Mark1012 Lecture 6 and 7 Slides

Marketing Fundamentals: Razzaque
Lectures 6-7: All about products
MARKETING MIX ELEMENTS - 1

ALL ABOUT PRODUCTS
MARKETING MIX .
refers to the marketing elements that help
marketers position their market offer.
Producer oriented: 4Ps
Consumer oriented: 4Cs
Product
Price
Promotion
Place
Commodity
Cost
Communication
Channel
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MARKETING MIX FOR PRODUCTS [GOODS]
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MARKETING MIX FOR PRODUCTS [SERVICES]
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Lecture Objectives
Define the term product and describe the nature of

product in marketing management.
Explain product and service classifications

Outline the range of individual product decisions
discussing various product attributes.
Discuss branding.
Explain product line and product mix decisions.
Describe new product development strategies
Explain Product Life Cycle.
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Products:
Bundles of Benefits in the form of Goods and Services
Goods
(Tangible
Product)
Any tangible object/thing that can be offered to

a market for attention, acquisition, use, or
consumption that might satisfy a want or need.
Broadly defined as products.
Also include events, persons, places, organisations,
ideas, or mixes of these.
SERVICES
(Intangible
Product)
A product in the form of an activity, benefit or

satisfaction that one party can offer to another
that is essentially intangible and does not result
in the ownership of anything.
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Products and Services Continuum

There is nothing called pure product or pure service
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Three Product Levels

Augmented Product
Installation
Packaging
Brand
Name
Delivery
& Credit
Quality
Core
Benefit
or
Service
Features
Styling
AfterSale
Service
Warranty
Core Product
Actual Product
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Product Levels
Core Product: the basic use benefit, problem solving dimension that
makes the purchased product valuable to consumer.
Actual Product: the tangible, physical product (or intangible service)
that we buy to receive the core product benefits.
Has 5 characteristics:
Quality Level refers to product performance.
Features include combinations of product attributes.
Styling consists of products design and aesthetic or ergonomic aspects.
Brand Name may help consumers position and identify the product.
Packaging serves to both protect the product and to promote it to
consumers.
Augmented Product: the non physical part of the product that adds
value to the product purchased. [e.g.; credit, delivery, installation,
warranties, and after sale service]
help the consumer put the actual product to sustained use.
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Product Levels: QANTAS

Augmented Product
Qantas Club
Tours
Holliday
Packages
Fly-drive
packages
Seat
allocation
Inflight
Services
Meals
Time
Critical
Transportation
Booking
System
Safety
Record
Hertz
Car
Rental
Booking
Schedules
Frequent Flyer Scheme

Core Product
Actual Product
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Consumer Product Classifications
Consumer products are those bought by final

consumers for personal consumption.
Convenience
Products (i) purchased
frequently with (ii) a minimum
of comparison and buying
effort. Examples
are staples, impulse, emergency
Shopping
Types of
Consumer
Products
Unsought
Goods
Products are compared on

such bases as suitability,
quality, price, and style.
Specialty
Products with (i) unique characteristics
or identification with buyers and (ii)
are specifically sought by the consumer.
Products unknown to the buyer or not

normally considered for purchase;
require special marketing effort.
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Classification of consumer goods
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Industrial Products
are goods purchased by individuals and organisations for
(i) further processing or for (ii) use in conducting a business.
differ from consumer goods in terms of the purpose of use.
can be classified in three groups according to how they enter the
production process and what they cost.
o Materials and parts: Includes raw materials and manufactured materials
and parts that enter the manufacturers product completely. Usually are
bulky and low priced.
o Capital items: Goods and services that enter the finished product partly,
including installations (buildings and fixed equipment ) and accessory

equipment (portable factory equipment and tools, office equipment). Do
not become part of the finished product, but aid in the production process.
o Supplies and services: Goods and services that do not enter the finished
product at all (e.g., maintenance and repair services, advisory services).
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Extending the Goods and Services Classification in Marketing

