Download product - Industrial Engineering 2011

Kotler, P. & Armstrong, G., 2006,
Principles of Marketing, New Jersey:
Pearson Education, Inc., Ch.8
• A Product is anything that can be offered to
a market for attention, acquisition, use, or
consumption and that might satisfy a want
or need.
• Includes:
–
–
–
–
–
–
–
–
Physical Objects
Services
Events
Persons
Places
Organizations
Ideas
Combinations of the above
• A Service is a form of product that consist of
activities, benefits, or satisfactions offered for sale
that are essentially intangible and do not result in
the ownership of anything.
• Examples include:
– Banking
– Hotels
– Tax Preparation
– Home Repair Services
Augmented Product
Installation
Packaging
Delivery
& Credit
Brand
Name
Quality
Level
Core
Benefit or
Service
Features
Design
Warranty
Actual Product
Core Product
AfterSale
Service
•




•





Convenience Products
Buy frequently & immediately
Low priced
Mass advertising
Many purchase locations
i.e Candy, newspapers
Specialty Products
Special purchase efforts
High price
Unique characteristics
Brand identification
Few purchase locations
i.e Lamborghini, Rolex
•




•




Shopping Products
Buy less frequently
Higher price
Fewer purchase locations
Comparison shop
i.e Clothing, cars, appliances
Unsought Products
New innovations
Products consumers don’t
want to think about these
products
Require much advertising &
personal selling
i.e Life insurance, blood
donation
Materials
and Parts
Capital
Items
Supplies
and
Services
• Activities undertaken to create,
maintain, or change the attitudes and
behavior toward the following:
– Organizations - Profit (businesses) and
nonprofit (schools and churches).
– Persons – Politicians, entertainers, sports
figures, doctors and lawyers.
– Places - Business sites and tourism.
– Ideas (social ideas marketing) – public
health campaigns, environmental
campaigns, and others such as family
planning, or human rights.
Product Attributes
Branding
Labeling
Packaging
Product Support Services
Design over performance:
The iMac has less features than many computers, but its
untraditional design grabbed it a number two spot on the
best-selling computer list only a month after its introduction.
Click to return.
Developing a Product or Service Involves Defining the Benefits that it Will
Offer Such as:
Product Quality
Ability of a Product to Perform Its
Functions; Includes Level &
Consistency
Product Features
Help to Differentiate the Product
from Those of the Competition
Product Style
& Design
Process of Designing a Product’s
Style & Function
BRAND
A classic labeling example .
What about thi s l abe l he lps to se ll the pr oduc t?
A name, term, sign, symbol, or design,
or a combination of these, intended
to identify the goods or services of
one seller or group of sellers and to
differentiate them from those of
competitors.
Words, letters, and/or number that can be
vocalized.
Click or pres s s pacebar to r et urn.
BRAND NAME*
BRAND MARK* Part of the brand that appears in the form
of a symbol, design, or distinctive color or
lettering.
TRADEMARK*
A brand that has been adopted by a seller
and given legal protection.
* Stanton, W.J., Etzel, M.J., & Walker, B.J., 1994, Fundamentals of
Marketing, USA: McGraw-Hill, Inc., p. 262
Consistency
Quality & Value
Attributes
Advantages
of
Brand Names
High Brand
Loyalty
Brand
Equity
Name Awareness
Identification
Strong Brand
Association
Perceived Quality
Brand Name Selection
Selection
Protection
Brand Sponsor
Manufacturer’s Brand
Private Brand
Licensed Brand
