Marketing - Product/Service
3.Growth
- increasing popularity, sales and profits. -competitors enter at some point in this stage, profit growth rate likely to fall
2.Introduction
- the first appearance of the product in the marketplace. -use promotion to create awareness -often there is a time lag between introduction and sales
Convenience/fast moving consumer goods Products 3 types, senSEI
-Cheap, frequently purchased consumer products that are bought with little engagement in the decision-making process. -often are self service products so packaging plays a major role in obtaining customers attention 1. Staple: bought and consumed regularly 2. Emergency: bought quickly due to an emergency (umbrella, electrician) 3. Impulsive: bought with little or no planning (chocolate next to cash register)
Shopping Products Characteristics:
-Irregularly purchased items that involve moderate to high engagement -often visits multiple stores, decision on features, quality and price. -Characteristics: long lasting, purchase infrequently, stocked by small amount of stores, sell low volumes thus high profit margin -furniture, clothing, camera, electrical tools
Managing Products through the life cycle -Line extensions -Product modifications
-Line extensions; new products that are closely related to existing products in a product line -Product modifications; changes to the characteristics of a product to supersede the original. The main types of product modification relate to -functionality, quality aesthetics, sensory appeal
Product Obsolescence ... -Product deletion -planned. what does this enable? common in? -unplanned
-Product deletion - the process of removing a product from the product mix -planned; replacing (due to wear out or break down) or upgrading a product after a period of time. This enables marketers to generate repeat business from same customer. -Unplanned - when a product becomes superseded by another, often due to technology or social change
Potential Product
-comprises all possibilities that could become part of the expected or augmented product. -This includes features that are being developed, planned or prototyped, as well as features that have not yet been conceived.
Expected Product
-describes those attributes that actually deliver the benefit that forms the core product. -They are the attributes that fulfill the customer's most basic expectations of the product.
Specialty Products Characterisitcs: NOT INTERESTED IN COMPARING BRANDS
-have unique characteristics that are highly desired by their buyers. -consumer knows what they want - not interested in comparing brands -consumers are willing to expend considerable effort to obtain specialty products. -Characteristics: purchased infrequently, pre-selected by customers, no close substitutes, limited amount of stores, sell low volume thus high profit margin.
Brand Equity Brand Loyalty Brand Metrics
-the added value a brand gives a product -A customer's highly favorable attitude and purchasing behavior towards a certain brand. -Measures value of the brand
Labelling -Compulsory label information
-usually forms part of the package and provides identifying, promotional, legal and other information -brand name/logo, product name, ingredients list, use by date, bar code
Brand Ownership (GMP) Great Loser Mark Pirotta F***s Cousin
1. Generic brands; products that only indicate the product category 2. Licensing: the brand owner permits another party to use the brand on its products (simpsons toys) 3. Manufacturer brands; owned by producers and clearly identified with the product at the point of sale 4. Private Label Brands; owned by re-sellers, and not identified with the manufacturer 5. Franchising; agreement to use an established business model 6. Co-branding; use of two or more brand names on the same product. (biggest loser dominoes)
Brand Strategies (IFB) Is Food Bad?
1. Individual Branding; a branding approach in which each product is branded separately 2. Family Branding; branding approach that uses the same brand on several of the organisations products 3. Brand Extension: giving an existing brand name to a new product in a different category.
Product/Market Growth Strategy Mix (Ansoff Matrix). 4 (MMPP) -Determines growth strategy USE SLIDE -GOING FROM CURRENT TO NEW IS RISKY.
1. Market Penetration (current product/market); increasing market share 2. Market Development (current product/new market); finds new markets for the existing products 3. Product Development (new product/current market); developing new products for current market 4. Product Diversification (new product/new market); new products into new markets
Three main types of packaging (PSS) Packaging includes pump bottles -MORE ENVIRONMENTALLY FRIENDLY - REDUCE SECONDARY PACKAGING.
1. Primary Package: holds the actual product 2. Secondary Package; the material used to hold/protect the product, it can be removed and discarded after purchase 3. Shipping package, used to carry the product out of the factory, through the distribution channel to the retailer.
Product Relationships (ILM)
1. Product Item 2. Product Line 3. Product Mix
1.new to the market 2.new to the company 3.new to the product line 4. new to the product
1. a new technology that has never been seen before 2. a product already in the marketplace but this is the first time it has been produced by a certain company 3. a product that is an extension of whatever the company currently produces 4. modifications, enhancements and improvements to a specific product that will revitalise it and move it into a growth stage in the product life cycle.
Branding
A collection of symbols such as name, logo, slogan and design intended to create an image in the customer's mind that differentiates a product from competitor's products
Idea
A concept, issue or philosophy offered to the market -often products from community organisations, charities and political parties
Good
A physical (tangible) offering capable of being delivered to a customer. -usually a transfer of ownership
Service
An intangible offering that does not involve ownership -"you experience a service"
4.Maturity
As competitors enter the market with similar products, the novelty of the product wears off, alternative — potentially superior — products become available, and the product's sales and profitability peak and start to fall -must determine its future approach, changing the mix and moving into growth stage. -or they could leave the market to go to the next stage -Strategies; lower price, change promotional, expand
Brand Image Brand Name
Brand Image: the set of beliefs that a consumer has regarding a particular brand Brand Name: part of a brand that can be spoken (words letters, numbers)
Brand Mark Trade Mark
Brand Mark: the part of a brand not made up of words (symbols/designs) Trade Mark: a brand name or brand mark that has been legally registered so as to secure exclusive use of the brand
Perishability - key strategies to balance supply and demand
Demand management and price adjustment -cannot store unsold tickets
Unique Characteristics of services (HIPI)
Intangibility; a service cannot be sensed. can only be observed before and after performance. lacks physical form Inseparability; produced and consumed at same time Heterogeneity; variations in quality of service Perishability; services cannot be stored
Do new products need to be commercialized before evaluated?
