MBA 532 CH12
-
Upload
nur-shiyaam -
Category
Documents
-
view
230 -
download
0
Transcript of MBA 532 CH12
-
8/12/2019 MBA 532 CH12
1/21
MARKETING STRATEGY
12
Setting Product Strategy
-
8/12/2019 MBA 532 CH12
2/21
12-2
Product
Anything that can be offered to a market to
satisfy a want or need.
-
8/12/2019 MBA 532 CH12
3/21
12-3
Figure 12.2 Five Product Levels
Core benefit: service or benefit the customer is buying(hotel- rest & sleep)
Basic product: what is needed to offer the service or
benefit (room in a hotel, package, brand) Expected product: attributes and conditions buyers
expect to get (quiet, clean, tasty food)
Augmented product: exceeds customer expectations
(image) Potential product: possible augmentations the product
might offer in the future
-
8/12/2019 MBA 532 CH12
4/21
12-4
Product Classification Schemes
Non durable: tangible goods normally consumedin one or few uses consumed quickly andpurchased frequently (beer, soap). Strategy increase availability, charge small mark-up,advertize heavily.
Durability: tangible goods that normally survivesmany uses (clothing, appliances)
Tangibility
Use
-
8/12/2019 MBA 532 CH12
5/21
12-5
Consumer Goods Classification
Convenience
Shopping
Specialty
Unsought
-
8/12/2019 MBA 532 CH12
6/21
12-6
What Is a Product?Product and Service
Classi f icat ions
Convenience productsare consumer products
and services that the customer usually buys
frequently, immediately, and with a minimumcomparison and buying effort
Newspapers
Candy
Fast food
Soaps
-
8/12/2019 MBA 532 CH12
7/21
12-7
What Is a Product?Product and Service
Classi f icat ions
Shopping productsare consumer products
and services that the customer compares
carefully on suitability, quality, price, andstyle
Furniture
Cars
Appliances
-
8/12/2019 MBA 532 CH12
8/21
12-8
What Is a Product?Product and Service
Classi f icat ions
Specialty productsare consumer products andservices with unique characteristics or brandidentification for which a significant group ofbuyers is willing to make a special purchaseeffort
Medical services
Designer clothes High-end electronics (stereo components,
photographic equipment)
-
8/12/2019 MBA 532 CH12
9/21
12-9
What Is a Product?Product and Service
Classi f icat ions
Unsought productsare consumer products that
the consumer does not know about or knows
about but does not normally think of buying Life insurance
Funeral services
Blood donations Smoke detectors
-
8/12/2019 MBA 532 CH12
10/21
12-10
Industrial Goods Classification
Industrial productsare productspurchased for further processing or for use
in conducting a business
Materials and parts
Capital items Supplies/business services
-
8/12/2019 MBA 532 CH12
11/21
12-11
Product Differentiation
Product form
Features
Performance
Conformance
Durability
Reliability Reparability
Style
Design
Ordering ease
Delivery
Installation
Customer training Customer consulting
Maintenance
-
8/12/2019 MBA 532 CH12
12/21
12-12
Services Differentiation
Ordering Ease: how easy is for a customer to place anorder
Delivery: how well the product or a service is delivered
speed, accuracy, care attending Installation: work done to make the product operational
in its planned location
Customer training: training the customers
Customer consulting: data, info, advices, that the seller
offers Maintenance & repair: service program for helping
customers keep purchased products in good workingorder
-
8/12/2019 MBA 532 CH12
13/21
12-13
Packaging: The 5thP
All the activities of designing and producing
the container for a product.
Three levels of materials: Primary package: bottle
Secondary package: carton
Shipping package: carton containing
dozen of boxes
-
8/12/2019 MBA 532 CH12
14/21
12-14
Packaging has been influenced by:
Self-service: increasing number of products.Tasks: attract attention, describe features,create confidence, make positive impressions
Consumer affluence: consumers are willing topay for convenience, appearance, prestige ofbetter packages
Company and brand image: recognition of brand
or company Innovation opportunity: unique materials and
features for easy-to-open and close pack
-
8/12/2019 MBA 532 CH12
15/21
12-15
Package objectives
Identify the brand
Convey descriptive and persuasive
information Facilitate product transportation and
protection
Assist at home storageAid product consumption
-
8/12/2019 MBA 532 CH12
16/21
12-16
Functions of Labels
Labelidentifies the product or brand,
describes attributes, and provides
promotion Identifies
Describes: who made it, where it was
made, when, and what it contains
Promotes: attractive graphics
-
8/12/2019 MBA 532 CH12
17/21
12-17
Warranties and Guarantees
Formal statements of expected product
performance by the manufacturer repair,
replacement, or refund
-
8/12/2019 MBA 532 CH12
18/21
12-18
Ind ividual Product and Service
Decis ions
Brand is the name, term, sign, or design,
or a combination of these, that identifies
the maker or seller of a product or service
-
8/12/2019 MBA 532 CH12
19/21
12-19
Services Marketing
Nature and Character istics of a Service
Intangibility
Inseparability
Variability
Perishability
-
8/12/2019 MBA 532 CH12
20/21
12-20
Services Marketing
Nature and Character istics of a Service
Intangibility refers to the fact that services cannotbe seen, tasted, felt, heard, or smelled before
they are purchased
Inseparabilityrefers to the fact that services
cannot be separated from their providers
-
8/12/2019 MBA 532 CH12
21/21
12-21
Services Marketing
Nature and Character istics of a Service
Variability refers to the fact that service qualitydepends on who provides it as well as when,
where, and how it is provided
Perishabilityrefers to the fact that services
cannot be stored for later sale or use