Product and   Services Strategy Place Strategy
Today’s Learning Objectives <ul><li>Describe the roles of product and service branding, packaging, labelling, and names </...
Course completion <ul><li>Course contract revision and plan for the rest of the semester </li></ul><ul><li>Instead of Mark...
Market Plan Project – Next Steps <ul><li>How is it going ?  </li></ul><ul><li>At this point you should have done the follo...
Marketing Planning <ul><li>What is a goal? </li></ul><ul><li>What is an objective? </li></ul><ul><li>What are typical mark...
<ul><li>Objective:  Statements of desired outcomes resulting from a plan .   </li></ul><ul><li>Strategies:  Outline in bro...
Example <ul><li>Objective: </li></ul><ul><ul><li>To obtain 60% market share of the ketchup market in Canada </li></ul></ul...
Product <ul><li>Evaluate a product in pairs or threes – select one from the box </li></ul>
Levels  of Product Core benefit or service Augmented product Actual Product (features) Core Product (benefits) Installatio...
Exercise on Features and Benefits <ul><li>List five features of your product and a corresponding benefit to the consumer o...
Individual  Product Decisions <ul><li>Product attribute decisions </li></ul><ul><ul><li>Product quality (level and consist...
Individual  Product Decisions  (continued) <ul><li>What are the purposes of a package?  </li></ul><ul><li>Look at your pac...
What is a Brand? <ul><li>A Brand is the use of name, term, symbol, or design or combination of these to identify a product...
Four Brand  Strategies Line Extension -new flavour, size <ul><li>Brand </li></ul><ul><li>Extension </li></ul><ul><li>Using...
Brand names should: <ul><li>Suggest something about the product </li></ul><ul><li>Be easy to pronounce, recognize, and rem...
Brand Equity Brand  association Brand  loyalty Brand  awareness Perceived  quality Source: Reprinted with permission of Th...
Kotler’s 5 Dimensions that make a strong brand <ul><li>Should bring to mind certain attributes such as product's features ...
Brand Loyalty   <ul><li>Four levels  </li></ul><ul><ul><li>Unknown (consumers are unaware of it) </li></ul></ul><ul><ul><l...
Characteristics   of Services Intangibility Cannot be seen, tasted, felt or smelled before purchasing  Variability Service...
Westjet  <ul><ul><li>Discuss the marketing strategies that Westjet uses to handle these 4 characteristics of services </li...
3 Main Marketing Tasks   for Services <ul><ul><li>Service differentiation – provide value to customers </li></ul></ul><ul>...
Recommended Reading <ul><li>by Harry Beckwith </li></ul><ul><ul><li>“ Selling the Invisible”  </li></ul></ul><ul><ul><li>“...
Break
Why is NPD so important? <ul><ul><li>Follow changing market demands  </li></ul></ul><ul><ul><li>Remain competitive </li></...
The New Product   Adoption Process <ul><li>Adoption process </li></ul><ul><ul><li>The mental process through which an indi...
New Product   Adoption Rates Time of adoption of innovations 2.5% Innovators 34% Early majority 34% Late majority Early ad...
Influences on the  Rate of Adoption <ul><li>Five characteristics influence the rate of adoption of new product innovations...
Product Life-Cycle  Strategies Profits Sales Development Introduction Growth Maturity Decline Sales Profit ($) Loss ($) Fi...
Summary of  PLC/Marketing Mix Table 9-2
Product Section of Project Plan <ul><li>Product positioning strategy  – include a positioning statement </li></ul><ul><li>...
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Product services place_strategy

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  • Now that we have learned about overall strategy – ,determined a business opportunity, selected target markets and a positioning we will delve into the marketing mix and look at the tactical tools that marketers use to implement their strategies.
  • Handout and explain revised course contract. Take attendance. Ask them how they feel about this and try to make them feel positive about being successful.
