Principles of Marketing - MGT301 Power Point Slides Lecture 21
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Transcript of Principles of Marketing - MGT301 Power Point Slides Lecture 21
MGT301MGT301Principles of Principles of MarketingMarketing
Lecture-21Lecture-21
SummarySummaryof of
Lecture-20Lecture-20
Individual Product DecisionsIndividual Product Decisions
Product Attributes
Branding
Packaging
Labeling
Product Support Services
QualityQualityQualityQuality FeaturesFeaturesFeaturesFeatures
DesignDesignDesignDesign
BrandingBranding
Brand DevelopmentBrand Development
Line Extension
Multibrands
Brand Extension
New BrandsBra
nd N
ame
Existing New
Product Category
Existing
New
Four Brand Strategies Four Brand Strategies
Today’s TopicsToday’s Topics
Product (cont..) Product (cont..)
• Short and simple• Suggestive of product benefits• Legally available• No negative imagery• Easy to spell, read, and
pronounce• Adaptable for international
markets• Adaptable to packaging/labeling
needs• Adaptable to any advertising
medium
A GoodBrand Name
Is...
A GoodBrand Name
Is...
Generic name: A brand name that has become a Generic name: A brand name that has become a generally descriptive term for a class of generally descriptive term for a class of products.products.– If this occurs, the original owner loses exclusive right to If this occurs, the original owner loses exclusive right to
the brand name (which is very bad for marketers).the brand name (which is very bad for marketers).– Examples: nylon, aspirin, escalator, kerosene, etc.Examples: nylon, aspirin, escalator, kerosene, etc.
PackagingPackaging
Activity of designing and Activity of designing and producing the container or producing the container or wrapper for a product.wrapper for a product.
Packaging used to just Packaging used to just contain and protect the contain and protect the product.product.
Goals of PackagingGoals of Packaging
Protection against damage, spoilage, Protection against damage, spoilage, tampering etc.tampering etc.
Assistance in marketing the Assistance in marketing the product product
Cost effectiveness (and good for the Cost effectiveness (and good for the environment)environment)
LabelingLabeling
Printed information appearing on or with the package.Printed information appearing on or with the package.
Performs several functions:Performs several functions:
– Identifies product or brandIdentifies product or brand
– Describes several things about the productDescribes several things about the product
– Promotes the product through attractive graphics.Promotes the product through attractive graphics.
Universal Product Code (UPC)Universal Product Code (UPC) AA bar code on a product’s package that provides bar code on a product’s package that provides
information read by optical scanners.information read by optical scanners. UPC codes provide several advantages: labor saving, UPC codes provide several advantages: labor saving,
improve inventory control, and help with marketing improve inventory control, and help with marketing research.research.
79400 80740
PromotesIdentifies
Competitive Advantages
Describes
SalesTasks
Product Safety
Packaging
Labeling
Packaging
Labeling
Product - Support ServicesProduct - Support Services
Companies should design its support services to Companies should design its support services to profitably meet the needs of target customers and profitably meet the needs of target customers and gain competitive advantage.gain competitive advantage.
How?How?
Step 1Step 1
Survey customers to assess the value of current Survey customers to assess the value of current services and to obtain ideas for new services.services and to obtain ideas for new services.
Step 2Step 2 Assess costs of providing desired services.Assess costs of providing desired services.
Step 3Step 3 Develop a package of services to delight customers and Develop a package of services to delight customers and
yield profits to the company.yield profits to the company.
Product Line StrategiesProduct Line Strategies
Product Line ExtensionsProduct Line ExtensionsProduct Line ExtensionsProduct Line Extensions
StretchingStretching
Adding new items to line
FillingFilling
Adding sizes or styles
Downward
Upward
Contracting aContracting aProduct LineProduct Line
Dropping items
Contracting aContracting aProduct LineProduct Line
Dropping items
Two-way
New Product Development New Product Development
The development of original products, product The development of original products, product improvements, product modifications, and new improvements, product modifications, and new
brands through the firm’s own R&D effortsbrands through the firm’s own R&D efforts..
