Download Chapter 6

The Marketing Mix
Product Strategy
Chapter 6
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
What is a product
 A product is a set of tangible and
intangible attributes including packaging,
colour, price, quality and brand, plus the
services and reputation of the seller.
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
6-1
What are the benefits of this product?
Seller’s
services
Product
quality
Seller’s
reputation
Physical
characteristics
of goods
Price
Brand
Colour
Product
warranty
Packaging
Design
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
6-2
Classification of products
 Two product categories:
 Consumer products
Intended for household
consumer, non-business use.
 Business products
Intended primarily for producing
other products or providing
services in a business.
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
6-3
Services
 A clear definition is difficult although, services
are invariably marketed together with
physical goods.
Canned Readyfoods
made
clothes
AutoDraperies, Restaurant Repairs:
Air
Insurance,
mobiles Carpets
meals
auto, house, travel Consulting,
landscaping
Teaching
The goods and services continuum
MOSTLY GOODS
MOSTLY SERVICES
MOSTLY SERVICES
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
6-4
New product processes
 A six-step approach to developing new
products.
 1. generating new product ideas.
 2. screening & evaluating ideas.
 3. business analysis.
 4. prototype development.
 5. test marketing.
 6. commercialisation.
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
6-5
New product adoption and
diffusion
 Adoption process: A set of successive decisions an
individual or organisation makes before accepting
an innovation.
 Stages in Adoption Process:
• Awareness
• Interest
• Evaluation
• Trial
• Adoption
• Post-adoption confirmation.
 Diffusion: the process by which an innovation is
spread through a social system over time.
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
6-6
The product life-cycle
INTRODUCTION
GROWTH
MATURITY
DECLINE
Dollars
Sales Volume
Profit
0
Loss
Time in years
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
6-7
Product mix and product
line
 A product mix is the full set of products
offered for sale by a company.
 A product mix has dimensions of both breath
and depth.
• Breadth—the number of product lines.
• Depth—variety of sizes, colours and
models. Product line—a broad group of
products intended for similar use with
similar characteristics.
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
6-8
Branding
 A brand name is a term, sign, and/or special
design that is intended to identify the goods
or services of one seller and distinguish it
from all others.
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
6-9
Benefits of using a brand
 Brand name—words, letters and numbers
that can be vocalised. E.g. Nike.
 Brand mark—a recognisable symbol, design,
letter or colouring that is visual. E.g Nike’s
swoosh.
 Trademark—a term for a brand that is given
legal protection in its totality. E.g. Nike’s
swoosh and positioning statement ‘Just do it.’
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
6-10
Packaging
 Defined as all the activities of designing and
producing the container or wrapping for a
product.
 Packaging is also a way of creating appeal for
goods and services. It also creates the
perception of value and value adding. (JR).
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
6-11
Packaging strategies
 Family packaging
 Family resemblance.
 Changing the packaging
 Re-design of package.
 Re-use packaging
 Glass jars re-used as a glass.
 Refill containers.
 Re-usable envelopes.
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
6-12
Packaging strategies
(cont.)
 Multiple packaging:
 The practice of placing several units in
one container.
 Used to increase consumer’s
consumption of products (e.g. toilet
roll six pack).
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
6-13
Labelling
 A label is the part of a product that carries
information about the product itself or about
the seller. It is used to communicate useful
information to customers.
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
6-14
Design
 Design benefits:
 Improves marketability.
 Significantly differentiates product.
 Promotional appeal.
 Can be protected under
designs act.
 E.g. furniture or prestige
pen.
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
6-15
Service
 Services have a number of distinctive
characteristics that create special challenges
and opportunities
• Services are intangible so it is impossible
for customers to sample a service.
Intangibility is reduced using:
 Visualisation
 Association
Service
 Physical representation
 Documentation
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
6-16
Service (cont.)
 The service and the creator-seller of the
service are often inseparable.
 Services are heterogeneous.
 Services are highly perishable, cannot be
stored, and the demand for services
fluctuates.
Copyright  2003 McGraw-Hill Australia Pty Ltd PPTs t/a Essential Marketing Skills by Rix
Slides prepared by Joe Rosagrata
6-17