  • BE is the positive differential effect that knowing the brand name has on customer response to the to the product/service. A measure of equity ti the extent to which a customer is willing to pay more for the product. Brand valuation can be an asset on a Balance sheet Coca cola estimated to be worth $69 billion US Brand equity is an intangible asset, which must be carefully managed to protect its value Used for product and line extensions Brand equity is also based on: Patent protection Trademark copyrights – need to register in every country Channel relationships
  • Brand marketers must develop all five factors to make a brand robust. Consumers are becoming more value sensitive. When they buy on price they do so as they Feel there is little difference in the lower and higher priced products. To command a higher price you need to create and communicate value though features, style and added benefits. Don’t forget the 3 kinds of buyers – only 2 types are value conscious The strictly price conscious The buyer who will pay a little more for better quality or service but up to a limit The buyer who wants the best quality and service Source: According to Kotler
  • The other level is rejection
  • Canada is a service economy – about 70% of our GDP and growing So need to market differently Intangible – need to send signals about service quality – e.g. storefront, uniforms. Logo etc Insparablity – provider and customer interaction Variability – training, consistency procedures Perishability- off season process
  • Answers: Intangibility – advertising, signs, uniforms, the planes décor Perishability – lower fares for non peak times Inseparabiltiy – well trained and motivated staff who are committed to giving customers a great service- employee ownership Variablity – extnsive trainng, procedures manuals
  • Services marketing involves a lot of internal marketing.
  • Product services place_strategy

    1. 1. Product and Services Strategy Place Strategy
    2. 2. Today’s Learning Objectives <ul><li>Describe the roles of product and service branding, packaging, labelling, and names </li></ul><ul><li>Identify the four characteristics that affect the marketing of a service & discuss the additional marketing considerations that services require </li></ul><ul><li>Identify the typical marketing strategies marketers apply for products in the different stages of the product Life Cycle </li></ul>
    3. 3. Course completion <ul><li>Course contract revision and plan for the rest of the semester </li></ul><ul><li>Instead of Marketing News Presntations – just hand in your article and short write up. Due by week of April 10 th . May hand in earlier. </li></ul>
    4. 4. Market Plan Project – Next Steps <ul><li>How is it going ? </li></ul><ul><li>At this point you should have done the following: </li></ul><ul><ul><li>Conduct your SWOT as a group </li></ul></ul><ul><ul><li>Rethink and finalize your concept/product idea in light of your research and SWOT & creativity exercises </li></ul></ul><ul><ul><li>Set marketing objectives – these are one year objectives so they need to be SMART </li></ul></ul><ul><ul><li>Select your primary and secondary target market – describe them – their need, characteristics, purchasing/usage habits related to your category </li></ul></ul><ul><ul><li>Develop your market positioning strategy – write a positioning statement </li></ul></ul>
    5. 5. Marketing Planning <ul><li>What is a goal? </li></ul><ul><li>What is an objective? </li></ul><ul><li>What are typical marketing objectives related to? </li></ul><ul><li>Marketing objectives can include: </li></ul><ul><ul><li>Sales, profit, market share, ROI </li></ul></ul><ul><ul><li>Awareness, trial, purchase, repeat purchase, attitude </li></ul></ul><ul><ul><li>Distribution coverage </li></ul></ul><ul><ul><li>Marketing promotion efficiency targets, e.g. response rates </li></ul></ul>
    6. 6. <ul><li>Objective: Statements of desired outcomes resulting from a plan . </li></ul><ul><li>Strategies: Outline in broad-strokes how the objectives will be achieved. </li></ul><ul><li>Plans: All the specific details needed to execute the strategies. </li></ul>Objectives, Strategies and Plans
