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Chapter 6 Marketing Mix Product——shaping the value product decisions(the…
Chapter 6 Marketing Mix Product——shaping the value product decisions(the whole set)
Marketing Tactics: Making the positioning a reality
Marketing Mix Decisions
Product
Price
Place
Promotion
3 Service P's
Product
—customer solution
Definition
Product
is anything that can be offered in a market for attention, acquisition, use, or consumption that might satisfy a need or want.
Service
is a product that consists of activities, benefits, or satisfactions and that is essentially intangible and does not result in the ownership of anything.
Products
and
services
are becoming more commoditized.
Companies are now creating and managing customer
experiences
with their brands or company.
Product：customer solution
Goods(Tangible) vs. Services(Intangible) Spectrum
Packaged Goods--Motocars--Fastfood--Airline Transportation--Consulting/babysitting
Levels of Product and Services
Core Customer Value - What is the buyer really buying?
Actual Product
Expected Product
Augmented Product
Potential Product
Product and Service Classifications
Consumer products
are products and services bought by final consumers for personal consumption.
Convenience products
are consumer products and services that the customer usually buys frequently, immediately, and with a minimum comparison and buying effort.----• Newspapers, Candy, Fast food
Shopping products
are less frequently purchased products and services that
the customer compares carefully on suitability, quality, price, and style.----Furniture, Cars, Appliances
Specialty products
are consumer products and services with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort.-----edical services, Designer clothes, High-end electronics
Unsought products
are consumer products that the consumer does not
know about or knows about but does not normally think of buying.-----Life insurance, Funeral services, Blood donations
Industrial products
are those products purchased for further processing or for use in conducting a business.
Materials and parts
include raw materials and manufactured materials and parts.
Capital items
are industrial products that aid in the buyer’s production or operations.
Supplies and services
include operating supplies, repair and maintenance items, and business services.
Organization/Corporate marketing
// Person marketing//Place marketing//Social marketing
Services Marketing
: Nature and Characteristics of a Service
Intangibility
: Services cannot be seen, tasted, felt, heard, or smelled before purchase
Inseparability
: Services cannot be separated from their providers
Variability
: Quality of services depends on who provides them and when, where and how
Perishability
: Services cannot be stored for later sale or use
Product and Service Decisions
Individual Product and Service Decisions
Product attributes
Communicate and deliver benefits by
Product and service, attributes(quality, features, style and design)
Branding
Packaging
Packaging
involves designing and producing the container or wrapper for a product.
Labeling
Labels
identify the product or brand, describe attributes, and provide promotion.
Product support service
Product support services
augment actual products.
Product Line Decisions
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 given price ranges.
Product line length
is the number of items in the product line.
Line filling+Line stretching
Product Mix Decisions
Product mix
consists of all the product lines and items that a particular seller offers for sale.(Width+Length+Depth)
Consistency
is how closely the various product lines are in end use, production requirements, or distribution channels.
Branding Strategy: Building Strong Brands
EXAMPLE
The Microsoft promise-------Microsoft is a technology company whose mission is to empower every person and every organization on the planet to achieve more. Our strategy is to build best-in- class platforms and productivity services for a mobile- first, cloud-first world. 2017
The Virgin Promise-------“All the markets in which Virgin operates tend to have features in common: they are typically markets in which the customer has been ripped off or under-served, where there is confusion and/or where the competition is complacent.
In these markets, Virgin is able to break into the market and shake it up. Our role is to be the consumer champion, and we do this by delivering to our brand values, which are:Value for money//Good quality//Brilliant customer service//Innovative//Competitively challenging//Fun”
Brand vs Product
“Products are made in the factory, but brands
are created in the mind”
A brand is a customer experience represented by a collection of images and ideas; often, it refers to a symbol such as a name, logo, slogan, and design scheme.
a brand is a cluster of functional and emotional values that enables a promise to be made about a unique and welcomed experience.
Brand Development Strategies
new brand name, new product category----
New brands
new brand name, existing product category-----
Multibrands
existing brand name, new product category-------
Brand extension
existing brand name, existing product category--------
Line extension
The role of brands
Brands’ role for consumers
Set and fulfill expectations
Reduce risk
Simplify decision making
Take on personal meaning
Become part of identity
Brands’ role for firms
Simplify product handling
Organize inventory & accounting
Offer legal protection
Create brand loyalty
Secure competitive advantage