The Influence of Product Development on Effective Marketing

The evolution of the marketing concept is described, with emphasis on the key factors of profits and consumers. Then, marketing mix is explained in terms of profit, pricing, promotion, and placement. The basics of product planning are illustrated by an historical development of the Saab automobile. The creation of the “second-generation” Saab is also described, showing the strategy of phasing in a totally new product to ultimately replace an older product facing a decline in its life cycle, rather than making minor improvements to postpone the decline of the older product.