Person marketing: Relates to creation,
maintainance or change the attitudes
and behaviour toward particular
people (celebrities, sports stars,
politicians , and business leaders e.g.,
Angelina Jolie; Tiger Woods; Kevin
Rudd; Bill Gates.
Ideas such as political policies and
environmental and social causes can
also be marketed.
Social marketing: Use of marketing
concepts and tools in programs
designed to bring about social change.
(e.g., reduce speeding, pollution etc.
Non profit marketing: Involves
activities by not for profit
organisations such as Red Cross in fund
raising.
Organisation marketing: Involves

creation, maintenance or changing
the attitudes and behaviour of
target consumers toward an
organisation (e.g. NAB/UNSW).
Place marketing: Relates to

creation, maintenance or change
the attitudes and behaviour
toward particular places. (e.g.,
tourism destinations or holiday
resorts).
Event and experience marketing:

Often linked to other market
offerings such as major sporting
events like World Cup, often include
destination marketing, and
marketing communications to
involve the local community.
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Individual Product and Service Decisions

Product Attributes
Branding
Packaging
Labelling
Product
Support Services
Product Quality >> The ability of a product to

perform its functions. Includes attributes such as
durability, reliability, precision, ease of operations,
and quality consistency. Has lead to adoption of
TQM. (Total Quality Management)
Product Features. Technical characteristics of the
offering. Consumers seek value and need
satisfaction. Product feature decisions must reflect
consumer needs and perceptions , affordable value
and company cost. Features irrelevant to consumers
cost money and are undesirable.
Product Design. Combines attention to style
(appearance) with enhanced performance. Style
alone may attract attention but not improve
performance.
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Product Features, Advantages and Benefits
Marketers are expected to sell benefits, not features.

Refer to the following extract of
an on line advertisement for
Miele ovens.
Features: Fan forced cooking

system, mini turbine, and ring
heater element.
Advantages: Cooking on up to
three levels, hot air forced evenly
through the interior.
The Miele fan forced cooking

system, for example, enables you
to cook on up to three levels.
Rather than just circulating hot
air with a fan we use a miniturbine together with a ring
heater element to force hot air
evenly throughout the oven
interior. This reduces cooking
time and thus energy
consumption above all
Benefits: Reduced cooking
time, reduced energy

consumption, perfectly even
cooking results.
Summary: Features describe the

sales item in technical terms.
Advantages describe the sales item
in terms of what the feature does.
providing perfectly even

cooking results.
Benefits describe the sales

item in terms of the benefit to
me, the customer.
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Packaging Decisions
Labeling Decisions
Labels
Includes designing and

producing the container or
wrapper for a product.
Must support marketing
objectives of the company.
The package includes the
immediate container (that
holds the product for use),
a secondary package
(discarded prior to use),
and a shipping package
(necessary for storage and
shipping).
Identify products: Distinguish one

product from others; and support
brand strategies;
Describe product: By providing
information about contents,
production, freshness, and
instructions on safe and effective
use; and
Promote products: Through the
use of color and graphics can
stimulate and arouse consumer
attention for the product.
Must satisfy legal regulation.
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Product Line & Mix Decisions
Stretching
Length
Filling
Featuring
Product
Line Decisions
Product Mix
Decisions
Width
Consistency
Depth
Length
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Product Line Decisions
Product Line Length: The number of products in the line.

