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Business Plan

MKTG

LAC

Concepts of Product Strategy


Prepared by Litthidet SANAVONGSAY MBA, Msc. In Management
Litthidet SANAVONGSAY

Learning Outcomes

LO1 LO2 LO3

Define the term product Classify consumer products Define the terms product item, product line, and product mix

LO4

Describe marketing uses of branding

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Learning Outcomes

LO5 LO6 LO7

Describe marketing uses of packaging and labeling Discuss global issues in branding and packaging Describe Product life cycle and marketing strategy for each stage of the product life cycle

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LO1

What Is a Product?

Define the term product

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What is a product?
Physical objects Services Peoples expertise Places Membership in an organization Ideas

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What Is a Product?
Everything, both favorable and unfavorable, that a person receives in an exchange.

Product

Tangible Good Service Idea

LO1
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What is a product?
A product is anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need. Service: Any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything.

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Total Product includes:


Image of the retail store Service before and after sale Color Attachments Image of the brand warranty Packaging Instructions

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What Is a Product?
Product is the starting point of Marketing Mix
Product

Price

Promotion

LO1
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Place (Distribution)

Tree Lever of Product


Augmented product
Installation

Packaging Brand name Features

Actual product

Delivery and credit

Core benefit
Quality lever Design

After sale service

Core product

Warranty

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The Core Product


Basic benefits
Transportation Carrying cargo Pulling capacity Excitement Image enhancement

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Actual Product

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Features Package Brand Quality Appearance Engine size Color Body styling Interior & exterior design Options available

Augmented Extras
Warranty Maintenance/service contract Delivery Credit/Financing Dealer parts & labor department Free lubrication & oil change Get-out-of-jail-free card

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How to loose your customers.


Looking for mobile phone with GOOD camera? Pls try this

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LO2

Types of Consumer Products

Classify consumer products

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Types of Products
A product used to manufacture other goods or services, to facilitate an organizations operations, or to resell to other consumers.

Business Product

Consumer Product

A product bought to satisfy an individuals personal needs or wants

LO2
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Types of Consumer Products


Products

Consumer Products

Business Products

Convenience Products

Shopping Products

Specialty Products

Unsought Products

LO2
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Types of Consumer Products


Convenience Product Shopping Product Increase market share among A relatively inexpensive item that existing customers merits little shopping effort Attract new customers to A product that requires comparison shopping, because it is usually more existing products expensive and found in fewer stores

A particularnew products for Create item for which Specialty Market consumers search extensively and present Diversification Product Development markets are reluctant to accept substitutes
Unsought LO2 Product
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A product unknown to the potential Introduce new products buyer or a known product that the into new markets buyer does not actively seek

LO2 REVIEW LEARNING OUTCOME


Consumer Products

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LO3 Product Items, Lines, and Mixes

Define the terms product item, product line, and product mix

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LO3 Product Items, Lines, and Mixes


A specific version of a product that can be designated as a distinct offering among an organizations products. A group of closely-related product items.

Product Item

Product Line

Product Mix

All products that an organization sells.

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Levels of Product Hierarchy


Product needto satisfy a need e.g. feet protection Product classa family of products having similar function e.g. all shoes Product linea group of products with closely related functions e.g. sports shoes Product typeproducts within a line having similar form e.g. basket-ball shoes Branda name representing a product or line e.g. Nike Item (Stock Keeping Unit)a unit item e.g. one pair of Nike basket-ball shoe
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LO3 Campbells Product Lines and Mix

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Gillettes Product Lines & Mix


Depth of the product lines Width of the product mix
Blades and razors
Mach 3 Sensor Trac II Atra Swivel Double-Edge Lady Gillette Super Speed Twin Injector Techmatic

Toiletries
Series Adorn Toni Right Guard Silkience Soft and Dri Foamy Dry Look Dry Idea Brush Plus

Writing instruments
Paper Mate Flair

Lighters
Cricket S.T. Dupont

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Energy Drink
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Services marketing

Characteristics of a service Intangibility


Services cannot be seen, tasted, felt, heard or smelled before purchase

Inseparability
Services cannot be separated from their providers

Services Variability
Quality of service depends on who provides them and When, where ,and how.
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Perishability
Services cannot be stored For later sales or use.

Service marketing strategies mix


Product strategy

Pricing Placing strategy strategy Promotion strategy Physical People evidence

Process

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Types of marketing in service industries


Company Internal marketing External marketing

Employees

Interactive marketing

Customers

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The New-product Development Process (316)


Idea Generation
Concept Idea Development Screening and Testing

Marketing Strategy development

Commercialization

Test marketing

Business Product Analysis Development


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Major Idea Resources

Internal Sources

Competitors

Customers

Distributors & Others

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Product Life Cycle Sales & Profit

Sales

Profit

Product Development Introduction Decline


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Growth Maturity

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LO6

Global Issues in Branding and Packaging

Discuss global issues in branding and packaging

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LO6 Global Issues in Branding


One Brand Name Everywhere

Global Options for Branding

Adaptations & Modifications

Different Brand Names in Different Markets


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LO6 Global Issues in Packaging


Labeling

Global Considerations for Packaging

Aesthetics

Climate Considerations

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LO6 REVIEW LEARNING OUTCOME


Global Issues in Branding and Packaging

Branding Choices:
1 name Modify or adapt 1 name Different names in different markets

Packaging Considerations:
Labeling Aesthetics Climate

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LO7

Product Warranties
Describe how and why product warranties are important marketing tools

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Product Warranties
Warranty
A confirmation of the quality or performance of a good or service.

Express Warranty
Implied Warranty

A written guarantee.

An unwritten guarantee that the good or service is fit for the purpose for which it was sold. (UCC)

LO7
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LO7 REVIEW LEARNING OUTCOME


Product Warranties
Express warranty Implied warranty = = written guarantee unwritten guarantee

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