PRODUCT MARKETING
-
Upload
kaseem-wooten -
Category
Documents
-
view
32 -
download
1
description
Transcript of PRODUCT MARKETING
PRODUCT MARKETING
AUGMENTEDAUGMENTED
ACTUAL ACTUAL
CORE CORE
Adapted from Kotler, 1994
PRODUCT LEVELS
3
TYPES PRODUCTS:
Convenience goods—• e.g.,
Shopping goods-- • e.g.,
Specialty goods -
• e.g.,
Unsought goods - • e.g.,
4
WHAT ARE THE IMPORTANT PARTS OF YOUR MIX? Convenience good
• • Why?
Shopping good• • Why?
Specialty good• • Why?
Unsought good• • Why?
Product Life Cycle Products have limited lives,
so ______________
Products pass through different stages--each with different appropriate marketing strategy implications and profitability, so _______________
Shape varies!
Sal
es &
pro
fits
intro growth maturity decline
sales
profits
6
Why Is There a PLC?
Adoption Process
Diffusion Process
AWARENESSAWARENESS
INTERESTINTEREST
EVALUATIONEVALUATION
TRIALTRIAL
ADOPTIONADOPTION
THE ADOPTION PROCESS
8
The Diffusion Process
innovators early early late laggards adoptors majority majority
What is missing? What are some of the problems with this?
9
Now, put it together!
Intro Growth MaturityDecline
Sales
Profits
Comp
Tgt. mkt.
Introduction Growth Maturity Decline
Characteristic
Sales Low Rising Peak Declining
Costs High/customer Averager/cust. Low/cust. Low/cust
Profits Negative Rising High Declining
Customers Innovators Early adopters Middle majority Laggards
Competitors Few Growing # Stable #; may be declining
Declining #
Marketing Objective
Create awareness and trial
Maximize market share
Maximize profit; defend market share
Reduce expenditures; milk brand
Strategies
Product Basic product Extensions &
Service
Diversify brands Phase out weak model
Price One of two Continue strategy
Beat/Match competition
Cut prices
Distribution selective intensive More intensive Phase out
Advertising Build awareness Build awareness Stress differences and benefits
reduce
Sales Promotion Heavy reduce Increase reduce
11
Two Mini-cases--Just Do Them!
What stage in the product life cycle is this product in?
Who do you think should be the target market (think about diffusion!)
Develop an appropriate marketing objective.
Outline an appropriate strategy.
12
Mini Case 1:
Your R&D department has developed a completely revolutionary way to take notes in the classroom. The product is named “Wilbor”—a short name for “WILLingly takes BORing notes.” To use the product, an individual wears a headphone. Everything that s/he thinks that is addressed to the computer is recorded onto a 51/2 inch diskette. For instance, the EMBA students might think, “Oh dear, I better remember what the early majority is,” so the student thinks, “Wilbor record that the early majority is about 34% of adopters. Consumers in the early majority make deliberate decisions and have many social contacts. End Wilbor.” The electronic record is compatible with Microsoft Word. The student simply puts the diskette into a disk drive and prints out detailed, legible notes. To your knowledge, no other firm can offer this product.
13
Mini Case 2:
Your R&D department has developed a better way to make banana bread from a mix. The new mix includes all dry ingredients and a special package of banana puree (that does NOT turned that brown disgusting color) mixed with vanilla extract. This package is to be added to the mix prior to baking and results in a more “bananay” taste and a moister bread. Secondary sources suggest that sales of banana bread mixes have been experiencing slow growth during the past few years. Competitors include Betty Crocker, Pillsbury, Martha White and Jim-Dandy.
14
Definition Time!
Product mix--• total assortment of product offerings
Product line• --group of individual products that is ________
related - designed to meet a single need
• width--number of product lines
• length-number of products in a line
• consistency-how closely related the product lines are
15
Matching1. Cinnabuns offers only two types of buns--
regular and miniature.
