BUS203: Principles of Marketing
Unit 4: Life Cycles, Offers, Supply Chains, and Pricing
Products do not last forever. New products typically cost more
than existing products due to the high costs associated with production
and development- this is best illustrated by technology
products. The fact that initial customers will be early adopters of a
new product affects the marketing strategy. As the product grows and
matures, the strategy again changes; over time, marketers lower the
price. When a product is in the declining stage, most competitors leave
the market and prices are very low. At each stage, the marketing of the
product is different.
When a new product is developed and offered, a company must consider
what will develop the product's value to the customer, whether the
customer is a consumer or another business. Marketers must always ask
where a new product will fit in their current lineup and how the new
product will serve as an extension of an existing brand. Take the car
manufacturer BMW. They make sporty luxury vehicles aimed at the
upper-middle and wealthy classes.
Developing an inexpensive and lower-quality vehicle to compete with
cars in another class may dilute the brand and hurt sales. However, if
BMW were to market the vehicle under a different brand, they could
diversify their product portfolio, avoid the risk of diluting the BMW
brand, and be able to reach new customers all at the same time. Some
firms go to great lengths to disassociate their brands from one another,
while others embrace a family of brands model. Appropriate decisions
vary by industry and strategy.
Equally important in delivering value to the customer through an
offering is how a company sources the goods and services necessary for
production and delivers the end product for customers to purchase -
otherwise known as the supply chain.
Finally in this unit, we will examine issues in pricing, including
the costs of delivering a product, customer and societal perspectives,
the impacts of competition, and ultimately the revenues a company may
Completing this unit should take you approximately 7 hours.
Please click on the link above and read the entire chapter, which begins by discussing the functional areas of marketing. This chapter discusses the product first, which is the impetus for the other marketing functions. Pay attention to the concepts of growth, maturity, and decline.
Please click on the link above and read the entire chapter. This chapter discusses what constitutes an "offer," including key aspects of benefits and price, the types of consumer and business-to-business offerings, and the important considerations of branding, labeling, and packaging in the development of new offerings.
Please click on the link above and read the entire chapter, which discusses sourcing and procurement, outsourcing, demand planning and inventory control, warehousing and transportation, and tracking systems, all with an eye to maximizing customer value while minimizing operational costs.
After reviewing the unit materials, please click on the link above and post and respond to the following topics on the course discussion forum. Feel free to start your own post and respond to other students' posts as well. If you haven't done so already, you will need to create a free account at the link above to participate in the discussions.
As we consider how a life cycle might apply to products and services, how might it also apply from a perspective of consumer interest and purchasing patterns? Pick a release of any company's new product, and describe it in terms of its target audience, its place within the existing company brand, and supply chain issues that might need to be considered. Think of a product or service you might launch your own marketing campaign for. Describe it in terms of its target audience, its place within any existing brand, and supply chain issues that might need to be considered.
Take this assessment to check your understanding of the materials presented in this unit.
- There is no minimum required score to pass this assessment, and your score on this assessment will not factor into your overall course grade.
- This assessment is designed to prepare you for the Final Exam that will determine your course grade. Upon submission of your assessment you will be provided with the correct answers and/or other feedback meant to help in your understanding of the topics being assessed.
- You may attempt this assessment as many times as needed, whenever you would like.