Product strategy

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Product strategy

  1. 1. Chapter Eight Product, Services, and Brands: Building Customer Value Chapter 8 - slide 1
  2. 2. Products, Services, and Branding Strategy Topic Outline • What Is a Product? • Product and Services Decisions • Branding Strategy: Building Strong Brands • Services Marketing Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 8 - slide 2
  3. 3. What Is a Product? Products, Services, and Experiences A Product is anything that can be offered in a market for attention, acquisition, use, or consumption that might satisfy a need or want Experiences represent what buying the product or service will do for the customer Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 8 - slide 3
  4. 4. What Is a Product? Levels of Product and Services Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 8 - slide 4
  5. 5. What Is a Product? Product and Service Classifications Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 8 - slide 5
  6. 6. What Is a Product? Product and Service Classifications • Consumer products are products and services for personal consumption • Classified by how consumers buy them – – – – Convenience products Shopping products Specialty products Unsought products Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 8 - slide 6
  7. 7. What Is a Product? Product and Service Classifications Convenience products are consumer products and services that the customer usually buys frequently, immediately, and with a minimum comparison and buying effort • Newspapers • Candy • Fast food Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 8 - slide 7
  8. 8. What Is a Product? Product and Service Classifications Shopping products are consumer products and services that the customer compares carefully on suitability, quality, price, and style • Furniture • Cars • Appliances Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 8 - slide 8
  9. 9. What Is a Product? Product and Service Classifications Specialty products are consumer products and services with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort • Medical services • Designer clothes • High-end electronics Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 8 - slide 9
  10. 10. What Is a Product? Product and Service Classifications Unsought products are consumer products that the consumer does not know about or knows about but does not normally think of buying • Life insurance • Funeral services • Blood donations Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 8 - slide 10
  11. 11. What Is a Product? Product and Service Classifications Industrial products are products purchased for further processing or for use in conducting a business • Classified by the purpose for which the product is purchased – Materials and parts – Capital – Raw materials Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 8 - slide 11
  12. 12. What Is a Product? Product and Service Classifications Capital items are industrial products that aid in the buyer’s production or operations Materials and parts include raw materials and manufactured materials and parts usually sold directly to industrial users Supplies and services include operating supplies, repair and maintenance items, and business services Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 8 - slide 12
  13. 13. What Is a Product? Organizations, Persons, Places, and Ideas Organization marketing consists of activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward an organization Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 8 - slide 13
  14. 14. What Is a Product? Organizations, Persons, Places, and Ideas Person marketing consists of activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward particular people Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 8 - slide 14
  15. 15. What Is a Product? Organizations, Persons, Places, and Ideas Place marketing consists of activities undertaken to create, maintain, or change attitudes and behavior of target consumers toward particular places Social marketing is the use of commercial marketing concepts and tools in programs designed to influence individuals’ behavior to improve their well-being and that of society Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 8 - slide 15
  16. 16. Product and Service Decisions Individual Product and Service Decisions Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 8 - slide 16
  17. 17. Product and Service Decisions Individual Product and Service Decisions • • • Product attributes are the benefits of the product or service Quality Features Style and design Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 8 - slide 17
  18. 18. Product and Service Decisions Individual Product and Service Decisions Product quality includes level and consistency • Quality level is the level of quality that supports the product’s positioning • Conformance quality is the product’s freedom from defects and consistency in delivering a targeted level of performance Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 8 - slide 18
  19. 19. Product and Service Decisions Individual Product and Service Decisions Product features are a competitive tool for differentiating a product from competitors’ products Product features are assessed based on the value to the customer versus the cost to the company Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 8 - slide 19
  20. 20. Product and Service Decisions Individual Product and Service Decisions Style describes the appearance of the product Design contributes to a product’s usefulness as well as to its looks Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 8 - slide 20
  21. 21. Product and Service Decisions Individual Product and Service Decisions Brand is the name, term, sign, or design—or a combination of these—that identifies the maker or seller of a product or service Brand equity is the differential effect that the brand name has on customer response to the product and its marketing Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 8 - slide 21
  22. 22. Product and Service Decisions Individual Product and Service Decisions Packaging involves designing and producing the container or wrapper for a product Labels identify the product or brand, describe attributes, and provide promotion Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 8 - slide 22
  23. 23. Product and Service Decisions Individual Product and Service Decisions Product support services augment actual products Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 8 - slide 23
  24. 24. Product and Service Decisions Product Line Decisions A product line is a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 8 - slide 24
  25. 25. Product and Service Decisions Product Line Decisions • • Product line length is the number of items in the product line Line stretching Line filling Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 8 - slide 25
  26. 26. Product and Service Decisions Product Mix Decisions • • • • Product mix consists of all the products and items that a particular seller offers for sale Width Length Depth Consistency Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 8 - slide 26
  27. 27. Branding Strategy: Building Strong Brands Brand Development Strategies Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 8 - slide 27
  28. 28. Product Life-Cycle Strategies Product Life Cycle Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 8 - slide 28
  29. 29. Product Life-Cycle Strategies • Product development – Sales are zero and investment costs mount • Introduction – Slow sales growth and profits are nonexistent • Growth – Rapid market acceptance and increasing profits. • Maturity – Slowdown in sales growth and profits level off or decline • Decline – Sales fall off and profits drop Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 8 - slide 29
  30. 30. Product Life-Cycle Strategies Fads are temporary periods of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 8 - slide 30
  31. 31. Product Life-Cycle Strategies Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 8 - slide 31
  32. 32. Product Life-Cycle Strategies Introduction Stage • Slow sales growth • Little or no profit • High distribution and promotion expense Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 8 - slide 32
  33. 33. Product Life-Cycle Strategies Growth Stage • • • • • • Sales increase New competitors enter the market Price stability or decline to increase volume Consumer education Profits increase Promotion and manufacturing costs gain economies of scale Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 8 - slide 33
  34. 34. Product Life-Cycle Strategies Maturity Stage • • • • • Slowdown in sales Many suppliers Substitute products Overcapacity leads to competition Increased promotion and R&D to support sales and profits Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 8 - slide 34
  35. 35. Product Life-Cycle Strategies Maturity Stage Modifying Strategies • Market modifying • Product modifying • Marketing mix modifying Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 8 - slide 35
  36. 36. Product Life-Cycle Strategies • Maintain the product • Harvest the product • Drop the product Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 8 - slide 36
  37. 37. Product Life-Cycle Strategies Summary of Product Life Cycle Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter 8 - slide 37

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