A line is too short if adding items increases profits; too long if dropping
items increases profits. Company objectives of full line offerings may
decrease strict profit criterion on length.
Product Line Stretching: Lengthening a companys product line
Downward stretch offers items to lower end of the market.
Upward stretch introduces items to high end of market.
Two way stretch extends the line both upward and downward.
Product Line Filling: Adding items within the existing product range of
the line.
Product Line Featuring: Selecting a few items to receive special
marketing attention to either increase volume of the featured items or
draw customers closer to other products in the line
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Product Mix Decisions

Product mix : The set of merchandise offered by a firm to its customers.
Assortment Dimensions
Optimizing the product mix
Width: number of different

product lines marketed by a
single firm.
Length: number of items sold
by a firm within each product
line.
Depth: number of shapes and
model designation of the
product
Consistency: how closely
related the various product
lines are in end use, production
requirements, distribution
channels, or other ways
The optimum product mix

for a firm varies across time.
The mix is a function of
engineering, production,
and marketing skills
available; the financial
resources and the objectives
of the organization.
For long term growth

expand product mix
continuously
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10

Product Mix Strategy of General Motors

P
R
O
D
U
C
T
L
I
N
E
L
E
N
G
T
H
Pontiac
Oldsmob
Buick
Chevrolet
Cadillac
GMC
CARS
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TRUCKS
PRODUCT WIDTH
School bus
CHASSIS
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Product Line Stretching Decisions
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Services Marketing
Characteristics of Services
Intangibility of services:
Almost pure services, e.g., a
haircut, has no physical element
like coffee
High involvement and
personal nature of services:
When your teeth are cleaned,
you are receiving a personalised
service.
Perishability of services:
rock concert, can not be stored
like coffee. Once the concert is
over, only its memory is left.
Synchronous delivery and

consumption:
Almost pure services, e.g.,
learning to drive session or
aerobics instruction session,
require you to interact in real
time as the service is consumed.
Variability of service
encounters:
restaurant or ocean cruise involve
interaction between a
patron/guest and customer
service personnel. They are not
necessarily the same every time.
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Marketing Strategies for Service Firms I

In a service business, the customer and front line service
employee interact to create the service.
The service profit chain consists of five links:
Internal service quality: superior employee selection and training, a
quality work environment, and strong support for those dealing
with customers, which in turn results in...
Satisfied and productive service employees: more satisfied, loyal,
and hardworking employees, which results in...
Greater service value: more effective and efficient customer value
creation and service delivery, which results in...
Satisfied and loyal customers: satisfied customers who remain loyal,
repeat purchase, and refer other customers, which results in...
Healthy service profits and growth: superior service firm
performance.
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12

Service marketing requires (i) internal marketing,

(ii) external marketing and (iii) interactive marketing
External marketing :
what this course is
covering
Internal marketing:
Orienting and
motivating firms
customer-contact
employees and
supporting service
people to work as a
team to provide
customer satisfaction.
Interactive marketing:
Developing quality the
buyer-seller
interaction during the
service encounter.
Hence, service companies must increase three major marketing tasks:

(i) their service differentiation, (ii) service quality, and (iii) service productivity.
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Branding I
Product Attributes
Branding
A brand is a name, term, sign, symbol, design,

or a combination of these, that identifies the
goods or services of one seller or group of sellers
and differentiates them from those of
competitors
Brands are the major enduring asset of a

company as they
Packaging
Labelling
Product
Support Services
Facilitate easy product recognition and repeat

purchase.
Simplify the introduction of new products and
allow control over channel of distribution.
Develop permanent price quality image of the
product
Powerful brand names have consumer

franchise they command consumer loyalty.
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13

Branding - II
The added value
that knowledge
about a brand
brings to a product
over and above its
basic functional
qualities.
The foundations of
brand equity:
(i) extensive brand
awareness; and
(ii) strong, unique
and favorable
brand associations
[e.g., VOLVO >>
Safety]
Brand Equity
High level of
consumer brand
awareness and
loyalty.
More leverage in
bargaining with
resellers.
More easily
launch line and
brand extensions.
Defence against
fierce price
competition.
Forms the basis
for building strong
and profitable
customer
Brand
relationships.
Measures of
Brand Strength
differentiation
(what makes the
brand stand out),
relevance (how
consumers feel it
meets their
needs),
knowledge (how
much consumers
know about the
brand), and
esteem (how
highly consumers
regard and respect
the brand).
Valuation
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WORLDs TOP BRANDS 2013

