Beruflich Dokumente
Kultur Dokumente
Levels of Product
Installation Packaging Brand Name
Augmented Product
Features
AfterSale Service
Design
Core Product: Core product is the product solving benefit that consumer seeks. It is the most basic benefits which addresses the question what is the buyer really buying? Actual Product: At the second level product planner must turn the benefits into an actual product. They need to develop and product and service features, design, a quality level, a brand name and packaging. Augmented product: Product planner must build an augmented product around the core benefits and actual product by offering additional consumer service and benefits like delivery and credit, after sales service.
Product Classification
Consumer Products
Products bought by final consumers
Industrial Products
Products bought for further processing or for use in conducting business
Convenience Product:
Shopping product:
Specialty product:
Unsought Product:
Convenience Product:
Convenience Products are consumer product that the customer usually buys frequently, immediately, and with a minimum of comparism and buying effort. Customer buying behavior: # Frequent Purchase # Little Planning # Little comparison or shopping effort. # Low customer involvement Price: Low price Distribution: Wide spread distribution, convenience location Promotion: Mass promotion by the producer. Example: Toothpastes, magazines, Laundry Detergent.
Shopping product:
Shopping product are consumer goods that the consumer, in the process selection and purchase, characteristically compares on such base as suitability, quality, price and style. Consumer Buying Behavior: # Less frequent purchase # Muss planning and shopping effort # Comparison of brand on price, quality, style Price: Higher Price Distribution: Selective distribution in fewer outlets. Promotion: Advertising and personal selling by both producer and reseller, Examples: Major appliances, televisions, furniture, clothing,
Specialty product:
Specialty products are consumer product with unique characteristic or brand identification for which significant of buyer is willing to make a special purchase effort. Consumer Buying Behavior # Strong brand preferences and loyalty # Special purchase effort # Little comparison of brand # Low price sensitivity Price: High price Distribution: Exclusive distribution in only one outlet or few outlet of per market area. Promotion: More carefully targeted promotion by both producer and resellers. Examples: Luxury goods, such as Rolex watches or fine crystal.
Unsought Product: Consumer product with that the consumer either does not know about or knows about but does not normally think of buying. Consumer Buying Behavior: Little product awareness, knowledge, negative interest. Price: Varies Distribution: varies Promotion: Aggressive advertising and personnel selling by producer and resellers Examples: Life insurance, Red Cross Blood donation.
Branding: A brand is a name, sign, symbol, or design or combination of these that identifies the maker or seller of a product or service. Consumer view a brand is a important part of a product, and branding can add value to a product.
Brand sponsor: There is several kind of brand sponsor: Manufacturer brand: Brand name owned by the manufacturer; Ex; Bata Private Brand (store Brand): A brand created and owned by reseller of a product or service. Ex: Gemini, Licensing: getting the license to use a brand name from another organization. Ex. Pizz Hat Co Branding: the practice of using the establish brand names of two different companies on the same product. Simenes -BenQ
Brand Strategy
Product Category
Existing New
Brand Name
Existing
New
Brand Strategy:
Line extension: Line extension occur when a company introduce additional items in a given product category under the same brand name such as new flavors, forms, color, ingredients or package size. Brand extension: A brand name involves the use of successful brand name to launch new or modified product in a new category. Grameen Food. ( Lux soap, body wash) Multibrands: Company introduce additional brands in the same product category. Ex. (clear, clinic +, sunsilk,)( lipton ,Taza) (Lux, lifebou gold,fare & lovely) New brands: A company may create new brand name when it enter a new product category for which none of the companies current brand name is appropriate. Beximco, Bol,
Stretching
Lengthen beyond current range
Filling
Lengthen within current range
Downward
Upward
Consistency
Length - total number of items within the lines Depth - number of versions of each product
Inseparability
Variability
Perishability
Product Modifications
New Brands
Marketing Strategy Concept Development and Testing Idea Screening Idea Generation
Business Analysis
Product Development
2. Concept Testing - Test the Product Concepts with Groups of Target Customers to find out if the concept have strong consumer appeal
Step 8. Commercialization
Commercialization is the Introduction of the New Product into the Marketplace.
When?
Where?
To Whom?
How?
Profits Time
Product Development
Losses/ Investments ($)
Introduction
Growth
Maturity
Decline
Sales
Costs Profits
Marketing Objectives
Low sales High cost per customer Negative Create product awareness and trial Offer a basic product Use cost-plus Build selective distribution Build product awareness among early adopters and dealers
Rapidly rising sales Average cost per customer Rising profits Maximize market share Offer product extensions, service, warranty Price to penetrate market Build intensive distribution Build awareness and interest in the mass market
Peak sales Low cost per customer High profits Maximize profit while defending market share Diversify brand and models Price to match or best competitors Build more intensive distribution Stress brand differences and benefits
Declining sales Low cost per customer Declining profits Reduce expenditure and milk the brand Phase out weak items
Cut price Go selective: phase out unprofitable outlets Reduce to level needed to retain hard-core loyal customers
PRICE The amount of money charged for a product or service o the sum of value that consumers exchange for the beneath of having or using the product or service.
