Presentation on theme: "Marketing for MOST Module 07 – Product Strategies"— Presentation transcript:
1Marketing for MOST Module 07 – Product Strategies 技術経営コンソーシアム開発担当者 ：Ritsumeikan Asia Pacific University 教授: Takamoto, Akihiro更新日 October, 2003
2Product Strategies What is a Product Product Classification Product StrategyBrandingBrand / Product PositioningServiceIntangible ProductsProduct Life CycleInnovationPractice
3Reaching a clear understanding of what a product is, is essential What is a ProductReaching a clear understandingof what a product is,is essentialto the deep understandingofMarketing.
4What is a Product A Product is more than a tangible thing. It is not merely manufactured goods.A Product is more than a simple set of tangible features.
5What is a ProductAn automobile is not simply a tangible machine for movement, visibly or measurably differentiated by design, size, color, options, horsepower, or miles per gallon.It is also a complex symbol denoting status, taste, rank, achievement, and aspiration.
6But the customer buys even more than these. What is a ProductBut the customer buys even more than these.The enormous efforts of the auto companies to cut the time between placement and the delivery of an order and to select, train, supervise, motivate, and enhance their dealerships suggest that these too are integral parts of “the product” people buy and are therefore ways by which they may be differentiated.
7What is a ProductIn the same way a computer is not simply a machine for data storage, processing, calculation, or retrieval.It is also an operating system with special software protocols for use and special accompanying possibilities for and promises of maintenance and repair.
8Products are problem-solving tools. What is a ProductPeople buy products (whether purely tangible products, purely intangible products, or hybrids of the two)in order to solve problems.Products are problem-solving tools.
9a complex cluster of value satisfactions. What is a ProductA product is, to the potential buyer,a complex cluster of value satisfactions.
10What is a Product The ‘product’ is what the product does; it is the total package of benefitsthe customer receives when he buys
11What is a ProductThe dots inside each ring represent specific activities or tangible attributes. For example, inside the “Expected Product” aredelivery conditions, installation services, post-purchase services, maintenance, spare parts, training,packaging convenience, and the like.
12What is a Product The “generic product” is the rudimentary substantive “thing”without which there is no chance toplay the game of market participation.For the steel producer it is the steel itself.In the case of a bank, it is loanable finds.For a realtor, it is “for sale” properties.For a retailer it is a store with a certain mix of vendables.For a lawyer it’s having passed the bar exam.
13What is a ProductThe previous figure represents the “expected product” as everything inside the smallest circle,including the “generic product.”This represents the customer’s minimal expectations.Though these vary by customers, conditions, industries, and the like, every customer has minimal purchase conditions that exceed the generic product itself.
14The “augmented product” offers the customer What is a ProductThe “augmented product” offers the customermore than they think they needor have become accustomed to expect.
15What is a ProductThe “potential product” consists of everything potentially feasible to attract and hold customers.Whereas the “augmented product” means everything that has been or is being done, the “potential product” refers to what may remain to be done, that is, what is possible.
16The 3 Levels of Product according to P. Kotler: What is a ProductThe 3 Levels of Product according to P. Kotler:
17Product Classification Classification of a Product
19Product Classification Product Classification by the ratio oftangible and intangible components.Examples:Air TicketsSightseeing TourMedicareMusic ConcertSoapClothesCarsTV’sRestaurantComputerPurelyTangibleMostlyTangibleHalf and HalfMostlyIntangiblePurelyIntangible
21Product Strategy Product Line Decision Product Line Filling Product line stretchingDownwardUpwardBoth directionsProduct Line Filling
22Product Strategy DOWNWARD STRETCHING High PRICE Low PRODUCT BENEFIT
23Product Strategy UPWARD STRETCHING High PRICE Low PRODUCT BENEFIT Low
24Product Strategy TWO-WAY STRETCHING High PRICE Low PRODUCT BENEFIT Low
25Product Strategy PRODUCT LINE FILLING High PRICE Low PRODUCT BENEFIT
26Product Strategy PRODUCT MIX DECISIONS Product A Product B Product C Product DLENGTHDEPTHWIDTH
27Brand StrategyA brand is a name, term, design, symbol, or other feature that identifies one seller’s good or service as distinct from those of other sellers.The legal term for brand is trademark.A brand may identify one item, a family of items, or all items of that seller.
