product is connected to
connected to the target market and positioning
the marketing mix
product
price
promotion
place
Three competitive market strategies:
-Build a better product at the market price.
-Build the same product at a lower price.
-Create a monopoly through a customer franchise.
(product better or price is better)
define a product
Anything offered to a market for attention, acquisition, use or consumption that might satisfy a want or a need
products can be
- physical goods
- servies
- experience
define FMCG's
Fast-moving Consumer Goods (FMCG).
define durable products
Products that are used over an extended period are known as durable products.
define event marketing
Combines elements of marketing physical products with those of services, particularly the experiential aspects of sporting, entertainment and other staged events delivered over a period of time.
define person marketing
Developing and building a high profile of an individual to generate $'s
define political marketing
Marketing of the politician or political messages
define cause-related marketing (social marketing)
Marketing an idea or social cause, such as nuclear-free living or not drinking alcohol and driving or catching public transport to and from work.
define Not-for-profit Marketing
Involves activities by organisations not motivated by profit which ultimately lead to a donation, bequest or some other contribution.
define experiences marketing
Where the consumer is actively involved
- theme parks
- bridge climb
- holiday resort
components of a total product
1. core product
2. actual product
3. augmented product
what is a core product
inner layer
The core product, which addresses the question: What is the buyer really buying?
what needs are being satisfied (airplanes = transport)
in which level of the core product do you see product differentiation
at the augmented level
what is the actual product?
second layer
(begin to see the brand)
Actual products may have as many as five characteristics: a quality level, features, styling, a brand name, & packaging.
what is the augmented product?
outer/last layer
Augmented product, additional consumer services and benefits built around the core and actual products.
eg. free delivery, warranty, installation
define product differentiation
the process of adding meaningful and valued differences to distinguish the product from the competition.
how can products be differentiated
1. Product - quality, features, attribute, customisation, assortment.
2. Services - anytime delivery, customer service, support and after sales service.
3. Personnel - charm and uniqueness of the organisation's 'face' and people.
4. Channel - location, av
define service
Service organisations 'Offer their customers something that is essentially intangible: the interaction does not result in the ownership of anything that endures'.
unique characteristics of a service
-
intangible
(it does not have physical properties)
-
inseparability
(the production and the consumption happens at the same time)
-
variable
(people are not machines, not consistent, not standardised)
-
perishable
(because its intangible you cannot store
industrial products types
material and parts
capital items
supplies and services
consumer product classifications
1. convenience products
2. shopping
3. specialty products
4. unsought goods
Copeland's classification of goods
- negative exponential curve (top going down and slowing down at the bottom)
- price on vertical axis, quantity on horizontal
-speciality (top price)
-shopping
-convenience (bottom quantity)
different catergories of goods call for different marketing strategies
convenience
= undifferentiated (cost leadership), habitual or variety seeking buying behaviour
shopping
= differentiated, dissonance-reducing or complex buying behaviour
speciality
= concentrated (focus), complex buying behaviour
define convenience goods
Convenience goods are those with which the consumer is familiar and 'as soon as s/he recognises the want, the demand becomes clearly defined in his mind. Furthermore, s/he usually desires the prompt satisfaction of the want'.
define shopping goods
'Shopping goods are those for which the consumer desires to compare prices, quality and style at the time of purchase'.
define speciality goods
'Specialty goods are those which have some particular attraction for the consumer, other than price (therefore are superior, unusual, distinctive or unique), which induces her/him to put forth special effort to visit the store in which they are sold and t
define unsought products
Customer buying behaviour: little product awareness, knowledge or if aware little or even negative interest.
Examples: life insurance, Red Cross blood donations
product decisions
1. product attributes
2. branding
3. packaging
4. labeling
5. product support
define product line
-Group of related products offered by a firm
-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 gi
define product mix
-Entire product range offered by a firm
-the set of all product lines and items that a particular seller offers for sale to buyers
define brand
A brand is a name term, sign, symbol or design, or a combination of these, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitor.
four levels of brand meaning
- Attributes A brand first brings to mind certain product attributes.
- Benefits Customers do not buy attributes, they buy benefits. Therefore, attributes must be translated into functional and emotional benefits.
- Values A brand also says something abou
brand name selection
- It should suggest something about the product's benefits and qualities.
- It should be easy to pronounce, recognise and remember.
- The brand name should be distinctive.
- The name should translate easily into foreign languages. The name should be capab
define brand equity
Brand equity Is the
value of the brand
based on the extent to which it has high brand loyalty, name awareness, perceived quality, strong brand associations and other assets such as patents, trademarks and channel relationships. Goodwill associated with th
brand equilty benefits to the firm
- more customers
- charge higher prices
- easier to get retailers placement
- greater customer loyalty
- easier to implement sales and promotions
- more successful brand and line extensions
Types of Brands
- Manufacturer or national brands
- Distributor or private brands
- Generic brand
- Co-branding
- Licensing
define licensing
- a legal agreement allowing an organisation to use the trademark of another organisation
eg. allowing someone else to use your brand, disney
define co-branding
the use of two individual brands on a single product.
eg. credit cards, telstra-visa, prada-LG phone,
define generic brands
carries neither a manufacturer nor a distributor
eg. woolwoths home brand, franklins no frills
define distributer/private brands
a brand owned by retailers or other intermediaries. Intended to build loyalty toward the firm.
eg. Woolworths macro, Myer brands
define manufacturer brands
Manufacturer or national brands - a brand owned by the maker of the product. Intended to create customer loyalty toward the products of a particular manufacturer.
eg. kelloges, car brands
brand development strategy
-
line extension
(existing brand name, existing product category)
-
brand/category extension
(existing brand name, new product category)
-
multibrands
(new brand name, existing product category)
-
new brands
(new brand name, new product category)
define product category
A product category is a grouping of products, often at retail level, which may be substituted for each other or which in some way supplement each other.
functions of packaging
-Containment & protection
-Facilitates storage & usage
-As a form of identity & differentiation
-As a promotional function
define labeling
- Regulated by federal and state laws.
- The paper or plastic sticker attached to a container that carries product information.
- Carries the brand name, information about the contents of the package, instructions, information relating to safe & proper us