience, value, quality, packaging, branding, sizing etc.

2. Price – Discuss price strategies such as cost-plus, loss leader and more. See ‘How to Get Your

Pricing Right.’ And, discuss potential cost increases (cost of goods, labor, insurance, taxes) and

sales impact.

3. Place – Discuss and review needs and opportunities with regard to retail operations, wholesale,

mail order, internet, direct sales, multi-channel, USA vs. Europe, headquarters etc.

4. Promotion – Review special offers, BOGOs, advertising, endorsements, direct marketing, free

gifts, Groupon etc. See ‘Think and Plan for Christmas in July.’

5. Promise – Discuss and review whether or not you’re truly delivering on a unique brand promise. 

And, if you don’t even have one – get one.

6. Positioning – Discuss and review ways in which your customers position you (it’s all about them

and their beliefs not yours), where you want to be positioned (e.g., low cost provider) and plans to

get there.

7. People – Review needs and opportunities regarding culture, employees, interns, management,

customer service etc.

8. Performance (Proof) – Discuss and review ways you can prove your brand promise. Are you

using testimonials, have you won meaningful awards. Success begs Trust – how to you prove your

trustworthiness?

9. Process – Discuss and review checklists and critical paths of making things, delivering things,

hiring people.  Look for ways to speed up processes and decrease error rates.

10. POW – Discuss and review unique ways to surprise and delight customers that make you special

in their eyes. Work to bulletproof your dramatic difference.

27 P's of Marketing Mix

1. Product2. Price3. Promotion4. Place5. People6. Process7. Physical evidence8. Purpose9. Purchaser10. Push/pull11. Personal relationships12. Positioning13. Packaging14. Persuasion15. Performance16. Profitable17. Proactive18. Pull together19. Perform

20. Permission21. Pain22. Pleasure23. Periodic24. Persistent25. Partners26. Psychology27. Perceptions

The 44 P’s of Marketing

The four P’s of marketing is a common starting place for planning

marketing. But marketing is much more than your advertisement.

Everything you do is a part of your marketing.

The 44 P’s of marketing is a more comprehensive list of things to

consider when you market anything.

1. Packaging

Packaging is one of the four P’s of marketing. If no one notices your

product, no one will buy it. And if no one wants to buy your product

after seeing it, no on will buy it. Many companies spend millions

in packaging design. And for some huge brands that’s a sound

investment.

Whatever you sell, you need to think about the packaging. If you sell

a service, the packaging means the way you and your employees

look, your website, and everything else your customers see of you

before the purchase.

2. Pain

Do your potential customers have fears associated to your

product? In most cases they do, even if they don’t know it.

For example people who buy a car fear accidents, high maintenance

costs, pollution, and what the car does to their status. If you don’t

know what they fear, you may easily induce fear instead of using it

to your advantage.

3. Pandemic

Is there a reason why people would spread your advertisement or

story? You cannot create an advertisement, which would certainly

go viral. But you should try.

Create something highly valuable or entertaining and people

will gladly spread it. Content marketing is in part so effective

because of this.

A wonderful example is Toyota’s Swagger Wagon. Toyota created a

rap music video for a car (Sienna SE), which went viral. At the time

of this writing over a million people had seen it. It wasn’t certain

that so many people would see the ad, but it was likely. It’s really

entertaining, so why wouldn’t you tell your friends about it?

4. Part

This is one of the core aspects of marketing. What’s the part your

product will play in the customer’s life? If it’s an important part,

people spend more time thinking about their options; you can’t hard

sell a house through advertising. Your marketing has to fit your

product into the part it plays in the minds of your customers.

5. Party

Is there a group of users that form a tribe that customers can join

when they make the purchase? Users’ discussion forums, private

meetings, or special content?

People want to belong to groups. These groups are often the best

marketing tools you have. They help other members with problems,

and intensify the feeling that you provide something meaningful.

6. Pass-along value

Will the product hold its value? You can of course market and sell

successfully products that are meant for one time use only. But you

need to take this into account.

Resell value is most important in expensive purchases. I’m surprised

car manufacturers don’t use this to their advantage. “Our cars hold

their value better than any other cars.” That would make a

difference to me. Would you listen? Unless you’re a Rockefeller,

you’d probably pay attention.

7. Peers

Are there others using your product? Social proof is maybe the most

effective way to gain trust. Social proof is relatively easy to deliver.

Quotes, pictures, videos, recordings… Use an image of the person

who refers the product. It makes the recommendation more

effective.