Brand
Name
Region/
Country
Sector
Brand
Value
($m)
Change in
Brand
Value
Apple
United
States
Technology
98,316
28%
Google
United
States
Technology
93,291
34%
Coca-Cola
United
States
Beverages
79,213
2%
IBM
United
States
Business
Services
78,808
4%
Microsoft
United
States
Technology
59,546
3%
GE
United
States
Diversified
46,947
7%
McDonald
's
United
States
Restaurants
41,992
5%
Samsung
South Korea
Technology
39,610
20%
Intel
United
States
Technology
37,257
-5%
10
10
Toyota
Japan
Automotive
35,346
17%
2013 Rank
2012 Rank
Brand
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14

Branding III: Building Brand Names

Cost of establishing a brand name is very high, often
ranges between 50 150 million dollars. Yet chances for
success in establishing a brand name are rather low.
Companies with strong brands often attempt to build
brand portfolios by acquiring brands with strong brand
equity from other companies.
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To Brand or Not to Brand: Positioning

:P
Brand
No Brand
Brand Name Selection

Selection
Protection
Brand Sponsor
Manufacturers Brand
Private Brand
Licensed Brand
Brand Strategy
New Brands
Line/Brand Extensions Multibrands
Brand Repositioning
Brand Repositioning
No Brand Repositioning
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Major Branding Decisions II
Brand Decision. The company must decide whether or not

to place a brand name on its product or use generic names
(e.g. Paracetamol). Brands (e.g. Panadol or Heffron)
usually command higher profit margins than non brands.
Brand Name Selection. A good brand name should:

1. suggest something about the products benefits [Navigator>Netscape];
2. be easy to pronounce and remember [Total, Tide];
3. be distinctive [Lexus];
4. Be extendable
5. translate easily into foreign languages [Exxon,(formerly standard oil of
New Jersey) translated in 54 languages]; and
6. be eligible for registration and legal protection.
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Major Branding Decisions III: Brand Sponsorship.

A manufacturer has four sponsorship options.
Launch the product as a manufacturers brand (or national

brand) [e.g.,IBM, Kellogg]. Producer owns the BRAND.
Sell to resellers who give it a private brand (also called a store
brand or distributor brand). Private brands [Inghams chicken
also sold by Coles as Farmland and Savings]. Reseller create
and own the BRAND.
Use other brands name under license [e.g., Gucci, Calvin Klein].
Join another company and co brand a product. [e.g. Visa and
Commonwealth Bank]
Mixed brand strategies combine both approaches [IBM and

its Secondary brand sold thru direct mail].
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Brand Development Strategy

Occurs when a company
extends existing brand
names to new forms,
colours, sizes, ingredients,
or flavours of an existing
product category.
Brand Name
Add decaf Coffee.
Existing
New
Product Category
Existing
New
Brand
Extension
Line
Extension
[Brand
Leveraging]
Multibrands
[Flanker]
Develops additional
products in the same
product category.
P & G pioneered
multibranding
New
Brands
A company seeks to
extend existing brand
qualities to launch
new products or
modified products in
a new category.
Quaker oatmeal >
Quaker Granola bar
A company creates a
new brand name when
it enters a new product
category for which
none of the companys
current brand names
are appropriate
Coca Cola > Dasani
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Megabrand Strategy
Involves dropping
weaker brands and
focusing only on
brands that can
achieve the number
one or number two
market share
positions in their
categories.
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Brand Repositioning.
May be necessary in response to
change in the competitive market.
Could be very expensive
Could also be challenging to
marketers as the repositioning the
image of the same product may not
be easy to communicate to the target
market.
Kentucky Fried Chicken to KFC
Krafts Velveeta Brand from cooking
cheese to good tasting, natural and
nutritious snack cheese.
Should be done carefully.

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New Products
Rapid changes in tastes, technology and competition, prompt
customers to want new and improved products.
New products: Include original products, modifications, new brands.
Newness" depends on who makes the assessment buyer or seller.
Success of a new product depends on a unique superior product
new features, higher quality and value in use.
A company can obtain new products in two ways.

