Faith Popcorn’s Trends
Creative Destruction: The Essence of Capitalism
Relevant [email protected] Article:
Role Playing: A Method to Forecast Decisions
Role Playing as a Forecasting Tool
Marketing Science Meets Hollywood
Forecasting in Conflicts: How to predict what your opponenet will do.
Making CD Sales Ring
Ethical Inspirations for Marketing Managers
Link to discussion board
Return to Syllabus
Marketing Strategy: Key Concepts 5
Product scope: goods, services, experiences, events, persons, places, properties, organizations, information and ideas.
- Core Benefits
- Basic Product: to satisfy core benefit sought
- Expected Product: meet buyers expectations for product
Focus of competition in LDC
- Augmented Product: exceed expectations
Focus of competition in developed countries
- Potential Product: future possibilities
Competitive pressures push competition at the augmented level, features at the augmented level become expected features, as the market adopts new features, further heightening competition. This leaves room to develop stripped down products for price conscious market.
Delight Customers by exceeding expectations.
- Need Family
- Product Family
- Product Class
- Product Line
- Product Type
Product Classifications: Different types of goods require different marketing mixes to be successful.
- Durable Goods
- Non Durable Goods
Innovation of batteries?
Consumer Goods Classification:
- Convenience: Packaging is important to sell the product. Consumers will accept a substitute. Marketers focus on intense distribution, time utility. Convenience products can be categorized into staple (milk), impulse (not intended prior to shopping trip).
- Shopping: Consumers expend considerable effort planning and making purchase decisions (i.e., appliances, stereos, cameras). Consumers are not particularly brand loyal. Need producer intermediary cooperation, high margins, less outlets than convenience goods. Use of sales personnel, communication of competitive advantage, branding, advertising, customer service etc. Attribute based (Non Price Competition), product with the best set of attributes is bought. If product attributes are judged to be similar, then priced based.
- Specialty: Buyer knows what they want and will not accept a substitute, IE Mercedes. Do not compare alternatives. Brand, store and person loyal. Will pay a premium if necessary. Need reminder advertising.
- Unsought: Sudden problem to resolve, products to which consumers are unaware, products that people do not necessary think of purchasing. Umbrellas, Funeral Plots, Encyclopedia!!
Industrial Goods Classification:
- Production Goods
- Raw Materials:
- Component parts: becomes part of the physical product: Intel, Gore
- Process materials: not readily identifiable part of the production of other products
- Support Goods
- Major Equipment:
- Accessory Equipment: desk tops and tools
- Consumable Supplies: IE Paper, pencils or ink cartridges
- Business-to-Business services: Financial, legal marketing research etc.
If an organization is marketing more than one product, it has a product mix.
- Product item–a single product
- Product line–all items of the same type
- Product mix–total group of products that an organization markets
Depth measures the # of products that are offered within each product line. Satisfies several consumer segments for the same product, maximizes shelf space, discourages competitors, covers a range of prices and sustains dealer support. High cost in inventory etc.
Width measures the # of product lines a company offers. Enables a firm to diversify products, appeals to different consumer needs and encourages one stop shopping.
Product Line Decisions:
Cannibalization and consumer movement issues
Internal (company) versus external (market) needs/decisions
Coke Hunts for Talent ro Re-Establish Its Marketing Might