When you provide social proof, you lend the credibility of that

person to your product. So, a well-known person providing the

recommendation is always better than a “nobody”. But a “nobody”

is much better than no social proof at all. It works because people

want the certainty that a decision will pay off. If someone has

already took the risk, and proved it to be worth it, there’s more

certainty.

8. Perceptiveness

Intuitive products, especially technological products, are a pleasure

to use. There’s nothing more frustrating than to know you can do

something with a product, but you just don’t know how.

Apple’s computers and iPhone’s are so popular because of this. They

work, as you’d guess them to work, if you’d never touched a

computer before.

There’s probably no better example of this than a poor one.

After 9/11 a company decided to create a parachute for such

situations. They were invited to demonstrate the use of the product

in a TV-show. What happened, was that they couldn’t figure out how

to put on the parachute. And you’re supposed to do it in seconds

when you see a plane coming your way… As far as I know, the

product was never released.

9. Personas

This is one of the core ideas of marketing. Marketing should always

be directed to a specific group of people. “Specific” doesn’t

necessarily mean a small group, but a clearly defined group. Unless

you understand who buy from you, you can’t target them with your

marketing.

Create buyer personas for each different buyer type. You can then

target your marketing straight to them. Understanding your buyer

personas is detailed in the guide to Premeditated Marketing.

10. Picture

A picture says more than a 1000 words. People notice pictures more

easily than words. Especially close-up pictures of people’s faces

capture our attention. This is why women’s magazines nearly always

have a close-up picture of a face on their cover.

To understand a phrase, you need to read it. To understand a

picture, on an intuitive level, you only need to glance at it.

Reading takes time, glancing doesn’t. Don’t expect people to take

the time to read.

There’s a great rule of thumb for moviemakers, “70% of information

should be conveyed through pictures (the rest with sound).” Use the

force of pictures to tell your story whenever possible.

11. Pilot

People want certainty and there’s no better way to get certain about

a purchase, than to test the product first. You wouldn’t buy a car

without test-driving it first, would you?

The larger the purchase the more important this is, but even the

smallest purchases are easier when you can put your mind at

ease. If, for any reason, you cannot offer a free trial, at least offer a

nearly free trial and a money back guarantee.

AWeber, the email list company, does just that. They charge $1 for

the first month of service. With this they discourage people to sign

up for the service if they’re not serious about the purchase. But with

a 30-day money back guarantee they make the investment

irrelevant.

12. Placebo

A placebo is a fake medicine, given to some patients (without their

knowledge) to test the effects of a real drug. If there’s no difference

between results, the real drug doesn’t actually work.

You cannot sell a placebo. You might be able to sell it for a while,

but sooner or later you’d be caught. And this doesn’t apply to

medicines only. Whatever you sell has to be authentic. Your product

has to meet the expectations people give to it.

13. Planning

The most important part of marketing is the research for it.

Understanding your story, your customers, and the general situation

takes time. And most people don’t spend enough time planning.

You can spot a poorly planned marketing message

instantly if you know what you’re looking for. It’s not clear on what

it’s selling, it’s not directed to anybody in particular, it doesn’t catch

your attention, and so on. Do your planning well, and you’re halfway

ready for marketing (check out 25. Premeditation for the next half).

14. Planting

It’s said, you believe what you hear/see 10 times. This is

why unnoticed marketing can work. Exposure to a product, brand,

idea, or whatever else, creates familiarity. And when in doubt,

people choose the most familiar option.

To plant an idea into your prospects’ mind, you need to reach them

through different channels. Whenever you consider using multiple

channels for marketing, consider your buyer personas carefully; you

need to reach the same prospects with all channels.

15. Playfulness

You’re marketing message doesn’t have to be playful. But you do

need to consider the mood of it. An advertisement without emotion

will never work. Using emotion is a necessity.

But which emotion should you use? “People walk towards, and

run away.” People will generally work harder and more rapidly if

they’re avoiding something bad, than if they’re working to gain

something. But if you associate negative emotions to your product,

no one wants it.

You can use all emotions and moods in marketing. You just need to

understand how your prospects will understand and associate the

emotions.

16. Pleasure

How will your product make the user’s life happier? People strive for

happiness and they make decisions based on that. Unless they

believe your product will make them happier in some, way for some

reason, they won’t buy it.

Sometimes the message is as simple as, “Our new pizza tastes

good!” Good food and happiness are closely related in our minds.

But in some cases the connection isn’t as clear, “The new content

management system makes handling projects more efficient.” But

still the promise is the same, “Buy this product and you’ll be

happier.” (see 21. Positivity).

