【市场营销英文版】13Product Strategy

ProductStrategyProductStrategyDefinition:ProductAproductisanythingthatcanbeofferedtoamarkettosatisfyawantorneed.Thiscaninclude:physicalgoods,services,experiences,events,places,properties,organizations,information,andideas.ProductStrategyCustomersusuallyjudgeproductsonthreecriteria:•Productfeaturesandquality•Servicesmixandquality•PriceappropriatenessProductStrategyCustomerValueHierarchy:Whenproductsaredeveloped,fivelevelsofvalueoftenareconsidered:1.Corebenefit2.Basicproduct3.Expectedproduct4.Augmentedproduct5.PotentialproductProductStrategyCorebenefit:product’sfundamentalserviceorbenefitoffered.Basicproduct:productderivedfromthecorebenefit.Expectedproduct:productwithallofitsattributesandconditionsexpectedbycustomers.Augmentedproduct:productwithallofitsattributesandconditionsthatexceedcustomerexpectations.Potentialproduct:productduringandafteralloftheaugmentationsandtransformationsthatmightoccurinthefuture.ProductStrategyProductClassifications:Marketersusuallyclassifyproductsonthebasisofthreecharacteristics:•Durability•Tangibility•Consumer/industrialuseProductStrategyDurability:product’susefullife.Tangibility:aproduct’sdegreeofsubstantive-nessConsumer/Industrialuse:whousesit,consumersorbusinessesProductStrategyOtherimportantmarketingconsiderationsinclude:•Packaging•Labeling•WarrantiesandguaranteesProductStrategyPackaging:Severalfactorshavehelpedpackagingbecomeimportanttomarketers.Theyinclude:•Self-servicenaturalofmostretailstores•Consumeraffluenceandthewillingnesstopayalittlemore•Theimportanceofcompanybrandsandimages•OpportunitytoinnovateProductStrategyPackagingmustachieveanumberofobjectives,including:•Identifythebrand•Communicatedescriptiveandpersuasiveinfo•Facilitateproducttransportationandprotection•Assistinhomestorage•AidinproductconsumptionProductStrategyAllpackagingelementsmustfitproductpricing,advertising,andothermarketingactivities.Testingpackagingelementsbeforemakingtheproductavailableforsalehasbecomeanormalandnecessaryactivityforbusinesses.ProductStrategyLabeling:Allpackagedproductsrequirelabels.Labelsperformseveralimportantfunctions:•Identifytheproductand/orbrand•Describetheproduct•PromotetheproductProductStrategyLabelsusuallyarenoteternal.Asgenerationspassandsocietieschange,labelsoftenneedtochangedorupdatedinordertocontinueattractingcustomers.ProductStrategyWarrantiesandguarantees:Awarrantyisaformalstatementofexpectedproductperformancebythemanufacturer.Theyarelegallyenforceable.Aguaranteeisapromisetoreduceperceivedriskandprovideassurancethattheproductisdependable.ProductStrategyOfferingwarrantiesandguaranteescanhelpmarketaproduct.Ifextraorextendedwarrantiesareofferedinexchangeforasmallfee,theycanbeprofitabletoo.However,becareful.Overpromisingandunderdeliveringthroughwarrantiesandguaranteescanbeabigmoneyloser.ProductStrategyNewProductsWhatisanewproductforacompany?Itisaproductthathasbeenacquiredfromanothercompanyordevelopedbythecompanyitself.ProductStrategyNewProducts:SixCategories•New-to-the-worldproducts•Newproductlines•Additionstoexistingproductlines•Improvementsandrevisionstoexistingproducts•Re-positioning•CostreductionsProductStrategyMostnewproductsfail.Reasons:•Market/marketingfailure(smallsizeofthepotentialmarket,noclearproductdifferentiation,poorpositioning,misunderstandingofcustomerneeds)•Financialfailure(lowinvestmentreturn)•Timingfailure(toolateortooearly)•Technicalfailure(productdidnotwork,baddesign)•Organizationalfailure(didnotfitwellwithorganizationalculture,lackofsupport)•Environmentalfailure(governmentregulations,macroeconomicfactors)ProductStrategyNewproductdevelopment,stages:1.Ideageneration2.Ideascreening3.Conceptdevelopmentandtesting4.Marketingstrategydevelopment5.Businessanalysis6.Productdevelopment7.Markettesting8.CommercializationProductStrategyMostproductshavelifespans,meaningtheycanbemarketableforweeksordecades,butatacertainpointintimeinthefutureconsumerswillnolongerbeinterestedintheproductandbuyit.Theselifespansoftenarereferredtoastheproductlifecycle.Howacompanypositionsanddifferentiatesaproductduringthislifespanshouldchangeovertime,dependingatwhichlifecyclestagetheproducthasentered.ProductStrategyProductLifeCycleStages:1.Introductionstage2.Growthstage3.Maturitystage4.DeclinestageProductStrategyAproduct’slifecyclestageoftenwillhelpdeterminewhatwouldbethebestmarketingobjectivesandstrategiestofollow.Thefollowingtablesgiveinformationandsuggestionsaboutproductsateachlifecyclestage.ProductStrategyCharacteristicsIntroductionGrowthMaturityDeclineSalesLowsalesRapidlyrisingsalesPeaksalesDecliningsalesCostsHighcostpercustomerAveragecostpercustomerLowcostpercustomerLowcostcustomerProfitsNegativeRisingprofitsHighprofitsDecliningprofitsCustomersInnovatorsEarlyadoptersMiddlemajorityLaggardsCompetitorsFewGrowingnumberStablenumberbeginningtodeclineDecliningnumberProductStrategyMarketingObjectivesIntroductionGrowthMaturityDeclineCreateproductawarenessandtrialMaximizemarketsizeMaximizeprofitwhiledefendingmarketshareReduceexpenditureandmilkthebrandProductStrategyStrategiesIntroductionGrowthMa