    7. 7. Example <ul><li>Objective: </li></ul><ul><ul><li>To obtain 60% market share of the ketchup market in Canada </li></ul></ul><ul><li>Strategies: </li></ul><ul><ul><li>1. Promotion - By maintaining brand awareness via year round TV promotion support </li></ul></ul><ul><ul><li>2. Product-By launching a new package format </li></ul></ul><ul><ul><li>3. Distribution -By supporting the retail network with innovative category management systems </li></ul></ul><ul><li>Plans: for Promotion– ad creative plan, media plan & schedule </li></ul>
    8. 8. Product <ul><li>Evaluate a product in pairs or threes – select one from the box </li></ul>
    9. 9. Levels of Product Core benefit or service Augmented product Actual Product (features) Core Product (benefits) Installation Warranty After-sale service Delivery and credit Packaging Brand name Features Quality level Design Figure 8-1
    10. 10. Exercise on Features and Benefits <ul><li>List five features of your product and a corresponding benefit to the consumer of each feature </li></ul><ul><li>A feature is something about the product- it colour, design, materials it is made from etc </li></ul><ul><li>A Benefit is what the product does for the customer </li></ul>
    11. 11. Individual Product Decisions <ul><li>Product attribute decisions </li></ul><ul><ul><li>Product quality (level and consistency), features, style and design </li></ul></ul><ul><li>Product Brand Name Decisions </li></ul><ul><ul><li>Brand equity, line and brand extensions, manufacturer’s versus private brands, licensing, co-branding </li></ul></ul><ul><li>Packaging Roles </li></ul><ul><ul><li>Protect contents, identify and promote the product and brand, be a self merchandiser </li></ul></ul><ul><ul><li>Labelling - Ingredients, directions for use, identify and promote </li></ul></ul><ul><li>Product support services </li></ul><ul><ul><li>Repair and maintenance, accessories </li></ul></ul>
    12. 12. Individual Product Decisions (continued) <ul><li>What are the purposes of a package? </li></ul><ul><li>Look at your package and discuss at least 3 purposes it serves. </li></ul><ul><li>Is there any competitive advantage in the package you are studying? </li></ul>
    13. 13. What is a Brand? <ul><li>A Brand is the use of name, term, symbol, or design or combination of these to identify a product </li></ul><ul><li>Why brand a product or service? </li></ul><ul><ul><li>By creating perceived differences among products and developing a loyal customer franchise through branding, marketers create “ value “ </li></ul></ul>
    14. 14. Four Brand Strategies Line Extension -new flavour, size <ul><li>Brand </li></ul><ul><li>Extension </li></ul><ul><li>Using the name </li></ul><ul><li>in a new category </li></ul>Multibrands New Brands Existing New Brand name Existing New Product category Figure 8-4
    15. 15. Brand names should: <ul><li>Suggest something about the product </li></ul><ul><li>Be easy to pronounce, recognize, and remember </li></ul><ul><li>Be distinctive </li></ul><ul><li>Be extendable </li></ul><ul><li>Translate to other languages </li></ul><ul><li>Be capable of registration and legal protection </li></ul>
    16. 16. Brand Equity Brand association Brand loyalty Brand awareness Perceived quality Source: Reprinted with permission of The Free Press, a Division of Simon & Schuster Adult Publishing Group, from Brand Leadership, by David A. Aaker and Erich Joachimsthaler, p. 17. Copyright © 2000 by David A. Aaker andErich Joachimsthaler. 10-11 Brand Equity
    17. 17. Kotler’s 5 Dimensions that make a strong brand <ul><li>Should bring to mind certain attributes such as product's features or style </li></ul><ul><li>Should suggest one or more benefits e.g. Apple's user friendliness </li></ul><ul><li>Should be able to visualize the brand’s characteristics as if the brand were a person. E.g. Apple would be in his 20”s, IBM in his 60’s </li></ul><ul><li>Should suggest something about a company's values? Is it innovative, a service icon or socially conscious? </li></ul><ul><li>Suggests a picture of the brands users- are they young and enthusiastic? Are they a family? Are they older and established? </li></ul>