17. Plot

This is the most important P of marketing. I’ve even created

my marketing guidearound this concept. In a sense all other P’s of

marketing are a part of this.

Marketing is storytelling. Nothing more, nothing less. You don’t

(and you can’t) market a product, service, person, or anything but a

story. It’s the story of your product that you’re marketing.

The story tells what the product is, what it does, how it feels, is it

good, what kind of a person uses it, and so on. It’s much more then

the facts.

You tell your story with your marketing. If people don’t believe your

story, they won’t buy your product.

18. Politics

A charismatic figure is a good marketing trick. Steve Jobs with his

presentations sold more Macs than the Apple marketing

department. People want to be “lead”. A trustworthy leader is more

than social proof. People intuitively believe a leader to have a

positive vision for the future. And they want to follow the leader to

that vision.

19. Porn

People and all other animals survive only as long as they reproduce.

The need for feeling attractive is embedded into us. We avoid

anything that makes us less attractive, and we go to great

lengths to look gorgeous.

Pretty much anything and everything can be marketed with sex.

And pretty much everything is marketed with it. The few

advertisements that use less-than-perfect-looking models stick out

because of that. But even those ads often sell the feeling of being

attractive.

Consider if users will feel more attractive because of your product. If

that’s possible, consider using that in your marketing message. But

you still need to be remarkable enough to be noticed (see 41. Purple

Cow); there are already too many shampoo advertisements that

look alike.

20. Positioning

Positioning is one of the basic four P’s of marketing. It has a couple

of angles to it. First: you must notice a marketing message, to be

affected by it. Second: positioning changes your message.

You wouldn’t pay for ad space under a bridge. There’s no one

there to see your message. So, no matter how little you pay for it,

it’s a waste of your money. At the same time you probably know (at

least you should know) the best places for you marketing. Places

where your potential customers will notice it. And remember that

not all of your customers use the same medias.

Where your message is, affects the message itself. A trusted place

like a newspaper will lend a part of its credibility to your message.

This also works the other way around. Low-trust placement will take

away your message’s trustworthiness.

21. Positivity

Leave a feeling of control and positive determination. Even if you

use fear as a motivator, people should feel positive because they

know what to do next (buy your product that will help them).

22. Praises

Reviews work as positive reinforcement for the action the customer

should make. Reviews by trusted sources provide proof for your

story. They take away the feeling of risk that’s always present when

you buy something.

23. Prediction

This includes many of the other P’s of marketing. What do you

predict will happen if you buy a product is the most important

question you ask yourself when you decide whether or not to buy

something. Even if you’re only thinking about the next 5 minutes,

the prediction determines your decision.

24. Preference

If your potential customers use a competitor’s product, you need to

convince them to take a risk. People feel safe with a product they’ve

used. They’re unlikely to switch to your product without a very

convincing reason.

You can compare your product to the other one, to illustrate the

differences as well as the similarities. The similarities can turn

your product from unnecessary risk to worth checking out.

You can also go for a more aggressive approach. Break your

competitors product. Obviously I’m not suggesting vandalism. Break

the competitive product, like email is breaking fax. Either make a

product so superior that people will voluntarily make the switch, or if

you’re a cell phone operator you could get the iPhone exclusively.

That would “break” AT&T for many people.

25. Premeditation

No body can ever guarantee the success of a marketing campaign.

But premeditation will make the success much more likely.

Before you ever launch your campaign you should become the

devil’s advocate. Look closely at all the aspects of your campaign. If

there’s anything you haven’t considered, do so before you start to

market your product.

26. Press

Social media is the press of the 21st century. If you want your

marketing to work, you need consider how to tie it to social media.

Competitions, giveaways, etc. are all great ways to engage people

through social media.

27. Pressure

Create a sense of urgency. People are reluctant to act, and the

longer they wait the less likely the action becomes. Time-sensitive

offers are just one way to create urgency.

Another effective way to create pressure is to appeal to people’s

sense of status. “Be the first…”, “Your friends already do it…”, “If

you’re smart, you’ll…” You can use this egoistic side of people, to

create pressure.

28. Preview

The purpose of marketing is to have your potential customers

imagining themselves using your product. If they create this preview

in their heads, you’re a lot closer to getting a lead.

This is another reason why you should use pictures in marketing. It’s

easier to create a mental picture based on pictures, than words. This

is also a very powerful sales technique: have the prospect

imagine using the product, and have them describe how it feels.

In both cases, they get the good feeling of having your

product. Deciding not to buy after that experience, feels like

they lose something.

