MARKETING MANAGEMENT Topic 10 Product Strategy, Planning and development
MARKETING MANAGEMENT Topic 10 Product Strategy, Planning and Development
Outline ·The“Tota| Product” Classifying Products Product mix Packaging and Warranties New Product Development
Outline • The “Total Product ” • Classifying Products • Product Mix • Packaging and Warranties • New Product Development
L. Products Product is anything that can be offered to a market to satisfy a want or need
I. Products Product is anything that can be offered to a market to satisfy a want or need
The“Tota| Product Potential product Augmented product Expected product Basic product Core benefit
The “Total Product” Potential product Augmented product Expected product Basic product Core benefit
Benefits of the augmented product Convenient Storage Confidence Romance Flip top White Teeth package Brand Good Taste Fresh breath Core Flaⅴor Close Up Product-- Close Up 800 help\Toothpaste ph none Tartar Control Safety Ine Fluoride Cleaner Teeth Lower dental Bills
Benefits of the Augmented Product Core Product-- Close Up Toothpaste Flip top package Brand Name-- Close Up 800 help phone line Fluoride Flavor Tartar Control Social Confidence; Romance; White Teeth Safety Lower Dental Bills Cleaner Teeth Good Taste Fresh Breath Convenient Storage
lI. Classifying Products End Use markets 1. Agricultural Products Raw Materials 2. Organizational goods 3. Consumer Goods
II. Classifying Products End Use Markets: 1. Agricultural Products & Raw Materials 2. Organizational Goods 3. Consumer Goods
Agricultural Raw Materials For example: Ingredients(zinc, pig iron, cotton) Rather Homogeneous Sold in bulk Low value per unit
Agricultural & Raw Materials • For example: Ingredients (zinc, pig iron, cotton) – Rather Homogeneous – Sold in bulk – Low value per unit
Organizational Products Manufactured materials and component parts e.g., electrical resistors, screws, electric motors Process materials: used in production, not part of finished product e.g. chemicals Installations: primary production equipment and major capital items e.g. buildings, computer hardware, assembly lines Accessory equipment e.g. word processors, trucks Operating Supplies: facilitate routine operations e.g. writing paper, hand tools Services: work provided by others e.g. maintenance, repairs
Organizational Products • Manufactured materials and component parts: – e.g., electrical resistors, screws, electric motors • Process materials: used in production, not part of finished product – e.g. chemicals • Installations: primary production equipment and major capital items – e.g. buildings, computer hardware, assembly lines • Accessory equipment – e.g. word processors, trucks • Operating Supplies: facilitate routine operations – e.g. writing paper, hand tools • Services: work provided by others – e.g. maintenance, repairs
Consumer goods 1. Based on Durability/Tangibility Classification SHOVEL RESTAURANT INSURANCE GOOD GOOD/SERVICE SERVICE
Consumer Goods 1. Based on Durability/Tangibility Classification SHOVEL RESTAURANT RESTAURANT INSURANCE INSURANCE GOOD GOOD/SERVICE SERVICE
Consumer goods 2. Based on CoNSUMERS Interest Convenience Shopping Specialt Products Products Products 8 LoW Willingness to Expend Effort for Product HIGH
Consumer Goods 2. Based on CONSUMER ’S Interest Convenience Products Shopping Products Specialty Products LOW Willingness to Expend Effort for Product Willingness to Expend Effort for Product HIGH