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Marketing for MOST
Module 07 – Product Strategies
技術経営コンソーシアム
開発担当者 ：Ritsumeikan Asia Pacific University 教授: Takamoto, Akihiro
更新日 October, 2003
Marketing for MOST: Module 7 – Product Strategies
Product Strategies
1.
What is a Product
6.
Service
2.
Product Classification
7.
Intangible Products
3.
Product Strategy
8.
Product Life Cycle
4.
Branding
9.
Innovation
5.
Brand / Product Positioning
10. Practice
Marketing for MOST: Module 7 – Product Strategies
What is a Product
Reaching a clear understanding
of what a product is,
is essential
to the deep understanding
of
Marketing.
Marketing for MOST: Module 7 – Product Strategies
What is a Product
A Product is more than a tangible thing.
It is not merely manufactured goods.
A Product is more than a simple set of tangible
features.
Marketing for MOST: Module 7 – Product Strategies
What is a Product
An automobile is not simply a tangible
machine for movement, visibly or
measurably differentiated by design,
size, color, options, horsepower, or miles
per gallon.
It is also a complex symbol denoting status,
taste, rank, achievement, and aspiration.
Marketing for MOST: Module 7 – Product Strategies
What is a Product
But the customer buys even more than
these.
The enormous efforts of the auto
companies to cut the time between
placement and the delivery of an order
and to select, train, supervise,
motivate, and enhance their
dealerships suggest that these too are
integral parts of “the product” people
buy and are therefore ways by which
they may be differentiated.
Marketing for MOST: Module 7 – Product Strategies
What is a Product
In the same way a computer is not simply a
machine for data storage, processing,
calculation, or retrieval.
It is also an operating system with special
software protocols for use and special
accompanying possibilities for and promises
of maintenance and repair.
Marketing for MOST: Module 7 – Product Strategies
What is a Product
People buy products (whether purely
tangible products, purely intangible
products, or hybrids of the two)
in order to solve problems.
Products are problem-solving tools.
Marketing for MOST: Module 7 – Product Strategies
What is a Product
A product is, to the potential buyer,
a complex cluster of value satisfactions.
Marketing for MOST: Module 7 – Product Strategies
What is a Product
The ‘product’ is what the product does;
it is
the total package of benefits
the customer receives when he buys
Marketing for MOST: Module 7 – Product Strategies
What is a Product
Marketing for MOST: Module 7 – Product Strategies
What is a Product
The “generic product” is
the rudimentary substantive “thing”
without which there is no chance to
play the game of market participation.
–
For the steel producer it is the steel itself.
–
In the case of a bank, it is loanable finds.
–
For a realtor, it is “for sale” properties.
–
For a retailer it is a store with a certain mix of vendables.
–
For a lawyer it’s having passed the bar exam.
Marketing for MOST: Module 7 – Product Strategies
What is a Product
The previous figure represents the “expected product”
as everything inside the smallest circle,
including the “generic product.”
This represents the customer’s minimal expectations.
Though these vary by customers, conditions, industries,
and the like, every customer has minimal purchase
conditions that exceed the generic product itself.
Marketing for MOST: Module 7 – Product Strategies
What is a Product
The “augmented product” offers the
customer
more than they think they need
or have become accustomed to expect.
Marketing for MOST: Module 7 – Product Strategies
What is a Product
The “potential product” consists of everything
potentially feasible to attract and hold
customers.
Whereas the “augmented product” means
everything that has been or is being done,
the “potential product” refers to what may
remain to be done, that is, what is possible.
Marketing for MOST: Module 7 – Product Strategies
What is a Product
The 3 Levels of Product according to P.
Kotler:
Marketing for MOST: Module 7 – Product Strategies
Product Classification
Classification of a Product
Marketing for MOST: Module 7 – Product Strategies
Product Classification
Classification of Goods
Marketing for MOST: Module 7 – Product Strategies
Product Classification
Product Classification by the ratio of
tangible and intangible components.
Examples:
Air Tickets
Medicare
Music
Concert
Soap
Cars
Restaurant
Clothes
TV’s
Computer
Sightseeing
Tour
Purely
Mostly
Half and Half
Mostly
Purely
Tangible
Tangible
Intangible
Intangible
Marketing for MOST: Module 7 – Product Strategies
Product Strategy
Individual product decisions
•
Product Attributes
–
(Product Quality, Product Features, Product Style and
Design)
•
Branding
•
Brand extensions
•
Packaging
•
Labeling
Marketing for MOST: Module 7 – Product Strategies
Product Strategy
•
•
Product Line Decision
–
Product line stretching
–
Downward
–
Upward
–
Both directions
Product Line Filling
Marketing for MOST: Module 7 – Product Strategies
Product Strategy
DOWNWARD STRETCHING
High
PRICE
Low
Low
PRODUCT BENEFIT
High
Marketing for MOST: Module 7 – Product Strategies
Product Strategy
UPWARD STRETCHING
High
PRICE
Low
Low
PRODUCT BENEFIT
High
Marketing for MOST: Module 7 – Product Strategies
Product Strategy
TWO-WAY STRETCHING
High
PRICE
Low
Low
PRODUCT BENEFIT
High
Marketing for MOST: Module 7 – Product Strategies
Product Strategy
PRODUCT LINE FILLING
High
PRICE
Low
Low
PRODUCT BENEFIT
High
Marketing for MOST: Module 7 – Product Strategies
Product Strategy
PRODUCT MIX DECISIONS
LENGTH
DEPTH
WIDTH
Marketing for MOST: Module 7 – Product Strategies
Brand Strategy
•
A brand is a name, term, design, symbol, or
other feature that identifies one seller’s
good or service as distinct from those of
other sellers.