Co-branding
Brand Strategy
Line Extensions
Brand Extensions
Multibrands
New Brands
This business-to-business ad offers to provide
ecologically sound packaging.
Besides its impact on the
environment, what aspects
of packaging can
help/hinder product sales?
How have these products
become known by their
packaging:
•Cracker Jacks?
•Capri Sun?
• Activity of designing and
producing the container or
wrapper for a product.
• Packaging used to just contain
and protect the product.
• Packing now has promotional
value and marketers should:
– Establish a packaging
concept,
– Develop specific elements of
the package,
– Tie together elements to
support the positioning and
marketing strategy.
A classic labeling example .
• Printed information
appearing on or with
the package.
• Performs several
functions:
– Identifies product or brand
– Describes several things
about the product
– Promotes the product
through attractive
graphics.
What about thi s l abe l he lps to se ll the pr oduc t?
Click or pres s s pacebar to r et urn.
PRODUCT LINE
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 MIX (OR PRODUCT
ASSORTMENT)
The set of all product lines and items that a particular
seller offer for sale.
Detergents
Product-Mix Width
Toothpaste
Bar Soap
Product Line Length
Ivory Snow (1930) Gleen (1952) Ivory (1879)
Dreft (1933)
Crest (1955) Camay (1926)
Tide (1946)
Zest (1952)
Cheer (1950)
Safeguard (1963)
Dash (1954)
Oil of Olay (1993)
Bold (1965)
Gain (1966)
Era (1072)
Disposable
Paper
Diapers
Products
Pampers (1961) Charmin (1928)
Lives (1976)
Puffs (1960)
Bouty (1965)
PROCTER & GAMBLE’S PRODUCT
PORTFOLIO
Consistency
Width - number of
different product lines
Length - total number
of items
in product lines
Depth - number of
versions of each
product
Product Mix all the product
lines & items
offered
Sales/Profit
Sales
+
Profit
0
Period
I
II
III
IV
SALE
S
COSTS
PER
CUSTOME
R
PROFITS CUSTOMER
S
COMPETITO
RS
INTRODUCTI
ON
LOW
HIGH
NEGATIVE
INNOVATORS
FEW
GROWTH
RAPID
LY
RISING
AVERAGE
RISING
EARLY
ADOPTERS
GROWING
NUMBER
MATURITY
PEAK
LOW
HIGH
MIDDLE
MAJORITY
STABLE
NUMBER –
BEGIN TO
DECLINING
DECLINE
DECLI
N-ING
LOW
DECLININ
G
LAGGARDS
DECLINING
NUMBER
MARKETING
OBJECTIVES
PRODUCT
PRICE
DISTRIBUTIO
N
INTRODUCTI
ON
CREATE PRODUCT OFFER
AWARENESS &
BASIC
TRAIL
PRODUCT
USE COSTPLUS
BUILD
SELECTIVE
DISTRIBUTION
GROWTH
MAXIMIZE
MARKET SHARE
PRICE TO
PENETRATE
MARKET
BUILD
INTENSIVE
DISTRIBUTION
MATURITY
MAXIMAZE PROFIT DIVERSIFY
WHILE DEFNDING BRAND &
MARKET SHARE
MODELS
PRICE TO
MATCH/BEAT
COMPETITO
RS
BUILD MORE
INTENSIVE
DISTRIBUTION
DECLINE
REDUCE
EXPENDITURE &
MILK THE BRAND
CUT PRICE
GO SELECTIVE
PHASE OUT
UNPROFITABL
E OUTLETS
OFFER
PRODUCT
EXTENSION
S, SERVICE,
WARRANTY
PHASE OUT
WEAK
ITEMS
ADVERTISING
SALES PROMOTION
INTRODUCTIO
N
BUILD PRODUCT AWARENESS
AMONG EARLY ADAPTORS &
DEALERS
USE HEAVY SALES
PROMOTION TO ENTICE TRIAL
GROWTH
BUILD AWARENESS &
INTEREST IN THE MASS
MARKET
REDUCE THE TAKE
ADVANTAGE OF HEAVY
CONSUMER DEMAND
MATURITY
STRESS BRAND
DIFFERENCES & BENEFITS
INCREASE TO ENCOURAGE
BRAND SWITCHING
DECLINE
REDUCE THE LEVEL NEEDED
TO RETAIN HARD-CORE
LOYALS
REDUCE TO MINIMAL LEVEL
NEW PRODUCT DEVELOPMENT STAGES
1. IDEA GENERATION
a. INTERNAL IDEA SOURCES
i. FORMAL R&D
ii. EXECUTIVES & EMPLOYEES
b. EXTERNAL IDEA SOURCES
i. CUSTOMERS
ii. COMPETITORS
iii. DISTRIBUTORS & SUPPLIERS
NEW PRODUCT DEVELOPMENT STAGES
2. IDEA SCREENING
3. CONCEPT DEVELOPMENT & TESTING
4. MARKETING STRATEGY DEVELOPMENT
5. BUSINESS ANALYSIS
6. PRODUCT DEVELOPMENT
7. TEST MARKETING
8. COMMERCIALIZATION