29. Pricing

Pricing is one of the basic four P’s of marketing. Understanding what

people are willing to pay for your product is essential. Even if you

nail every other P of marketing, the pricing can screw up the whole

thing.

A low price lessens the product’s perceived value. It can even

lower the perceived value below what you’d expect from a free gift.

But if your product is too expensive for your customers, they won’t

buy it. When a customer is choosing between two products with

near identical qualities, pricing becomes very important. And the

cheaper one usually leaves the shelf.

30. Priest

Nothing has ever been marketed as well as religions. The reason

religions have succeeded so well, is the understanding of their

audience’s worldview. Priests, prophets, cult leaders, and all

spiritual leaders fit their words into the beliefs their listeners hold.

Changing the worldviews of your audience is extremely difficult. It

takes too much time and resources for most companies. Instead of

changing the beliefs, shape your message to fit the beliefs

your audience holds. This is one of the concepts discussed in

my free marketing guide.

31. Prince

Like the small girls who dream of a prince who comes to pick them

up, all people dream about something. A product that answers a

common dream will succeed.

You might dream about status: a BMW can answer that dream. It

could be about your family: a travel agency can fulfill that one with

a family holiday. Or maybe you dream of the perfect music

experience: many hi-fi sound companies attempt to turn that dream

into reality. You need to know the dream you’re fulfilling.

32. Principles

People have their own principles. And they generally hold on to

them tightly. Your marketing message cannot oppose these

principles. Instead you can use the principles to your advantage.

You like your principles and you like others who share the same

ones. This applies to products as well as people. You like products

that reinforce your principles or at least work in accordance with

them.

33. Product

The product is yet another one of the basic four P’s of marketing. A

great product is much easier to market for several reasons. There

are more good things to market. It will create word of mouth

marketing. It will exceed customers’ expectations. And so on.

34. Production

Ethical and ecological factors are becoming more and more

important. If your product has any positive ecological or ethical

ideologies, production methods, or aspirations, you should mention

it. These things aren’t important to everybody, but a growing

number of people make their decisions based on these factors.

35. Prominence

Marketing needs observers, people to be affected. If your marketing

message isn’t displayed prominently enough, it will fail. You’re most

likely to notice something when you want to notice it. Features in

newspapers, blogs, radio, TV, and other medias are therefor much

more effective than paid advertising placements.

People have learnt to avoid paying attention to advertising.

Content marketing is becoming more important because of that.

Provide useful content as your marketing material, and people will

not only pay attention to your “marketing” but even search for it.

36. Promises

A purchase is always a risk. You as the marketer should do whatever

you can to make purchasing your product seem less risky. A specific

and simple to understand promise creates the most certainty for the

customer. Say something like, “It will last at least 5 years, no matter

how you use it.” Not even “5 year guarantee” creates the same

certainty, even if it means the same thing.

37. Proof

The reason many advertisements for medicines present doctors, is

the authority and trust they create. People trust doctors when it

comes to medicines. Use a trusted expert or a scientific study to

demonstrate your products features, and hardly anyone will

question the trustworthiness.

38. Properties

Some product properties are always necessary for a customer. If any

of these properties is missing, you can’t make the sale. Identify

what are the most important properties for your target audience.

Then make sure that these properties, or at least the ones that

aren’t absolutely obvious, are presented in your marketing.

39. Prosperousness

People are very aware of their perceived status. They’ll go to

great lengths to defend their status. Marketing should make an

implied promise of a status increase. With some products (cars,

clothing, jewelry), the status aspect is obvious. But all products

affect the feeling of status in some way.

40. Protection

Another way to make the risk of a purchase seem less intimidating

is to promise help. For example you could effectively market a

computer with the promise of customer service. Convey the idea

that if anything goes wrong, someone will be there to help.

41. Purple Cow

Seth Godin’s book Purple Cow is about being remarkable. If you’ve

seen a thousand cows, you think they’re boring. But if you then see

a purple cow, it’s interesting. You need to get people

interested, otherwise no one will buy your product. There are

always many ways you can be remarkable. Your specialty can be

something about your product or your marketing, as long as it gets

you noticed.

42. Purpose

Why do people do charity work? They do it because of the purpose

the work gives them. They feel they’re a part of something

bigger than themselves. But giving purpose isn’t reserved for

charities. You can easily market an ecological product with the

feeling of purpose, “This book is printed on recycled paper that

saves natural resources.” You could just as easily use ethical or

political reasons.

43. Push

Your marketing should always push people into taking action. You

can successfully create the desire, but still fail at creating action.

