PRODUCT MARKETING

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PRODUCT MARKETING
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PRODUCT LEVELS
AUGMENTED
ACTUAL
CORE
Adapted from Kotler, 1994
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TYPES PRODUCTS

• Convenience goods
• e.g.,
• Shopping goods--
• e.g.,
• Specialty goods -
• e.g.,
• Unsought goods -
• e.g.,

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WHAT ARE THE IMPORTANT PARTS OF YOUR MIX?

• Convenience good
• Why?
• Shopping good
• Why?
• Specialty good
• Why?
• Unsought good
• Why?

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Product Life Cycle

• Products have limited lives, so ______________
• Products pass through different stages--each with
  different appropriate marketing strategy
  implications and profitability, so
  _______________
• Shape varies!

Sales profits
profits
intro growth maturity decline
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Why Is There a PLC?

• Adoption Process
• Diffusion Process

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THE ADOPTION PROCESS
AWARENESS
INTEREST
EVALUATION
TRIAL
ADOPTION
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The Diffusion Process

• innovators early early
  late laggards
• adoptors majority
  majority
• What is missing?
• What are some of the problems with this?

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Now, put it together!

• Intro Growth Maturity Decline
• Sales
• Profits
• Comp
• Tgt. mkt.

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Two Mini-cases--Just Do Them!

• What stage in the product life cycle is this
  product in?
• Who do you think should be the target market
  (think about diffusion!)
• Develop an appropriate marketing objective.
• Outline an appropriate strategy.

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Mini Case 1

• Your RD department has developed a completely
  revolutionary way to take notes in the classroom.
  The product is named Wilbora short name for
  WILLingly takes BORing notes. To use the
  product, an individual wears a headphone.
  Everything that s/he thinks that is addressed to
  the computer is recorded onto a 51/2 inch
  diskette. For instance, the EMBA students might
  think, Oh dear, I better remember what the early
  majority is, so the student thinks, Wilbor
  record that the early majority is about 34 of
  adopters. Consumers in the early majority make
  deliberate decisions and have many social
  contacts. End Wilbor. The electronic record is
  compatible with Microsoft Word. The student
  simply puts the diskette into a disk drive and
  prints out detailed, legible notes. To your
  knowledge, no other firm can offer this product.
•  

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Mini Case 2

• Your RD department has developed a better way to
  make banana bread from a mix. The new mix
  includes all dry ingredients and a special
  package of banana puree (that does NOT turned
  that brown disgusting color) mixed with vanilla
  extract. This package is to be added to the mix
  prior to baking and results in a more bananay
  taste and a moister bread. Secondary sources
  suggest that sales of banana bread mixes have
  been experiencing slow growth during the past few
  years. Competitors include Betty Crocker,
  Pillsbury, Martha White and Jim-Dandy.

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Definition Time!

• Product mix--
• total assortment of product offerings
• Product line
• --group of individual products that is ________
  related - designed to meet a single need
• width--number of product lines
• length-number of products in a line
• consistency-how closely related the product lines
  are

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Matching

• 1. Cinnabuns offers only two types of
  buns--regular and miniature.
• 2. ATT goes into the chocolate business.
• 3. Tootsie Rolls, Inc. makes only one
  thing--Tootsie Rolls.
• 4. The Body Shop offers 20 different types of
  lotion, each with 7 fragrances.
• 5. ATT offers a low-priced phone service (Lucky
  Dog Phone Co.).
• 6. ACME makes many different types of
  products--dynamite, electronics, foods, vehicles,
  etc.

• a. High consistency
• b. Low consistency
• c. Wide line
• d. Narrow line
• e. Long line
• f. Short line

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Expansion is important to a firm!

• How to Expand
• downward stretch
• upward stretch
• two-way stretch
• line-filling
• Cannibalization

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SERVICES MARKETING

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Important facts about services in the US

• Demand for services is increasing
• consumers are VERY busy
• consumers have discretionary income
• companies are outsourcing
• technologies make more services available
• Services are making up a (larger or smaller) part
  of our GDP.

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SERVICE CHARACTERISTICS

• INTANGIBLE
• PERISHABLE
• INSEPARABILITY
• VARIABILITY

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Nature of Services vs. Products

• Goods
  Services
• Client Relationships
• Perishability
• Tangibility
• Separability
• Customer Effort
• Uniformity

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Environmental Influences on Services

• Economic
• Political/legal
• Social
• Technological

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Services Pricing

• Make sure everyone knows what is included in the
  price.
• Price--Quality connection
• Pricing to influence demand

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Services Promotion

• Consumers rely on personal sources for
  information.
• Must detail what the service is.
• Must communicate benefits.

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Services Placing

• Facility location should be
• a. Close to the customer.
• b. Close to the suppliers.
• c. It depends.

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Think about

• Your really good service experience
• Your really bad service experience

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What factors make a good/ bad service experience?

• Good
• experiences include

• Bad
• experiences include

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Managing Service Quality Perceptions

• Tangibles --
• Price Cues
• Responsiveness-
• Empathy-
• Assurance-

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Managing Aspects of Products Services

• Positioning
• Branding

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POSITIONING

• Definition

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PERCEPTUAL MAPPING

• PAIRWISE COMPARISONS
• MAP SIMILARITY DATA
• e.g., compare
• 1. Pittsburgh 1 2
• 2. Baltimore 1 3
• 3. Los Angeles 2 3

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• Heineken

• Lowenbrau

• Michelob

• Michelob Light

• Coors

• Coors Light

• Bud

• Bud Light

• Strohs

• Miller Light

• Miller

• Natural Light

• Hamms

• Oly Gold

• Rainier

• Hamms Light

• Schlitz Malt Liquor

• Rolling Rock

• Rolling Rock Light

• Generic Light

• Generic

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POSITIONING IMPLICATIONS

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Branding

• Provides the recognition factor for
  products/services
• Brand name-
• Logo (Brand mark)-
• Trademark--

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Selecting a brand name

• Tells about product benefits
• Easy to remember, pronounce, read, and spell
• Can be translated into other languages
• Distinctive in some way

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Brand Strategies

• BRAND EXTENSIONS
• Advantages
• Disadvantages
• NEW BRAND
• Advantages
• Disadvantages
• CO-BRAND (associative branding)

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Branding

• How important is a brand name?
• NOT VERY 1 2 3 4 5 6 7 VERY
• WHY?
• from consumers viewpoint
• from firms viewpoint
• Brand image-- impression consumer has of brand
• Brand loyalty-- commitment and repeat
  purchasing of brand
• Brand equity-- value of brand in marketplace
  financial qualities of brand from
  firms perspective

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BUILDING BRAND LOYALTY

• BRAND RECOGNITION
• BRAND ACCEPTANCE
• BRAND PREFERENCE
• BRAND LOYALTY

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Brand Loyalty Brand Equity

• LEADS TO
• 1.
• 2.
• 3.
• 4.

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Pricing Preparation

• Talk to a small business owner/manager or someone
  in your company who is responsible for
  determining prices.
• Ask the following questions
• 1. How do you set your prices? What things do
  you consider?
• 2. What causes you to change prices? When is
  the last time you changed a price(s)?
• How do you know if the price is right?
• Well talk about this in the next class.