No
Extended services marketing mix (PPP)
People, process, physical evidence
Product Classification Can a product be both a consumer and business product?
Products can be classified into consumer products and business products according to the circumstances in which they are bought and their intended use. -yes
Services **are products** Service
Services: activities, performances or benefits that are offered for sale but which involve neither a exchange of tangible goods or transfer of title Service: the act of delivering a product involving human, intellectual or mechanical activity that adds value to the product
Diffusion of Innovations (IEELL) research has shown that Hofstede's dimensions of uncertainty avoidance and individualism have the potential to significantly affect the rate of diffusion
Social groups influence the decisions made by individuals in such a way that innovations are adopted by the market in a predictable pattern over time -Innovators -Early Adopters; often opinion leaders -Early Majority; tend to avoid risks -Late Majority; more cautious -Laggards; prefer products that are familair and are last to adopt. Dont like risks
8 Steps New Product Development Process (ISCMBPTC) Is Sugar Cube Manly, Because People Think Caffene **Some firms may skip steps depending on the level of risk**
The new product development process sets out 8 phases for introducing products. 1. Idea generation; ideas for products are created 2. Screening; choosing best product 3. Concept Evaluation; This process is designed to determine whether the product could satisfy a customer need or want and to identify those attributes that could provide the most value to potential customers. 4. Marketing Strategy; This includes describing the projected sales and profits, market positioning, potential target market, marketing mix strategies and long-term goals. 5. Business Analysis; reviews how the new product will affect the organisation's costs, sales and profit projections. 6. Product Development; means developing a working prototype, along with additional investment in research and development to ensure the design, materials and so on will result in the optimum product. 7. Test Marketing; the product should be tested in a market setting. Test marketing activities enable a 'real world' assessment of the entire marketing mix that supports the product 8. Commercialisation; time to launch the new product into the market
Production Adoption Process 5 (AIETA) Annie Is Evading Tibbers Adoption
The sequential process through which a consumer decides to purchase a new product -Awareness; created by promotional, word of mouth, incidental exposure. Consumer knows little about the product at this stage -Interest; consumer experiences interest in the product and seeks more information -Evaluation; evaluates information and decides whether or not to buy -Trial; consumer examines and tries out the product, and whether it satisfies a need/want -Adoption; decides to purchase, evaluates purchase and determine if they will buy again in future.
Product Mix --Product Width --Product Depth
The set of all products that an organisation makes available to customers (underwear, shorts, pants, shirts) -Product Width: number of product lines offered by a company. -Product Depth: number of different products available in each product line.
5 Stages of the Product Life Cycle (NIGMD) -Nick Is Giant Monster Dragon
The typical stages a product progresses through 1. New product development 2. Introduction 3. Growth 4. Maturity 5. Decline
Product Item
a particular version of a product that can be differentiated from the organisation's other product items, through characteristics such as brand, ingredients, style or price
Product Line
a set of closely related product items (end use, target market, technology or raw materials.)
Total Product Concept (CEAP)
a view of the product that describes the four levels of a product (CEAP) to see how the product creates value for the consumer. 1 Core Product 2 Expected Product 3 Augmented Product - incl. branding 4 Potential Product
Another way of saying features of a product
bundle of attributes
Core Product
comprises the fundamental benefit that responds to the customer's problem of an unsatisfied need or want -generally stays the same.
Product
good, service, idea, or person offered to the market for exchange
Unsought Products MECHANIC
goods that the consumer knows about but doesnt consider purchasing or doesnt even know about it. -purchased to solve a sudden, unexpected need -Little or no engagement Characteristics: speed of problem resolution is far more important than price, there is no consideration of substitutes
key strategies for heteorgeneity
have standardized systems, manage expectations of customers, provide staff training
Services Marketing Challenges
key issues; -acheiving a sustainable differential advantage, managing profitable customer relationships, delivering consistently
intangibility - reducing uncertainty for customers using tangible clues such as
logos, uniforms.
1.New product Development TEST MARKETING
occurs when the organisation develops the idea, undertakes research, prepares prototypes, pre-tests the product, and makes modifications before the product launch. -it is the stage at which the product benefits can be maximised and faults and problems minimised. -
Business to business products include
parts and materials, equpiment, services and supplies
Process
performance should exceed customer expectation -
Physical Evidence
physical environment includes -house design, layout, decor, smell
Consumer Products 4 types of consumer products (in order of purchasing effort, low -> high) CSSU
purchased by households and individuals for their own private consumption 1.Convenience Products: 2.Shopping Products: 3.Specialty Products: 4.Unsought Products:
Business to Business Products
purchased by individuals and organisations for use in the production of other products or for use in their daily business operations. -
5.Decline
sees sales and profits fall. -must decide to reduce investment in product, drop the product or change the product -cuts in price have little effect
People
staff must be competent, deliver high service, able to personal selling
Augmented Product
the product delivers a bundle of benefits that the buyer may not require as part of the basic fulfilment of their needs. -allows it to differentiate from competitors