Ideally you create enough push with the other P’s of marketing. But

some things create push more than anything else. You could for

example show people buying the product (also social proof), or

provide a map to the nearest store that sells your product.

Product Life Cycle Stages

As consumers, we buy millions of products

every year. And just like us, these products have a life cycle. Older, long-established products eventually

become less popular, while in contrast, the demand for new, more modern goods usually increases quite

rapidly after they are launched.

Because most companies understand the different product life cycle stages, and that the products they

sell all have a limited lifespan, the majority of them will invest heavily in new product development in order

to make sure that their businesses continue to grow.

Product Life Cycle Stages Explained

The product life cycle has 4 very clearly defined stages, each with its own characteristics that mean

different things for business that are trying to manage the life cycle of their particular products.

Introduction Stage – This stage of the cycle could be the most expensive for a company launching a

new product. The size of the market for the product is small, which means sales are low, although they

will be increasing. On the other hand, the cost of things like research and development, consumer testing,

and the marketing needed to launch the product can be very high, especially if it’s a competitive sector.

Growth Stage – The growth stage is typically characterized by a strong growth in sales and profits, and

because the company can start to benefit from economies of scale in production, the profit margins, as

well as the overall amount of profit, will increase. This makes it possible for businesses to invest more

money in the promotional activity to maximize the potential of this growth stage.

Maturity Stage – During the maturity stage, the product is established and the aim for the manufacturer

is now to maintain the market share they have built up. This is probably the most competitive time for

most products and businesses need to invest wisely in any marketing they undertake. They also need to

consider any product modifications or improvements to the production process which might give them a

competitive advantage.

Decline Stage – Eventually, the market for a product will start to shrink, and this is what’s known as the

decline stage. This shrinkage could be due to the market becoming saturated (i.e. all the customers who

will buy the product have already purchased it), or because the consumers are switching to a different

type of product. While this decline may be inevitable, it may still be possible for companies to make some

profit by switching to less-expensive production methods and cheaper markets.

Product Life Cycle Examples

It’s possible to provide examples of various products to illustrate the different stages of the product life

cycle more clearly. Here is the example of watching recorded television and the various stages of each

method:

1. Introduction - 3D TVs

2. Growth  - Blueray discs/DVR

3. Maturity  - DVD

4. Decline  - Video cassette

The idea of the product life cycle has been around for some time, and it is an important  principle

manufacturers need to understand in order to make a profit and stay in business.

However, the key to successful manufacturing is not just understanding this life cycle, but also proactively

managing products throughout their lifetime, applying the appropriate resources and sales and marketing

strategies, depending on what stage products are at in the cycle.

Product Life Cycle Examples

flickr/Valeriana Solaris

Most consumers probably aren’t aware of the product life cycle stages. Even though they make a conscious decision

to switch from one product to another, this is more due to personal taste or simply wanting the have the latest and

best, rather than an appreciation of which stage of its life cycle a product may be going through.

But if you look at the trends in key markets over the last couple of decades, even just the last few years, consumer

demand for particular products can provide some very good product life cycle examples.

Product Life Cycle Examples

The traditional product life cycle curve is broken up into four key stages. Products first go through the Introduction

stage, before passing into the Growth stage. Next comes Maturity until eventually the product will enter the Decline

stage. These examples illustrate these stages for particular markets in more detail.

3D Televisions: 3D may have been around for a few decades, but only after considerable investment from

broadcasters and technology companies are 3D TVs available for the home, providing a good example of a

product that is in the Introduction Stage.

Blue Ray Players: With advanced technology delivering the very best viewing experience, Blue Ray equipment is

currently enjoying the steady increase in sales that’s typical of the Growth Stage.

DVD Players: Introduced a number of years ago, manufacturers that make DVDs, and the equipment needed to

play them, have established a strong market share. However, they still have to deal with the challenges from

other technologies that are characteristic of the Maturity Stage.

Video Recorders: While it is still possible to purchase VCRs this is a product that is definitely in the Decline Stage,

as it’s become easier and cheaper for consumers to switch to the other, more modern formats.

Another example within the consumer electronics sector also shows the emergence and growth of new technologies,

and what could be the beginning of the end for those that have been around for some time.

Holographic Projection: Only recently introduced into the market, holographic projection technology allows

consumers to turn any flat surface into a touchscreen interface. With a huge investment in research and

development, and high prices that will only appeal to early adopters, this is another good example of the first

stage of the cycle.

