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Summary h11 marketing

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All chapters belong together for a summary of the entire marketing subject taught by professor Nathalie Dens in the 1st year of the HI (B), tew and sew bachelor's degrees

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October 3, 2024
Number of pages
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Written in
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Marketing Nathalie Dens

New Proposition Development and Innovation
Introduction

Proposition:
offering, (in)tangible attributes related not just to physical goods but also services, ideas, people,
places, experiences and even a mix of these various elements, offering, anything that can be offered
for use and consumption in exchange for money or some other form of value

Product:
good, only when we refer to a physical offering  service

- (Non-)Physical Nature of Propositions
=> product-service spectrum
o Pure good
fruit, frozen foods, toiletries
o Goods-services combinations
intangible components
 Product intangibles
fridges/houses sold with warranties, cars purchased with finance deals
o Pure service
cinema ticket, education, hairdressing
- 3 levels of a proposition
o Core proposition
= real core benefit or service, may be a
functional (what product will do) or an
emotional benefit (how product/service
makes people feel)
o Embodied proposition
= physical good/service that provides an
expected benefit/deliver core value
 Features and capabilities, durability,
design, packaging, quality, brand
name
o Augmented proposition
= embodied product + all other factors necessary to support purchase and post-
purchase activities
 Credit and finance, training, delivery, installation, guarantees, customer
service, warranty




1

, Marketing Nathalie Dens

Classifying physical propositions

- Consumer offerings
classification based on
o Durability
 Durable goods:
can be used repeatedly and provide benefits each time they are used,
require purchaser to be highly involved in purchase decision, contain a high
perceived risk so consumers spend time, care, energy searching, formulating,
and making the right decision
 Bicycles, music players, refrigerators
 Non-durable good:
have a limited duration (perishable) and are often used only once, low levels
of involvement, risk is low so little need to shop around for best possible
price, buyers may buy on basis of availability, price, habit, brand experience
 Yoghurt, newspapers, food, grocery items
 Services:
intangible propositions that cannot be stored
o Behaviour
 Convenience products
non-durable goods or services bought because consumer does not want to
exert much effort, inexpensive, customers know expected price may switch
brands if price exceeds that of the competition, widespread distribution,
convenient locations
 Buying behaviour
Routinized response behaviour: Habitual buying, frequent purchase,
little planning/comparison/shopping effort, low consumer
involvement
 Subdivided into 3 categories:
staples, impulse, emergency products
=> different marketing strategies required to make each work
 Promotion
mass promotion by producer
 Shopping products
items consumers shop for, higher price, selective distribution in fewer
outlets
 Buying behaviour
Less frequent purchase, search for information, much planning and
shopping effort, comparison of brands on price, quality, style
 Promotion
advertising, personal selling by producers/resellers, word-of-mouth




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