Lower
Quality
Premium Strategy
Overcharging Strategy
Good-Value Strategy
Economy Strategy
Lower
Market Skimming
>Setting a High Price for a New Product to Maximize Revenues from the Target Market.
>Results in Fewer, More Profitable Sales.
Market Penetration
> Setting a Low Price
for a New Product in Order to Attract a Large Number of Buyers. >Results in a Larger Market Share.
Optional-Product Pricing
Pricing Optional or Accessory Products Sold With The Main Product i.e. Car Options
Captive-Product Pricing
Pricing Products That Must Be Used With The Main Product i.e. Razor Blades, Film, Software
By-Product Pricing
Pricing Low-Value By-Products To Get Rid of Them i.e. Lumber Mills, Zoos
Product-Bundle Pricing
Pricing Bundles Of Products Sold Together i.e. Season Tickets, Computer Makers
Price-Adjustment Strategies
Price Adjustment Strategies Discount & Allowance
Reducing Prices to Reward Customer Responses such as Paying Early or Promoting the Product.
Segmented
Adjusting Prices to Allow for Differences in Customers, Products, or Locations.
Cash Discount
Quantity Discount Functional Discount Seasonal Discount Trade-In Allowance
Customer
Product Form Location Time
Price-Adjustment Strategies
Psychological Pricing
Adjusting Prices for Psychological Effect. Price Used as a Quality Indicator. Temporarily Reducing Prices to Increase Short-Run Sales. i.e. Loss Leaders, Special-Events
Promotional Pricing
Geographical Pricing
Adjusting Prices to Account for the Geographic Location of Customers. i.e. FOB-Origin, Uniform-Delivered, Zone Pricing, Basing-Point, & Freight-Absorption.
Adjusting Prices for International Markets. Price Depends on Costs, Consumers, Economic Conditions & Other Factors.
International Pricing
Price Changes
Buyer Reactions to Price Changes Initiating Price Increases
PRICING OBJECTIVES Survival. Maximize current profit. Maximize market share. PRICING APPROACHES Cost plus pricing: Adding a standard markup to the cost of the product. Ex- 5(cost) + 3(markup) =8 Break even pricing: Setting price to breakeven on the cost of making and marketing a product or setting price to make a target price.
Value based pricing: Setting price based on buyers perceptions of value rather than on seller cost. Consumer Value Price Cost Product Competition based pricing: Setting prices based on the prices that competitors charge for similar products. Ex- Lux tk.14, Tibbet tk.14.
Chapter 12
Marketing Channels and Logistics Management
Information Promotion
Contact
Matching
Information: Gathering and distributing marketing research and intelligence information about actors and forces in the marketing environment needed for planning and acing exchange Promotion: Developing and spreading persuasive communication about a offer. Contact:Finding and communicating with prospective buyers. Matching:Shaping and fitting the offer to the buyers needs including activities such as manufacturing, grading. Negotiation:Reaching the agreement of price. Physical distribution: Transporting and storing goods. Financing: Acquiring and using funds to cover the cost. Risk taking: assuming the risked carrying out the channel
Channel Level - A Layer of Intermediaries that Perform Some Work in Bringing the Product and its Ownership Closer to the Buyer.
Channel 1
M Channel 2 M Channel 3 M Channel 4 M
Direct Indirect
Vertical Marketing system: A distribution channel structure in which producers,whole seller, and retailer act as a uniform system.One channel member own the another, has contract with them, and has so much power that hey all cooperate. Types of vertical marketing system: Greater Degree of Direct Control
Corporate Common Ownership at Different Levels of the Channel
Lesser
Example:
Retailers, Catalogs, and Sales Force
Intensive distribution: Stocking the product in as much as possible. Exclusive distribution Giving a limited number of dealers the exclusive right to distribute the companys products in their territories Selective distribution: The use of more than on but fewer than all, of the intermediaries who are willing to carry the companys products.
Marketing logistics and supply chain management: Marketing logistic( Physical distribution) The task involved in planning, implementation,and controlling the physical flow of materials,final goods,and related information from points of origin to consumption to meet customer requirement at a profit. Supply chain management: Managing upstream downstream value-aided flows of materials, goods, and related information among the suppliers,the company,resellers,and the final consumers.
Order Processing
Submitted Processed Shipped
Logistics
Transportatio n Water,
Truck, Rail, Pipeline & Air
Functions
Warehousing
Storage Distribution
Inventory
When to order How much to order Just-in-time
Transportation Modes
Nations largest carrier, cost-effective for shipping bulk products, piggyback
Rail
Truck
Flexible in routing & time schedules, efficient for short-hauls of high value goods
Water
Low cost for shipping bulky, low-value goods, slowest form
Pipeline
Ship petroleum, natural gas, and chemicals from sources to markets
Air
High cost, ideal when speed is needed or to ship high-value, low-bulk items
Chapter 14
Personal Selling
Sales Promotion
Public Relations
Direct Marketing
Sender: Party sending the message to another party- ex: HP Encoding: The process of putting thought into symbolic form H.Ps advertising agency assembles words and illustrations into an advertisement that will convey the intended message. Message: The set of symbolic that the seender transmitsThe actual H.P copier ad. Media: the communication channel through which the message moves from sender to receiver- in this case the specific magazine that HP selects Decoding: the process by which the receivers assign meaning of the symbols encode by the sender- a consumer reads the HP copier ad and interprets the words and illustrations it contains.