1.
2.
Acquisition buying a whole new company, patent or licence to

produce someone elses product.
New product development.
Degree of newness to buyer/seller impacts the amount of risk

taken and influences the new product development process.
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Product Newness
A. New to the world >>products that create entirely new
markets.
B. New product lines >>entries into existing markets that are
new to the firm.
C. Line extensions >>new products allowing firms to extend
served market through different benefits.
D. Improvements to existing products >>replacements for
existing product.
E. Repositioning >>modest technical improvements that
allow a product to offer new applications
F. Cost reductions >>versions of existing products providing
comparable performance at lower cost.
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New Product Success and Failure

A high rate of new
product failure;
80% new consumer
goods;
33% new B2B products;
Reasons why new

products fail:
negative perception,
wrong timing,
poor market research,
poor marketing
communications etc.
Identify successful products and

find out what they have in
common
Develop a superior product
Have a well defined product
concept prior to development
Inadequate promotional budget
and support may cause failure
Top management commitment is
vital
A company must understand its
consumers, markets and
competitors.<>
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What it takes to launch one commercially

successful new product
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New Product Development Process

Marketing
Strategy
Business
Analysis
Concept
Development
and Testing
Product
Development
Test
Marketing
Idea
Screening
Commercialisation
Idea
Generation
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Stages in New Product Development I

Idea Generation. This stage is the systematic search for
new product ideas.
Sources for new product ideas include internal sources,
customers, competitor's products, distributors & suppliers,
and other sources.+HT
Screening. This stage focuses on reducing the number of

ideas by dropping poor ideas as soon as possible.
Helps reduce costs and focus attention more productively.
Concept Development and Testing. This stage involves

translating ideas into product concepts or detailed versions
of the ideas stated in meaningful consumer terms.
Concepts are then tested on target consumers.
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Stages in New Product Development II
Marketing Strategy. Consists of three parts
(i) describe the target market,
(ii) outline the product's projected price, distribution, and budget for
the first year, and
(iii) describe long run sales, profit goals, and marketing mix strategy.
Business Analysis. Reviews the sales, costs, and profit projections for the
product to find out if they satisfy overall company objectives.
Product Development. Involves converting the product concept into a
physical product to ensure that the idea is a viable product.
Test Marketing. Involves implementation of marketing program in one
or more realistic market settings.
Commercialization. Actual introduction of the new product into the
marketplace. The company must make decisions involving when to
introduce, where, to whom, and how.
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Managing new product development

Customer centred Focuses on finding new ways to solve
customers problems and create more
new product
customer satisfying experiences.
development
Team based
new product
development
Company departments work together in

cross functional teams, overlapping the steps
in the product development process to save
time and increase effectiveness.
Systematic
new product
development
The NPD process should be systematic and

holistic to ensure that new ideas that may
emerge do not falter. Good management system
system to manage new product ideas.
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Common organizational arranagements

How companies organize for new product development is also
important for its success.
Product Managers. He/she is closest to the market and as such is the most
knowledgeable of all. However he/she may be preoccupied with existing
products and lack specific knowledge and skills related to new product
development.
New Product Managers. A new manager assigned to the task of new product
development; however, he/she might think in terms of modifications and
line extensions.
New Product Committees. Uses specialists from several functional areas to
evaluate new product concepts and plans.
New Product Departments. Sets up a separate department with the line and
staff authority to develop new products. The departmental manager also
has access to top management.
New Product Venture Teams. Brings together specialists from other operating
departments and reassigns them to the venture team.
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Product Life Cycle

Sales and
Profits ($)
Sales
Profits
Time
Product
Development
Stage
Introduction
Growth
Maturity
Decline
Sales and Profits Over

the Products Life From
Inception to Demise
Losses/
Investments ($)
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Product Life Cycle Stages I

