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Chapter Three Marketing Mix:: Product

This chapter discusses the marketing mix element of product. It covers product levels, challenges in creating new products, why new products fail, and the new product development process. It also discusses product classification into consumer and industrial products. The chapter explores product mix, characteristics to innovate, brand decisions, brand strategy, packaging, and labeling.

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Tesfahun tegegn
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31 views

Chapter Three Marketing Mix:: Product

This chapter discusses the marketing mix element of product. It covers product levels, challenges in creating new products, why new products fail, and the new product development process. It also discusses product classification into consumer and industrial products. The chapter explores product mix, characteristics to innovate, brand decisions, brand strategy, packaging, and labeling.

Uploaded by

Tesfahun tegegn
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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CHAPTER THREE
MARKETING MIX:

PRODUCT
PRODUCT

• Anything that can be offered to market for attention,


acquisition, use, or consumption that might satisfy want or
need
PRODUCT LEVELS

• Three levels
• Core customer value: the service or benefit the customer is really buying
• Actual product: the product the customers possess
• augmented product: Additional customer service and benefit
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MARKETING MIX: PRODUCT
• Challenges in creating new products
• idea shortage;
• fragmented markets
• social & governmental constraints;
• cost
• capital shortage;
• need for speed;
• short PLC

• Why new products fail


• overestimated demand;
• poor design
• poor marketing execution;
• high development costs
• strong competitive reaction
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MARKETING MIX: PRODUCT
• New Product Development Process
• idea generation & screening
• concept development and testing
• marketing strategy development
• business analysis
• product development
• market testing
• commercialization
MARKETING MIX: PRODUCT CLASSIFICATION

• Based on the type of consumers that use them there are two
types
• consumer products and
• industrial products
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CONSUMER PRODUCTS

• Convenience products
• low priced, many locations, bought frequently
• Specialty products
• special purchase effort, unique, brand identification
• exclusive distribution
• Shopping products
• Bought on suitability, quality, price and style
• Unsought products
• New innovation, requires advertising and selling
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MARKETING MIX: PRODUCT MIX
• Product Line:
• Group of products within product class that are closely related
• Width
• number of different product lines
• Length
• total number of items within the lines
• Depth
• number of versions of each product
• Consistency:
• How many related various product lines are in terms of:
o End use or,
o Distribution channel or,
o Production requirement.
o Example: Reliance, LG electronics
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NEW PRODUCT DEVELOPMENT

• What characteristics do you innovate


• location,
• flavor,
• price,
• size,
• experience
• ?????????
BRAND DECISIONS:

• • A Brand is a name/ term/ sign/symbol design or combination of them intended to identify the
good/services/ ideas of one seller /group of sellers & to differentiate them from these of competition.
• Essentially, Brand identifies seller/maker.
• It can be a name/ trademark/logo/symbol.
• As per law, seller is granted exclusive rights to the use of the brand name in perpetuity
i.e. there is no expiry date.
• A brand is essentially a seller’s promise to consistently deliver what it stands for to the
buyer. This is to meaning to consumers.
• A Brand may convey up to 6 levels of meaning:
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BRAND STRATEGY

• With existing brand name


• use brand extensions or develop a new brand name.

• With existing product category


• use line extensions with existing brands or develop multiple brands

• Good brand names:


• suggest product qualities or benefits
• are distinctive, but easy to pronounce and remember
• lack poor foreign language meanings
PACKAGING:
Packaging:
• Packaging includes the activities of designing a product (the container/wrapper for a product).
• Container/wrapper is called the Package.
Package could be:
Primary: Old spice after shave bottle (P&G).
Secondary: Cardboard box.
Shipping: Corrugated box of 6 dozen Old Spice
Well designed packages created for:
o Consumer: Convenience value.
o Producer: Promotional value.
• Various factors have contributed to packaging’s increasing used as a marketing tool.
These are
o Self Service:
In many outlets today, self service is growing in importance hence good
packaging is important in order to:
• Attract Attention.
• Describe product/ product feature.
• Create consumer’s confidence.
• Make favorable overall impression.
Consumer Affluence:
With increase affluence, consumers are willing to pay a little more for convenience/ appearance/ dependability/ prestige of better
packaging.
Company Brand/ Image:
Well designed packaging has the power of instant co./ brand recognition
o Innovation packaging:
Innovative packaging can bring benefits to consumer & profits to companies.
LABELING:
• Labeling:
• Labeling is a subset of packaging.
• Labels are mandatory for package products.
• Labels could range from a single tag attached to a product, to an elaborately designed
graphic that is part of packaging.
• Function of Label could be:
Identify product.
Describe product.
Grade product.
Promote product.
• END OF
CHAPTER THREE

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