    18. 18. Brand Loyalty <ul><li>Four levels </li></ul><ul><ul><li>Unknown (consumers are unaware of it) </li></ul></ul><ul><ul><li>Familiarity (recognize name and some image) </li></ul></ul><ul><ul><li>Preference (will choose it if it is available) </li></ul></ul><ul><ul><li>Insistence (will accept no alternatives and will search extensively for it) </li></ul></ul><ul><li>What is the other level? </li></ul>
    19. 19. Characteristics of Services Intangibility Cannot be seen, tasted, felt or smelled before purchasing Variability Service quality depends on who provides and under what conditions Inseparability Production and, consumption, and from the provider Perishability Cannot be stored, for resale or later use Figure 8-5
    20. 20. Westjet <ul><ul><li>Discuss the marketing strategies that Westjet uses to handle these 4 characteristics of services </li></ul></ul><ul><ul><li>Intangibility </li></ul></ul><ul><ul><li>Perishability </li></ul></ul><ul><ul><li>Inseparability </li></ul></ul><ul><ul><li>Variablility </li></ul></ul>
    21. 21. 3 Main Marketing Tasks for Services <ul><ul><li>Service differentiation – provide value to customers </li></ul></ul><ul><ul><li>Service quality- internal management philosophy and employee satisfaction </li></ul></ul><ul><ul><li>Productivity – efficiency and cost effectiveness </li></ul></ul>
    22. 22. Recommended Reading <ul><li>by Harry Beckwith </li></ul><ul><ul><li>“ Selling the Invisible” </li></ul></ul><ul><ul><li>“ What Clients Love ” </li></ul></ul><ul><li>“Raving Fans” – Kenneth Blanchard </li></ul>
    23. 23. Break
    24. 24. Why is NPD so important? <ul><ul><li>Follow changing market demands </li></ul></ul><ul><ul><li>Remain competitive </li></ul></ul><ul><ul><li>Keep up to changing technology </li></ul></ul><ul><ul><li>Replace dying products </li></ul></ul><ul><ul><li>Diversify product offering to reduce risk </li></ul></ul>
    25. 25. The New Product Adoption Process <ul><li>Adoption process </li></ul><ul><ul><li>The mental process through which an individual passes from first hearing about an innovation to final adoption </li></ul></ul><ul><ul><li>Not all consumers want to risk trying new products when they are first introduced </li></ul></ul><ul><li>Stages in the process </li></ul><ul><ul><li>Awareness </li></ul></ul><ul><ul><li>Interest </li></ul></ul><ul><ul><li>Evaluation </li></ul></ul><ul><ul><li>Trial </li></ul></ul><ul><ul><li>Adoption </li></ul></ul>
    26. 26. New Product Adoption Rates Time of adoption of innovations 2.5% Innovators 34% Early majority 34% Late majority Early adopters 13.5% 16% Laggards Source: reprinted with permission of the Free Press, a Division of Simon & Schuster, from Diffusion of Innovations, Fourth Edition, by E.M. Rugers, 1983. Figure 6-5
    27. 27. Influences on the Rate of Adoption <ul><li>Five characteristics influence the rate of adoption of new product innovations: </li></ul><ul><ul><li>Relative advantage </li></ul></ul><ul><ul><ul><li>How much better than existing alternatives? </li></ul></ul></ul><ul><ul><li>Compatibility </li></ul></ul><ul><ul><ul><li>Fit current values and experiences? </li></ul></ul></ul><ul><ul><li>Complexity </li></ul></ul><ul><ul><ul><li>Ease of understanding? </li></ul></ul></ul><ul><ul><li>Divisibility/Trialability </li></ul></ul><ul><ul><ul><li>Can it be tried on a limited basis? </li></ul></ul></ul><ul><ul><li>Communicability </li></ul></ul><ul><ul><ul><li>Can the innovation be observed and communicated? </li></ul></ul></ul>
    28. 28. Product Life-Cycle Strategies Profits Sales Development Introduction Growth Maturity Decline Sales Profit ($) Loss ($) Figure 9-2
    29. 29. Summary of PLC/Marketing Mix Table 9-2
    30. 30. Product Section of Project Plan <ul><li>Product positioning strategy – include a positioning statement </li></ul><ul><li>Core benefit/competitive advantage </li></ul><ul><li>Features – packaging, features, added benefits </li></ul><ul><li>Brand name(s) & rationale </li></ul>

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