Major Stages in New-Product Major Stages in New-Product DevelopmentDevelopment
IdeaGeneration
IdeaScreening
ConceptDevelopmentand Testing
MarketingStrategy
BusinessAnalysis
ProductDevelopment
TestMarketing
Commercialization
Stage 1: Idea GenerationStage 1: Idea Generation
– Internal idea sources:Internal idea sources:
R & DR & D
Sales forceSales force
– External idea sources:External idea sources: Customers, competitors, distributors, suppliersCustomers, competitors, distributors, suppliers
Sources of New-Product IdeasSources of New-Product Ideas
EmployeesEmployees CustomersCustomers ResellersResellers Suppliers/ vendorsSuppliers/ vendors CompetitorsCompetitors Advertising agenciesAdvertising agencies
Marketing research firmsMarketing research firms Other manufacturersOther manufacturers InternationalInternational
Stage 2: Idea ScreeningStage 2: Idea Screening
– Product development costs increase substantially Product development costs increase substantially in later stages.in later stages.
– Ideas are evaluated against criteria; most are Ideas are evaluated against criteria; most are eliminated.eliminated.
Stage 3: Stage 3:
Concept Development and TestingConcept Development and Testing
– Product concepts provide detailed versions of new Product concepts provide detailed versions of new product ideas.product ideas.
– Concept tests ask target consumers to evaluate Concept tests ask target consumers to evaluate product concepts.product concepts.
Stage 4: Stage 4:
Marketing Strategy DevelopmentMarketing Strategy Development
– Strategy statements describe:Strategy statements describe:
– The target market, product positioning, and sales, The target market, product positioning, and sales, share, and profit goals for the first few years.share, and profit goals for the first few years.
– Product price, distribution, and marketing budget for Product price, distribution, and marketing budget for the first year.the first year.
– Long-run sales and profit goals and the marketing Long-run sales and profit goals and the marketing mix strategy.mix strategy.
Stage 5: Business AnalysisStage 5: Business Analysis
– Sales, cost, and profit projectionsSales, cost, and profit projections
Stage 6: Product DevelopmentStage 6: Product Development
– Prototype development and testingPrototype development and testing
Stage 7: Test MarketingStage 7: Test Marketing
Standard test marketsStandard test markets
Controlled test marketsControlled test markets
Simulated test marketsSimulated test markets
StandardTest Market
Full marketing campaignin a small number of representative cities.
StandardTest Market
Full marketing campaignin a small number of representative cities.
SimulatedTest Market
Test in a simulated shopping environment
to a sample of consumers.
SimulatedTest Market
Test in a simulated shopping environment
to a sample of consumers.
Controlled Test Market
A few stores that have agreed to carry newproducts for a fee.
Controlled Test Market
A few stores that have agreed to carry newproducts for a fee.
Stage 8 Stage 8 CommercializationCommercialization
New-Product Development New-Product Development ManagementManagement
KeyIssues
Top LevelSupport
Market-GuidedR & D
Integration &Coordination
Authority
Enough for today. . Enough for today. . ..
SummarySummary
PackagingPackaging
LabelingLabeling
Companies should design its support services to Companies should design its support services to profitably meet the needs of target customers and profitably meet the needs of target customers and
gain competitive advantage.gain competitive advantage.
Product - Support ServicesProduct - Support Services
Product Line StrategiesProduct Line Strategies
New Product Development New Product Development
IdeaGeneration
IdeaScreening
ConceptDevelopmentand Testing
MarketingStrategy
BusinessAnalysis
ProductDevelopment
TestMarketing
Commercialization
Next….Next….
– New Product Development (cont..)New Product Development (cont..)– Product Life Cycle (PLC)Product Life Cycle (PLC)
MGT301MGT301Principles of Principles of MarketingMarketing
Lecture-21Lecture-21