2 Basic Marketing Concepts II
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Transcript of 2 Basic Marketing Concepts II
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Basic Marketing Concepts - II
Product
New Product Development
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The Product and the Product Mix
Product
Physical goods
Services
Experiences
Events
Persons
Places
Properties
Organizations Information
Ideas
Components
of the Market Offering
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The Product and the Product Mix
Product levels
Customer value
hierarchy
Core benefit
Basic product
Expected product
Augmented product
Five Product Levels
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What is a Product?
Kotlers
Five
levels to a
product:
Generic Product
CORE BENEFIT
Expected Product
Augmented Product
Potential Product
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What is a Product?Kotlers
Five
levels to a
product:
CORE BENEFIT
Generic Product
Expected Product
Augmented Product
Potential Product
The
Fundamental
Need or Want
that consumerssatisfy by
consuming the
product or
service
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What is a Product?
Kotlers
Five
levels to a
product:
CORE BENEFIT
Expected Product
Augmented Product
Potential Product
Generic Product
Basic Versionof the product
containing only
those elements
absolutely
necessary to
function. No
distinguishing
features.
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What is a Product?
Kotlers
Five
levels to a
product:
CORE BENEFIT
Augmented Product
Potential Product
Generic Product
Expected Product
Attributes and
Characteristics
that buyers
normally expect
and agree to
when they
purchase a
product
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What is a Product?
Kotlers
Five
levels to a
product:
CORE BENEFIT
Potential Product
Generic Product
Expected Product
Augmented Product
Additional
product
attributes,
benefits, or
related servicesthat distinguish
the product
from
competitors
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What is a Product?
Kotlers
Five
levels to a
product:
CORE BENEFIT
Generic Product
Expected Product
Augmented Product
Potential Product All the
augmentations
and
transformations
that a productmight
ultimately
undergo in the
future
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What is a Product?
Kotlers
Five
levels to a
product:
Generic Product
CORE BENEFIT
Expected Product
Augmented Product
Potential Product
The Fundamental Need or Want
that consumers satisfy by
consuming the product or service
Generic ProductBasic Version of the product
containing only those elements
absolutely necessary to function.
No distinguishing features.
Expected ProductAttributes and Characteristics that
buyers normally expectand agree
to when they purchase a product
Augmented ProductAdditional product attributes,
benefits, or related services that
distinguish the product from
competitors
Potential Product
All the augmentations and
transformations that a product
might ultimately undergo in the
future
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The Messages
New Product Development is risky business; often
avoided by well established firms A New Product Development Strategy can improve
the odds of success New Product Development can be the first step in a
series of profitable innovative efforts for a firm Tetra Pak took the risks, has taken the early steps in
a series of innovative efforts, and appears to haveimproved the odds for success in new product
development thanks to the inventors of Tetra Recart.
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Success Rate Entirely New ProductsSuccess Rate Entirely New Products
3000 raw
ideas
.03%
300 submitted
ideas
.3%
125 beginning
projects
.8%
9 large
developments
11%
4 major
developments
25%
1.7 launches
60%
1 commercial
success
Stevens and Burley,
RTM May-June 1997
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Familiarity Matrix: A Guide
Place Your Project in One of the Nine
Boxes
Decreasing knowledge of the technologyD
ecrea
singkn
owle
dgeofth
em
arket
Market
Penetration
Market
Extension
Market
Expansion
Product
Extension
Business
Extension
Business
Expansion
New Business
Model
Business
Expansion
Product
Expansion
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What is a Brand?
Not simply a product -- anything offered to amarket for attention, acquisition, use, orconsumption that might satisfy a need or want.
A product can be: Physical good Service
Retail Store
Person
Organization
Place
Idea
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What is a Brand?
Product = Commodity
A product is a produced item always
possessing these characteristics: TangibilityAttributes and Features
Brand = Mind Set
The sum of all communications and experiences receivedby the consumer and customer resulting in a distinctive
image in their mind set based on perceived emotional
and functional benefits.
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What is a Brand?
Product = Commodity
A product is a produced item always
possessing these characteristics: TangibilityAttributes and Features
Brand = Mind Set
The sum of all communications and experiences receivedby the consumer and customer resulting in a distinctive
image in their mind set based on perceived emotional
and functional benefits.
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Generic Product
CORE BENEFIT
Expected Product
Augmented Product
Potential ProductKotlers Five Levels
of A Product
What is a Brand?
Products
(Commodities)
No Difference
Except Price
Brand
Name
Well Known
But Similar
Brand
Distinctive
Strong Brand
Perceived by the
Consumer as
Unique
BRAND DISTINCTION by Timothy D. Ennis
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The Product and the Product Mix
Product system
Product mix
Product classifications
Durability and Tangibility
Classification:
Nondurable goods
Durable goods Services
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The Product and the Product Mix
Consumer-Goods Classification: Convenience goods
Staples
Impulse goods
Emergency goods
Shopping goods Homogeneous
shopping goods Heterogeneousshopping goods
Specialty goods
Unsought goods
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Classification
of Consumer
Products
