Download Product and Services Strategy Place Strategy

Survey
yes no Was this document useful for you?
   Thank you for your participation!

* Your assessment is very important for improving the work of artificial intelligence, which forms the content of this project

Document related concepts
no text concepts found
Transcript
Marketing: An Introduction
Product and Services Strategy
Place Strategy
Marketing: An Introduction
Today’s Learning Objectives
• Describe the roles of product and service
branding, packaging, labelling, and names
• Identify the four characteristics that affect the
marketing of a service & discuss the additional
marketing considerations that services require
• Identify the typical marketing strategies
marketers apply for products in the different
stages of the product Life Cycle
8-2
©Copyright 2004, Pearson Education Canada Inc.
Marketing: An Introduction
Course completion
• Course contract revision and plan for the
rest of the semester
• Instead of Marketing News Presntations –
just hand in your article and short write up.
Due by week of April 10th. May hand in
earlier.
8-3
©Copyright 2004, Pearson Education Canada Inc.
Marketing: An Introduction
Market Plan Project – Next Steps
• How is it going ?
• At this point you should have done the following:
– Conduct your SWOT as a group
– Rethink and finalize your concept/product idea in light
of your research and SWOT & creativity exercises
– Set marketing objectives – these are one year
objectives so they need to be SMART
– Select your primary and secondary target market –
describe them – their need, characteristics,
purchasing/usage habits related to your category
– Develop your market positioning strategy – write a
positioning statement
8-4
©Copyright 2004, Pearson Education Canada Inc.
Marketing: An Introduction
Marketing Planning
• What is a goal?
• What is an objective?
• What are typical marketing objectives related to?
• Marketing objectives can include:
–
–
–
–
8-5
Sales, profit, market share, ROI
Awareness, trial, purchase, repeat purchase, attitude
Distribution coverage
Marketing promotion efficiency targets, e.g. response
rates
©Copyright 2004, Pearson Education Canada Inc.
Marketing: An Introduction
Objectives, Strategies and Plans
Objective: Statements of desired outcomes
resulting from a plan.
Strategies: Outline in broad-strokes how the
objectives will be achieved.
Plans: All the specific details needed to
execute the strategies.
8-6
©Copyright 2004, Pearson Education Canada Inc.
Marketing: An Introduction
Example
• Objective:
– To obtain 60% market share of the ketchup market in
Canada
• Strategies:
1. Promotion - By maintaining brand awareness via
year round TV promotion support
2. Product-By launching a new package format
3. Distribution -By supporting the retail network with
innovative category management systems
• Plans: for Promotion– ad creative plan, media
plan & schedule
8-7
©Copyright 2004, Pearson Education Canada Inc.
Marketing: An Introduction
Product
• Evaluate a product in pairs or threes –
select one from the box
8-8
©Copyright 2004, Pearson Education Canada Inc.
Marketing: An Introduction
Levels of Product
Installation
Delivery and credit
Packaging
Brand
name
Quality level
Warranty
8-9
Core
benefit
or service
Augmented
product
Actual
Product
(features)
Features
Core
Product
(benefits)
Design
After-sale service
©Copyright 2004, Pearson Education Canada Inc.
Figure 8-1
Marketing: An Introduction
Exercise on Features and Benefits
• List five features of your product and a
corresponding benefit to the consumer of
each feature
• A feature is something about the productit colour, design, materials it is made from
etc
• A Benefit is what the product does for the
customer
8-10
©Copyright 2004, Pearson Education Canada Inc.
Marketing: An Introduction
Individual Product Decisions
1. Product attribute decisions
Product quality (level and consistency), features,
style and design
2. Product Brand Name Decisions
Brand equity, line and brand extensions,
manufacturer’s versus private brands, licensing,
co-branding
3. Packaging Roles
Protect contents, identify and promote the product
and brand, be a self merchandiser
Labelling - Ingredients, directions for use, identify
and promote
4. Product support services
Repair and maintenance, accessories
8-11
©Copyright 2004, Pearson Education Canada Inc.
Marketing: An Introduction
Individual Product Decisions (continued)
• What are the purposes
of a package?
• Look at your package
and discuss at least 3
purposes it serves.
• Is there any
competitive advantage
in the package you are
studying?
8-12
©Copyright 2004, Pearson Education Canada Inc.
Marketing: An Introduction
What is a Brand?
• A Brand is the use of name, term,
symbol, or design or combination of
these to identify a product
• Why brand a product or service?
– By creating perceived differences among
products and developing a loyal customer
franchise through branding, marketers
create “ value “
8-13
©Copyright 2004, Pearson Education Canada Inc.
Marketing: An Introduction
Four Brand Strategies
Product category
Existing
Existing
New
Line
Extension
-new flavour, size
Brand
Extension
-Using the name
in a new category
Brand name
New
8-14
Multibrands
©Copyright 2004, Pearson Education Canada Inc.
New
Brands
Figure 8-4
Marketing: An Introduction
Brand names should:
•
•
•
•
•
•
Suggest something about the product
Be easy to pronounce, recognize, and remember
Be distinctive
Be extendable
Translate to other languages
Be capable of registration and legal protection
8-15
©Copyright 2004, Pearson Education Canada Inc.
Marketing: An Introduction
