Aug16Sem1_Lesson7_updated

Lesson7Product&ServiceStrategyMKT1003–SEMESTER1,2016/17,WEEK1ByJanetLiauThreeLevelsOfProductsWhatIsaProduct?LevelsofProductandServicesCorebenefitsrepresentwhatthebuyerisreallybuying.Actual/Tangibleproductrepresentsthedesign,brandname,andpackagingthatdeliversthecorebenefittothecustomer.Augmentedproductrepresentsadditionalservicesorbenefitsoftheactualproduct,whichhelpstoenhanceenjoymentofbenefitsAssignment–ClassparticipationWhatarethecore,tangibleandaugmentedproductsofferedbythefollowingthreesituations?Howcantheseorganizationsimprovetheirmarketingperformanceasaresultofthisanalysis?Assignment–ClassParticipationNUSundergraduateprogramsBarcelonaFootballClubiPhone6SCoreProductTangible/ActualProductAugmentedProductWhatIsaProduct?ProductandServiceClassificationsConsumerproductsIndustrialproductsWhatIsaProduct?ProductandServiceClassificationsConsumerproductsareproductsandservicesforpersonalconsumption.ClassifiedbyhowconsumersbuythemConvenienceproductShoppingproductsSpecialtyproductsUnsoughtproductsClassificationofconsumergoodsWhatIsaProduct?ProductandServiceClassificationsConvenienceproductsareconsumerproductsandservicesthatthecustomerusuallybuysfrequently,immediately,andwithaminimumcomparisonandbuyingeffort.NewspapersCandyFastfoodWhatIsaProduct?ProductandServiceClassificationsShoppingproductsareconsumerproductsandservicesthatthecustomercomparescarefullyonsuitability,quality,price,andstyle.FurnitureCarsAppliancesWhatIsaProduct?ProductandServiceClassificationsSpecialtyproductsareconsumerproductsandserviceswithuniquecharacteristicsorbrandidentificationforwhichasignificantgroupofbuyersiswillingtomakeaspecialpurchaseeffort.DesignerwatchesBrandedfashionwearHigh-endelectronicsWhatIsaProduct?ProductandServiceClassificationsUnsoughtproductsareconsumerproductsthattheconsumerdoesnotknowaboutorknowsaboutbutdoesnotnormallythinkofbuying.LifeinsuranceFuneralservicesBlooddonationsClassificationofConsumerProductsDurableproductsHighinvolvementSmallreplacementmarketsRevenuesfromaftersalessupport13ClassificationofConsumerProductsNon-durableproductsLowinvolvementLargereplacementmarketsMerchandising;easytorepurchase14ClassifyingIndustrialProductsEnteringGoodsFoundationGoodsFacilitatingGoodsRawMaterials-FarmProducts-NaturalProducts(e.g.,ironore,lumber)ManufacturedMaterials/Parts-ComponentMaterials-ComponentParts(e.g.,tires,microchips)Installations-Buildings&LandRights-FixedEquipmentAccessoryEquipment-LightFactoryEquipment(e.g.,lifttrucks)-OfficeEquipmentSupplies-OperatingSupplies(e.g.,lubricants,paper)-Maintenance&RepairItems(e.g.,paint)BusinessServices-Maintenance&RepairServices-BusinessAdvisoryServicesClassificationofIndustrialProductsEnteringgoodsContinuouspurchaseCostsQualityDelivery16ClassificationofIndustrialProductsFoundationgoodsLongtermuseandimpactInitialprice+operationcostsSupportservices17ClassificationofIndustrialProductsFacilitatinggoodsManyitemsandsmallvalueEfficiencyinmanagementAutomationandoutsourcing18ProductMixTheProductmixisthetotalvarietyofproductsafirmsells.Somefirmswillselljustoneproduct,whilstotherswillsellalargenumberofdifferentproducts.ForexampleSamsung'sproductmixincludesmobilephones,netbooks,tablets,televisions,fridges,microwaves,printersandmemorycards.ProductMixProductMixProductlineisagroupofproductsthatarecloselyrelatedbecausetheyfunctioninasimilarmanner,aresoldtothesamecustomergroups,aremarketedthroughthesametypesofoutlets,orfallwithingivenpriceranges.ProductMixProductwidthisthenumberofdifferentproductlinesthecompanycarries.E.gUnilever:Ice-creamPersonalandBeautyCareTeaFoodSeasoningandSoupsProductLineProductLineProductLineProductLineProductMixTheproductlengthshowsthenumberofdifferentproducttypesinaproductline.Alongproductlinehaslotsofdifferentproductsinitandashortproductlinehasasmallnumberofdifferentproducts.Iftherearetoomanyproducttypesinaproductline,theywillbegintocompetewitheachother,increasecostsunnecessarilyandevenconfusecustomers.Iftheproductlineistooshortitwilllimitcustomerchoiceandsendcustomerstocompetitorswithagreaterselectionofproducts.ProductMixProductdepthisthenumberofversionsofferedofeachproducttypeintheline.LiptonIcedTeaProductMixApplytoAppleProductLifeCycleProductsgothroughcycleswithstages.Characteristicsaredifferentfordifferentstages.DifferentstrategiesmayberequiredfordifferentstagesIntroductionGrowthMaturityDeclineSalesTimeNewtomarketLowsalesvolumeRapidincreaseinSalesVolumeMarketSharePeaksalesReducedproductioncostNewcompetitorsProductdevelopmentSalesdeclineReduceproductionEndofproductlifecycleProductLifeCycleSOMELIFECYCLEPATTERNSSalesLevelTimeFADFASHIONSTYLETYPICAL©2012PrinciplesofMarketing:AnAsianPerspective30ProductLife-CycleCategoriesofPLCsproductclass(gasoline-poweredautomobiles)productform(SUVs)brand(theKiaSorrento)ProductclasseshavethelongestlifecyclesProductformshavethestandardPLCshapeProductbrand’sPLCcanchangequicklyLifeCycleStrategiesIntroductoryLowsales,fewcompetitors.Growthemarketthroughproducteducation.