•
The legal term for brand is trademark.
•
A brand may identify one item, a family of
items, or all items of that seller.
Marketing for MOST: Module 7 – Product Strategies
Brand Strategy
•
A product is something that is made in a
factory;
•
A brand is something that is bought by a
customer.
•
A product can be copied by a competitor;
•
A brand is unique.
•
A product can be quickly outdated; Stephen King/WPP Group, London
Marketing for MOST: Module 7 – Product Strategies
Brand Strategy
The Six dimensions of a brand according to Philip Kotler:
Benefits
(functional and
emotional)
Attributes
Uses
Values
Personality
Culture
Marketing for MOST: Module 7 – Product Strategies
Brand Strategy
•
Brand Equity
–
A set of brand assets and liabilities linked to a brand,
its name and symbol, that add to or subtract from the
value provided by a product or service to a firm and/or to
that firms customers.
–
(David Aarker)
Marketing for MOST: Module 7 – Product Strategies
Brand Strategy
(David Aarker)
Marketing for MOST: Module 7 – Product Strategies
Brand Strategy
The Value of Brand Loyalty (David Aarker)
Marketing for MOST: Module 7 – Product Strategies
Brand Strategy
Creating and Maintaining Brand Loyalty (David Aarker)
Marketing for MOST: Module 7 – Product Strategies
Brand Strategy
The Brand Awareness Pyramid (David Aarker)
Marketing for MOST: Module 7 – Product Strategies
Brand Strategy
The Value of Brand Awareness (David Aarker)
Marketing for MOST: Module 7 – Product Strategies
Brand Strategy
(David Aarker)
Marketing for MOST: Module 7 – Product Strategies
Brand/Product Positioning
•
General Motors:
–
•
“We make a car for every ‘person, purse, and personality’ ”
Chrysler:
–
•
“Advantage: Chrysler”
Ford:
–
•
“Quality is job one”
Mazda:
–
“Just feels right”
Marketing for MOST: Module 7 – Product Strategies
Brand/Product Positioning
•
Jaguar:
–
•
“A blending of art and machine”
Saab:
–
•
“The most intelligent car ever built”
Lincoln Town Car:
–
•
“What a luxury car should be”
Bentley:
–
“The closest a car can come to having wings”
Marketing for MOST: Module 7 – Product Strategies
Brand/Product Positioning
•
Mercedes:
–
•
“Engineered like no other car in the world”
BMW:
–
The ultimate driving machine
–
“Our cars are not made to offer something to
everyone but something more to some.”
Marketing for MOST: Module 7 – Product Strategies
Brand/Product Positioning
Marketing for MOST: Module 7 – Product Strategies
Brand/Product Positioning
Marketing for MOST: Module 7 – Product Strategies
Brand/Product Positioning
Marketing for MOST: Module 7 – Product Strategies
Brand/Product Positioning
Marketing for MOST: Module 7 – Product Strategies
Brand/Product Positioning
Affluent Market Perceptions:
Marketing for MOST: Module 7 – Product Strategies
Brand/Product Positioning
Marketing for MOST: Module 7 – Product Strategies
Service
What is a Service?
•
A service is any activity or benefit that one
party can offer to another that is essentially
intangible and does not result in the
ownership of anything.
Marketing for MOST: Module 7 – Product Strategies
Service
4 Characteristics of Service:
Variable
Perishable
SERVICE
Intangible
Inseperable
Marketing for MOST: Module 7 – Product Strategies
Service
Service intangibility:
•
A major characteristic of services—they
cannot be seen, tasted, felt, heard, or
smelled before they are bought.
Marketing for MOST: Module 7 – Product Strategies
Service
Service inseparability:
•
A major characteristic of services—they are
produced and consumed at the same time
and cannot be separated from their
providers, whether the providers are people
or machines.
Marketing for MOST: Module 7 – Product Strategies
Service
Service variability:
•
A major characteristic of service—their
quality may vary greatly, depending on who
provides them and when, where, and how.
Marketing for MOST: Module 7 – Product Strategies
Service
Service perishability:
•
A major characteristic of services—they
cannot be stored for later sale or use.
Marketing for MOST: Module 7 – Product Strategies
Service
Three Levels of Service:
Proactive
Reactive
Primary
Marketing for MOST: Module 7 – Product Strategies
Intangible Products
•
People
•
Organisation
•
Place
•
Nation
•
University
•
Orchestra
There is nothing to
which the principles
of Marketing cannot be applied!
