Marketing Strategy : Marketing Plan Essay
Every well-designed marketing strategy addresses the 4P 's of Marketing. These are Product, Promotion, Place, and Price. Each of these concepts is unique and occupies its own particular place in our comprehensive marketing equation. You must consider each when determining your marketing mix.
The product variable encompasses equal elements of design, product lifecycle, and brand equity. A good example of these product elements are smart phones and other electronic consumer products. Equally important within the product variable, are decisions pertaining to new product development, brand or category extensions, and modifications to packaging.
Brand Equity, Brand Extensions, and Category Extensions
The brand equity of a product is the difference between the value added using the brand name and a value of similar competing brands. In the case of a strong brand, customers will willingly pay more. A recent study determined 72% of customers indicated they would knowingly pay at least 20% more for their chosen brand, while 50% indicated they would pay 25% more, and 40% would ante up 30% more or higher. If you were to scan the shelves of your favorite wholesale club, you would find Pepsi-Cola retailing for half the price of Coke.
As in the case of Apple Computer, powerful brands are excellent ways to leverage new brands. The Mac was the predecessor of the iMac, which in turn begat the iPod, which begat the iPhone, that ultimately begat the iPad. When…