Post on 18-Dec-2021
transcript
What is a product/service?
Product◦ Anything tangible offered to a market that results in its ownership that might satisfy a need or want.
Example: T-shirt, Soap, mobile phone, book.
Service◦ Any activity or benefit that one party can offer to another that is essentially intangible and does not result in ownership of anything.
Example: Banking, hotel, airline, repair services.
Core product: core, problem solving benefit
Ex: a person buying an Apple iPad buying entertainment, self-
expression, productivity.
Actual product: develop product features, a design, brand
name, packaging.
Ex: iPad is actual product, its name, styling, features are combined to
deliver the core customer value of staying connected.
Augmented product: offering additional consumer services
and benefits.
Ex: iPad is more than just a digital device. Provides complete
connectivity solution.
Classifications of Products
Consumer
products
Products
Convenience
products
Business or
industrial
Products
Shopping
products
Specialty
products
Unsought
products
Consumer productsConsumer products are
products and services bought by final consumers for personal consumption.
Types of consumers products:
Convenience products-
Shopping products-
Specialty products.
Unsought products.
Industrial Products
Industrial products are products purchased for further processing or for use in conducting a business.
The main difference between a consumer product and an industrial product is its “purpose” e.g. of cocacola, computer.
Classification of industrial products:
Materials and parts: raw materials (wheat, cotton), manufactured materials & parts (iron, yarn, cement)
Capital items: that aid in buyer’s production—installation (factories, office) & accessory (hand tools) and office equipment (computer, fax machines)
supplies & services: supplies (lubricant, coal, paper, paint), repair services (window cleaning)
Organization, person, place
and social marketing
Organization marketing: consists of activities undertaken to
create, maintain or change the attitudes and behavior of
target consumers toward an organization. Ex: PR
Person marketing: consists of activities undertaken to create,
maintain or change the attitudes and behavior of target
consumers toward particular people. Ex: spokesperson
Place marketing: consists of activities undertaken to create,
maintain or change the attitudes and behavior of target
consumers toward particular places. Ex: I NY
Social marketing: the use of commercial marketing concepts
and tools in programs designed to influence individuals’
behavior to improve their well being and that of society. Ex:
healthcare, education,
7Ps, an Extended
Marketing Mix
Product/Service
Positioning
Physical Evidence
The appearance of
capital used in bringing
the offer to market
Processes
The processes
involved
in serving
the customer
People
The appearance
and
behavior of
personnel
Product
Price
Promotion
Place
Product and Service Decisions
Product and service decisions when designing and
marketing a product are made at three levels:
◦ Individual product decisions
◦ Product line decisions
◦ Product mix decisions
a. Product attributes
Developing a Product or Service Involves Defining the
Benefits that it Will Offer Such as:
Product quality : Ability of a product to satisfy a need.
Influences ‘customer value’ and ‘satisfaction’.
Comprises of performance and conformance quality.
Product features : Help to differentiate the product
from those of the Competitors
Product Style & Design: Style describes the appearance
of a product(grabs attention). Design makes the product
perform better (consumer insight is vital).
b. Branding
Creating, maintaining, protecting and
enhancing products and services
A brand is a name, term, sigh, symbol, or a
design , or a combination of these, that
identifies the maker or seller or a product
or service.
c. Packaging
Poorly designed packages can cause
headaches for consumers and lost sales
for the company where as innovative
packaging can give a company an
advantage over competitors and boost
sales.
d. Labeling and product support services
Product Label helps identify the product or brand,
describes several things (who made it, where it was
made, when it was made, its contents, usage directions,
safety guidelines), and provide promotion (support its
positioning).
Product support services: continue building
relationships. Use phone, email, Internet, interactive
voice and data technologies
2. Product Line
Decisions
A product line is a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges
Line filling: adding more items within the present price range. Nike produces several lines of athletic shoes and apparel).
Line stretching: When a company lengthens its product line beyond its current range. Ex: add low end or high end products
- Downward Stretch
- Upward Stretch
- Two-Way Stretch
3. Product Mix Decisions
Product mix consists of all the products (product lines) and items that
a particular seller offers for sale.
Example: Sony Electronics, Sony Computer Entertainment (games), Sony
pictures Entertainment (movies, TV shows, music, DVDs), Sony Financial
Services (life insurance, banking, etc).
Product mix width refers to the number of different product lines.
Product mix length refers to the number of items the company
carries within its product lines.
Product mix depth refers to the number of different versions of each
product in the line. styles, sizes, colors, models. e.g. LCD, LED, HD,
low definition.
Product mix of a
Men’s clothing store
Product mix
width
Occasion
based Formal Casual
western Salwar
kameezsaree
8 sizes 6 sizes6 sizes
7 colors5 colors5 colors
Product mix
depth
Product mix
length
Ladies’ Clothing store
Brand Equity
THE POSITIVE DIFFERENTIAL EFFECT THAT KNOWING THE
BRAND NAME HAS ON CUSTOMER RESPONSE TO THE
PRODUCT OR SERVICE.
It’s the brand's ability to capture consumer preference
and loyalty.
It’s the basis for strong, profitable customer
relationships
1.Brand positioning
3 levels
A. Companies can position the brand on product
attributes.
B. A brand can better positioned by associating its
name with a desirable benefit.
C. The strongest brands go beyond attribute or
benefit positioning. They are positioned on strong
beliefs and values, engaging customers on a deep,
emotional level.
Brand Name Selection
Should suggest products benefits and qualities
Easy to pronounce, recognize and remember
Name should be distinctive
Name should be extendable
Should easily translate into foreign language
Should be capable of registration and legal protection
Once the brand name is chosen, it must be protected. Many
firms try to build a brand that eventually gets identified with the
product category.
For instance, Kleenex, Scotch tape, Ziploc, BAND-AID, Jell-O etc.
Brand Sponsorship/Endorsement
A manufacturer has four sponsorship options:
1. Manufacturer brands (National Brand): Selling products
under their own brand name: Sony BRAVIA; AXE shower gel;
Johnson Baby powder.
2. Private (store) brands: retailers and wholesalers create
their own store brands; usually lower cost than
manufacturer brands : Wall Mart – Great Value products.
3. Licensed brands: Name and character licensing has
grown: Disney characters on children accessories; CK; Gucci
etc.
4. Co-branding: when two established brand names of
different companies are used on the same product: Puma-
Ferrari
Brand development strategies
1. Line extension: extending an existing brand name to new forms, colors, sizes, ingredients, or flavors of an existing product category. Maggi introducing Maggi soup of various flavors like creamy chicken, rich tomato, sweet corn, mixed vegetable etc.
2. Brand extension: extending an existing brand name to new product categories. For instance: Maggi introducing Maggi soup, Maggi tomato ketchup, Maggi seasonings, Maggi chicken stocks beside Maggi noodles etc.
3. Multi-brands: extending an existing product category by adding new brand to it. For example, Unilever soap brands of Lux, Rexona, Dove, Lifebuoy, Dettol, Cinthol, Pears etc.
4. New brands: extending a product line by adding new product category and new brand to the existing ones. For instance, Tata motors introducing Tata Ace brand of pickup trucks.