Advance Topics in Marketing

PROF. RITU SRIVASTAVA

AFP 17
2014

What is a product?
What is Marketing?
What can be marketed?

What is a Product?
A product is anything that can be offered to a
market to satisfy a want or need, including physical
goods, services, experiences, events, persons, places,
properties, organizations, information, and ideas.

Goods V/s services

Intangible

Inseparable

Services are
different
from goods
Perishable

Variable

Customer value hierarchy product levels

Core benefit the
primary benefit
Basic product a generic
tangible product
Expected product set of
attributes normally expected
Augmented product the
additions the seller adds to the
product to make it attractive
Potential Product all
possible augmentations
a
product might undergo in the
future

Product Levels - Bicycle

LEVELS

BICYCLE

Core

Basic

Expected

Augmented

Potential

Product Levels - Bicycle

LEVELS

BICYCLE

Core

Cheap self powered

transportation

Basic

Strong frame, two wheels,

pedal, brakes seat

Expected

Bell, carrier, chain guard,

tool kit

Augmented

Light frame, gears, collapsible,

service

Potential

Open to creativity, endless

possibilities.

Customer needs change

Top five New Products of all

times
Wheel

Paper

Computer

Electricity

Antiseptic

Electric Motor
Telephone

Vaccine
Steam Engine

10

Radio

Criteria?
Commercial acceptance?
Technological novelty?
Impact on civilization

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Innovations
CREATIVITY: Bringing into existence an idea that is

new to you.
INNOVATION: The practical application of creative

ideas.

 ? ?
1.
2.
3.
4.
5.
6.

. ?
.Why are they almost redundant?

Technology innovation
Has the functionality changed?

Gillete
What are the reasons for Gillete to have picked up?
Has there been a change in the marketing approach?
Where did Gillete innovate?
Marketing related innovations?

New means what

New to the market?
New to the company / country?
Reverse engineering?
Is newness defined from the technology point of view or

impact on consumers way of life point of view?

Incremental New Product?
Radical New Product?

New Product Development Stages - Detailed

1. Idea generation
2. Concept development
3. Feasibility screening
4. Concept testing
5. Product development
6. Product testing
7. Market testing
8. Go-no-go decision
9. Launch Plan
10. Monitoring & feedback

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Planning and Creating Services

A service product comprises all elements of service

performance, both tangible and intangible, that create

value for customers
The service concept is represented by:

A core product
Accompanied by supplementary services

Core Products and Supplementary Services

In mature industries, core products often become

commodities
Supplementary services help to differentiate core
products and create competitive advantage by:

Facilitating use of core product (a service or a good)

Enhancing the value and appeal of the core product

Augmenting the Core Product

Distribution
Price

Service
Frequency

Vehicle

Transport
Pre- &
Postflight
Service

In-flight
Service

Food &
Drink
Key
Tangible Elements
Intangible
Elements Source: Shostack

Augmenting the Core Product

Are supplementary services needed to facilitate use of

core product or simply to add extra appeal?

Should customers be charged separately for each
service element?
Or should all elements be bundled at a single price?

Designing a Service Concept

Core Product

Central component that supplies the principal, problem-solving

benefits customers seek

Supplementary Services

Augment the core product, facilitating its use and enhancing its
value and appeal

Delivery Processes

Used to deliver both the core product and each of the

supplementary services