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Marketing Y2Q2 summary BV
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Marketing summary Principles of Marketing 18th edition
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Marketing Management summary of the entire course
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Summary: Principles of Marketing 18e Global Edition - Marketing (MAN-BCU2008)
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Week 1Chapter 8
A product is anything that can be offered to a market for attention, acquisition, use or
consumption that might satisfy a want or need. Products also include services, events,
places, products, ideas or organizations. Services are a form of product that consists of
activities, benefits or satisfactions offered for sale that are essentially intangible and do not
result in ownership of anything. Today, as products become more commoditized, many
companies are moving to a new level in creating values for their customers. To differentiate
their offers, beyond simply making products and services, they are creating and managing
customer experiences with their brands or companies.
Levels of products
A product consist of three levels and each level adds more value. The first level us the core
customer value. This level addresses the question: what is the customer really buying?
At the second level, product planners must turn the core benefit into an actual product. They
need to develop product and service features, design, a quality level, a brand name and
packaging.
Finally, the product planners must build an augmented product by offering additional
consumer services and benefits.
Product and service classification
Consumer products are products and services bought by final consumers for personal
consumption. You have:
- Convenience products= are products and services that consumers usually buy
frequently, immediately and with minimal comparison and buying effort. Usually low
priced, placed in many locations.
- Shopping products= less frequently purchased consumer products and services
that customers compare carefully on suitability, quality, price and style. Distributed
through fewer outlets, deeper sales support.
- Specialty products= products and services with unique characteristics or brand
identification for which a significant group of buyers is willing to make special
purchase offer
- Unsought products= product that the consumer either does not know about or does
not consider buying. Require a lot of advertising.
,Organization marketing consists of activities undertaken to create, maintain or change the
attitudes and behavior of target consumers toward an organization. Business firms sponsor
corporate image advertising campaigns to market themselves and polish their images.
Person marketing consists of activities undertaken to create, maintain or change attitudes or
behavior toward particular people.
Place marketing involves activities undertaken to create, maintain or change attitudes or
behavior toward particular places.
Ideas can also be market. Social marketing is the use of commercial marketing concepts
and tools in programmes designed to influence individuals’ behavior to improve their well-
being and that of society.
Individual product and service decisions
Developing a product or service involves defining the benefits that it will offer. These benefits
are communicated and delivered by product attributes such as:
- Quality: product quality is one of the marketers major positioning tools. Quality has
a direct impact on product or service performance; thus, it is closely linked to
customer value and satisfaction.
Total quality management (TQM) is an approach in which all of the company’s
people are involved in constantly improving the quality of products, services and
business processes. Product quality has two dimensions. Firstly, the marketer must
choose a quality level that will support a products’ positioning (performance quality).
Beyond quality level, high quality can also mean high levels of quality consistency.
Here product quality means conformance quality (freedom from defects and
consistency in delivering a targeted level of performance)
- Product features: a stripped-down model, one without any extras, is the starting
point. The company can create higher-level models by adding more features.
Features are a competitive tool.
- Product style and design: style describes the appearance of a product and does not
necessarily make a product perform better. Design is more skin deep; it goes to the
heart of the product. Good design contributes to a product’s usefulness as well as to
it looks.
A brand is a name, term, sign, symbol, a design or a combination of these, that identifies the
maker or seller of a product or service. Branding helps buyers in many ways. It identifies
products, it says something about the quality and consistency, it gives the seller advantages
and it helps the seller to segment markets.
Packaging involves designing and producing the container or wrapper for a product.
Packaging has become a more important marketing tool over the years.
A label identifies a product, it describes several things about a product and it might help
promote a brand, support its positioning and connect with customers. Labels can also
mislead customers. Labeling has been affected by unit pricing (stating the price per unit of
standard measure), open dating (stating the expected shelf life of a product) and nutritional
labeling.