1. Introduction stage.
Promote the product heavily to inform the market about its debut.
Low/negative profits may lead to set high price to offset
expenses.
Adopt skimming strategies to generate high profits now or
penetration strategies to build market share and dominate the
market for larger profits once the market stabilizes.
2. Growth stage.
The product experiences both increasing sales and competition.
Promotion costs are spread over larger volume and strategic
decisions focus on growth strategies.
Strategies include adding new features, improving quality,
increasing distribution, and entering new market segments.
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Product Life Cycle Stages II

3. Maturity stage.
Slower growth over a longer period of time. Growth stage
decisions are inappropriate.
Must modify (i) the market to increase consumption, or (ii)
the product (quality, feature, and style improvements) to
attract new users , or (iii) the marketing mix to improve
competitive position
4. Decline stage.
Costs of managing the product may exceed profits.
Management may keep the brand as competitors drop out,
harvest the brand by reducing costs of support for short term
profit, or divest (i.e., drop)the product.
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Different types of PLC
Video game console and

software life cycles by product
class and product form
Typical Fashion, Style and Fad
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The Product Life Cycle
Competitive turbulence
Sales
Volume
$ 0.00
Unit
Cost
Unit
Price
Introduction
Growth
Maturity
Profitability
Decline
Time
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Product Life Cycle Stage Characteristics I
LIFECYCLE
STAGE
INTRODUCTION GROWTH
COMPETITIVE
TURBULENCE
MATURITY
DECLINE
Sales
Low
Rapidly rising
Slowing
Peak, Cyclical
Declining
Prices
High
Lower
Low
Low
Falling
Unit Profits
Negative
High, Rising
Declining
Average
Declining
Customers
Innovators
Early Adopters Early Majority Middle Majority
Laggards
Competition
Few
Growing
More Decline
Shakeout
Declining, Fewer
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Product Lifecycle Stage Strategies

LIFECYCLE
COMPETITIVE
TURBULENCE
STAGE
INTRODUCTION GROWTH
Overall
Market
awareness,
R&D critical
Market share Protect,

penetration strengthen
niche
Protect share Reduce

manage earnings expenditures
and costs
and harvest
Product
Basic
Add service Tighten line,

and features up quality
Diversify brands
and models
Price
Cost plus
Market
broadening
Match or beat Defensive

competitors
Maintain
profit margin
Distribution
Selective
Intensive
coverage
Strong dealer Intensive and

support
extensive
Selective
Stimulate
wider trial
Maintain
consumer
franchise
Stress brand
differences and
benefits
Phase out,
maintenance
only
Long runs
Stable
process
Decentralize
Many short runs
Revert to
subcontracting
Communication Create
awareness
Manufacturing
Subcontract Centralize
Mass prod.
Short runs
Overcapacity Undercap'ty
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MATURITY
DECLINE
Phase out
weak items
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How stages of the product life cycle relate to a firms

marketing objectives and marketing mix actions
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Exploiting the Product Life Cycle

Emphasize
Promotion
Distribution
Price
Dollars
Total
Market
Sales
Total
Market
Profit
Cost reduction
New product features

New uses
New Markets
Status quo
New product features
New uses
New Markets
Status quo
Introduction Growth Maturity Decline

<------------------------------TIME--------------------------------->
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Managing the PLC during the decline stage

The three ways to manage a product through its life cycle
include:
Product modification strategies: altering a product characteristic,
such as quality, performance, or appearance to try to increase and
extend its sales and life cycle.
Market modification strategies: increasing a product's use among
existing customers, to create new use situations, or to find new
customers.
Product repositioning strategies: changing the place a product
occupies in a consumer's mind relative to competitive products.
A firm can reposition a product by changing one or more of the four
4Ps
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Length of product life cycle
How long is a product life cycle?

