The Product Marketing Strategy Practices

1687 WordsFeb 9, 20167 Pages
AC 1.1 Product Marketing The process of promoting products to customers and includes defining scope of product lines, pricing, target markets and distribution methods. Product Marketing Strategy Practices Ansoff Matrix: 1. Market Penetration – Increasing growth through existing products/markets. 2. Product Development – New products into existing markets. 3. Market Development – Existing products into new markets. 4. Diversification – New products into new markets. Product Marketing Mix Product marketing mix focuses on product, price, promotion and place. Service Marketing A promotion of activities offered to clients which is largely intangible. Service Marketing Practices have to promote a valuable relationship between seller and buyer. Service Marketing Strategy Practices Service Marketing mix This focuses on people, (right interpersonal skills) processes (incomparable service) and physical evidence. (Differentiators of surroundings or experiences) Customer Referrals Acquiring new sales leads through existing customer databases. Provides instant connection to prospects and is a very powerful way of growing sales in service marketing. Product/Service Marketing Compared: Tangibility/Intangibility Products are tangible and can be touched, felt, heard, seen and tasted and can be easily compared and quality assessed. Services are intangible and don’t have physical existence. Demonstration Products can be easily demonstrated e.g. before purchasing a new car,
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