Core Concepts of Business Marketing and Product Strategy

Foundational Concepts in Marketing Strategy

Business Function

Defining *what*, *how*, *when*, and *to whom* products or services are sold for benefits, and controlling the adequacy of the results against projections made. A company increases its sales if it can:

• Be the first to meet a consumer need.
• Incorporate a technique that reduces production costs.
• Ensure higher quality.
• Reach a larger number of consumers.
• Convince consumers about the benefits of its products.

Marketing Plan

A document describing business objectives, action programs, required resources, and the timetable for carrying out each action. It must develop the following stages:

1. Analysis of the business environment (market study).
2. Defining marketing strategies (the marketing mix).

Market Research

A research process intended to obtain relevant information about the consumer, the degree of competition, and other environmental characteristics that affect the product.

Marketing

A development strategy for the company focused on meeting the needs and desires of the consumer and providing a benefit to the company.

Product Strategy and Elements

Key elements of the product include design, shelf life, aftermarket service, quality, quantity packaging, brand options, warranty period, and adherence to specific rules:

The 3 R Rule (Sustainability)

Focuses on sustainability and includes:

• Reusable
• Returnable
• Recyclable

The 4 Ps Rule (Marketing Mix)

• Price
• Product
• Promotion
• Point of Sale (Place)

Characteristics of a Good Brand

A good brand must be:

• Short
• Readable
• Pleasing to the ear
• Easy to remember
• Adaptable to the package
• Easy to associate with the product

Product Lifecycle

1. Design: Applying existing needs and producing an idea that generates a new product.
2. Introduction: Inputting the product into the market. This is a test stage.
3. Development (Growth): Consumers consume and identify the product. Sales progress rapidly and benefits increase.
4. Maturity: Sales stabilize. Most consumers already own the product.
5. Decline: Some companies cannot remain on the market due to lack of buyers and low prices, leading to their exit.

Price

When a company uses price as a marketing tool, it considers several possibilities, including:

• Promotional Pricing
• Penetration Pricing
• Skimming Pricing
• Psychological Pricing
• Discounts
• Price Discrimination
• Prestige Pricing

Promotion

The elements of promotion include:

• Advertising
• Public Relations
• Personal Selling
• Merchandising
• Customer Loyalty Programs
• Sales Promotion

Advertising Characteristics

Effective advertising must be:

• Credible
• Clear
• Iterative
• Timely
• Attractive