What determines its length?
There is no exact time that a product takes to move
through its life cycle.
As a rule, consumer products have shorter life cycles than
business products. The availability of mass
communication vehicles informs consumers faster and
shortens life cycles.
Also, technological change tends to shorten product life
cycles as new product innovation replaces existing
products
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27

New Product Adoption Process

Consumers pass through five stages in the process
of adopting a new product:
1. Awareness: The consumer becomes aware of the new
product, but lacks information about it.
2. Interest: The consumer seeks information about the new
product.
3. Evaluation: The consumer considers whether trying the
new product makes sense.
4. Trial: The consumer tries the new product on a small scale
to improve their estimate of its value.
5. Adoption: The consumer decides to make full and regular
use of the new product.
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Early Majority
Innovators
Percentage of Adopters
People differ greatly in their readiness to try new products.

There are five different categories of adopters
Early
Adopters
Late Majority
34%
34%
16%
13.5%
2.5%
Early
Laggards
Time of Adoption
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Late
L7 56
28

Individual differences in the adoption of
innovations[From Ch.5]
1. Innovators.
Innovators help get the product exposure: but are not typical
consumers.
2. Early Adopters.
Serves as opinion leaders to the rest of the market.
3. Early Majority.
The"typical consumer; adopt innovations early.
4. Late Majority.
The scepticals; adopts after most in the market.
5. Laggards.
The suspicious; adopts last when the product is no longer an
innovation.
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Influence of Product Characteristics on Rate of Adoption

Relative Advantage: the degree to which an innovation
appears superior to existing products.
Compatibility: the degree to which the innovation fits the
values and experiences of potential consumers.
Complexity: the degree to which the innovation is difficult to
understand or use.
Divisibility: the degree to which the innovation may be tried
on a limited basis.
Communicability: the degree to which the results of using the
innovation can be observed or described to others.
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29

Mark1012 Lecture 6 and 7 Slides

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Marketing Fundamentals: Razzaque

Lectures 6-7: All about products

MARKETING MIX ELEMENTS - 1

Consumer oriented: 4Cs

Marketing Fundamentals: Razzaque

MARKETING MIX FOR PRODUCTS [SERVICES]

Marketing Fundamentals: Razzaque

Define the term product and describe the nature of

Explain product and service classifications

Any tangible object/thing that can be offered to

A product in the form of an activity, benefit or

Marketing Fundamentals: Razzaque

Products and Services Continuum

Three Product Levels

Marketing Fundamentals: Razzaque

Product Levels: QANTAS

Frequent Flyer Scheme

Marketing Fundamentals: Razzaque

Consumer Product Classifications

Consumer products are those bought by final

Products are compared on

Products unknown to the buyer or not

Classification of consumer goods

Marketing Fundamentals: Razzaque

including installations (buildings and fixed equipment ) and accessory

product at all (e.g., maintenance and repair services, advisory services).

Extending the Goods and Services Classification in Marketing

Organisation marketing: Involves

Place marketing: Relates to

Event and experience marketing:

Marketing Fundamentals: Razzaque

Individual Product and Service Decisions

Product Quality >> The ability of a product to

Product Features, Advantages and Benefits

Marketers are expected to sell benefits, not features.

Features: Fan forced cooking

The Miele fan forced cooking

Benefits: Reduced cooking

time, reduced energy

Summary: Features describe the

providing perfectly even

Benefits describe the sales

Marketing Fundamentals: Razzaque

Includes designing and

Identify products: Distinguish one

Product Line & Mix Decisions

Marketing Fundamentals: Razzaque

Product Line Length: The number of products in the line.

Product Mix Decisions

Optimizing the product mix

Width: number of different

The optimum product mix

For long term growth

Marketing Fundamentals: Razzaque

Product Mix Strategy of General Motors

Product Line Stretching Decisions

Marketing Fundamentals: Razzaque

Synchronous delivery and

Marketing Strategies for Service Firms I

Marketing Fundamentals: Razzaque

Service marketing requires (i) internal marketing,

Hence, service companies must increase three major marketing tasks:

A brand is a name, term, sign, symbol, design,