Marketing (Product)

Terms
Marketing, Product, Product Range, Product Differentiation
People tend to think of Marketing simply as selling goods and services. However, marketing is more than
just that . . .
It is the range of activities that makes sure consumers get what they want, in the right amounts,
at the right time and at the right price. It also lets consumers know what goods and services are
available so that they can make informed choices.
The range of activities covered y marketing can e summed up as!
"dentifying consumers# needs and wants$
Deciding which markets to serve$
Developing and designing a product to satisfy consumers# needs and wants$
Deciding what goods and services to provide, and at what price
"nforming consumers through promotion and advertising of products$
%etting goods and services to consumers through distriution systems.
&ellogg#s has realised that, whilst 'ornflakes have een successful for more than ()) years, they still need to
ring out new products all the time to meet the changing needs of their customers and as a result are
constantly undergoing the activities listed aove. *+plain why these marketing activities are so important to
&ellogg#s!
,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
Marketing Mix The 4 Ps
Product - the good or service eing offered for sale. The product is the most important part of the marketing
mi+ ecause without it, there is no need for the other parts of the mi+.
The term .product# covers more than just the physical item or service offered. "t also includes!
The si/e, colour, style, design, 0uality and characteristics of the product$
The name and packaging which are proaly uni0ue to that product$
The guarantee on the product$
The after-sales service that is availale.
&ellogg#s produces several products that seem to e very alike and seem to compete with one another, for
e+ample they make a numer of different types of cereal. This is &ellogg#s cereal product range. *ach item
in the range is targeted at a different segment of the market.
&ellogg#s also makes a numer of other goods, including Pop1Tarts, 2utri1%rain ars and cereal ars. The
entire group of different goods that &ellogg#s produces is called its product mix.
3ased on Market Research
Cereal Product Range
Nutri!rain
Product Range
PopTart
Product Range
"ll other
Product
Ranges
+ + + =
Kelloggs
Product Mix
Product #i$$erentiation
4hen usinesses produce a range of goods that appear to e very similar, they have to try to make them seem
different. *ach of &ellogg#s cereals is different and is marketed in a different way. This emphasis on the
difference etween goods in the same product range is called product di$$erentiation.
3usinesses want to show that their product is different from similar products made y other usinesses. They
want to give each product an identity of its own. Providing this identity is a key part of the marketing mi+.
There are a numer of ways that usinesses use to differentiate their product!
%xplanation "ppl& to 'elloggs
Name Most product sold to the pulic are given
a name. %iving a name to a product gives
it an identity. To stop other usinesses
from using it, a product#s name is
registered as a trademark.
(ogo 3usinesses and specific products may
have a symol or adge they always use.
The usiness or product can therefore e
identified from the adge or symol.
#esign 3usiness take a great deal of troule to
design their products so that they look
different from similar products produced
y other usinesses. 5Think of the shape
of the 'oca1'ola ottle.6
Content 4hat goes into making a product is an
important part of a product#s identity.
'ertain ingredients or materials can e
perceived as etter than others and
therefore people are willing to pay a
higher price for them.
Packaging Packaging has two purposes!
( - to protect goods from damage$ 7 - one
more way of giving goods an identity.
3usinesses want people to recognise their
product from its packaging, without
having to read the lael.
The 'ase 8tudy states that the packaging of &ellogg#s products 9needs to designed to appeal to oth adults
and children:. *+plain why they need to do this!
,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
Descrie t)o ways that &ellogg#s could design their packaging so that is appeals to oth adults and children.
,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,