Tablet PCs: There are a growing number of tablet PCs for consumers to choose from, as this product passes

through the Growth stage of the cycle and more competitors start to come into a market that really developed

after the launch of Apple’s iPad.

Laptops: Laptop computers have been around for a number of years, but more advanced components, as well as

diverse features that appeal to different segments of the market, will help to sustain this product as it passes

through the Maturity stage.

Typewriters: Typewriters, and even electronic word processors, have very limited functionality. With consumers

demanding a lot more from the electronic equipment they buy, typewriters are a product that is passing through

the final stage of the product life cycle.

While it’s usually left up to the manufacturers and their marketers to worry about Product Life Cycle Management and

what implications the different stages might have for their business, considering actual products is a good way to

show consumers the part they play in this life cycle.

Product Life Cycle Challenges

The Product Life Cycle Curve is a popular marketing

model that provides manufacturers with an understanding of how they can expect their products to

perform throughout their lifetime. However, it isn’t without is critics, with some arguing that there are a

number of challenges with the well-recognized illustration of a product’s lifespan, and companies need to

take these into account when using the model as part of their decision-making process.

The Product Life Cycle Curve

To understand the challenges of using the Product Life Cycle Curve, it makes sense to look at it in a little

more detail. The curve is a simple illustration that plots sales against time, providing a general picture of

how a product is likely to perform through the four product life cycle stages – rising through the

Introduction and Growth stages, before peaking in the Maturity stage, and eventually falling off during the

Decline stage. Adaptations of the model also plot the level of profit as a second curve, which is often

useful for highlighting the considerable investment and negative profits that are made in the first stage of

the cycle.

What You Need to Bear in Mind

As a model, the curve provides a good approximation of the sales and profits that can be expected as

products pass through the four stages of the typical life cycle. However, there are a few things to bear in

mind when trying to apply theProduct Life Cycle Curve in the real world.

1. Unpredictability: While a product’s life may be limited, it is very hard for manufacturers to predict

exactly how long it is likely to be, especially during the new product development phase. While most

manufacturers are very good at making the best decisions based on the information they have,

consumer demand can be unpredictable, which means they don’t always get it right.

2. Change: The unpredictability of a products life span comes from the fact that all the factors that

influence the product life cycle are constantly changing. For example, changes in the cost of

production or a fall in consumer demand due to the launch of alternative products, could significantly

alter the duration of the different product life cycle stages.

3. The Curve is a Model: Critics of the product life cycle have claimed that some manufacturers may place

too much importance on the suggestions the model makes, so that it eventually becomes self-

fulfilling. To illustrate the point, if a company uses the product life cycle curve as a basis for its

decisions, a decrease in sales may lead them to believe their product is entering the Decline stage

and therefore spend less on promoting it, when the opposite strategy could help them to capture more

market share and actually increase sales again.

While the Product Life Cycle Curve needs to be applied with a certain amount of care, and manufacturers

are unlikely to rely solely on it’s simple illustration to predict their sales and profits, it is still a useful tool.

With a general appreciation of the kind of challenges that will be faced during each of the four stages, the

model provides businesses and their marketing departments with the opportunity to be plan ahead and be

better prepared to meet those challenges.

8 Important Limitations of Product Life Cycle ConceptImportant Limitations of Product Life Cycle Concept are given below:

1. First, All products follow PLC. But PLC varies a lot, but many researchers apply it

without any distinction. It is different for different types of products. It may be possible

that product may not go beyond introduction stage and in that case PLC Curve is likely

to be a dreamer curve. If the product is instantly successful, then the curve may be

contagion curve. The movies like Dabang, Ra-one, Agnipath captured the market in this

style. When a product rises fast and decline at the same speed, the curve will be called

Fad curve.

2. Second, it appears that life comes to an end with decline, but there are examples

when after decline the product may have found new popularity and rejuvenation. Yoga,

nature food, and honey come into this category.

3. Third, historical data doesn’t help to identify when a product moves from one stage to

another. It makes the task of forecasting difficult.

4. Fourth, the model worked well when the environment was relatively stable, not

subject to uncertainty as it is today.

5. Fifth, Reality seldom conforms to theory. Marketing executives believe in the PLC

concept – but streetwise marketers point out unusual circumstances might interfere with

expected life cycle behaviour. It may result in different shape of PLC.

6. Sixth, the life cycle of a product is dependent on sales to consumers. All consumers

do not buy in the introductory stage. Some people buy early, others buy after their

friends have bought. For any product to be successful it must be bought by early

adopters.