2. AT&T goes into the chocolate business.
3. Tootsie Rolls, Inc. makes only one thing--Tootsie Rolls.
4. The Body Shop offers 20 different types of lotion, each with 7 fragrances.
5. AT&T offers a low-priced phone service (Lucky Dog Phone Co.).
6. ACME makes many different types of products--dynamite, electronics, foods, vehicles, etc.
a. High consistency
b. Low consistency
c. Wide line
d. Narrow line
e. Long line
f. Short line
16
Expansion is important to a firm! How to Expand:
• downward stretch
• upward stretch
• two-way stretch
• line-filling
Cannibalization
17
SERVICES MARKETING
18
Important facts about services in the US Demand for services is increasing:
• consumers are VERY busy• consumers have discretionary income• companies are outsourcing• technologies make more services available
Services are making up a (larger or smaller) part of our GDP.
• INTANGIBLE•
• PERISHABLE•
• INSEPARABILITY •
• VARIABILITY•
SERVICE CHARACTERISTICS
Nature of Services vs. Products
Goods ServicesClient Relationships
Perishability
Tangibility
Separability
Customer Effort
Uniformity
21
Environmental Influences on Services Economic
Political/legal
Social
Technological
22
Services Pricing Make sure everyone knows what is included
in the price.
Price-->Quality connection
Pricing to influence demand•
23
Services Promotion
Consumers rely on personal sources for information.
Must detail what the service is.
Must communicate benefits.
24
Services Placing
Facility location should be:
a. Close to the customer.
b. Close to the suppliers.
c. It depends.
25
Think about:
Your really good service experience:
Your really bad service experience:
26
What factors make a good/ bad service experience?
Good
experiences include:
Bad
experiences include:
27
Managing Service Quality Perceptions Tangibles --
Price Cues
Responsiveness-
Empathy-
Assurance-
28
Managing Aspects of Products & Services
Positioning
Branding
29
POSITIONING
Definition:
30
PERCEPTUAL MAPPING
PAIRWISE COMPARISONS
MAP SIMILARITY DATA
e.g., compare:
1. Pittsburgh 1 & 2
2. Baltimore 1 & 3
3. Los Angeles 2 & 3
31
• Heineken
• Lowenbrau
• Michelob
• Coors
• Bud
•Strohs
• Miller
• Michelob Light
• Bud Light
•Miller Light
•Coors Light
•Natural Light
• Oly Gold
• Hamms Light
• Rolling Rock Light
•Generic Light
• Hamms
• Rainier
• Rolling Rock
• Generic
• Schlitz Malt Liquor
32
POSITIONING IMPLICATIONS
33
Branding
Provides the recognition factor for products/services
Brand name- • •
Logo (Brand mark)-
Trademark--
34
Selecting a brand name
Tells about product benefits
Easy to remember, pronounce, read, and spell
Can be translated into other languages
Distinctive in some way
35
Brand Strategies
BRAND EXTENSIONSAdvantages:
Disadvantages:
NEW BRANDAdvantages
Disadvantages
CO-BRAND (associative branding)
36
Branding
How important is a brand name?• NOT VERY 1 2 3 4 5 6 7 VERY
• WHY?– from consumers’ viewpoint– from firms’ viewpoint
Brand image-- impression consumer has of brand
Brand loyalty-- commitment and repeat purchasing of brand
Brand equity-- value of brand in marketplace; financial qualities of brand from firm’s perspective
BRAND RECOGNITION
BRAND ACCEPTANCE
BRAND PREFERENCE
BRAND LOYALTY
BUILDING BRAND LOYALTY
LEADS TO:
1.
2.
3.
4.
Brand Loyalty Brand Equity
39
Pricing Preparation
Talk to a small business owner/manager or someone in your company who is responsible for determining prices.
Ask the following questions:• 1. How do you set your prices? What things do you consider?
• 2. What causes you to change prices? When is the last time you changed a price(s)?
• How do you know if the price is “right”?
We’ll talk about this in the next class.