Product
Anatomy of a product
Product classification
User based
Product-based classification
management and strategy
Branding
benefits
risks
meaning
A product is a physical good, service, idea (public health message), person (pop star) or place that is capable of offering tangible (beans) and intangible (consulting) attributes that individuals or organisations regard as so necessary, worthwile, or satisfying that they are prepared to exchange money, or some other unit of value in order to acquire it.
Augmented
Tangible
Potential
Core
functional based, main reason to exist e.g. core benefit of holiday is lie in the sun and do nothing
design, packaging, branding, quality level (marketing competition)
no effect on actual benefit, but increase the satisfaction e.g. after-sale service (marketing competition take place)
dynamic and strategic, could be in the future
B2C
B2B (final use of product)
Non-durable
Service
Durable
infrequently purchase and expensive with specialist change of distribution and communication of function
Use over a long time e.g. cars
can only be used once or few (food)
frequently purchase with low price, mass distribution, communication based on psychological benefits
financial service
communication of both functional and psychological, reassure the quality and consistency
shopping
speciality
Convenience
routine
limited
extensive buyer behaviour
unsought
sudden emergency (burst water pipe)
not normal buy （coffin)
accessory
Raw material
Capital
semi-finished
component
suppliers and services
extensive decision making (buildings and fixed equipment)
re-buy situation (light equipment chairs, PCs)
beans and tomatoes deliver to Heinz
cars on assembly line
Operating supplies (pens) maintenance services
manufacture
retailer
consumers
helps product evaluation
reduce risk in purchasing
easier product identification
create interest for product
helps create loyalty
defends against competition
allow premium pricing
helps targeting
increases power over retailer
attract customer
create tangible characteristics
danger of serve every possible market niche
retailers stock more lines or refuse some brands
customers have too much choice, confuse
develop the brand
create brand
design
naming
new product development
corporate name and reputation
guarantees
reliability
performance
durability
quality
design
packing (marketing mix)
labelling (barcode, adress)
select brand name
policy (strategies)
brand extension
flexible endorsed approach
fixed endorsed approach
discreet brands
monolithic approach
Generic brands
indivudal product with separate name
individual brand image with a family name with same presentation
single brand image overs all product (supermarket
allows variety
deleting
filter
extend
cost efficient (risk may damage brand reputation Virgin)
create new product to fill the gap (single-serving food, family size food)
eliminate a poor seller
Product lifecycle (PLC)
model
means to gets most of the lifecycle
- growth
- maturity
- introduction
- decline
generate awareness (price high, low, trial price)
repeat purchase, build brand prefenrece
the peak, have loyal repeat buyer , might heavy price competition and increased marketing expenditure
environmental related (technological development)
position
- detailed market research about what attributes are important on a class of products
need to balance of different stage of product
reposition
- shorlists existing products offer those attributes
- understand target's ideal level for each attributes, and how they rate each brand's attributes
when changing marketing and competitive environment
design (appearance matter to the market)
performance (convenience)
Diffusion of innovation
Innovator
Early adopters
Early majority
Late majority
Laggards
click to edit
B2C young educated B2B profitable. take risk
growth stage of PLC start
mass market starts
mature stage, more alternatives
resist of new, price fall, only best producer exist