7. Seventh, PLC is a metaphor. Products are not organic, and as such don’t have to die.

8. Eighth, the length of a product-category life cycles tend to be longer than the

individual brand life cycles. A movie may be not live a long life, but movie category is

more than a century old

Benefits   Of The PLC Model  – Managers are always in need of

predictive tools to help them navigate a seemingly chaotic market,

and the PLC model gives managers the ability to forecast product

directions on a macro level, and plan for timely execution of

relevant competitive moves. Coupled with actual sales data, the

PLC model can also be used as an explanatory tool in facilitating an

understanding of past and future sales progression. The PLC model

aids in making sense of past events as part of any extrapolatory and

interpretive approach to building strategy. Once a product strategy

or product line strategy has been formulated, the PLC model can be

used as part of an ongoing strategy validation process since it

reflects on market trends, customer issues and technological

advancement. Companies always anticipate the emergence of new

competitors and therefore, must prepare in advance to battle the

competition and strengthen their product’s position.

The PLC model is advantages in planning long-term offensive

marketing strategies, particularly when markets and economies are

stable. Nevertheless, most products die and once products are dead

they hold no substantial revenue potential and are a toll on a

company’s resources. By combining the elements of time, sales

volume and notion of evolutionary stages, the PLC model helps

determine when reasonable to eliminate dead products

BRANDING AND PACKAGING FOR THE GLOBALIZED MARKET

Posted: October 18, 2013 by

Package Design Reader Darshan Vartak

Product branding and packaging decisions are very important decisions as in the present age of globalization, a large number of brands of various products are available to the consumer to choose and select from. As all brands are not equally liked by a consumer and he selects his brand after a careful analysis of a number of factors associated not only with the product but also the manufacturer, the brand name, the packaging, the price, the contents and also the various other factors.

The marketers of all the competitive brands of a product try to reach to the consumers by the means of marketing communications and appeal them to buy their brand. For making the consumers to take favorable decisions for their products, the marketers need to build strong brands and nourish them overtime so that its market strength is not deteriorated on account of introduction of equally competitive brands by their existing competitors or by the entry of an altogether a new brand with attractive product features including appealing packaging.

The marketers therefore need to continuously undertake research and developmental activities to keep intact the brand image. In order to

ensure that the other brands of washing power do not erode the market share of their brand ‘surf’, Hindustan Lever Limited has been taking very cautious measures from time to time about this brand and its packaging.

Product BrandingBranding is personalizing the product by giving it a name. Just as all of us have been given names to have our unique identity in the society, similarity the companies give unique brand names for their products to facilitate their distinction from the competitor’s brands.The word ‘brand’ owes it origin to the Norwegian word ‘brandr’ which means to burn. The farmers, there, used to put some identification marks on the body of their livestock to distinguish their possession. Therefore, the marketers taking clues from it, resorted to branding, in order to distinguish their offerings from the similar products and services provided by their competitors.

Branding with benefits accruing to the consumer is particularly effective as such a brand name would make a product appear as if it had some added value. When placed alongside a competitor offering an identical product, a benefit-based name positions itself above the competition in the consumer’s mind. As a result, the name will register quickly when people make their buying decisions. However there is no one magic formula that can be applied to quickly and efficiently generate a brand name.

The right name has to be the product of a carefully prepared strategic brief, showing creativity, selected with a lot of linguistic and cultural research. A good name is an incredibly valuable asset. Naming, in today’s global market, has evolved into a complex creative process and is also subjected to stringent legal checks.

Creating Brands For launching new brands and for repositioning existing ones in the contemporary competition driven market demand, an abundance of customer loyalty is required to optimize marketing expenditure.For new brands, the task of designing the brand experience requires creativity to differentiate the brand is unusual ways in the market place. For existing brands, the task includes decision making about which features, look and feel, and messages should be kept, which should be dropped and which should be changed. All this is required to be done before the brand re-launching is to be undertaken. This is also sometimes called brand dressing.

Overall it can be summed that for making a stable position in the mindset of the consumers and hence the market, a new brand requires creativity to differentiate while an existing brand relies on innovations undertaken to enhance the brand’s market image.

Important Considerations for BrandingThe following considerations should be made before making a final choice of brand name in order to make it more effective.·                     It should be catchy and easy to recall.

·                     It should be easy to pronounce.

·                     It should have a distinctive appeal.

·                     It should suggest product benefit.

·                     It should not infringe on existing registered brand names.

·                     It should be such that it can be registered as a trade mark*.

(* A trade mark is a brand registered under the law).

