MARKETING STRATEGY

1. MARKETING STRATEGY 12 Setting Product Strategy

2. Product Anything that can be offered to a market to satisfy a want or need.

3. Figure 12.2 Five Product Levels • Core benefit: service or benefit the customer is buying (hotel- rest & sleep) • Basic product: what is needed to offer the service or benefit (room in a hotel, package, brand) • Expected product: attributes and conditions buyers expect to get (quiet, clean, tasty food) • Augmented product: exceeds customer expectations (image) • Potential product: possible augmentations the product might offer in the future

4. Product Classification Schemes • Non durable: tangible goods normally consumed in one or few uses – consumed quickly and purchased frequently (beer, soap). Strategy – increase availability, charge small mark-up, advertize heavily. • Durability: tangible goods that normally survives many uses (clothing, appliances) • Tangibility • Use

5. Consumer Goods Classification • Convenience • Shopping • Specialty • Unsought

6. What Is a Product? Product and Service Classifications Convenience products are consumer products and services that the customer usually buys frequently, immediately, and with a minimum comparison and buying effort • Newspapers • Candy • Fast food • Soaps

7. What Is a Product? Product and Service Classifications Shopping products are consumer products and services that the customer compares carefully on suitability, quality, price, and style • Furniture • Cars • Appliances

8. What Is a Product? Product and Service Classifications Specialty products are consumer products and services with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort • Medical services • Designer clothes • High-end electronics (stereo components, photographic equipment)

9. What Is a Product? Product and Service Classifications Unsought products are consumer products that the consumer does not know about or knows about but does not normally think of buying • Life insurance • Funeral services • Blood donations • Smoke detectors

10. Industrial Goods Classification Industrial products are products purchased for further processing or for use in conducting a business • Materials and parts • Capital items • Supplies/business services

11. Product form Features Performance Conformance Durability Reliability Reparability Style Design Ordering ease Delivery Installation Customer training Customer consulting Maintenance Product Differentiation

12. Services Differentiation • Ordering Ease: how easy is for a customer to place an order • Delivery: how well the product or a service is delivered – speed, accuracy, care attending • Installation: work done to make the product operational in its planned location • Customer training: training the customers • Customer consulting: data, info, advices, that the seller offers • Maintenance & repair: service program for helping customers – keep purchased products in good working order

13. Packaging: The 5th P All the activities of designing and producing the container for a product. Three levels of materials: • Primary package: bottle • Secondary package: carton • Shipping package: carton containing dozen of boxes

14. Packaging has been influenced by: • Self-service: increasing number of products. Tasks: attract attention, describe features, create confidence, make positive impressions • Consumer affluence: consumers are willing to pay for convenience, appearance, prestige of better packages • Company and brand image: recognition of brand or company • Innovation opportunity: unique materials and features for easy-to-open and close pack

15. Package objectives • Identify the brand • Convey descriptive and persuasive information • Facilitate product transportation and protection • Assist at home storage • Aid product consumption

16. Functions of Labels Label identifies the product or brand, describes attributes, and provides promotion • Identifies • Describes: who made it, where it was made, when, and what it contains • Promotes: attractive graphics

17. Warranties and Guarantees • Formal statements of expected product performance by the manufacturer – repair, replacement, or refund

18. Individual Product and Service Decisions • Brand is the name, term, sign, or design, or a combination of these, that identifies the maker or seller of a product or service

19. Services Marketing Nature and Characteristics of a Service • Intangibility • Inseparability • Variability • Perishability

20. Services Marketing Nature and Characteristics of a Service Intangibility refers to the fact that services cannot be seen, tasted, felt, heard, or smelled before they are purchased Inseparability refers to the fact that services cannot be separated from their providers

21. Services Marketing Nature and Characteristics of a Service Variability refers to the fact that service quality depends on who provides it as well as when, where, and how it is provided Perishability refers to the fact that services cannot be stored for later sale or use