Marketing for MOST: Module 7 – Product Strategies
Intangible Products
•
“Everyone is living by selling something.
Life is selling; Selling is Life”
•
If that is true, why don’t you master
marketing that is far more powerful than
selling?
–
(Aki Takamoto)
Marketing for MOST: Module 7 – Product Strategies
Intangible Products
•
Ogilvy on Jamaica
Marketing for MOST: Module 7 – Product Strategies
Product Lifecycle
–
Sales and Profits (Paul Kotler)
Marketing for MOST: Module 7 – Product Strategies
Product Lifecycle
–
(Paul Kotler)
Marketing for MOST: Module 7 – Product Strategies
Product Lifecycle
Varying Wave-lengths of Product Life Cycle
Sales
Time
Marketing for MOST: Module 7 – Product Strategies
Product Lifecycle
Product Life-cycles of Typing Machines
Sales
Manual Typewriter
Electric Typewriter
Word Processor
Personal Computer
Time
Marketing for MOST: Module 7 – Product Strategies
Product Lifecycle
Various Product Life-cycles patterns
Sales
Time
Marketing for MOST: Module 7 – Product Strategies
Product Lifecycle
•
Question:
– Find examples corresponding to various
P.L.C lifecycles.
– Show some other patterns of P.L.C.
Marketing for MOST: Module 7 – Product Strategies
Innovation
•
Innovation Defined:
– According to Webster:
•
A new idea, method or device a novelty
– According to Kuczmarski
•
A mindset, a pervasive attitude
•
Or a way of thinking focused beyond the
present into the future.
•Source: Innovation, Thomas D Kuczmarski, American Marketing Association, 1995
Marketing for MOST: Module 7 – Product Strategies
Innovation
•Source: Innovation, Thomas D Kuczmarski, American Marketing Association, 1995
Marketing for MOST: Module 7 – Product Strategies
Innovation
•Source: Innovation, Thomas D Kuczmarski, American Marketing Association, 1995
Marketing for MOST: Module 7 – Product Strategies
Innovation
•Source: Innovation, Thomas D Kuczmarski, American Marketing Association, 1995
Marketing for MOST: Module 7 – Product Strategies
Innovation
•Source: Innovation,
Thomas D Kuczmarski,
American Marketing Association, 1995
Marketing for MOST: Module 7 – Product Strategies
Innovation
•
Innovation Evaluation and Screening Questions
according to T.D. Kuczmarski
Strategic Screens
•Fit with StrategicConsumer
ObjectivesScreens
•Exploits Internal Strategies
•Source of Competitive Advantage
•Need Intensity Financial Screens
•Uniqueness / Differentiation
•Size of Opportunity
•Impact on existing business
•Source: Innovation,
Thomas D Kuczmarski,
•Return Potential
American Marketing Association, 1995
Marketing for MOST: Module 7 – Product Strategies
Innovation
•
Innovation Evaluation and Screening Questions
according to T.D. Kuczmarski
Strategic Screens
•Fit with StrategicConsumer
ObjectivesScreens
•Exploits Internal Strategies
•Source of Competitive Advantage
•Need Intensity Financial Screens
•Uniqueness / Differentiation
•Size of Opportunity
•Impact on existing business
•Source: Innovation,
Thomas D Kuczmarski,
•Return Potential
American Marketing Association, 1995
Marketing for MOST: Module 7 – Product Strategies
Innovation
•
Innovation Evaluation and Screening Questions
according to T.D. Kuczmarski
Strategic Screens
•Fit with StrategicConsumer
ObjectivesScreens
•Exploits Internal Strategies
•Source of Competitive Advantage
•Need Intensity Financial Screens
•Uniqueness / Differentiation
•Size of Opportunity
•Impact on existing business
•Source: Innovation,
Thomas D Kuczmarski,
•Return Potential
American Marketing Association, 1995
Marketing for MOST: Module 7 – Product Strategies
Innovation
Marketing for MOST: Module 7 – Product Strategies
Innovation
•
Discipline of Innovation
–
(Peter Drucker)
• Entrepreneurship refers to a certain
type of activity:
– INNOVATION
• Innovation – the effort to create a
purposeful focused change.
Marketing for MOST: Module 7 – Product Strategies
Innovation
•
Innovation Opportunities within a company
–
Unexpected occurrences – Rogaine, heart medicine
–
Incongruities – growth of e-business & no profits
(consulting)
–
Process needs – efficiency;
–
Industry and Market changes
•
Further Innovation Opportunities
–
Demographic Changes – baby boomers, retirement
homes etc.
–
Changes in Perception – 4 wheel drive, perception is
now that many people need it, previously few people felt
the need.
–
New Knowledge – superstars, but a small % of new
Marketing for MOST: Module 7 – Product Strategies
Practice
•
Read the comments made by APU
Students on Brand, Product and
Service and discuss them
•
What are your comments in relation to
the contents of this module?