9
kapitola:
PRODUCTS Services and Brands
Katarína Chomová, 2012
MARKETING MIX
PRODUCT ... Apple iPhone, Toyota LandCruisers, CaffĂŠ Mocha at Starbucks...
= anything that can be offered to a market for
attention, acquisition, use or consumption that might satisfy a want or need.
THREE LEVELS OF PRODUCT
CORE = BENEFIT What is the buyer really buying? „In the factory, we make cosmetics, in the store, we sell hope“ CHARLES REVSON of REVLON
FREE DOM ONand T CON HE-GO N TO P ECTIVI TY EOP RESO LE AND URC ES
FORMAL = FEATURES Design, packaging, quality level, brand name...
SERV FEAT ICE URE DESI S, G N , A QU A L IT A BR Y LE VEL, AND NAM PAC E, KAG ING
AUGMENTED = VALUE ADDED Additional consumer services and benefits.
P RO DUC T SUP P OR AFTE T, R-SA LE SERV WAR ICE, RA N TY, DELI VE R Y
PRODUCT ATTRIBUTES BRANDING PACKAGING LABELING PRODUCT SUPPORT SERVICES
PRODUCT ATTRIBUTES
PRODUCT QUALITY = The characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs. „Quality is when our customers come back and our products don´t.“ SIEMENS TQM - Total Quality Management = is an approach in which all of the company´s people are
involved in constantly improving the quality of products, services and business process.
PRODUCT FEATURES = features are a competitive tool for differantiating the company´s product from competitors ´ products. How can a company identify new features and decide which ones to add to its product?
http://youtu.be/BRstTgvY7gg
PRODUCT STYLE and DESIGN Design is a larger concept than style.- it goes to the very heart of a product. Good design contributes to a product´s usefulness as well as to its looks.
Nike employs about 60 designers who come every year with more than 500 footwear design proposals.
http://youtu.be/XgC3zjNH1oU
BRANDING
BRANDING = A name, term, sign, symbol, design, or a combination of these, that identifies the products or services of one seller or group of sellers and differentiates them from those of competitors.
BRAND POSITIONING Attributes- -Benefits- -Beliefs and Values
BRAND NAME SELECTION Selection- -Protection
BRAND SPONSORSHIP Manufacturer´s brand- -Private brand Licensing- -Co-branding
BRAND DEVELOPMENT Line extensions- -Brand extensions Multibrands- -New brands
BRAND NAME SELECTION Brand names come in many styles. A few include: Initialism: A name made of initials such as UPS or IBM Descriptive: Names that describe a product benefit or function like Whole Foods or Airbus Alliteration and rhyme: Names that are fun to say and stick in the mind like Reese's Pieces or Dunkin' Donuts
Evocative: Names that evoke a relevant vivid image like Amazon or Crest Neologisms: Completely made-up words like Wii or Kodak Foreign word: Adoption of a word from another language like Volvo or Samsung Founders' names: Using the names of real people, and founder's name like Hewlett-Packard, Dell or Disney Geography: Many brands are named for regions and landmarks like Cisco and Fuji Film Personification: Many brands take their names from myth like Nike
PACKAGING
PACKAGING = The activities of designing and producing the container or wrapper for a product..
Original packaging company can secure a competitive advantage!
For example, in the average supermarket, which offers 15 to 17,000 items, the typical customer goes through around
300 products per minute and 53% of the purchase is impulsive. In this highly competitive environment can be packing for the seller's last chance to influence the customer. Becoming a 5- second advertisement.
LABELING
LABELING =
describe several things about the productwho made it, where it was made, when it was made, its contests, how it is to be used, and how to use it safely.
PRODUCT SUPPORT SERVICES
PRODUCT SUPPORT SERVICES
= customer service
A company´s offer usually includes some support services, which can be a minor part or a major part of the total offering.
PRODUCT MIX =
• • • •
the set of all product lines and items that a particular seller offers for sale. = has 4 important dimensions: width, length, depth, consistency.
PRODUCT LIFE-CYCLE STRATEGIES Product Life-Cycle, PLC
= the course of a product´s sales and profits over its lifetime. It involves five district stages: Product development, Introduction, Growth, Maturity and decline.
Introduction This is the stage of low growth rate of sales as the product is newly launched in the market. Monopoly can be created, depending upon the efficiency and need of the product to the customers. A firm usually incurs losses rather than profit. If the product is in the new product class, the users may not be aware of its true potential. In order to achieve that place in the market, extra information about the product should be transferred to consumers through various media. The stage has the following characteristics: 1. Low competition 2. Firm mostly incurs losses and not profit.
Growth Growth comes with the acceptance of the innovation in the market and profit starts to flow. As the monopoly still exists manufacturer can experiment with its new ideas and innovation in order to maintain the sales growth. It is the best time to introduce new effective product in the market thus creating an image in the product class in the presence of its competitors who tries to copy or improve the product and present it as a substitute me.the growth of a product is determined on the country of a product.
Maturity In this the end stage of the growth rate, sales slowdown as the product have already achieved it acceptance in the market. So new firms starts experimenting in order to compete by innovating new models of the product. With many companies in the market, competition for customers becomes fierce, even though the increase in the growth rate of sales at the initial part of this stage.
Decline This is the stage where most of the product class usually dies due to the low growth rate in sales. As number of companies starts dominating the market, makes it difficult for the existing company to maintain its sale. Not only the efficiency of the company play an important factor in the decline, but also the product category itself becomes a factor, as market may perceive the product as 'OLD' and may not be in demand.