Once the best opportunity is identified, a strategic marketing plan for pursuing the opportunity can be developed. Market research will provide specific marketing information that will allow the firm to select the target market and segment and optimally position their product offering within that segment. The result will be a value proposition to the target market.
The next step would be to make decisions based upon the controllable variables of the marketing mix that is comprised of the four Ps. The four Ps include Product development, Promotional campaign development, Place of distribution, and the Pricing decisions. The four Ps are the parameters that the marketing manager can control. The goal is to make decisions that center the four Ps on the customers in the target market in order to create perceived value and generate a positive response.
The term product refers to tangible, physical products, as well as to services. A lot of thought and preliminary research goes into the type of product a company will manufacture, including product specifications, design, and production of the unit. The biggest concern for a business is that they are able to introduce their product at the appropriate time, when the consumer's needs are greatest. A product will generally go through a life cycle, much like a human life cycle, consisting of four different stages: introduction, growth, maturity, and decline. After the developmental period, a product is introduced or launched into the market. At this stage the need for immediate profit is not a pressure; the product is promoted to create awareness. In the growth stage, competitors are attracted into the market with very similar offerings. Products become more profitable and companies may form alliances, joint ventures, or take each other over. The money spent on advertising is high and its focus is on building brand recognition. In the maturity stage sales will grow at a decreasing rate and then stabilize.