Receivers: the party receiving the message sent by the another party- the home office or business customer who read the HP copiers ad. Response: The reaction of the receivers after being exposed to the message- any hundreds of possible responses, such as the consumer is more aware of the attributes of HP copiers, actually buys an HP copies or does nothing Feedback: The part of the receivers response communicated back to the sender show that consumer are struck by and remember the ad, or consumers write or call HP praising or criticizing the ad of HP product. Noise: the unplanned static or distortion during the communication process, which result the receiver getting the different message than the one the sender sent
1) Identifying the target audience: A marketing communication starts with a clear target audience in mind. The audience may be potential buyer or current user, these who make the buying decision or who influence it. 2) Determining the communication objectives: Once the target audience has been defined, the marketing communicator must decide what response it sought. Of course the final response is purchase. The marketing communicator need to know where the target audience now stands and what stage it need to moved. the target audience may be any six of buyer readiness stages:
Buyer readiness stages: The stages consumer normally pass through on their way to purchase, including awareness, knowledge, liking, preference, conviction and purchase. 3) Designing a message Having defined the desire audience response, the communicator turn to developing effective message .Ideally message should get attention, hold interest, arouse desire and obtain action ( A frame work known as the AIDA model) In putting the message together, the marketing communicator must decide What to say( Message content) and how to say it ( Message structure and format)
a) Message content: The communicator has to figure out an appeal or theme that will produce the desire response. There are three types of appeal: 1)Rational appeal; rational appeal relates to the audience self interest they show the product will produce the desire benefits,. 2) Emotional appeal: Emotional appeals attempt to stir up either positive( Love, pride ,joy and humor) or negative ( fear, guilt or shame) emotion that can motivate purchase. 3) Moral Appeal: Moral appeal are directed to the audience sense of what is right: and a" proper (cleaners environment , equal rights for women and aid to the disadvantages)
b) Message structure: the communicator must also decide how to handle three message structure issue. 1) The first is whether to draw a conclusion or leave it to audience. 2) The second is whether to present strongest argument first or last. 3) The thirds is whether to present on sided argument ( mentioning only the product strengths) or two sided argument (touting the product strengths while also admitting its shortcoming) C) Message format: the marketing communicator needs a strong format for the message. In a print ad, the communicator has to decide on the headline ,copy illustration and color.
4) choosing Media:
The communicator must select the channel of communication. There are two types of communication: 1) Personal communication: Channel to which two or more people communicate directly with each another, including face to face ,person to audience, over the telephone or through the mail. 2) Non Personal presentation: Media that carry messages without personal contact or feedback including major media and events. Print media: Newspaper, Magazine, Broadcast media: Radio, Television Display Media : e-mail, Web sides, etc
5) Selecting the message source: In either personal and non personal communication, the messages impact on the target audience is also affected by how the audience views the communicator. Message delivered by highly credible source are more persuasive. Company hire celebrity endorser- well known actor athletes and even cartoon characters- to deliver their message. 6) Collecting feedback: After sending the message, the communicator must research its effects on the target audience. This involve asking the target audience members whether they
remember the message, how many times they sow it, what points they recall, how they felt about the messages and their past and present attitudes toward the products and company.
Affordable Method
Percentageof-Sales Method
CompetitiveParity Method
Objectiveand-Task Method
Affordable Method: Setting the promotion budgets at the level management think the company can afford. Percentage of sales Method: Setting the promotion budget at a certain percentage of current or forecasted sales or as a percentage of the unit sales price. Competitive parity Method: Setting the promotion budget to match the competitors outlets. Objectives- and-task method: Developing the promotion budget by 1) Defining specific objectives 2) Determining the task that must be performed to achieve this objectives. 3) estimating the costs of performing these tasks. The sum of these costs is the proposed promotion budget
Personal Selling
Personal Interaction, Builds Relationships Costly
Sales Promotion
Provides Strong Incentives to Buy Short-Lived
Public Relations
Believable, Effective, Economical Underused by Many Companies
Direct Marketing
Nonpublic, Immediate, Customized, Interactive
Distribution Channels to Final Consumers. Pull Strategy - Producer Directs Its Marketing Activities Toward Final Consumers to Induce Them to Buy the Product.
Producer marketing activities: ( personal selling, trade promotion Others. Resellers Marketing activities; ( Personal selling, adverting, Sales promotion, other.
Producer
Customer
Customer
Pull Strategy
Event Marketing
Message
Personal Selling
Direct Marketing
Public Relations
Sales Promotion