28Brand Strategy A product is something that is made in a factory; A brand is something that is bought by a customer.A product can be copied by a competitor;A brand is unique.A product can be quickly outdated;A successful brand is timeless.Stephen King/WPP Group, London
29Brand StrategyThe Six dimensions of a brand according to Philip Kotler:Benefits (functional and emotional)AttributesUsesValuesPersonalityCulture
30Brand Strategy Brand Equity A set of brand assets and liabilities linked to a brand, its name and symbol, that add to or subtract from the value provided by a product or service to a firm and/or to that firms customers.(David Aarker)
37Brand/Product Positioning General Motors:“We make a car for every ‘person, purse, and personality’ ”Chrysler:“Advantage: Chrysler”Ford:“Quality is job one”Mazda:“Just feels right”
38Brand/Product Positioning Jaguar:“A blending of art and machine”Saab:“The most intelligent car ever built”Lincoln Town Car:“What a luxury car should be”Bentley:“The closest a car can come to having wings”
39Brand/Product Positioning Mercedes:“Engineered like no other car in the world”BMW:The ultimate driving machine“Our cars are not made to offer something to everyone but something more to some.”
46Service What is a Service? A service is any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything.
47Service SERVICE 4 Characteristics of Service: Variable Perishable InseperableIntangible
48Service Service intangibility: A major characteristic of services—they cannot be seen, tasted, felt, heard, or smelled before they are bought.
49Service Service inseparability: A major characteristic of services—they are produced and consumed at the same time and cannot be separated from their providers, whether the providers are people or machines.
50Service Service variability: A major characteristic of service—their quality may vary greatly, depending on who provides them and when, where, and how.
51Service Service perishability: A major characteristic of services—they cannot be stored for later sale or use.
52ServiceThree Levels of Service:ProactiveReactivePrimary
53Intangible Products People Organisation Place Nation University OrchestraThere is nothing towhich the principlesof Marketing cannot be applied!
54Intangible Products“Everyone is living by selling something. Life is selling; Selling is Life”If that is true, why don’t you master marketing that is far more powerful than selling?(Aki Takamoto)
61Product Lifecycle Question: Find examples corresponding to various P.L.C lifecycles.Show some other patterns of P.L.C.
62Innovation Innovation Defined: According to Webster: A new idea, method or device a noveltyAccording to KuczmarskiA mindset, a pervasive attitudeOr a way of thinking focused beyond the present into the future.Source: Innovation, Thomas D Kuczmarski, American Marketing Association, 1995
63InnovationSource: Innovation, Thomas D Kuczmarski, American Marketing Association, 1995
64InnovationSource: Innovation, Thomas D Kuczmarski, American Marketing Association, 1995
65InnovationSource: Innovation, Thomas D Kuczmarski, American Marketing Association, 1995
66InnovationSource: Innovation, Thomas D Kuczmarski, American Marketing Association, 1995
67InnovationInnovation Evaluation and Screening Questions according to T.D. KuczmarskiStrategic ScreensFit with Strategic ObjectivesExploits Internal StrategiesSource of Competitive AdvantageConsumer ScreensNeed IntensityUniqueness / DifferentiationFinancial ScreensSize of OpportunityImpact on existing businessReturn PotentialSource: Innovation, Thomas D Kuczmarski, American Marketing Association, 1995
68InnovationInnovation Evaluation and Screening Questions according to T.D. KuczmarskiStrategic ScreensFit with Strategic ObjectivesExploits Internal StrategiesSource of Competitive AdvantageConsumer ScreensNeed IntensityUniqueness / DifferentiationFinancial ScreensSize of OpportunityImpact on existing businessReturn PotentialSource: Innovation, Thomas D Kuczmarski, American Marketing Association, 1995
69InnovationInnovation Evaluation and Screening Questions according to T.D. KuczmarskiStrategic ScreensFit with Strategic ObjectivesExploits Internal StrategiesSource of Competitive AdvantageConsumer ScreensNeed IntensityUniqueness / DifferentiationFinancial ScreensSize of OpportunityImpact on existing businessReturn PotentialSource: Innovation, Thomas D Kuczmarski, American Marketing Association, 1995
71Innovation Discipline of Innovation (Peter Drucker)Entrepreneurship refers to a certain type of activity:INNOVATIONInnovation – the effort to create a purposeful focused change.
72Innovation Innovation Opportunities within a company Unexpected occurrences – Rogaine, heart medicineIncongruities – growth of e-business & no profits (consulting)Process needs – efficiency;Industry and Market changesFurther Innovation OpportunitiesDemographic Changes – baby boomers, retirement homes etc.Changes in Perception – 4 wheel drive, perception is now that many people need it, previously few people felt the need.New Knowledge – superstars, but a small % of new business.Peter Drucker
73PracticeRead the comments made by APU Students on Brand, Product and Service and discuss themWhat are your comments in relation to the contents of this module?