Customer service is another element of product strategy
Product line decisions
A product line is a group of products that are closely related because they function in a
similar manner, are sold to the same customer groups, are marketed through the same
types of outlets or fall within the given price ranges. The major product line decision involves
product line length- the numbers of products in a line. The length is influenced by company
objectives and recourses. A product line can be expanded in two ways:
, - Product line filling: adding more items within the present range of the line. For
reaching for extra profits, satisfying dealers, using excess capacity, being the leading
full-line company and plugging holes to keep out the competition. Line filling is
overdone if it results in cannibalization of sales and confusion.
- Product line stretching: a company lengthens its product line beyond its current
range. This can be done upward, downward of both. A company may stretch
downward to plug a market hole that otherwise would attract a new competitor or
respond to a competitor’s attack on the upper end.
Product mix decisions
A product mix or product portfolio consists of all the product lines and items that a
particular seller offers for sale. Each product line consists of sub-lines. A product’s mix has
four dimensions:
- Width: the number of different product lines a company carries
- Length: total number of items a company carries within its product lines
- Depth: number of versions offered for each product in the line
- Consistency: how closely related the various product lines are in end use, production
requirements, distribution channels or some other way.
-
These product mix dimensions provide the handles for defining the company’s product
strategy. The company can increase its business in four ways:
1. It can add new product lines, widening its product mix
2. It can lengthen its existing product lines to become a more full-line company.
3. It can add more versions of each product and thus deepen its product mix
4. The company can peruse more product line consistency
Building strong brands
Brand positioning
- Attributes: least desirable level for brand positioning because competitors can easily
copy them and customers are not interested in attributes but more about what they
will do for them.
- Benefits
- Beliefs and values: strongest brand positioning and try to engage customers on a
deep, emotional level.
Brand name selection
Desirable qualities for a brand name include the following:
- It should suggest something about a product’s benefit and qualities
- It should be easy to pronounce, recognize and remember
- The brand name has to be distinctive and extendable.
- It has to be easily translated into foreign languages.
- It should be capable of registration and legal protection.
Brand names should be protected and make sure that they do not become generic terms
every seller can use, such as aspirin, thermos, escalator.
, Brand sponsorship
- Manufacturers’ brand versus retailer brands: many retailers have created their own
store brands which has been very successful. Retailers often price their store brands
lower that comparable manufacturing brands. To compete with store brands,
manufacturer brands should sharpen their value propositions.
- Licensing: for a fee anyone can use licensed names or symbols created by other
manufacturers.
- Co-branding: the practice of using established brand names of two companies on the
same product.
Brand development
- Line extensions occur when a company extends existing brand names to new forms,
colors, sizes, ingredients of an existing product category.
- Brand extensions extends a current brand name to new or modified products in a
new category.
- multi-brands: companies often market many different brands in a given product
category. It offers a way to establish different features that appeal to different
customer segments, lock up more reseller shelf space, and capture a larger market
share.
- New brands: used when f.e., the power of an existing brand name is waning or it
enters a new product category and non of the current brand names are appropriate.
PowerPoints week 1
Packaging
Packaging is a key element of the actual product and are the activities of designing and
producing the container or wrapper for a product such as bottles, boxes, jars, etc. Packaging
is needed for the following reasons:
- Protection
- Identification
- Convenience
- Promotion
- Attraction
- Efficiency
- Reputation
The advantages of packaging differ based on the different stakeholders which are:
consumers, retailers, manufactures and logistic services.
Advantages for consumers Advantages for retailers
Protects the contents • Shelf space
Convenient usage and storage • Positioning towards consumers
Provides necessary information about • Communication
the products • Convenience
Helps memory and recognition • Cost savings
Value for money equation • Distribution and storage
Personalization
Advantages for manufactures Advantages for logistic services
...fulfill basic needs (Production): • Facilitates storage
• keep the product safe • Number of products in box
• facilitate storage • Pallet load
• enhances goodwill • Help in transit
...and help build brand equity (Marketing):
• promotes product
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