Brand Equity
Brand
Equity
Brand
awareness
10-11
8-16
Perceived
quality
Brand
association
Brand
loyalty
©Copyright
2004,
Pearson
Education
Canada
Inc. Group, from Brand Leadership, by
Source: Reprinted with
permission of The
Free Press,
a Division
of Simon & Schuster
Adult Publishing
David A. Aaker and Erich Joachimsthaler, p. 17. Copyright © 2000 by David A. Aaker andErich Joachimsthaler.
Marketing: An Introduction
Kotler’s 5 Dimensions that make a
strong brand
1.
2.
3.
4.
5.
Should bring to mind certain attributes such as
product's features or style
Should suggest one or more benefits e.g. Apple's user
friendliness
Should be able to visualize the brand’s characteristics
as if the brand were a person. E.g. Apple would be in
his 20”s, IBM in his 60’s
Should suggest something about a company's values?
Is it innovative, a service icon or socially conscious?
Suggests a picture of the brands users- are they young
and enthusiastic? Are they a family? Are they older
and established?
8-17
©Copyright 2004, Pearson Education Canada Inc.
Marketing: An Introduction
Brand Loyalty
• Four levels
– Unknown (consumers are unaware of it)
– Familiarity (recognize name and some image)
– Preference (will choose it if it is available)
– Insistence (will accept no alternatives and will
search extensively for it)
• What is the other level?
8-18
©Copyright 2004, Pearson Education Canada Inc.
Marketing: An Introduction
Characteristics of Services
8-19
Intangibility
Inseparability
Cannot be seen, tasted,
felt or smelled before
purchasing
Production and,
consumption, and
from the provider
Variability
Perishability
Service quality depends
on who provides and
under what conditions
Cannot be stored,
for resale or
later use
©Copyright 2004, Pearson Education Canada Inc.
Figure 8-5
Marketing: An Introduction
Westjet
Discuss the marketing strategies that Westjet
uses to handle these 4 characteristics of
services
– Intangibility
– Perishability
– Inseparability
– Variablility
8-20
©Copyright 2004, Pearson Education Canada Inc.
Marketing: An Introduction
3 Main Marketing Tasks for Services
1. Service differentiation – provide value to customers
2. Service quality- internal management philosophy
and employee satisfaction
3.
8-21
Productivity – efficiency and cost effectiveness
©Copyright 2004, Pearson Education Canada Inc.
Marketing: An Introduction
Recommended Reading
• by Harry Beckwith
– “Selling the Invisible”
– “What Clients Love”
• “Raving Fans” – Kenneth Blanchard
8-22
©Copyright 2004, Pearson Education Canada Inc.
Marketing: An Introduction
Break
8-23
©Copyright 2004, Pearson Education Canada Inc.
Marketing: An Introduction
Why is NPD so important?
– Follow changing market demands
– Remain competitive
– Keep up to changing technology
– Replace dying products
– Diversify product offering to reduce risk
8-24
©Copyright 2004, Pearson Education Canada Inc.
Marketing: An Introduction
The New Product Adoption Process
• Adoption process
– The mental process through which an individual passes
from first hearing about an innovation to final adoption
– Not all consumers want to risk trying new products when
they are first introduced
• Stages in the process
–
–
–
–
–
8-25
Awareness
Interest
Evaluation
Trial
Adoption
©Copyright 2004, Pearson Education Canada Inc.
Marketing: An Introduction
New Product Adoption Rates
34%
13.5%
2.5%
Innovators
Early
majority
34%
Late
majority
Early
adopters
16%
Laggards
Time of adoption of innovations
Source: reprinted with permission of the Free Press, a Division of Simon &
Schuster, from Diffusion of Innovations, Fourth Edition, by E.M. Rugers, 1983.
8-26
©Copyright 2004, Pearson Education Canada Inc.
Figure 6-5
Marketing: An Introduction
Influences on the Rate of Adoption
• Five characteristics influence the rate of
adoption of new product innovations:
– Relative advantage
• How much better than existing
alternatives?
– Compatibility
• Fit current values and
experiences?
– Complexity
• Ease of understanding?
– Divisibility/Trialability
• Can it be tried on a limited basis?
– Communicability
• Can the innovation be observed
and communicated?
8-27
©Copyright 2004, Pearson Education Canada Inc.
Marketing: An Introduction
Product Life-Cycle Strategies
Sales
Profit
($)
Sales
Profits
Loss
($)
Development
8-28
Introduction
Growth
Maturity
©Copyright 2004, Pearson Education Canada Inc.
Decline
Figure 9-2
Marketing: An Introduction
Summary of PLC/Marketing Mix
R&D
Sales
Costs
Profits
Customers
Competitors
Marketing
Objectives
Product
Price
Distribution
Advertising
Promotion
Introduction
Growth
Maturity
Decline
Low
Increasing
Peaking
Declining
High R&D
High
Average
Low
Low
Negative
Negative
Rising
High
Declining
Innovators
Early adopters
Middle majority
Laggards
Few
Growing
Stable number
Declining
Product
Maximize
Market share
Reduce costs
trial
market share
and profit
milk brand
In development
Basic
Extensions
tbd
Skimming or
Penetrate
Be price
Cut
penetration
market
competitive
price
tbd
Selective
Intensive
Increase
Reduce outlets
tbd
Educate
Awareness
Brand
Reduce
awareness
interest
differences
and remind
Heavy to
Reduce
Increase for
Reduce costs
tbd
Diversify brand Phase out weak
encourage trial heavy consumer brand switching minimum level
8-29
©Copyright 2004, Pearson Education Canada Inc.
Table 9-2
Marketing: An Introduction
Product Section of Project Plan
• Product positioning strategy – include a
positioning statement
• Core benefit/competitive advantage
• Features – packaging, features, added
benefits
• Brand name(s) & rationale
8-30
©Copyright 2004, Pearson Education Canada Inc.
Related documents