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B207: Session 6 - Product (Product (Offering) (Three levels of product…
B207: Session 6 - Product
The marketing mix
4 P's
Product
Place
Promotion
Price
7 P's (For service offerings)
All the above
Process
Physical evidence
People
is a key set of tools that marketers use to tailor their organisations’ offerings for targeting to their chosen customer segments.
Product (Offering)
Three levels of product benefits
Core
Core benefit
Actual
Packaging, features, brand name, quality, styling
Where most innovation happens
Augmented
Installation, Delivery and credit, after-sale service, Warranty
Product failures
40%
Reasons (Kotler and Armstrong)
Overestimation of market size
Disregarding marketing reserach
Higher than expected product developemt cost
Poor product design
Incorrect positioning
Unsuitable launch timing
Inappropriate pricing
Poor promotion
Aggressive competition from competitors
Reducing risk
Vertical integration
Buying another business to acquire newly developed products or services
Types of product
Convenience
Shopping
Speciality
Unsought
New product development
Small amount are new inventions
Five-step basic new product process (Crawford 1991)
Phase 1: Opportunity identification and selection
Phase 2: Concept generation
Phase 3: Concept/project evaluation
Phase 4: Development
Phase 5: Launch
Extended list - 8 steps (Kotler and Armstrong, Dibb et al 2016)
New product planning
Idea generation
Idea screening
Concept testing
Marketing/business analysis
Product development
Test marketing
Commercialisation
SEE BOOK FOR EXTENSION ON ALL
Product success
Eight critical success drivers (Cooper)
Unique superior product
Building in the voice of the customer
Doing the homework and front-end loading the project
Getting sharp and early product and project definition
Spiral development
The world product
A well-conceived, properly executed launch
Speed counts!
New product development
Brand new concept or adaption of an already known concept
Test marketing
Discover how users respond to the product and its marketing mix
Limits the risk that a full launch might entail