A brand can be any of the following:

a)                  Company’s name (e.g. Cadbury chocolates).

b)                  Product’s name (Nescafe)

c)                  Symbols (e.g. Symbol of Maharaja in case of Air India).

d)                  Letters generally standing for company’s name e.g. ICICI.

e)                  Names or figures unrelated to the product e.g. classic.

f)                   Manufacturer’s family name e.g. Godrej.

Through their meaning and sound, names project the personality of a product and should communicate to customers, the quality, integrity and strength of what they represent. As brand names are the first public act of interaction of a company with the potential customers, these can prove out to be assets of enormous value.

Kinds of Brands: The brands of the following kinds.

a)                  National Brands

b)                  Individual Brands

c)                  Blanket Brands

d)                  Multiple Brands

e)                  Private Brands

National BrandA national brand is a manufacturer’s brand. A successful national brand builds not only the image of the product, it builds also the image of the company. A successful national brand is a great help to a company in introducing new products in future. A disadvantage of the national brand is that if one product fails, it also badly affects the other products of the company. Besides this, creating a national brand is expensive.Individual BrandAn individual brand means that each product of a company has an individual brand name. It has the advantage of highlighting the benefits of the individual product. It has the further advantage that if an individual brand flops, it does not hurt the other products. Individual brand is however an expensive proposition. Hindustan Lever, HMT etc., have been following this method of giving different names to each of their products.Blanket BrandA blanket brand is one brand which covers all the products of a company. It is usually the company’s or the manufacturer’s family name. This practice is also called family branding or umbrella branding. It has the same advantages as well as the disadvantages of a national brand.Multiple BrandA multiple brand gives different names to the same product having only minor differences. The idea is to appeal to different segments of the market and have a larger market share. But the customers often see it as a ‘trick’, not a fair play, and they lose faith in the company.Private BrandSometimes, mainly for reasons of cost-saving, the manufacturer hands over the responsibility of branding to the distributor. A private brand is, in fact, the distributor’s brand. It can be highly successful. The manufacturer, however, cannot get all the benefits which accrue from it.TrademarksPopular brands are many times imitated. A trademark is a legal right of a firm to protect a brand name or brand mark by getting their brands registered at the patent office. It confers the proprietor a statutory right

to exclusive use of that mark or name. It is meant to safeguard against ditto imitation.Benefits of BrandingEstablishing a brand involves a good deal of expenses on advertising and promotion. But once established, a brand has several advantages to offer. If a brand is properly nourished, it grows and has a long shelf life.a)                  A brand serves as a guarantee for quality and creates confidence among the consumers.

b)                  A branded product acquires a special identity and appeal. The customer finds easy to select and buy.

c)                  The greatest advantage, however, comes from the product differentiation it creates. Once that is done, the product can compete on a non-price basis.

Testing Brand NamesThere is no fool proof method for testing brand names but the following are some important considerations which may prove useful in building a successful brand name.The selected brand name should be:

(i) Emotional; (ii) Stick to the brain; (iii) Have personality; (iv) Have depth

Overall, while the brand name is very important, a brand cannot survive on its name alone. The brand name and its execution are equally important for a successful and sustained brand life. Further, also it is not enough to have a winner brand, in order to stay ahead, the brand must also live up to its promise better than anyone else.

Brand LoyaltyBrand loyalty is the measurement of the attitude or the behavior of the consumer for a particular brand. In other words, it is the intentions of the buyers to make a repeated purchase of a product on account of the previous experiences from the consumption of that brand. Higher loyalty to a brand is an important asset. It can be utilized to persuade customers for more purchase or for spreading word of mouth. Loyalty provides fewer reasons for consumers to engage in extended information search among alternatives. Purchase decisions based on loyalty may become simplified and even habitual in nature which may be out of the satisfaction with the brands being used presently. A base of loyal customers will be advantageous for an organization as it reduces the marketing cost of doing business.

Interest in loyalty in the field of marketing dates back to 1923. Since then the concept of loyalty has been subjected to intense discussion in marketing literature and numerous empirical studies have been conducted with a view to explain this concept.

A large number of loyal customers are an asset for any brand and this phenomenon has been identified as major determinant of brand equity.

Loyalty provides fewer reasons for consumers to engage in extended information search among alternatives as purchase decisions based on loyalty may become simplified and even habitual in nature and this may be a result of satisfaction with the current brands. A base of loyal customers will also be advantageous for an organization as it reduces the marketing cost of doing business. The brand loyal customers repeatedly buy the same brand until they are compelled by the strong market forces by offering them a certainly better product which they perceive to be worthy enough to buy shifting from the loyal brand.